Dave Fardoe, Chairman of Accordant Solutions, reflects on the importance of measuring social value, and advises on how the housing industry can have a positive impact on communities, the economy, and the environment.
Social value; is it part of your business plan yet? It’s not a new concept, yet it is one that has rocketed up the agenda in recent years and is now a key factor for many working in the housing industry. In fact, for many it’s now a formal requirement to implement and prove your organisation’s social value credentials.
In 2012, the government introduced the Social Value Act, which compels public service commissioners to think about how the businesses contracted could also benefit communities, society or the environment. This may only apply to a specific group, yet it gives an important indication to all of us of a growing focus on the social value of business activity for all sectors.
In January 2021, an additional compliance policy was added to the act along with a Social Value Model. These documents have provided a framework for how to implement and measure social value activity within companies of all sizes, and for public services specifically, a requirement to demonstrate these for tenders and bids.
There is no doubt that the housing industry is already a frontrunner in terms of delivering social value and is confident in adopting a mindset for change. It is no longer simply about building and selling or renting a property, but about offering affordable solutions and supporting people to get on the housing ladder. It’s about building communities with green spaces, play parks and social areas that don’t just provide a place to live, but somewhere people can thrive.
For many years, organisations have worked to deliver a positive impact, supporting staff, charities or communities, for example. This work has come under various headings, such as corporate social responsibility or philanthropy, however, the difference now is that it’s no longer enough to simply do good things – we must also measure and demonstrate the benefits.
Manchester City Council is an excellent example. It has developed a clear Social Value Policy that defines what the organisation considers as important areas for delivery so that suppliers, staff, stakeholders, and local businesses can use it to guide their working practices. This useful document includes key areas such as creating employment opportunities, supporting staff with a Real Living Wage, working towards an ambition of zero emissions, seeking social value commitments as part of procurement processes, and the support of volunteering and charitable-giving programmes in local communities.
At Accordant Solutions, we have worked with a housing association to develop and embed social value as a philosophy and a measurable way of working. We initially provided an upgrade to the existing IT system with technology that created a significant annual saving. This money was invested in additional street lighting and CCTV systems in a housing area where crime was an increasing issue. The housing association works in partnership with the police, NHS, social services and community groups and was able to influence a reduction in incidents of street crime, drug dealing and other petty crimes.
Using measurement products bespoke to the organisation, many more tangible positive outcomes could be demonstrated, including a net positive carbon impact, improved standard of living and community engagement for local residents, and fewer interventions required from police and mental health services. These things could seem completely unrelated to the organisation at first glance, and difficult to track or quantify retrospectively, however with software in place the metrics are easy to follow and report on and show just how far-reaching the effects of an initial positive action can be.
Although there are many making great strides in delivering social value, some organisations are still unsure where to begin. It’s key to remember that this is a journey, not a destination, and creating real and sustained value takes time and adjustment. What matters to people today may not be the same in a year’s time.
Best advice? Start small and take it step by step; establish what you, your staff and wider stakeholders value the most. Then look outwards to your environment and community, and ask what matters to them? By understanding the challenges people face and what would have a positive impact on their lives, you can start to build a picture of effective activity which can help avoid a mistake made by many in trying to guess what creates real social value.
Understanding what can be done to positively impact the people, environment and economy around us, and ensuring these elements fit within the capabilities and values of your organisation is where the magic happens. A delivery framework can then be developed that will ensure social value outcomes are maximised, contributing to areas which really matter.
Doing initial research and setting up meaningful measurement from the outset allows you to be confident in doing something that really makes a difference. Too many are tempted by the idea of promoting their ‘green’ credentials without being able to prove them, and with many consumers and businesses using social value as a deciding factor in the buying process, it’s vital to act with integrity.
The foundation of social value is simple; to give back to our people, our communities, and the environment, acting honestly and with transparency in order to create a positive and measurable impact that creates benefits for us all.
Photo by Hannah Busing