The Social Value Model emerged in response to the Covid-19 pandemic and the significant changes it brought. Over the years, it has proven to be a lasting and impactful framework.
In this article, we’ll cover everything you need to know about the Social Value Model – from its definition and importance to its key themes and implications for your business.
We’ll also explain how transformacy can assist your business in understanding and leveraging social value.
What is the Social Value Model?
The Social Value Model is a framework used by UK public bodies to evaluate the societal impact of businesses awarded procurement contracts.
Building on the Public Services (Social Value) Act of 2013, the Social Value Model became mandatory for all public bodies on January 1, 2021, for procurement decisions.
According to the Cabinet Office’s guidance, social value “should be explicitly evaluated in all central government procurement, where the requirements are related and proportionate to the subject-matter of the contract.”
The model focuses on measuring and maximising the positive impacts businesses create for society, considering criteria such as environmental impact, staff treatment, and effects on local communities. It shares similarities with ESG (Environmental, Social, and Governance) assessments.
Why is the Social Value Model Important?
The procurement activities covered by the Social Value Model represent hundreds of billions of pounds, a significant portion of the UK GDP.
Ensuring this money is spent on businesses that are environmentally responsible and treat their workers well can lead to substantial positive societal changes. It also presents significant opportunities for businesses across various sectors.
What Does the Social Value Model Mean for Your Business?
Incorporating the Social Value Model in central government procurement decisions means businesses that meet the evaluation criteria and demonstrate social value creation can gain a competitive edge.
If your business competes for government contracts, integrating social value into your operations is crucial.
Improving your business’s interaction with the environment and society can lead to benefits such as:
- Enhanced reputation
- Better community relationships
- Improved employee engagement and retention
- Long-term sustainability
- Additionally, focusing on social value can improve employee satisfaction and productivity.
Social Value Model Summary
The Social Value Model is comprehensive, with five themes, eight outcomes, and 27 criteria or questions.
For a detailed understanding, refer to the government’s Social Value Model quick reference table. Here, we’ll cover the basics and their implications for your business.
Key Themes and Aims
The five themes of the Social Value Model are:
- Covid-19 recovery
- Tackling economic inequality
- Fighting climate change
- Equal opportunity
- Wellbeing
Each theme has associated policy outcomes that clarify the themes and set targets, ranging from general goals like helping local communities recover from Covid-19 to specific aims like reducing the disability employment gap.
The Social Value Model also references existing government initiatives like the Good Work Plan and the Disability Confident employer scheme, promoting a holistic approach to creating social value.
Social Value Model Guidance: How transformacy Can Help
Understanding your business’s impact on people and the planet is crucial. Public bodies want to see that your business comprehends the importance of social value beyond just ticking evaluation criteria.
At transformacy, we can help you understand and integrate social value into your operations. Contact us to discuss the Social Value Model and its benefits for your business. Whether it’s implementing a social value policy, increasing your organisation’s social value, or measuring it, we’re here to help.
We hope this guide to the Social Value Model is helpful. Understanding social value is essential for navigating the procurement landscape and can provide significant benefits, including a competitive edge and improved societal impact. To learn more about the Social Value Model and how to leverage it, contact us today.
