Social Audit Network Accounting for Social Value Bradford VCS Assembly Feb 2013

Social Value What is Social Value “additional benefit to the individual or community from a commissioning/procurement process over and above the direct purchasing of goods, services and outcomes.” NHS

Social Value "social value refers to wider impacts of organisations and interventions, including the wellbeing of individuals and communities, social capital, local economy and the environment. These are typically described as 'soft' outcomes, mainly because they can be difficult to quantify and measure.”

Social Value Act White Paper “Improving the accountability of policy and spending decisions in terms of the full social value they create will be increasingly important to improve the way in which public decisions are made” “Councils should have the flexibility & freedom to consider overall value rather than only cost in their spending decisions”

Social Audit Network The Social Audit Network (SAN) –membership organisation –facilitates the exchange of information and experience around social impact measurement and social value – monthly newsletter –offers an effective qualitative and quantitative measurement framework –offers training and development opportunities –SFEDI Accredited as Business Improvement Tool

Social Impact & Social Value Positive and negative changes happen as a result of your organisations activities – Important for you to know Social, environmental or economic effects - triple bottom line What value do these impacts bring to the local community? More than a quick fix, so beware new found enthusiasms, not a panacea, but a way of being

Social Value Act Why This? and Why Now? Scrutiny around public spending Legislation – Applies to contracts over EU Threshold £173,934 OPS or £113,057 CG Investment readiness - £150bn per annum in public sector procurement contracts Team morale Simple storytelling

Social Value and Procurement Public Services (Social Value) Act 2012 Evidence requirement – raise the debate above price vs. quality What will social value look like for you? How will you know what social value you can offer? How can you support its development? How will you know when its been successfully commissioned and delivered?

Influencing Factors Growing engagement with the social enterprise sector Supply chain resilience and diversity – mixed economies Localism – keeping more £ in your area Local employment Pay differentials –20 times between lowest and highest?? £12K vs. £240K Minimum wage vs. Living wage - £6.19 vs. £7.45

How to Evidence Social Value Variety of tools and techniques: –Social Accounting and Audit –Social Return on Investment –Local Multiplier 3 –SIMPLE –Balanced Scorecard

Social Accounting and Audit a proven logical and flexible framework which enables organisations to build on existing documentation and reporting systems and develop a process so that you can…

Prove! - account fully for and report on your organisation’s social, environmental and economic performance and impact… Account! – be accountable to all those you work with and work for and.. Improve! – provide the information essential for planning strategic development, sustainability through improving performance….

Social Accounting & Strategic Planning Social Accounting enables your business to: –Hear your customers voice –See the good, the bad and the ugly of your service –Re-configure services based upon evidenced need rather than perceived wisdoms/assumptions –Make some intelligent purchasing decisions based upon social and economic benefit

Our approach: Clarify your purpose Define the scope/boundaries Engage stakeholders – creative consultation approaches Determine materiality Make comparisons – benchmarking and stretch Be transparent – produce a readable document - social accounts Verify accounts – add challenge - Social Audit Panel Embed the process – build internal capacity and capability

What Next? No man is an island – get a team! Initiate some strategic thinking – MVOA, Culture and Climate Tool selection and Trade-offs SAA/SROI/LM3/SIMPLE Consultation plan Learn from others - SAN members

Engage in Pre-Tender Engage with LA Procurement & Commissioners Develop your evidence base Look at collaboration with other VCS to tender for larger contracts

Bernie Speight Thank you