The definition of social value goes beyond financial gains; it represents the social impact an organization has. It entails appreciating and measuring changes in people’s lives after an organization takes specific actions. In a nutshell, social value reviews the impacts that decisions have on community and environmental developments as well as the economy.

In its simplest form, social value suggests accounting for the societal, environmental, and economic impact an organisation makes. This is looking beyond the profit margins of a business—it calls for engaging and empowering stakeholders who possess valuable information and insights that could help improve the situation. Measurement consists of determining the importance that people place on changes to their lives as a result of social action, without which, organizations find it very difficult to gauge their actual impact.

One of the examples that demonstrate social value stems from the wider social norm and value system is in procurement processes. Contracting authorities adopt social value to require contracts to achieve more than the simple supply of services or goods. Therefore, incorporating social value into their procedures as a strategy will allow companies to make decisions that bear useful and positive impacts.

There are three ideas that embody social value: Improving the well-being of individuals and communities, funding local economies by providing jobs and assisting small enterprises, and adopting measures that reduce harm to the planet while ensuring long-term ecological health.

Moreover, companies and organisations that incorporate social value into their policies participate within the community, practice ethical approaches such as offering a living wage, fund local initiatives, and adopt environmentally friendly practices to reduce the social ecological footprint. This not only improves the organisation’s image, but also facilitates advancement towards an inclusive sustainable agenda.