Maximising Social Value: Best Practices for Businesses

As businesses strive to create more sustainable and socially responsible models, the concept of social value has become an essential part of their operations. In today’s competitive landscape, businesses are increasingly expected to contribute positively to the communities in which they operate, whether through environmental sustainability, social impact, or economic development. Maximising social value not only benefits society but also boosts brand reputation, fosters customer loyalty, and attracts top talent. If you're wondering how your business can maximise its social value, here are some best practices to follow.

1. Align Social Value with Your Core Business Objectives

Maximising social value begins with ensuring that it is aligned with your business goals. If social value is treated as an afterthought or a separate initiative, its impact may be limited. Instead, make it a core component of your strategy. Whether you're in retail, manufacturing, or tech, look for ways to integrate social value into your everyday operations.

For example, a retail business might focus on reducing its carbon footprint through sustainable sourcing and waste management, while a tech company might focus on digital inclusion by offering access to technology in underserved communities. By aligning social value with business objectives, you ensure that it’s not just a marketing tool, but a genuine, measurable impact.

2. Engage Stakeholders and the Local Community

One of the best ways to maximise social value is to actively engage with stakeholders and the community. This includes employees, customers, suppliers, and local residents. By understanding their needs and challenges, you can tailor your efforts to deliver meaningful outcomes.

For instance, hosting community consultations or collaborating with local organisations helps identify priority areas such as job creation, education, or environmental conservation. You can then focus your efforts on initiatives that will have the greatest positive impact. Engaging stakeholders also builds trust, which is key to long-term success in any business venture.

3. Measure Your Social Impact

To truly maximise social value, it’s essential to have a clear system in place to measure and track your impact. Without measurement, it’s difficult to understand whether your efforts are yielding the desired results or how they can be improved.

There are various frameworks to help businesses assess their social value, such as the Social Return on Investment (SROI) model, which quantifies the social, environmental, and economic value created by a business relative to the investment made. The National TOMs (Themes, Outcomes, and Measures) framework is also widely used to assess social value based on specific outcomes like employment, wellbeing, and environmental impact.

Regularly assessing your initiatives helps you identify what's working and where improvements can be made. Transparency is crucial — make sure to report your findings to stakeholders and the public, demonstrating your commitment to positive change.

4. Prioritise Long-Term Sustainability

Maximising social value isn’t just about short-term gains; it’s about creating long-lasting benefits that will continue to have an impact far into the future. Focus on initiatives that promote sustainability in every sense of the word. This could mean supporting environmental sustainability, but also fostering sustainable economic development and social wellbeing.

For example, businesses can invest in programmes that help future generations by providing skills training or supporting educational initiatives. Focusing on sustainability ensures that your social value efforts don’t just create immediate benefits but also contribute to long-term community development and environmental protection.

5. Promote Diversity, Equity, and Inclusion

A critical aspect of maximising social value is ensuring that your business contributes to diversity, equity, and inclusion (DEI). Diverse teams and inclusive practices drive innovation and help build a more equitable society. Supporting initiatives that promote DEI — whether through recruitment policies, workplace culture, or community outreach — is an important way for businesses to create lasting social value.

By fostering an inclusive workplace and promoting equal opportunities, you contribute to a more balanced and fair society. For example, offering employment opportunities to underrepresented groups, or investing in mentorship programmes for disadvantaged youth, can have a profound and lasting impact on both your business and the community.

6. Collaborate with Partners

Maximising social value is rarely a solo effort. To achieve the greatest impact, businesses should collaborate with a range of partners, including non-profits, local authorities, and other businesses. Partnerships can bring new resources, expertise, and reach to your social value initiatives.

For example, a company might partner with local charities to provide skills training for unemployed individuals or collaborate with other businesses to fund community projects. By pooling resources and expertise, you can maximise the impact of your social value efforts and address more complex social challenges.

7. Embed Social Value in Procurement Practices

Businesses can maximise social value by embedding it in their procurement processes. This is particularly important for companies that work with government contracts, as many public sector organisations now require suppliers to demonstrate the social value they can provide.

Incorporating social value into procurement means evaluating suppliers not only on cost and quality but also on their environmental practices, labour policies, and community involvement. By choosing partners who share your commitment to social value, you extend your impact throughout your supply chain.

Conclusion: Making Social Value Part of Your Business DNA

Maximising social value is not just a trend, but an ongoing commitment that can transform both your business and the communities you serve. By aligning your social value efforts with business objectives, engaging with stakeholders, measuring impact, promoting sustainability, and fostering inclusion, you can make a significant difference. Moreover, embedding social value into your company culture and operations will help ensure that your efforts continue to grow and evolve.

As consumers, employees, and investors increasingly demand more socially responsible practices, businesses that prioritise social value will stand out as leaders in their industries. By following these best practices, you can maximise your social impact, build stronger relationships with your stakeholders, and create a legacy of positive change.