When the Public Services (Social Value) Act came into force in 2012, it encouraged public bodies to consider how procurement could improve social, economic and environmental wellbeing. Since then, expectations have evolved far beyond compliance. Social value has become strategic for businesses, shaping reputation, influencing procurement outcomes, and enhancing employee engagement.
The 2023 update to the Act’s seven guiding principles, which came into force in 2025, has strengthened this further, placing even greater emphasis on tangible outcomes. For many businesses, particularly those working with public bodies, delivering social value is no longer optional; it’s fundamental to doing business. Yet, the most successful businesses don’t view it as a statutory obligation, but as an authentic part of their culture and identity.
Why social value makes business sense
True social value isn’t about charitable gestures or one-off donations. It’s about embedding positive impact into the way a business operates; how it hires, buys, trains and supports. It can be seen as, not about how you spend your money, but how you earn it in your local community.
Research supports this. A 2023 Deloitte study found that businesses with strong ESG and social value strategies outperform peers in attracting and retaining talent. Employees increasingly seek purpose-led workplaces, and businesses that invest in local communities often see stronger staff morale and loyalty.
Importantly, social value contributes to long-term commercial advantage. Companies that integrate it effectively are seen as ethical and trustworthy, which strengthens their reputation and builds resilience. This principle isn’t new, businesses like Cadbury built their success on caring for people and communities. What has changed is how measurable and expected it has become.
Embedding social value meaningfully
For social value to have real impact, it must be integrated into the DNA of a business, not left to a single department or procurement response. This means understanding community needs, aligning them with the company’s capabilities, and communicating these efforts clearly.
Effective initiatives are those that connect directly to business purpose, for example, mentoring local students, developing supply chains that prioritise local SMEs, or offering training programmes that build skills in the community. Sponsoring a local football team, while well-meaning, is only valuable if it creates genuine local impact.
Measurement tools such as the Social Value Portal’s TOMs framework and HACT’s social value insight tool help businesses track and quantify outcomes in a consistent way, from volunteering hours and local employment to carbon savings. But metrics alone aren’t enough. The real difference lies in understanding the human stories behind the numbers, the apprenticeships created, previously unemployed people hired, the lives improved, and the community benefits that last.
Accountability and authenticity
The next few years will bring even greater scrutiny. Strengthened procurement legislation means that failure to deliver promised outcomes can now cost a company future contracts. Public sector clients share information, and reputation spreads fast.
To succeed, businesses must not only evidence their impact but demonstrate it authentically. A ‘one size fits all’ approach doesn’t work. Every community is different, and meaningful engagement requires listening, tailoring initiatives and maintaining long-term partnerships.
At Stephen Alexander, we work with businesses to develop authentic, measurable and community-centred social value strategies. Drawing on our experience, we help businesses identify what social value means for them and translate that into practical actions. Whether that’s guiding social value responses in tender submissions or helping shape a broader social value strategy, our goal is to help businesses make a positive impact while strengthening their reputation and competitiveness. Speak to a member of the team to find out more.