We’ve talked in the past about our commitment to social value and ESG, and made suggestions about how we can all do our bit when it comes to being aware of our impact on society, the environment, and how transparent and accountable we are as organisations.
From a procurement perspective, delivering social value means considering the wider impacts that purchasing decisions can have on society, the economy, and the environment. Organisations are increasingly recognising their responsibility to contribute positively to communities, and procurement teams are playing a crucial role in embedding social value into their supply chains. For businesses looking to make a meaningful impact, we’ve shared some of our top tips for delivering social value through procurement. And of course, our team at Accelerate are always on hand for advice.
1. Understand What Social Value Means for Your Organisation
The first step in delivering social value through procurement is to clearly define what it means for your organisation. Social value can encompass a range of benefits, from improving local employment and supporting small businesses to reducing environmental impact and promoting diversity and inclusion. Engage with stakeholders across your organisation to identify priority areas of social value that align with your business objectives and community needs.For example, a company in the construction industry may prioritise creating apprenticeships or supporting local suppliers, while an organisation focused on sustainability may prioritise reducing carbon emissions and waste. Having a clear understanding of what social value means to your organisation will help guide procurement decisions and set measurable objectives.
2. Integrate Social Value into Your Procurement Strategy
Social value should be integrated into the procurement strategy from the outset. Rather than being an afterthought, it should form a core part of the evaluation criteria when selecting suppliers. This involves shifting the focus from simply choosing the cheapest supplier to considering how potential partners can contribute to your organisation’s social value goals. We’ve talked at length in the past about the importance of supplier diversity, and not simply choosing suppliers based on cost alone. You can read more about this here and here.
When developing tender documents or contracts, include specific social value criteria that reflect your organisation’s priorities. These could range from environmental performance and community engagement to ethical sourcing and supplier diversity. Weight these criteria alongside financial considerations to ensure that social value is given appropriate importance in procurement decisions.
3. Prioritise Local and Small Businesses
One of the most impactful ways to deliver social value through procurement is by supporting local and small businesses. Sourcing locally helps to stimulate the local economy, create jobs, and build stronger communities. It also reduces the carbon footprint associated with long-distance transportation of goods.
Small businesses and social enterprises often face challenges competing against larger corporations in procurement processes. By setting targets to engage with these smaller suppliers, offering training and support, and simplifying procurement processes, organisations can help level the playing field and contribute to economic growth at a local level.
4. Consider Environmental Sustainability
Environmental sustainability is a key component of social value, and procurement teams are uniquely positioned to drive green initiatives within their organisations. Consider the environmental impact of the products and services you procure, and prioritise suppliers who demonstrate strong environmental stewardship.
Implementing sustainable procurement practices might involve sourcing products made from recycled materials, reducing packaging waste, or choosing suppliers with lower carbon footprints. These choices not only reduce the organisation’s environmental impact but also contribute to broader social value objectives such as combating climate change and promoting sustainable development.
5. Measure and Report on Social Value
To truly understand the impact of your social value initiatives, it’s essential to establish metrics and regularly measure performance. Developing key performance indicators (KPIs) that align with your social value objectives will help track progress and demonstrate the tangible benefits of your procurement decisions.
For example, you might track the number of local suppliers used, the percentage of contracts awarded to small businesses, the number of jobs or apprenticeships created, or the amount of carbon emissions saved through sustainable sourcing. Regular reporting on these metrics helps to ensure accountability and provides evidence of the positive impact your organisation is making.
Communicate your achievements both internally and externally, showcasing the social value delivered through procurement. This not only strengthens your organisation’s reputation but also inspires other companies to adopt similar practices.
How we can help deliver social value through procurement
Social value is no longer a ‘nice to have’ in procurement—it’s becoming a vital component of responsible and sustainable business practice. Procurement teams have a unique opportunity to influence positive change by embedding social value into their purchasing decisions, fostering strong supplier partnerships, and contributing to the broader goals of society and the environment.
At Accelerate, as a team of procurement consultants we work hard to practice what we preach. Our organisation’s ESG strategy means we act on what we can control, via accredited methods, to become a climate positive business. As an example, a boutique scale service provider, we are committed to doing what we can in support of the environment. This started with our commitment to become climate positive as a business in 2023. We now offset more carbon than we create. We are also champions of the UN Sustainable Development Goals (UNSDGs) and are currently a UN Global Compact member-in-waiting following our recent application. We support the Paris Agreement and the ongoing efforts across the world to reduce greenhouse gas emissions (GHGs).