In the first of our Social Value Matters series, Loop’s social value engagement Lead, Will Campbell, was joined by Sarah Ottaway, sustainability and social value lead at Suez, Sophie Priest, social value manager at CBRE, and Peter Masonbrook, head of social value for UK and Europe at AtkinsRéalis, to explore the growing importance of social value for organisations.
Led by Tom Snee, director at Cartwright Communications, the discussion provided valuable insights into how businesses of all sizes can integrate social value into their operations in a meaningful and sustainable way.
The conversation covered key themes, including common misconceptions about social value, balancing social impact with financial priorities and practical steps businesses can take to embed these principles into everyday operations. The panel also highlighted the importance of measuring and reporting social value, ensuring transparency and accountability to stakeholders.
Understanding social value
At its core, social value refers to the social, environmental and economic impact an organisation has beyond financial performance. Many businesses are already creating social value without realising it, whether through hiring local talent, offering apprenticeships, encouraging staff volunteering, or working to reduce carbon emissions. However, without clear measurement and reporting, these efforts often go unrecognised.
Social value is about making a tangible difference to people and communities, but it also extends further too. Environmental responsibility, economic growth and sustainable procurement all play a crucial role. While many businesses view social value as a ‘nice-to-have’, the reality is that it is becoming an essential part of doing business in an increasingly conscious and competitive market.
Why social value matters to businesses
Since the introduction of the Social Value Act more than a decade ago, social value has evolved from a public sector requirement to a wider business imperative. What was once perceived as a box-ticking exercise is now a key driver for business success. Organisations that actively incorporate social value into their core strategies are seeing benefits in talent attraction, customer trust and competitive advantage.
A recent Deloitte survey found that 86% of Gen Z and 89% of millennials consider having a sense of purpose at work important for job satisfaction and well-being. This shift in workforce expectations means that social value is no longer an optional add-on but a fundamental expectation. Businesses that align their objectives with social impact will not only attract top talent but also strengthen their brand and build customer loyalty.
From a commercial perspective, social value can also provide a competitive edge. Many clients and customers now prioritise working with organisations that demonstrate a commitment to social and environmental responsibility. Procurement and compliance regulations increasingly demand clear social value commitments, and failing to meet these expectations can lead to reputational damage and missed opportunities.
Overcoming misconceptions about social value
A common misconception is that only large corporations have the resources to deliver meaningful social value. In reality, small and medium-sized enterprises (SMEs) can often have a more immediate and profound impact by embedding social value into their day-to-day activities. A small construction firm that hires and sources materials locally or a tech start-up that supports a local charity can make a significant difference in their communities.
Another challenge is the belief that social value is too subjective to measure accurately – but in reality it’s too important to not ensure that accuracy. While it can be complex, advancements in technology and reporting frameworks have made it possible to quantify impact in line with government guidance and best practices. Measuring social value effectively allows businesses to track their progress, demonstrate their impact to stakeholders and refine their strategies for greater effectiveness.
There is also a misconception that social value is solely about community initiatives. While people and communities are a key focus, social value encompasses much more, including environmental impact, carbon emissions, waste reduction and supply chain sustainability. A broader perspective ensures that organisations consider the full scope of their impact and opportunities for improvement.
Embedding social value into business strategy
For organisations looking to integrate social value into their business strategy, the first step is understanding their current position. Conducting an internal audit, engaging with stakeholders, and assessing evolving expectations can help shape a clear and realistic approach. Leadership buy-in is also crucial, as embedding social value requires commitment at every level of an organisation.
Setting realistic, measurable goals is key to ensuring long-term success. Rather than making ambitious but unachievable promises, businesses should focus on integrating social value into procurement processes, five-year plans and corporate objectives.
One of the biggest challenges organisations face when embedding social value is ensuring that their efforts go beyond just compliance. There is a growing concern around greenwashing, where businesses overstate or misrepresent their sustainability initiatives to appear more socially responsible than they are.
Rather than focusing on genuine, measurable impact, some organisations use vague language or unverified claims to enhance their reputation without making real change. To avoid this, businesses must prioritise transparency, ensuring that social value efforts are backed by tangible outcomes and clear data.
By using credible tools to measure and report progress, organisations can demonstrate meaningful impact rather than just good intentions, building trust with stakeholders and reinforcing their commitment to real societal change.
The risks of neglecting social value
In an increasingly competitive landscape, failing to prioritise social value carries significant risks. Financially, businesses that do not meet social value commitments may lose out on funding or contracts. Reputationally, organisations that do not align with societal expectations may struggle to attract customers, employees and investors. Contractual and performance risks also come into play, as procurement processes now require clear and demonstrable social value initiatives.
With changes to procurement legislation under the Procurement Act 2023, organisations must stay informed and adapt to evolving requirements. Sophie Priest highlighted that new procurement notices will reflect significant updates to the social value model within public sector contracts. While changes may take time to be fully implemented, organisations that proactively align with these developments will be best positioned for long-term success.
Ensuring social value is more than just a box-ticking exercise
To ensure social value efforts go beyond rhetoric, organisations must focus on transparency and accountability. Rather than simply ticking boxes, businesses should showcase real impact through storytelling and data-driven reporting.
Peter Masonbrook emphasised the importance of demonstrating outcomes rather than just commitments. While traditional reporting often focuses on numbers and return on investment, real impact is best illustrated through personal stories and tangible changes in local communities.
By embedding social value into business operations, organisations can create lasting, meaningful change while also strengthening their competitive position. As the landscape continues to evolve, staying ahead of regulatory requirements and societal expectations will be key to long-term success.
Measuring and reporting social value
The measurement of social value remains a significant challenge, with 25% of webinar attendees citing ‘difficulty in tracking impact’ as the biggest barrier to implementation. This can lead to concerns around greenwashing, where companies overstate their efforts without tangible proof of change.
Using platforms such as Loop can help organisations overcome this barrier by providing credible, defensible measurements aligned with government guidance and the HM Treasury Green Book. By leveraging technology and adopting a structured approach to reporting, businesses can move beyond superficial commitments and demonstrate meaningful, measurable contributions to society, reinforcing trust with stakeholders and ensuring their efforts create lasting impact.
Sarah Ottaway added that at Suez, Loop is used to capture a more comprehensive picture of social value across multiple sites, drilling it down to a regional level. She explains how Loop allows Suez to capture data beyond what they would normally collect to provide a complete picture. This can then be shared with each employee so they can see just how much they have contributed, allowing transparency and engagement from the get-go and ensuring that all efforts are recognised and measured effectively.
Using tools to measure social value not only helps track progress but also highlights areas for improvement by providing a comprehensive view of both positive and negative impacts. For example, these tools can reveal your organisation’s carbon footprint, allowing you to take targeted action to reduce emissions. By identifying and addressing these areas, businesses can implement meaningful changes rather than relying on surface-level claims.
By embedding social value into business operations, organisations can create lasting, meaningful change while also strengthening their competitive position. As the landscape continues to evolve, staying ahead of regulatory requirements and societal expectations will be key to long-term success.
Watch the full webinar to hear more insights from industry experts now and sign up to attend our next webinar in the Social Value Matters series.
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