What Is Social Value?

Social value refers to the positive impact that businesses and suppliers create for society beyond the core services they provide. In public sector procurement, it ensures that government contracts not only meet immediate needs but also deliver long-term benefits for communities, the economy, and the environment.

Public sector buyers assess social value to determine how suppliers contribute to broader societal goals, such as:

• Economic Growth – Supporting local businesses, creating jobs, and strengthening regional economies.
• Social Inclusion – Promoting diversity, offering opportunities to disadvantaged groups, and ensuring fair employment practices.
• Environmental Sustainability – Reducing carbon footprints, adopting green practices, and contributing to climate action.
• Community Benefits – Engaging in volunteering efforts, providing training programmes, and supporting education initiatives.

By incorporating social value, public sector spending moves beyond fulfilling short-term requirements—it becomes an investment in long-term, sustainable progress.

Why Social Value Matters in Public Procurement

Social value is no longer just a nice-to-have—it’s a key requirement in many government contracts. Since the introduction of the Public Services (Social Value) Act 2012, public bodies are required to consider the wider social, economic, and environmental impact of their purchasing decisions.

As a result, procurement decisions now go beyond price and quality alone. Public sector buyers actively seek suppliers who can demonstrate their contribution to social value, such as:

• Creating local employment opportunities and supporting skills development.
• Helping disadvantaged communities by providing inclusive hiring practices or community outreach initiatives.
• Driving sustainability efforts by reducing waste, lowering emissions, or adopting greener supply chains.

For businesses looking to secure public sector contracts, demonstrating a strong social value proposition can significantly improve their chances of winning bids.

How to Incorporate Social Value in Your Bids

To stand out in the bidding process, suppliers must showcase measurable social value initiatives. Here’s how to effectively highlight your impact:

1. Align With Public Sector Goals
   Research the specific priorities of the contracting authority. Whether they focus on reducing unemployment, increasing apprenticeships, or cutting carbon emissions, tailor your bid to reflect these objectives.
   
   
2. Demonstrate Clear and Measurable Impact
   Public sector buyers favour quantifiable contributions. Instead of vague commitments, provide concrete examples:
   
   • "We will create 10 new apprenticeship roles within the local community."
   • "Our sustainability initiative will reduce carbon emissions by 25% over the contract period.
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3. Leverage Technology for Greater Efficiency
   Innovation can enhance social value delivery. For instance, AI-powered tools can streamline processes, reduce waste, or improve accessibility for underrepresented groups. Highlight how your technological solutions add value beyond the core contract requirements.
   
   
4. Showcase Your Track Record
   Provide case studies or testimonials demonstrating how your business has successfully delivered social value in previous contracts. This builds credibility and reassures buyers of your commitment.
   
   
5. Engage With the Community
   Beyond direct service delivery, think about how your organisation supports broader social initiatives. Volunteering programmes, charity partnerships, and educational outreach efforts can strengthen your bid.
   

Key Takeaway: Social Value Can Make or Break Your Bid

Social value typically accounts for 10%-20% of a bid evaluation score. While it may not be the sole deciding factor, failing to address it can cost you valuable points—potentially causing you to lose out on a contract.

By embedding social value into your business operations and clearly demonstrating its impact in your bids, you position yourself as a responsible, forward-thinking supplier. This not only increases your chances of securing public sector contracts but also enhances your organisation’s reputation in the marketplace.

Why Social Value Matters in Public Sector Procurement

Social value is a key factor in public sector contracts, influencing communities, the workforce, and the economy. Demonstrating how your business contributes to wider societal goals can set you apart and improve your chances of winning contracts.

With social value often accounting for 10%-20% of tender evaluation criteria, it’s an essential component that should not be overlooked.

Key Areas of Social Value

• Supporting Local Employment – Show how your business helps people find work, particularly those facing barriers such as long-term unemployment, young people, or individuals with disabilities.
• Diversity and Inclusion – Public sector buyers value suppliers that actively promote equal opportunities and fair hiring practices.
• Skills and Training – Offering apprenticeships or skills development programmes demonstrates your commitment to long-term workforce growth.
• Sustainability – Implementing green practices, such as reducing waste and supporting remote work, positions your company as environmentally responsible.

How to Incorporate Social Value in Your Bids

To succeed in public sector procurement, clearly communicate your social value impact. Follow these key steps:

1. Identify Your Contributions

Start by assessing your existing social value initiatives. Common areas include:
Local hiring – Prioritising recruitment from the local area.
Diversity programmes – Actively improving workforce representation.
Environmental efforts – Implementing sustainability measures like waste reduction and carbon footprint minimisation.

2. Align With Public Sector Goals

Tailor your bid to match the contracting authority’s social value priorities. For example:

• If the buyer prioritises local job creation, explain how your business will support jobseekers.
• If diversity and inclusion are key focus areas, highlight your track record in promoting equal opportunities.

3. Provide Measurable Outcomes

Public buyers want clear, quantifiable results. Be specific about your commitments and how you will measure progress. For example:

• “We will create 15 new apprenticeships for local jobseekers within the contract period.”
• “Our hiring strategy aims to increase workforce diversity by 20% over two years.”
• “By adopting a paperless system, we will reduce office waste by 40%.”

4. Use Case Studies

Demonstrate past success with real examples. Case studies showing measurable impact—such as increased local employment or improved diversity—can strengthen your bid.

5. Commit to Continuous Improvement

Public sector buyers prefer suppliers who plan to enhance their social value initiatives over time. Outline your long-term commitment, such as expanding local hiring efforts or launching new sustainability projects.

Examples of Social Value in Action

1. Supporting Local Employment

A construction firm working on a local authority framework hires 70% of its workforce locally. They partner with training providers to offer apprenticeships and upskill long-term unemployed individuals.

2. Promoting Diversity and Inclusion

A technology consultancy increases its workforce diversity by 15% in two years through targeted outreach and mentorship programmes for underrepresented groups.

3. Skills and Training Development

A manufacturing company offers apprenticeships for disadvantaged young people and provides free technical skills training.

4. Environmental Sustainability

A consulting firm reduces travel emissions by adopting remote working policies and cuts waste through a paperless office initiative.

Conclusion

Integrating social value into your bids is no longer optional—it’s essential. By demonstrating your commitment to local employment, diversity, and sustainability, you enhance your credibility and align with public sector priorities.

A well-structured social value strategy helps you stand out as a responsible, forward-thinking partner, improving your chances of winning contracts and making a lasting impact on society.