Looking beyond price and focussing on collective community benefit
Holding suppliers accountable is the key to delivering social value in procurement. Social value measures the importance that people place on changes they experience in their lives, focused on delivering benefits such as employing local people, offering apprenticeships, or supporting responsible local businesses. Social value has a lasting impact on the individuals, communities, and the environment who benefit.
“Social value in procurement is about ensuring that the goods and services you buy create wider benefits for society. Approaching this cohesively and proactively ensures that better long-term value for both the business and society.”
Public expectation and regulatory pressures are accelerating social value
The need to act sustainably is growing among the public, which sets high expectations for organizations and the government. Legislation like the Social Value Act and the Supply Chain Act are driving change in the public and private sectors, respectively. Businesses have an essential role to play in delivering social value through procurement by:
- Examining the supply chain and ensuring that suppliers are committed to social value
- Establishing clear social value goals and objectives, ensuring alignment within procurement activity
- Weighing the financial cost of social value benefits against the return on investment.
Proxima’s approach to social value
Before making procurement decisions, it’s essential to consider whether the goods or services being purchased and how they’re being purchased will help secure social value benefits. Proxima’s approach is designed to understand your current social value maturity and, develop a case for change, and design, build, and implement new and improved social value capability to provide:
- A social value landscape that is aligned with business strategy and targets relevant benefits to both the business and the community
- Measurable metrics to monitor and assess progress, ensuring change and impact are delivered
- Better collaboration with social enterprises and the public sector to achieve common goals.