Social value is an important part of Environmental, Social, and Governance (ESG) commitments. Businesses across numerous industry sectors are rethinking how they can positively impact their employees, communities, and wider society. From improving employment opportunities for marginalised groups to strengthening local engagement initiatives, social value is driving real-world impact.
The first OCS Social Value Roundtable brought together industry leaders to explore what meaningful social value looks like in practice. Here are four lessons from that discussion from Jacky So, ESG Director at OCS UK & Ireland.
1. Social value is important in business
The past decade has seen social value shift from a corporate social responsibility (CSR) initiative to a central pillar of a business’s strategy. In fact, since 2020, the prominence of social value has skyrocketed by 650% according to the Social Value Portal, especially as it becomes increasingly central to procurement and impact reporting.
This shift has been driven by changing stakeholder expectations, government legislation, such as the Public Services (Social Value) Act 2012, and a growing emphasis on ESG performance. However, many businesses still approach social value as a box-ticking exercise rather than embedding it into their operations.
Our roundtable highlighted that to truly drive impact, organisations must take a leadership-driven approach. Additionally, they should incorporate insights from individuals with lived experiences while collaborating with strategic partners to deliver meaningful and measurable outcomes.
2. Social value drives community engagement
Authentic community engagement is a key component of social value. Yet, businesses can struggle to implement initiatives that are genuinely impactful. Our ESG roundtable emphasised the importance of effective engagement. It must be purpose-led and tailored to the unique needs of local communities.
For example, Sunbelt Rentals’ Forests with Impact initiative trains and pays prisoners to grow tree saplings, creating both environmental and social benefits with the surplus revenue reinvested into upskilling and training opportunities. Similarly, Everton In the Community works with thousands of individuals each year to address social issues such as unemployment, digital poverty and mental health challenges.
These initiatives align business values with long-term community partnerships. When done correctly, community engagement creates a sense of shared purpose and bolsters a business’s reputation. This reinforces the belief that businesses thrive when the communities around them do as well.
3. Social value creates employment opportunities for marginalised groups
Employment is a powerful driver for creating social value. However, many marginalised groups – including ex-offenders, people with disabilities, or those from disadvantaged backgrounds – face systemic barriers to securing meaningful and long-lasting employment. The Social Value roundtable underscored that businesses must rethink their hiring policies to create pathways for individuals in these demographics. For example, the Ministry of Justice and New Futures Network are developing pathways for those leaving incarceration to transition into the workforce through apprenticeships and training programmes.
However, outdated hiring processes, such as unnecessary DBS checks and rigid application processes, still prevent many individuals from accessing employment opportunities. Our discussions reinforced the need for businesses to shift the focus from risk avoidance to potential assessment. Candidates should, and must, be evaluated on their skills and ability to contribute rather than solely on past circumstances.
4. Social value nurtures future skills for a future workforce
The UK is facing a widening skills gap in our workforce, with projections from The National Foundation for Education indicating that up to seven million workers may lack essential job skills by 2035. This growing challenge has only been exacerbated by certain factors. Rapid technological advancements, a growing disparity between education and industry needs, and the decline of traditional entry-level job markets in sectors such as retail or hospitality all make the situation more dire.
The roundtable highlighted that businesses must take an active role by engaging young people early in their career journeys. To achieve this, businesses can increase their outreach efforts by collaborating more closely with educational institutions to showcase opportunities available. By investing in future talent today, businesses can take steps to achieve long-term industry resilience through the creation of sustainable career pathways for the next generation entering the workforce.
