As part of our ECI Unlocked programme, which connects business leaders across the ECI Portfolio, we recently hosted a session on how to set a Social Value Strategy. Here are some key insights on how to get this right:
Firstly, what is the difference between Social Value, CSR and ESG?
There is a lot of overlap between these terms. Historically, people referred to Corporate Social Responsibility (CSR) and ESG, which traditionally focussed on activities undertaken for corporate reputation. These approaches were often less integrated into the organisation’s core purpose. Social Value is a term that aligns more closely with that purpose. As a framework, it typically focusses on: community, sustainability, wellbeing, and diversity. By putting people and the planet at the heart of the strategy, it can be more inspiring to employees and customers than traditional governance or process-driven approaches.
What are the benefits of setting a social value strategy?
While every business is different, all organisations will have stakeholders with an interest in social value. For those with public sector customers, social value strategies have become particularly important, as the government has built social value into its procurement advice. A well-defined strategy can help businesses demonstrate impact credibly, using case studies and transparent reporting.
Employees are also key stakeholders – people are increasingly looking to understand the impact of the business they work for, especially newer generations in the workforce. A clear social value strategy can also help businesses prioritise their efforts. With so many ESG initiatives available, defining a purpose and assessing where a business can have the greatest impact helps focus activity and create a clear roadmap.
Where should businesses start when planning a social value strategy?
The first step is a discovery process, which includes understanding the existing practices and policies already in place. It also involves gathering insights from people within the business, including board members and employees, to understand what is important to them and how they would like the business to be recognised.
If employees are expected to take ownership of the strategy, they need to be involved in shaping it. This process can also be supported by competitor analysis, reviewing tender process requirements, and other relevant market insights to understand where you sit in the market and how expectations are evolving.
How do you start designing a strategy?
Once a business understands its current position and priorities, it is important to frame potential initiatives within a materiality assessment to determine what will have the greatest impact. These findings should define the core pillars of the strategy..
From there, companies should set realistic targets for the future, with a focus on truly understanding their baseline and tracking progress. Competitor benchmarking can also provide valuable insights into market positioning and trends over time.
Not everything needs to happen immediately. Unrealistic targets without a credible plan can undermine the authenticity of the strategy.
How can companies ensure their Social Value Strategy is embedded and has a real impact?
Each pillar of the strategy should be underpinned with commitments, values and policies, with clear internal leadership. Striking the right balance between ambition and achievability is key to maintaining momentum and credibility.
Communication and governance are also crucial. The entire company should understand the goals, responsibilities and progress of the strategy. Having a strong internal brand can help drive engagement, giving the strategy a distinct identity that employees feel connected to and proud to promote.
A structured launch, supported by internal marketing, can create excitement and encourage participation. While branding plays a role, it is equally important that employees understand why the strategy is being implemented and how it connects to the business’s purpose
