Introduction: Demystifying Social Value
As a Social Value Consultant, I’m fortunate to be working with some amazing leaders in the social business sector. I watch as they try to manage the realities of running an organisation with a social mission, trying to balance the needs of the community and their stakeholders with the constant pressure of keeping the financials in balance. These leaders are doing incredible work, making a real difference in their communities, but they are often frustrated by the confusing landscape of social value and how it is different from social impact. I see how often these two terms are conflated, or confused, or used as if they are interchangeable when in reality, they are two sides of the same coin.
I believe that measuring social value in a way that is meaningful, robust, and accessible is one of the most powerful tools for creating a fairer, more sustainable economy. That’s why I’m so pleased to be working with Profit for Purpose as their Social Entrepreneur in Residence, bringing together our shared passion for helping organisations measure what matters and making social value visible.
From Impact to Value: What We’re Really Talking About
It’s time to get down to basics. Social impact is about change (what happens as a result of your activity). Social value is about the worth of that change to people, communities, and society.
You can’t have one without the other. Impact is the first step the increased confidence, skills, or wellbeing that communities experience as a result of your activity. Then comes value – the broader benefit that those changes bring to society.
When we measure social value in a meaningful way, it enables organisations to tell their whole story, not just the financial bit but the point behind it. It enables commissioners, funders, and partners to understand that the work of community organisations is not just nice to have but is critical infrastructure for a thriving place.
The Challenge and the Opportunity
All too often, social value is something that is ticked off in a tender, rather than a way of thinking about change. At the same time, the organisations that live and breathe social value every day, our charities and social enterprises, find themselves locked out of opportunities because they do not have the systems or language to evidence what they do so well.
This is where Accounting for Social Value comes in. It provides a way of evidencing social impact, using data, stories, and insights to build a clear and transparent picture of value. It is about learning as much as it is about reporting.
At Profit for Purpose, we are working with organisations to embed this thinking from the outset, so they can unlock new partnerships, demonstrate their value, and take their rightful place at the table when contracts are awarded on most advantageous tender, rather than lowest price.
Accounting for What Matters
When we begin to properly VALUE social value, we begin to open the door to more equitable and sustainable systems.
We:
- Increase confidence in the sector by evidencing real outcomes and impact.
- Improve relationships between social enterprises, commissioners, and local authorities.
- Unlock investment and growth routes by demonstrating social value.
Social value should be a movement, not a mystery. Profit for Purpose is all about making that a reality.
Schedule a free 30-minute consultation and begin your journey to measuring what really matters.
Join the Profit for Purpose Network to connect with other like-minded social entrepreneurs who are building impact-driven businesses.
Closing Thoughts
At Profit for Purpose, we are delighted to be working alongside individuals and organizations who place purpose at the forefront of what they do. By making social value visible, we can put a spotlight on the amazing work already being done in our communities and help every social enterprise turn up the value.