Social Value Model: What Is It And How To Score Full Marks In Bid Responses

The Social Value Model is a framework used by the UK government to ensure that suppliers behave responsibly and sustainably when delivering products and services. It evaluates how businesses contribute to society in areas like environmental impact, workforce equality, and community well-being. 

To score full marks in bid responses, businesses must demonstrate an understanding of the challenges tied to social value outcomes, not just claim they are responsible. Show how your activities positively affect people and the planet, and explain specific steps to address economic inequality, climate change, and other key themes. Aligning with these principles can give businesses a competitive edge in securing government contracts.

What is the social value model?

The Social Value Model is a framework used by UK public bodies to evaluate how businesses awarded procurement contracts affect society. It builds on the Public Services (Social Value) Act that came into force on January 31, 2013. Since January 1, 2021, all UK central government procurement decisions must consider social value.

This model isn’t just a UK phenomenon. It’s sparking interest worldwide, including in the USA. At its core, the model aims to ensure public money is spent with responsible companies that create positive impacts. It’s similar to Corporate Social Responsibility (CSR) initiatives in the US but with a more structured approach to evaluation and decision-making.

How does the Social Value Model work?

The Social Value Model operates through a series of themes, outcomes, and criteria. Public sector buyers use these to assess bidders’ social value commitment. The model focuses on areas like environmental stewardship, workforce equality, and community engagement.

Here’s a simplified breakdown:

1. Themes: Broad categories of social value (e.g., Covid-19 recovery, tackling economic inequality)
2. Outcomes: Specific goals within each theme
3. Criteria: Questions or metrics used to evaluate bids

Procurers include social value questions in tenders, typically worth 10-30% of the total score. Your responses to these questions can make or break your bid.

What does good Social Value look like?

Good social value isn’t just about ticking boxes. It’s about demonstrating a genuine commitment to creating positive change. Sustainable business practices, support for social enterprises, and meaningful community engagement are all hallmarks of strong social value.

To score full marks, you need to:

1. Show deep understanding of the challenges
2. Propose concrete, measurable actions to achieve outcomes
3. Demonstrate a track record of social value creation
4. Align your proposals with the specific goals of the tender

Social Value Model on a Page

Here’s a quick reference guide to the Social Value Model:

Theme	Key Outcomes	Example Actions
Covid-19 Recovery	Help communities manage and recover	Support local businesses, create jobs
Economic Inequality	Create new businesses, jobs, and skills	Offer apprenticeships, partner with SMEs
Climate Change	Effective environmental stewardship	Reduce carbon footprint, use renewable energy
Equal Opportunity	Reduce disability employment gap	Implement inclusive hiring practices
Wellbeing	Improve health and wellbeing	Offer mental health support, promote work-life balance

Why is the social value model important?

The Social Value Model represents a shift in how governments view procurement. It’s not just about getting the best price; it’s about maximizing the overall benefit to society. This approach is gaining traction globally, making it crucial for businesses to adapt.

For companies, embracing social value can lead to:

1. Competitive advantage in bids
2. Enhanced reputation
3. Improved employee engagement
4. Long-term sustainability

It pushes businesses to think beyond profit and consider their broader impact on society and the environment.

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Help the economy, individuals and communities recover from Covid-19

While the immediate crisis has passed, the pandemic’s long-term effects linger. Businesses can support recovery by creating job opportunities, particularly for those hardest hit by the economic downturn. Consider initiatives like retraining programs for displaced workers or partnerships with local businesses to boost the community economy.

Recovery isn’t just economic. Mental health support, flexible working arrangements, and community outreach programs can all contribute to holistic recovery efforts.

Create new businesses, jobs and skills

Fostering entrepreneurship and skill development is a key aspect of social value. This could involve mentoring programs for startups, partnerships with educational institutions, or internal training schemes. The goal is to create opportunities that go beyond your immediate business needs and contribute to broader economic growth.

A great example is tech companies offering coding bootcamps in underserved communities. This not only creates a skilled workforce but also opens up new career paths for individuals who might not have had such opportunities otherwise.

Increase supply chain resilience and capacity

Building a robust and diverse supply chain isn’t just good business practice; it’s a social value win. This means looking beyond the usual suspects when choosing suppliers. Consider partnering with small businesses, minority-owned enterprises, or social enterprises.

Implementing fair payment practices is crucial. Prompt payment can be a lifeline for smaller suppliers, contributing to a healthier local economy. Also, consider how you can support your suppliers’ growth and development. This could involve sharing expertise, offering training, or helping them access new markets.

Effective stewardship of the environment

Environmental responsibility is a cornerstone of social value. This goes beyond basic recycling programs. Think about your entire environmental footprint – from energy use to waste management to transportation.

Some impactful initiatives could include:

1. Switching to renewable energy sources
2. Implementing a comprehensive recycling and waste reduction program
3. Encouraging and facilitating green commuting options for employees
4. Investing in energy-efficient equipment and facilities

Reduce the disability employment gap

Creating an inclusive workplace for people with disabilities is not just the right thing to do; it’s a smart business move. It brings diverse perspectives and can lead to innovations that benefit all customers.

To make a real impact:

1. Partner with disability organizations for recruitment
2. Ensure your workplace is fully accessible
3. Provide ongoing support and mentorship for disabled employees
4. Educate all staff on disability awareness and inclusion

Showcase these efforts in your bids, highlighting specific successes and learnings.

Tackle workforce inequality

Addressing workforce inequality goes beyond just hiring diverse candidates. It involves creating an environment where everyone can thrive. This means looking at pay equity, promotion practices, and company culture.

Consider implementing:

1. Transparent pay scales and regular pay equity audits
2. Mentorship programs for underrepresented groups
3. Unconscious bias training for all employees, especially managers
4. Clear, fair promotion criteria and processes

Be prepared to share data on your workforce diversity and the impact of your initiatives in your bid responses.

Improve health & wellbeing

Employee wellbeing is increasingly recognized as crucial for business success. A comprehensive approach to health and wellbeing could include:

1. Mental health support services
2. Flexible working arrangements
3. Health and fitness programs
4. Financial wellness education

Don’t forget to extend these initiatives to the wider community where possible. For example, you could sponsor local sports teams or offer free wellness workshops to community members.

Improve community integration

Meaningful community engagement is about creating lasting, positive relationships with the communities you operate in. This could involve:

1. Regular volunteering programs for employees
2. Partnerships with local schools or community organizations
3. Sponsorship of community events or initiatives
4. Offering your company’s expertise to solve local challenges

The key is to show long-term commitment and measurable impact, not just one-off charitable donations.

What effects do your activities have

To truly understand and communicate your social value, you need to measure it. This involves looking at the direct and indirect impacts of your business activities on society and the environment.

Consider using established frameworks like the Social Return on Investment (SROI) or the UN Sustainable Development Goals (SDGs) to structure your assessment. Collect both quantitative and qualitative data to paint a full picture of your impact.

It’s not just about positive impacts. Acknowledging areas for improvement and showing how you’re addressing them can actually strengthen your bid responses by demonstrating transparency and commitment to ongoing improvement.

Conclusion

The Social Value Model is essential for businesses seeking to secure government contracts. To score full marks in bid responses, companies must clearly show how they positively impact society through their products and services. Addressing key themes like economic inequality, environmental impact, and workforce equality is crucial. 
Businesses should demonstrate an understanding of the challenges related to these outcomes and provide specific actions they will take. By aligning their practices with the model, companies can enhance their reputation and gain a competitive edge in procurement.