Social Value: an interface for the future

Social value in business may seem relatively new, but the concept has been around a long time. Successful Quaker businessmen, Joseph Rowntree and Charles Cadbury set up garden villages for their workers in New Earswick, York and Bourneville in Birmingham well over a century ago. But what the term means today and what constitutes good practice in the field is evolving at a rapid rate.

Large Contractor’s Forum

A group of ECA’s large contractors came together to discuss the complexities of measuring and recording social value as part of the procurement process. Andrew Eldred, ECA’s Director of Workforce and Public Affairs, a contributor to the event said:

“Members of ECA are increasingly seeing social value being demanded by customers. And it’s about trying to link what customers want to what contractors are already doing to add value to the industry. 

“This is a Forum for Members to think that through and talk it through together, and a space to work out how we can give greater visibility to what Members are doing in this area. It’s been a very worthwhile exercise and one that we’ll continue to develop over time.”

The increased profile of social value is, in part, a response to growing concerns about commercial organisations focusing on minimizing costs and maximising profits, with little or no consideration of wider society and environment. 

Social value can be pick and mix

The range of social benefits which may be included in a tender bid is wide and depends on the client, said presenters, Paul Gallagher and Scott Cooper Groom from Mace. It could be a pick and mix of apprenticeships, environmental measures, diversity goals, charity fund raising, work experience, supporting a community event or sports team, being a Living Wage employer or career development. 

The ‘value’ of different undertakings varies. Like comparing apples and pears, it is difficult to make a fair measure that stands up in a procurement process.

Measuring social value

While there are tools for measuring social value, building a strong narrative around the value that already exists within a firm is an important first step. To level the playing field and make procurement more transparent, ECA offered to open discussions about creating a social value kitemark. Participants warmly welcomed this initiative: 

Colin Brunton, Regional Managing Director at Imtech Engineering Services, who took part in the event said:

“I particularly like the thought of creating a kitemark or an industry standard that allows businesses that are committed to social value to accurately measure and present themselves to industry in a way that is proactive and positive in terms of securing work and demonstrating the value that they can bring and add.”

Gallagher and Cooper Groom went on to highlight social value as a global trend the industry can’t afford to ignore. What’s more they said, it is good for business and builds long-term resilience. While Procurement Policy Note 06/20 affects only public procurement for now, the private sector is sure to follow. 

Lindsey Young Chief Executive Officer, Clarkson Evans who chaired the Forum said:

“Social value is different to different businesses. Every business needs to work out its own strategy that is suitable for the market it operates in. We invest in staff development in a big way, and that is a big part of our investment in social value.”

An interface for the future

The term ‘social value’ may be a political buzzword to some, but it could be the interface which both develops the next generation and tackles net zero. It can be about the practical skills which set businesses on a new track.

Recognising this, Forum participant Tom Prendergast, Environmental Health and Safety Director of Imtech Group said:

“As an industry, we can’t afford not to do this. If you look at the current demographic of the construction industry, it’s getting older. The way we are going to attract new talent is by looking to more diverse parts of society. It’s up to us to make it happen. 

“There’s a lot of work to be done around diversity and inclusion, and career progression. It’s also a really exciting space to be in.”

The Forum was an opportunity to share ideas with peers in the industry, as well as hearing how others were tackling the new procurement criteria. ECA will update its current guidance on social value, which can be accessed here. It will also keep Members informed about the potential creation of a social value kitemark.