ESG | Social Value

What Is Social Value?

Understanding the “S” in ESG and Its Role in Facilities Management.

OCS Team

OCS Team

24 Mar, 2025

What is ESG?

ESG stands for Environmental, Social, and Governance–three core pillars that define a business’ commitment to sustainability, ethical operations, and corporate responsibility. While many are familiar with the environmental and governance aspects, the “S”–social value–often receives less attention. However, it plays a critical role, particularly in industries like facilities management (FM), where businesses interact directly with communities.

What is Social Value?

Social value refers to the positive impact businesses create beyond financial gain. It encompasses well-being, economic stability, environmental health, and overall quality of life. In essence, it asks: What is the value to society? This question is particularly important as social value is now embedded in legislation and recognised as a crucial business consideration.

OCS colleague standing alongside flowers
A group of women wearing safety vests and holding gardening tools and bags of leaves gather in a park. One woman is speaking, holding a clipboard. They appear engaged in cleaning or gardening in an outdoor community space.

Why It Matters in Facilities Management

 

The FM industry is uniquely positioned to deliver significant social value due to its deep integration with both the public and private sectors. Facilities management services extend across hospitals, schools, prisons, corporate offices, and more, directly influencing communities and workplaces.

 

Here’s why it should matter to FM professionals:

Community Engagement: FM companies operate within diverse communities, making them key players in fostering social well-being and inclusivity.

Supporting Vulnerable Groups: With customers in healthcare, education, and the prison system, FM firms can implement programmes that create job opportunities and improve living conditions for those who need it most.

Ethical Business Practices: Prioritising fair wages, equal employment opportunities, and ethical supply chains enhances both business reputation and societal impact.

A group of people are sitting outside, smiling and enjoying hot drinks. The setting includes plants and wooden structures in the background. The atmosphere appears relaxed and friendly, with everyone dressed warmly for cold weather.
A diverse crowd of people gathered in a park, enjoying a sunny day, organised by Hackney Council.

How Facilities Management Companies Can Drive Social Value

 

Employment and Fair Wages

    • Participate in programmes like Ban the Box, which removes barriers for ex-offenders seeking employment.
    • Engage with initiatives such as Troopr to support veterans and underrepresented job seekers.

Reducing Barriers to Employment

    • Participate in programmes like Ban the Box, which removes barriers for ex-offenders seeking employment.
    • Engage with initiatives such as Troopr to support veterans and underrepresented job seekers.

Ethical and Sustainable Procurement

    • Partner with organisations like the Slave-Free Alliance to combat modern slavery.
    • Source supplies and services from ethical, sustainable businesses.

Enhancing Workplace and Community Well-Being

    • Invest in employee mental health programmes and wellness initiatives.
    • Contribute to local community projects that improve public infrastructure and services.

Work with The Customer to Deliver Bespoke Social Value Initiatives

    • Customers and their end-users will have their unique needs perhaps they need more environmental connection and stimulation or more social interaction, FM companies can customise their service delivery to cater to these unique needs. An example of this is our work with the ELFT, where we’ve delivered over £14m in social value.
Two women sitting indoors by a large window. One woman faces the camera, smiling brightly, while the other has her back to the camera, wearing a polka-dot shirt. The woman facing the camera has her hand on the others shoulder, suggesting a supportive moment.
A diverse group of people sits in a circle. Two women in the center are hugging warmly, showing support and comfort. The room is bright, with natural light coming through the windows in the background.

Measuring Social Value in Facilities Management

To ensure that initiatives are effective, businesses must track and measure their impact. Here are some key ways to assess its impact in FM:

Social Return on Investment (SROI): Calculates the social, environmental, and economic value created per unit of investment.

Key Performance Indicators (KPIs): Track specific metrics such as employment rates for disadvantaged groups, fair wage adoption, and employee satisfaction.

Community Impact Assessments: Evaluate how FM activities influence local communities through surveys and stakeholder feedback.

Sustainability and Ethical Supply Chain Audits: Ensure compliance with fair labour practices and sustainable sourcing policies.

Reporting and Transparency: Publish annual ESG reports to showcase progress and areas for improvement.

The Future of Social Value in FM

As it continues to gain prominence, facilities management companies must take proactive steps to integrate ethical practices into their business models. By embracing social responsibility, FM firms can foster a more inclusive, sustainable, and thriving society—while also enhancing their own long-term success.

Discover More About Our Commitment to Social Value

Discover More About Our Commitment to Social Value

Our ESG Partnerships

Share this story