Leading procurement consultancy Proxima has published its latest social value report providing organisations with a framework for delivering value and embedding social value into the supply chain, through procurement. The report and guidance have been developed based on the organisation’s extensive experience in delivering social value programmes in both public and private sector organisations.
The launch of the social value report has been developed in response to the increasing need for organisations to deliver social value. With up to 80% of a company’s spend sitting with the supply base, this means that procurement and commercial functions have a critical role to play in delivering positive societal impact.
The public sector is leading the way when it comes to social value. This was crystallised by the introduction of the Social Value Act in 2012, later legislated in 2021 through the PPN 06/20. Whilst the PPN 06/20 dictates Social Value must be included within procurements at a weighting of at least 10%, organisations are recognising the opportunity - some have increased this to as much as 30%, further increasing the impact, and responsibility, on a supplier.
As well as the market pressures already mentioned, the Public Sector has an increased responsibility at a local level, where the levelling up agenda, cost of living crisis, and the impacts of significant government projects all call into question both how money is spent, and the broader purposeful implications thereof.
Successful social value programmes have been rolled out across the public sector by the likes of National Highways, West Midlands Combined Authority (WMCA) and Manchester City Council.
- National Highways developed a social value framework which has accelerated the development of National Highways' standard approach to implementing Social Value.
- The West Midlands Combined Authority (WMCA)’s approach focussed on the region’s social, economic, and environmental well-being. The approach has resulted in the development of a Category Toolkit to help identify which social value outcomes to focus on in its procurements.
- Manchester City Council uses its influence to drive social value through procurement, focusing on supporting local communities, vulnerable adults, domestic violence victims, rough sleepers and the long-term unemployed.
Beth Bradley-Smith, Principal Consultant at Proxima, commented on the report: "There is a hugely exciting opportunity for organisations to harness the power of procurement to drive social value outcomes and drive change. This is true in the private sector, but it is clear the public sector is leading the charge and it’s positive to see the successes of transformational programs across both national and local public sector bodies. We’re looking forward to seeing even more progress on social value in 2024."
Proxima’s social value report can be accessed online.