How social value can help SMEs protect brand and business

Today, social value is a commonly used term in the business world, especially since the introduction of the Public Services (Social Value) Act in 2013.

The act requires organisations to go beyond the financial concerns of a contract, to consider how the services being provided will deliver additional value to the communities involved.

This value can be localised, by supporting specific people or a certain region, or it can contribute to a cause that is important to the buyer, whether related to employment, education, inclusion or the environment.

Best for business

For businesses, social value initiatives help to deliver tangible benefits for the people that work for them and with them, as well as those who ultimately buy their products and services.

From a telecoms perspective, for example, it can contribute to everything from data privacy protections and improved network stability to digital inclusion and reduced energy usage.

For small and medium-sized enterprises (SMEs), integrating social value can be more important still. This is particularly true for SMEs looking to secure public sector work, given that some public sector tenders have increased their mandatory minimum weighting for social value from 10% up to 30%.

While the ultimate goal for businesses doing the bidding would be to win these contracts, the significance of social value goes beyond the figures. In fact, its long-term reputational impact can be just as important in today’s competitive marketplace.

Social value at Vodafone

Vodafone UK’s everyone.connected initiative, which aims to help 4 million people and businesses cross the digital divide by the end of 2025, is a good example of how social value can help drive business and brand reputation.

Having recently reached the 3 million milestone, everyone.connected has helped deliver more than £225 million in social value across the United Kingdom, through: the donation of connectivity and tech; the provision of affordable and accessible services; and work with partners to upskill businesses and communities.

This latter part includes private partnerships, such as with Lloyds Banking Group to distribute SIM cards to financially vulnerable customers, but it also touches on public services.

The Met Police, for example, has donated 5,000 phones to our Great British Tech Appeal. Meanwhile, Vodafone has helped support 1.7 million UK SMEs through the platform.

As a result, everyone.connected provides Vodafone with a strong foundation to use when making social value commitments in new business tenders, or when engaging customers and partners.

A plan of action

To make social value work for them, it’s worth SMEs considering actions that will have a direct impact on their customers.

For instance, businesses could look into developing social value proposals for specific customer segments or launching tiered support models for strategically important customers.

Internal initiatives shouldn’t be overlooked either, as they can have a significant impact on various business areas, such as:

• Sustainability: Reducing waste, improving energy efficiency and sourcing eco-friendly materials.

• Regional development: Working with local charity organisations, supporting small suppliers or offering employment opportunities to underrepresented groups.

• Wellbeing and inclusivity: Implementing policies that support diversity, mental health and work-life balance.

An added benefit of these initiatives is that they can also enhance brand loyalty, with studies showing that customers are more likely to support businesses that reflect their own values.

Looking for support?

When it comes to implementing social value changes, SMEs needn’t overhaul their entire business model overnight. However, incremental changes, such as adopting green initiatives or offering apprenticeships, can certainly pay dividends further down the road.

By prioritising social value credentials over time, businesses can make themselves a more attractive prospect when it comes to new business tenders, customer perception and employee engagement.

To help SMEs navigate this journey, Vodafone Business provides the digital tools, connectivity and expertise needed to succeed in today’s socially conscious world.

For more information on how Vodafone UK can help your own business improve its approach to social value, visit the Vodafone Business website.