As organisations increasingly focus on ESG (Environmental, Social and Governance), many understand the “E” and the “G” but what does the “S” really mean in practice?
The “S” stands for Social and at its heart is social value.
Social value is about the positive contribution your organisation makes to society beyond financial profit or personal gain. It’s about how your business improves social, economic and environmental wellbeing in the communities you serve.
What Is Social Value?
Social value goes far beyond charitable donations. It includes how you:
Engage with and support your local community
Promote diversity, equity and inclusion
Ensure fair working conditions and protect human rights
Support employee wellbeing and mental health
Provide education, training and career development
Build strong employee and stakeholder relationships
It’s about embedding responsibility into how your organisation operates every day.
Why Social Value Is Good for Business
Social value isn’t just the “right thing to do” it’s also smart business.
Organisations that prioritise social value often see:
Stronger stakeholder relationships
Improved employee engagement and retention
A more diverse and inclusive workforce
Greater ability to attract top talent
Enhanced brand reputation
Increased local visibility and community support
When done well, social value can even increase footfall, generate positive local media coverage and strengthen your brand story.
By helping others, you also help your business thrive.
Social Value and Public Sector Contracts
If you are tendering for public sector work, social value is more than optional, it’s essential.
The Public Services (Social Value) Act 2012 requires public authorities in England and Wales to consider how their procurement decisions improve the economic, social and environmental wellbeing of the areas they serve.
This means that organisations bidding for public contracts must demonstrate how they will deliver wider community benefits, not just the lowest price.
If you don’t yet have clear social value, environmental or governance policies in place, now is the time to develop them.
How to Create a Social Value Strategy
Building a social value strategy doesn’t have to be complicated. It starts with clarity and intention.
1. Define Your Purpose and Values
Ask yourself:
What does our organisation stand for?
What social issues align with our mission?
What kind of impact do we want to make?
Your values form the foundation of your social value strategy.
2. Conduct a Stakeholder Analysis
Understand the needs and expectations of:
Customers
Employees
Suppliers
Investors
The local community
You can gather insight through surveys, suggestion boxes or direct conversations. The goal is to understand what matters most to those connected to your organisation.
3. Identify Key Social Issues
Look at:
Challenges in your local area
Issues within your industry
Gaps where your skills or resources could help
Collaboration is powerful. Could businesses in your area work together to improve a shared space or run a community initiative?
4. Integrate Social Value Into Your Core Strategy
Social value should not be an add-on, it should be embedded into how you operate.
Consider:
How will this initiative benefit both the community and the business?
Will it help attract talent?
Will it strengthen culture and employee wellbeing?
Can it support your marketing and storytelling?
When both parties benefit, long-term impact becomes sustainable.
5. Set Clear Objectives and Targets
Be specific:
How much time can you commit?
Is there a financial investment?
Can you offer skills-based support?
Who are you supporting, charities, schools, local groups?
How will you measure success?
Support doesn’t always mean money. For example, a marketing agency could offer strategic advice to a local charity, which may be just as valuable as a donation.
6. Build Meaningful Partnerships
Look for opportunities to collaborate with:
Local charities
Schools and colleges
Community groups
Public sector organisations
Other local businesses
Long-term relationships are more impactful than one-off projects. Smaller charities in particular often benefit greatly from sustained partnerships.
And remember: social value is not just about charity. It includes education, diversity, mental health, inclusion and community connection.
7. Engage and Empower Employees
Involving employees in social value initiatives:
Strengthens workplace culture
Improves mental health and wellbeing
Develops new skills
Increases engagement and retention
When employees feel part of something meaningful, the benefits ripple throughout the organisation.
8. Measure, Report and Celebrate Success
One of the biggest missed opportunities is failing to communicate the good work already being done.
Make sure you:
Include social value on your website
Share stories in newsletters
Post updates on social media
Mention it in tenders and interviews
Invite local press to highlight community initiatives
If you’re making a difference, don’t keep it quiet. Sharing your impact inspires others and strengthens your reputation.
Final Thoughts
The “S” in ESG is about more than compliance. It’s about creating meaningful, measurable impact that strengthens both your organisation and your community.
Social value helps:
Engage stakeholders
Empower employees
Improve wellbeing
Build inclusive workplaces
Support long-term economic and social growth
It is not separate from business success, it is a driver of it.
When businesses actively contribute to the wellbeing of their communities, everyone benefits.
Ready to develop your social value strategy?
Whether you're just starting out or looking to take your strategy to the next level, we can help. From tailored consultancy to practical training, we work with businesses of all sizes to embed ESG into the heart of their operations turning ambition into action, compliance into competitive advantage, and ESG into measurable, long-term value.
Get in touch with Sam Cande, Consultancy Director at 360 Consulting by Greengage, to explore how we can support your ESG goals.