To effectively create social value as part of the procurement process and ongoing contract management, its key that we combine the themes of social benefit (Environmental, Economic, Social) into the stages of the procurement cycle.
Picture it as a more enhanced procurement cycle with each stage being as socially aware as possible. The foundations of each stage of the procurement will remain the same but we place an additional focus and emphasis on social value. The best way to do this is to embed the 7 principles of social value.
Social Value International have developed the basic building blocks and tools for businesses or individuals who decide the incorporate social value into account. These principles are universal and can be used in all sectors and industries. These principles reinforce the use of social value and can be used to influence business decisions. Applying these Principles will require you to make certain decisions that maybe be challenging at times as it makes your company more accountable for you and your supply chain.
These are the principles via Social Value International.
- Involve stakeholders – Inform what gets measured and how this is measured and valued in an account of social value by involving stakeholders.
- Understand what changes – Articulate how change is created and evaluate this through evidence gathered, recognising positive and negative changes as well as those that are intended and unintended.
- Value the things that matter – Making decisions about allocating resources between different options needs to recognise the values of stakeholders. Value refers to the relative importance of different outcomes. It is informed by stakeholders’ preferences.
- Only include what is material – Determine what information and evidence must be included in the accounts to give a true and fair picture, such that stakeholders can draw reasonable conclusions about impact.
- Do not over-claim – Only claim the value that activities are responsible for creating.
- Be transparent – Demonstrate the basis on which the analysis may be considered accurate and honest and show that it will be reported to and discussed with stakeholders.
- Verify the result – Ensure appropriate independent assurance.
- Be responsive – Pursue optimum Social Value based on decision making that is timely and supported by appropriate accounting and reporting.
Discover how you can embed social value into your procurement process by purchasing our CPD accredited online training course – Adding Social Value – How Procurement Can Create Benefits for Society”.