Social Value Models and Measurement Explained
Social value has never been more important than it is today. There's an increased demand for organisations to create positive social and eco impact alongside their regular business fare, so it’s crucial to understand how to measure social value without needing to call in social value consultancy. The Social Value Model may look different for every business, but, in essence, it’s a framework used to measure social value.
To further understand the Social Value Model and its measurement, we’ll be looking at:
What is the Social Value Model?
Key components of the Social Value Model
TOMS Social Value Model
Social value measurement: Tools and techniques
Next steps
What is the Social Value Model?
The Social Value Model is a corporate framework. Organisations can use it to integrate and measure the social impact of their corporate social responsibility (CSR), environmental, social, and governance ( ESG), and social value themes and activities. This social value framework focuses on the positive effects that social value procurement has on businesses, such as wellbeing, inclusion, and sustainability.
By applying the official government Social Value Model, organisations can ensure that they’re contributing to social goals and achieving good within their day-to-day workings. From reducing inequality, to promoting sustainability, to boosting communities, the Social Value Model is invaluable for social value in business and beyond.
Key Components of a Social Value Framework
The Social Value Model usually involves a structured social value framework that helps organisations identify, measure, and report on their social impact. These frameworks include social value themes like:
Community development
Environmental sustainability
Economic equality
Diversity and inclusion
By focusing on specific themes, organisations can more effectively align with their priorities.
In the UK, the PPN Social Value Model provides guidance for incorporating social value within government procurement. A framework like this helps organisations align with the Social Value Act 2012, which requires public sector organisations to focus on social, economic, and environmental benefits in their procurement processes.
By following a social value framework, businesses can make sure they’re maximising social value in their organisation.
TOMS Social Value Model
The TOMS Social Value Model, created by the Social Value Portal, is one of the most widely recognised social value frameworks. It helps standardise the measurement and reporting of social value. TOMS (Themes, Outcomes, and Measures) represent different areas of social value:
Themes: Broad areas of impact, such as ‘environmental sustainability’ or ‘diversity and inclusion’
Outcomes: Specific objectives within the themes. Examples can be: changing to a more sustainable supplier or increasing funding for ERGs (Employee Resource Groups).
Measures: Quantifiable indicators used to assess the success of the themes and outcomes. This might look like a reduction in CO2e output or the number of employees in an ERG.
The social value TOMS measurement is crucial for organisations to track consistent social value. It ensures that organisations are transparent and clear about their goals and outcomes.
Measuring Social Value: Tools and Techniques
The question of how to measure social value may be the most elusive part of employing the Social Value Model. After all, how can you calculate something that is so incalculable? You can use a social value calculator or a social value coordinator to help you, but it helps to understand the different techniques you can use for measuring social value. Feel free to use these techniques as a social value model quick reference table for your measurements.
Cost-Benefit Analysis (CBA): Compare the costs of an initiative or scheme against the benefits it delivers.
Social Return on Investment (SROI): Assign a monetary value to social, environmental, and economic outcomes and compare the ratio.
Theory of Change (ToC): Map out the steps needed to achieve outcomes so that you can identify each activity within the social value process.
Outcome Mapping: Identify and track changes in behaviour, relationships, activities, and actions of stakeholders.
Impact Valuation: Use metrics and indices to assess the broader impact of projects on society
Stakeholder Surveys: Collect data from stakeholders. Receive insights into the perceived social value of initiatives
Benchmarking and Comparisons: Compare performance against industry standards
Sustainability Reporting Standards: Adopt frameworks like the Global Reporting Initiative (GRI) or the Sustainability Accountability Standards Board (SASB). Report on social value.
Balanced Scorecard: Integrate social value indicators into a scorecard. Track performance across finance, customer success, internal processes, and learning.
Case Studies: Document case studies. Show specific examples of social value implementation with context and evidence of impact.
When these techniques come together, the question of how to calculate social value becomes a lot easier to solve.
Conclusion
The Social Value Model is crucial to modern organisations. You need to be able to emphasise your positive social and environmental impact across all segments of your business, but you don’t need to be a social value consultant to do this.
By implementing this model, aligning with mandates like the Social Value Act 2012, measuring with the TOMS Social Value Framework, and employing a variety of measurement techniques, you’ll be ready to tackle social value. As an organisation, it’s your duty to uphold positive social and environmental impact. Make sure you’re employing the best approach you can to tackle the Social Value Model.
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