Social value is a term that is used often in the public sector. It isn’t the easiest to understand as it can mean different things in different settings. However at its heart, its about trying to make public spending or resource create as much impact as possible for people and communities. Social value means creating extra benefits for people, the economy, and the environment — on top of what you’re already being paid to do.
Example: In a simplified example imagine a company is hired to build a new office. The main job is to construct the building—that’s the “core” value. But the company might also:
- Hire local workers, helping the community earn income.
- Use eco-friendly materials, reducing harm to the environment.
- Train young people, giving them skills for future jobs.
These extra steps don’t change the main job (building the office), but they add extra value that benefits society. That’s what we mean by creating social value.