Social Value: Why all leaders must walk the walk

Research has shown that people want to work for organisations that have a clear purpose – one to which they can relate.

Having a sense of pride in doing something ‘worthwhile’ contributes to the recruitment and retention of staff and to the communities they live and work in. Delivering Social Value plays a key role in this, at both an organisational and individual project level – but what does it mean for leaders? Leadership is essential to ensure Social Value comes to life across the organisation, with leaders walking the walk, not just talking the talk on Social Value. 

So, what is Social Value? Social Value moves beyond using money as the main measurement of value, instead putting the emphasis on doing the right thing for people, communities, and the planet. The UK Government’s Social Value Act came into effect in 2012, asking procurers of public services to consider social value and to recognise the improved outcomes it can deliver. In 2021, PPN 06/20 strengthened this, making it mandatory to include at least 10% of Social Value evaluation within tenders, so organisations bidding for working in the public sector are articulating and quantifying what Social Value will be delivered during their projects.  

Demonstrating Social Value can improve organisations’ reputations, and a good reputation helps leaders to improve customer satisfaction, to achieve growth and to deliver strategic objectives. The positive feelings that come from taking part in worthwhile activities benefit staff wellbeing, and a happy workforce will be committed to their roles in the company. This has a direct impact on productivity, and encourages other skilled professionals to join them. Rather than seeing Social Value as a financial 'cost' to the business, leaders should measure the tangible value gained in improved recruitment and retention, and better bidding performance.  

Building a socially valuable business  

The social impact enablement platform, Impact, highlights that “It takes a village to build a socially valuable business, not a select few teams,” and leaders are in the driving seat to make this happen. To truly make a difference to society and the planet, Social Value must be embedded into an organisation’s DNA, woven into its fabric rather than something to which just ‘lip service’ is paid. It needs to be as prominent on internal intranet sites as it is on external sites, recruitment advertisements and LinkedIn profiles.  

Ensuring Social Value is at the heart of leadership should not be confused with social leadership however, which is a different concept. Social leadership “refers to the emotional and empathetic leadership style of leaders who focus on connection, collaboration, and communication. It focuses on the importance of building strong relationships within teams and creating a positive work environment”. While leaders who celebrate and highlight social value may have this style, any type of leader can use their influence to embed Social Value as a key commitment within their organisation.  

Leaders are critical to unlocking the full potential of social value: they play a key role in providing meaning and purpose for their workforce. As the Chartered Institute of Personnel and Development (CIPD) describes:  

“Leadership is the ability to understand people's motivations and leverage them to achieve a shared goal. Skilful leaders can contribute to positive outcomes for individuals, teams, organisations, and communities. It's important to develop leaders who can address the needs of an organisation, and to create an environment that allows them to be effective.”  

There are three key elements to leadership – the self, other people, and the job. Leaders must have self-awareness, and effectively express their personal qualities; and must influence, motivate and inspire stakeholders within their job, which is to define, clarify, and revise tasks to be achieved. Purpose is the golden thread across these three elements. As the CIPD describes, “When people share a sense of purpose, they find meaning in their efforts, and are motivated to perform better.”  

But while Social Value has to be delivered cohesively and en-masse, it doesn’t have to be a one-size-fits-all approach. Taking it back to the self, it is important for leaders to express what matters to and motivates them, to become advocates and influence and inspire others, rather than issue authoritative demands. Effective leadership approaches which are adaptive to the need of each individual play a pivotal role in motivating teams; leaders need to ensure Social Value is embedded into all business governance, engagement and delivery up-front, rather than as a ‘bolt on’ at the end.  

As businesses continually evolve and improve, so must the Social Value narrative from business leaders, ensuring that external influencers/forces are taken into consideration and approaches adapted. For example, a significant life event such as illness, or the birth of children can put a different focus on the self or others, and may magnify the focus or change priorities. 

Taking practical action  

Strong leadership is linked directly to business success. To thrive, and to continue to thrive, businesses must be sustainable and adaptable, and so too must their leaders. Organisation’s leadership teams must properly understand their moral compass and the true impact they can have on people, communities and the wider planet. True leaders find out what really matters to their people, and how they can help them to make a difference. By understanding what your organisation’s purpose is, and how social value is supporting you to achieve it you can start a conversation – ensuring that challenge and differing perspectives are welcomed. 

This article was previously published by techUK.