Understanding Social Value in the Business World
In today’s corporate landscape, companies are increasingly being called upon to deliver more than just profit — they’re expected to create positive impact for the environment, communities, and broader society. This is where social value comes in.
What is Social Value?
Social value is the broader impact an organisation has beyond its core financial performance. It encompasses the economic, social, and environmental benefits that companies bring to their stakeholders, communities, and the planet through their business activities.
These impacts can include creating local jobs, reducing carbon footprints, supporting community initiatives, or enhancing employee wellbeing. For businesses, these contributions are becoming more and more important as stakeholders and consumers increasingly prefer companies that prioritise purpose alongside profit.
Why Should Businesses Care About Social Value?
In today’s market, consumers, employees, and investors are all looking for more than just financial returns — they expect businesses to have a positive impact on society. This growing demand for corporate responsibility has made social value a critical component of business strategy.
Businesses that demonstrate a tangible commitment to social value are more likely to attract and retain customers, gain a competitive edge, and build long-term trust. Not only that, but companies that prioritize social value can also improve brand reputation, attract investors, and drive sustainable growth.
And the numbers prove it:
- Nearly 70% of employees say they wouldn’t work for a company without a strong purpose
- 77% of consumers are motivated to purchase from companies committed to making the world a better place
- Companies that provide their employees with a sense of purpose and clear direction and expectations outperformed the stock market, achieving returns 9% higher than the market
In short, social value isn’t just a moral obligation — it’s a strategic necessity for success in modern business.
How Businesses Can Make an Impact
Whether you're just starting out or looking to enhance your social value efforts, there are practical steps businesses of all sizes can take:
- Implementing environmental initiatives like reducing carbon emissions
- Supporting community projects or charities
- Fostering employee volunteerism
- Enhancing employee wellbeing through mental health and diversity initiatives
By embracing social value, businesses can create meaningful change that extends far beyond their bottom line.
Take Your First Steps to Creating Social Value
To dive deeper into how social value can shape your business strategy and drive success, read the full social value in business guide. This comprehensive guide covers the origins of social value, how it can benefit your business, and actionable steps to incorporate it into your daily operations.Ready for your organisation to start creating social value? Book a demo with OnHand and start making impact.
