How To Create A Social Value Policy

A social value policy is a strategic document that outlines how your organisation delivers societal and environmental benefits while achieving business objectives. It aligns operational goals with broader community and environmental impacts, making a statement of intent about your company’s commitment to creating shared value. This policy demonstrates to clients, suppliers, employees and communities that your organisation prioritises societal well-being.

Given the growing importance of social value in procurement and corporate responsibility, a well-crafted policy can set your organisation apart, open doors to new opportunities and create lasting positive impacts.

In this guide, we will explore the key components of a social value policy and provide actionable steps for creating one.

What Is A Social Value Policy?

A social value policy outlines your organisation’s commitment to delivering benefits that extend beyond economic returns. These benefits typically align with environmental sustainability, community development and ethical practices.

Such policies are often structured around existing frameworks like the UK’s Social Value Act 2012, which requires public sector bodies to consider social, economic and environmental benefits when procuring services. Key components might include:

• Environmental sustainability: Reducing carbon footprints or promoting renewable energy adoption.
• Community development: Supporting local employment, education, or housing initiatives.
• Ethical supply chains: Encouraging fair labour practices and diversity in procurement.

The policy serves as a blueprint for embedding these priorities into the organisation’s core operations.

Related Reading: Ensuring Social Sustainability: Key Questions for Your Supply Chain

Why Is A Social Value Policy Important?

1. Enhancing Procurement Success

Increasingly, public and private buyers favour organisations with clear social value initiatives. A well-structured policy demonstrates your commitment to environmental, social and governance (ESG) goals and can boost success in competitive bidding.

Strengthen your bids by integrating a social value policy that addresses ESG concerns. Stand out by showcasing your commitment to sustainability with an independently verified report from Veriforce CHAS. Get Verified with CHAS Today.

2. Strengthening Brand Reputation

A strong policy signals commitment to societal goals, building trust among stakeholders and enhancing your organisation’s image.

3. Achieving Organisational Alignment

A well-communicated policy ensures all departments work toward shared goals, encouraging a cohesive strategy.

4. Attracting Ethical Partnerships

Companies and organisations looking to collaborate will often prioritise partners with shared values, leading to more impactful collaborations.

Actionable Steps To Create A Social Value Policy

Step 1: Understand Your Audience And Objectives

Before drafting your policy, identify your audience:

• Audience: Who will be affected by your policy? Consider stakeholders like procurement teams, employees, customers and local community members.
• Objectives: Establish specific and measurable goals. For example, aim to increase local employment by 20% or reduce energy consumption by 30% within a defined timeframe.

Step 2: Align With Strategic Goals

Ensure your social value policy aligns with your broader organisational mission. For example:

• Highlighting green initiatives if environmental sustainability is a focus.
• Emphasising educational programs if talent development is a priority.

Step 3: Research Legal And Industry Standards

Familiarise yourself with:

• Relevant legislation, such as the Public Services (Social Value) Act 2012.
• Industry-specific best practices and standards. You may also want to review competitors’ policies and existing frameworks for insights.

Step 4: Define Key Areas Of Focus

Identify three primary dimensions:

• Economic: Support small businesses or create local job opportunities.
• Environmental: Commit to sustainable energy use and waste reduction.
• Social: Improve community well-being through programs such as scholarships or apprenticeships.

For example, a construction company might focus on hiring local workers and sourcing materials sustainably.

Drafting The Policy

1. Executive Summary

Begin with a compelling introduction summarising your organisation’s commitment to social value.

2. Objectives

List clear, evidence-based goals. For example:

• “Reduce plastic waste in operations by 40% by 2026.”
• “Support 200 hours of employee volunteering annually.”

3. Implementation Plan

Break this section into actionable components:

• Action Steps: Describe activities like organising community clean-ups or partnering with sustainable suppliers.
• Roles and Responsibilities: Clearly outline who will manage and monitor initiatives.

4. Monitoring And Reporting

Explain how progress will be tracked:

• Use metrics like the number of local suppliers engaged or energy saved.
• Commit to transparent reporting through quarterly updates or annual reports.

5. Case Studies

Include examples of past successful initiatives. Case studies lend credibility and showcase your organisation’s ability to deliver on commitments.

Engaging Stakeholders

Social value creation is a collaborative effort. To gain buy-in:

• Engage Internal Stakeholders: Host workshops or discussions to gather input from workers and leadership.
• Consult External Stakeholders: Work with community groups or industry bodies to ensure the policy reflects shared goals.

Promoting The Policy

A social value policy is only impactful if widely understood and accessible. Strategies include:

• Publishing the policy prominently on your website.
• Training workers to integrate its principles into their daily work.
• Sharing progress and success stories in newsletters or annual reports.

Example Social Value Policy Template

1. Introduction

“Our organisation is committed to creating sustainable, inclusive and ethical practices in all operations.”

2. Objectives

“We aim to:

1. Reduce carbon emissions by 20% by 2025.
2. Support 100 apprenticeships annually in underserved communities.”

3. Commitments

“Our social value initiatives include:

• Partnering with local SMEs for 40% of procurement needs.
• Launching employee-led community projects in five regions.”

4. Measurement

“We will track progress through quarterly reports, sharing results with stakeholders via public updates.”

Related Reading: The Growing Role Of Social Sustainability Throughout The Construction Supply Chain

Common Pitfalls In Social Value Report Writing And How To Avoid Them

When crafting a social value report, presenting a balanced, transparent and impactful narrative is crucial. Avoiding common mistakes ensures your report is credible, meaningful and well-received by stakeholders. Below are some of the most common mistakes and how to avoid them:

1. Focusing Purely On Financial Values

While assigning monetary value to social impacts is a useful metric, overemphasis on financial data can reduce complex social contributions to mere numbers.

Avoid this by:

• Including qualitative data, such as testimonials or case studies, to illustrate human impact.
• Highlighting non-monetary achievements like enhanced community trust or environmental restoration.

2. Exaggerating Figures And Success

Inflated claims risk scrutiny and can damage your organisation’s credibility.

Avoid this by:

• Using verifiable data supported by clear methodologies.
• Including both successes and areas for improvement to maintain a balanced perspective.

3. Making Reputation-Damaging Claims

Bold statements that cannot be substantiated can harm your business’s reputation.

Avoid this by:

• Avoiding hyperbole or unverifiable declarations. For instance, claiming to “eliminate poverty” might be unrealistic, whereas “reducing unemployment in specific communities by X%” is measurable and credible.

4. Prioritising Outputs, Not Outcomes

Reports often focus on what was done (outputs), such as hosting events, rather than the results achieved (outcomes), such as increased employment or reduced waste.

Avoid this by:

• Emphasising outcomes and explaining how your initiatives led to meaningful change.
• Using outcome-based KPIs, such as “percentage increase in local employment rates” rather than just “number of jobs advertised.”

5. Overlooking Stakeholder Perspectives

Failing to engage stakeholders can result in reports that miss key community needs or priorities.

Avoid this by:

• Consulting with stakeholders during the reporting process.
• Including quotes or insights from beneficiaries, employees, or partners to enhance authenticity.

By recognising and addressing these pitfalls, you can create a social value report that demonstrates your organisation’s achievements and builds trust and transparency with your audience.

A social value policy is a strategic asset that defines your organisation’s contribution to society. By following this guide, you can create a policy that enhances your organisation’s reputation, secures competitive contracts and leaves a positive legacy.

Take this opportunity to lead in embedding social value into your operations, driving measurable impacts that resonate with stakeholders and communities alike.

Ensuring your social value initiatives are supported by verified, transparent reporting is crucial. By joining CHAS, you can access our comprehensive Environmental, Social and Governance (ESG) services, providing a valuable way to gain social impact verification and add credibility to your efforts. Discover more about our offerings on our CHAS ESG service page.