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You are here: Home » Blog Posts » What is Social Value, and how do we create it?

What is Social Value, and how do we create it?

19 November 2012 By EVOC Communications Team Leave a Comment

Social Value is all the rage these days.

Public Value Theory has for several years now gained increasing prominence among policy makers as well as thinkers-and-doers with an interest in building good society.

In March this year the UK Parliament passed the Public Services (Social Value) Act. It comes into force in January 2013.

Edinburgh’s Single Outcome Agreement includes in its vision the high-level outcome ‘Edinburgh’s communities are safer and have improved physical and social fabric.’

On Wednesday 14th November the Edinburgh Compact Partnership – supported by the Edinburgh Partnership – hosted an event ‘Building Social Value: an Edinburgh Approach.’

So just What – in simple terms – Is ‘Social Value’ all about?

I’ve no doubt that an Oxbridge don (or an emeritus professor from Harvard Business School) would have much to say on this topic.

Being rather unlike either of those, however, I will have to limit myself to proposing a few pointers, one or two related concepts, and a proposal. Ready?

Public Value Theory – a pointer

Made famous by Professor Mark Moore of the Harvard Kennedy School of Government, Public Value Theory makes two core assertions.

First, that it is time for a new paradigm of public service. The traditional approach was that public agencies delivered services ‘to’ people. The era of New Public Management brought forward the language of delivering services ‘for’ people. Public Value Theory, develops this thinking further – using the powerful ideal of public agencies delivering public services ‘with’ people.

Next, that the New Public Management model, borrowing as it did so heavily from a private sector approach, missed something vital. Whilst public services certainly needed to get leaner and grow more efficient; increasing ‘operational efficiency’ on its own would never succeed in delivering public value. What was needed was an appropriate balance between operational efficiency and ‘the authorising environment,’ the context within which the authorities govern by consent – the consent of ‘the people.’

The (Social Value) Act – another pointer

The Public Services (Social Value) Act defines social value as ‘the additional benefit that can be created by procuring or commissioning goods and services, above and beyond the benefit of merely the goods and services themselves.’ This ties social value directly to procurement, and seeks to add value to procurement activity.

While there is no doubt that this is a laudable aim, we ought not to pretend that this exhausts the scope of what social value is – nor what it could be!

Social Fabric (a related concept) in Edinburgh’s SOA

The ‘Understanding Edinburgh’ pages linked to Edinburgh’s Single Outcome Agreement say that ‘Social capital is viewed as a key building block of social fabric.’ Indicators of progress towards ‘improved social fabric’ include: satisfaction with the local neighbourhood; volunteering levels; people feeling they have a say in local decisions; people feeling that their neighbours from different backgrounds get on well together; and people feeling ‘safe’ when at home at night or in their neighbourhood after dark.

Does it feel like we’re getting closer?

How’s about This for a Proposal?

Social Value is that which gives worth to our inter-personal interactions, our shared spaces, and our co-produced activities. Acts which damage inter-personal relationships destroy Social Value, and those which build and enhance the context within which we conduct our shared lives should be considered as Social Value Creation.

That which adds value to one community might not necessarily be that which adds value to another. Therefore – an understanding of what comprises Social Value can only come about through an honest dialogic (dare I say dialectical?) engagement between people, communities, civil society and the state.

I can’t wait to hear what You think…

 

You can find me on Twitter @evoc_milind

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