Social value in business is about the positive impact a company creates for society and the community through its activities. It goes beyond making a profit — it’s about improving people’s lives and contributing to the overall wellbeing of our communities.

In the public sector and among large contractors, social value performance is increasingly a key factor when awarding contracts to private businesses. The Public Services (Social Value) Act 2012 allows local authorities to consider offers of additional community benefit — beyond core requirements — where these align with local priorities.

For example, Suffolk County Council sees social value as a way to maximise the ‘Suffolk £’, grow the local economy, improve the environment, and enhance health, wellbeing, and educational attainment.

It also makes good business sense: 70% of employees say they wouldn’t work for a company without a strong purpose, and customers are four times more likely to buy from businesses that demonstrate one.

Social Value Themes
Social value covers a range of activities — from supporting the local economy by hiring local people or buying locally, to helping disadvantaged groups, reducing waste and promoting sustainability. It sits alongside CSR (Corporate Social Responsibility) and ESG (Environmental, Social and Governance) as part of a responsible and purpose-led business approach.

Two Types of Social Value

There are two types of social value.

1. Embedded social value is created through the way a business operates day to day — for example, buying locally or supporting staff development.
2. Additional social value goes beyond core business activities — like volunteering, donations, or projects that benefit the wider community.