What does social value really mean, and why does it matter?

When we talk about ‘good business’ it’s easy to default to ideas about profit, productivity, and growth targets. But increasingly, there’s a broader expectation: that organisations must create social value – that is tangible, positive impact on communities, society, and the environment.

This isn’t a tokenistic extra or a bolt-on to satisfy a procurement checklist. It’s about purpose beyond profit and thinking differently about what success looks like.

What is social value?

At its heart, social value is about the net benefit an organisation brings to society. You could think of it as the return on investment for every pound generated: not just for shareholders, but for employees, suppliers, local communities, and the planet.

For some, this idea grew out of public sector procurement. In places like Preston, redirecting public spending towards local suppliers increased spending in the local economy from £38 million to £111 million in just four years. That shows the potential power of embedding social value in decision-making.

But it’s not only the public sector that can do this. Businesses of all sizes and across all sectors can adopt this mindset. When you look beyond the bottom line and consider your broader impact, you unlock opportunities for innovation, resilience, and long-term success; you also demonstrate your commitment to your community, which can bring long-lasting benefits to your business.

Social value, social justice, and diversity: three sides of the same (weird three-sided) coin

Social value doesn’t exist in isolation. It’s inextricably linked with social justice (the fair distribution of wealth, opportunities, and privileges), and diversity (the recognition and celebration of difference).

I often describe these as three sides of the same coin:

• Social value is the broader contribution to society: creating good jobs, supporting growth, protecting the environment, and investing in communities.

• Social justice asks harder questions about who benefits from that value, and whether the doors are open to everyone. Are some people systematically left out?

• Diversity is about recognising the characteristics and life experiences that shape our opportunities and challenges. That might include race, disability, gender, sexuality, or something as simple as the accent you grew up with.

A socially responsible business understands these intersections. It doesn’t treat “giving back” as a charitable side project, but as a strategic commitment woven through everything it does.

Moving beyond rhetoric: making social value real

In practice, there are two elements to delivering social value:

1. Meaningful change
   Embedding social value into your strategy, operations, and culture, so that it drives lasting improvements for people and places.

2. Evidencing and communicating
   Capturing and sharing your impact, so you can meet procurement requirements, attract investment, and inspire others.

Sometimes, businesses excel at the second without much substance behind it. Others do fantastic work but don’t shout about it enough. True leadership is, of course, aligning both.

There’s an enormous opportunity here: to use supply chains as socio-economic pipelines, transforming how money circulates in local economies. For example, rather than awarding contracts to the same established suppliers year after year, businesses can intentionally create space for diverse and underrepresented companies to bid and grow.

This could mean breaking large contracts into smaller lots, adjusting insurance or experience requirements, and engaging directly with new suppliers. It takes more effort, but it’s often the difference between maintaining the status quo and driving real change.

What can businesses do?

No matter your size or sector, there are practical ways to build social value into your operations. Here are a few examples:

• Recruit inclusively. As an example, offer opportunities to people leaving the criminal justice system or those who have experienced long-term unemployment.

• Buy local and diverse. The key here is to actively to go out and look for opportunities to work with small and local organisations (even if that takes a bit more effort from your side). Then break down barriers to help smaller and minority-owned businesses win contracts or contribute as part of a consortium.

• Engage with schools. Inspire young people with meaningful encounters that broaden their horizons.

• Donate time and skills. Support charities and community groups with pro bono help, mentoring, or board participation.

• Reduce carbon emissions and enable staff to make lower-carbon choices through guides and processes that embed climate action and make sure it is considered in decision-making

• Share space and resources. Offer meeting rooms or facilities to community groups if you have them.

Individually, these actions may feel modest. But together, they add up to a business that is truly connected with, and committed to, its community.

Looking ahead

Social value is much more than a trend or a tick-box exercise. It’s a mindset that challenges businesses to think differently about their purpose and their potential.

The question isn’t whether we can afford to invest in social value. It’s whether we can afford not to.

Give us a shout

If you’re ready to turn good intentions into meaningful action, On The Level can help. We work with organisations of all sizes to design bespoke projects that strengthen community ties, build trust, and deliver measurable social value. Whether you want to improve your supply chain diversity, engage underrepresented groups, or embed purpose into your strategy, we’re here to help your business make a genuine difference. Let’s have a chat about how you can be more deeply rooted in the communities that matter to you.