What Is Social Value?

 

Social value is about understanding the relative importance that people place on changes to their wellbeing and using the insights we gain from this understanding to make better decisions. By taking this relative importance into account we can ensure that the decisions we make focus on what is valuable to people, and through this we can start to increase the positive and reduce the negatives effects and ultimately increase the overall value of our work.

The potential of social value goes further than just creating more value. By embedding a mindset where impact and social value are part of an organization’s culture, we can all work to optimize the value of our work – where decisions take account of a broader definition of value than just financial impacts, where the effects on people and planets are valued and included in how we make decisions, and where our activities can create the changes we need for a more sustainable planet and just society. 

So, in short, social value is about respecting people, listening to them, and using the insights to optimize value for both people and the planet; social value is about being more accountable to those people whose lives are affected; and social value is about making better decisions on how we allocate our resource.  

The Principles of Social Value guide how we do this – and this is perhaps what is most powerful about the ideas of social value. Embedded within The Principles is the commitment that when applied, they serve to amplify the voice of the stakeholders affected by decisions, by ensuring that stakeholders can inform us about the changes they have, or will, experience as a result of what we do, and how important these different changes are to them.

By asking those people affected how important the changes they experience are, we can understand the social value that our activities create, or destroy, for people. This means we can engage meaningfully with our stakeholders, so their voices are heard and ensure that they are empowered to influence decisions that affect their lives. It also helps decision makers to better understand where can use their resources to create more value.

“By embedding a mindset where impact and social value are part of an organization’s culture, we can all work to optimize the value of our work”

 Social value is about a movement of committed professionals around the world who can see a better future – one where social and financial value is accounted for – where people matter – and we focus on what is important to all of us!

  • Private Sector

    Social value is crucial for the private sector as it enhances brand reputation, fosters customer loyalty, and drives long-term profitability. By integrating social value into their business models, companies can differentiate themselves in competitive markets, attract and retain top talent, and respond to increasing consumer and investor demand for corporate social responsibility. Furthermore, businesses that prioritize social value can mitigate risks and identify new market opportunities that contribute to sustainable growth.

  • Public Sector

    For the public sector, social value is essential in ensuring that public spending delivers maximum benefits to communities. By prioritizing social value in procurement and policy-making, governments can improve public services, promote social inclusion, and address societal challenges such as inequality and environmental sustainability. Implementing social value strategies helps build trust with citizens, demonstrates accountability, and enhances the overall impact of public initiatives.

  • Social Entrepreneurs

    Social value is at the heart of social entrepreneurship, as these ventures aim to solve social problems through innovative business solutions. For social entrepreneurs, creating social value means achieving a positive social impact alongside financial sustainability. Emphasizing social value helps attract impact investors, gain community support, and build partnerships with stakeholders who share a commitment to social change. This focus ensures that their enterprises not only survive but thrive while making a meaningful difference.

  • Non Profit

    In the nonprofit sector, social value is fundamental to fulfilling organizational missions and demonstrating effectiveness to donors, beneficiaries, and the public. By measuring and communicating social value, nonprofits can showcase their impact, secure funding, and build credibility. A strong focus on social value enables nonprofits to align their programs with community needs, optimize resource allocation, and enhance their overall contribution to societal well-being. This approach ensures that their efforts lead to sustainable and scalable positive outcomes.

The Professional Pathway

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