In-Depth Analysis of Added Social Value in Social Procurement Compared to Traditional Procurement

Social procurement and traditional procurement differ fundamentally in their objectives and the value they add beyond the mere acquisition of goods and services. An in-depth analysis reveals how added social value is conceptualised and operationalised in social procurement, and how this contrasts with traditional procurement practices.

Added Social Value in Social Procurement

Definition and Scope

Social procurement explicitly aims to generate additional economic, social, and environmental benefits beyond the basic contractual deliverables. It is defined as ensuring that public spending creates positive impacts on people and communities, focusing on improving well-being, promoting sustainability, and fostering economic inclusion. This approach integrates social value as a core objective, not just a byproduct.

Three Pillars of Social Value

Social procurement is structured around three broad pillars:

• Social: Enhancing community wellbeing, inclusivity, and opportunities for disadvantaged groups.

• Economic: Supporting local economies, creating fair employment, and fostering skills development through training and apprenticeships.

• Environmental: Promoting sustainable practices, reducing carbon emissions, and encouraging eco-friendly innovations.

Purpose and Intentionality

Social procurement requires setting explicit social targets before the procurement process begins. It is intentional about creating social impact, rather than incidental or coincidental benefits. This means contracts are designed with social outcomes as a primary goal, leveraging procurement as a tool for social change.

Outcome-Driven and Collaborative Approach

Modern social procurement emphasises outcomes over inputs. For example, a supplier’s contribution to social mobility through training and fair wages is valued more than just the volume of social initiatives. Collaboration across supply chains is encouraged to align priorities and maximise impact, moving beyond transactional relationships to strategic partnerships that deliver legacy benefits such as sustainable careers and community well-being.

Legislative and Policy Framework

Social procurement is increasingly embedded in legislation and policy, such as the UK’s Social Value Act 2013 and the Procurement Act 2023, which mandate public sector bodies to consider social, economic, and environmental well-being in procurement decisions. New models and frameworks provide clear missions and outcomes for social value, ensuring consistency and transparency in implementation.

Comparison with Traditional Procurement

A large number of corporate governance standards internationally

Summary

Social procurement adds value by embedding social, economic, and environmental objectives into the procurement process, transforming purchasing decisions into tools for societal benefit. Unlike traditional procurement, which prioritises cost and quality, social procurement requires intentional planning, collaboration, and measurement of social outcomes. This approach not only meets regulatory requirements but also drives sustainable development, community well-being, and inclusive economic growth. The evolution of social procurement frameworks and legislation reflects a growing recognition that procurement can and should deliver broader societal value beyond the immediate contract.

Sources: internet resources

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Design Studio MZ+MM is a social enterprise (SEE Mark No. SEE 0114) based in Hong Kong, providing various types of graphic design services. Currently, the team is composed of hearing-impaired and hearing designers who practice disability inclusion, which is the primary reason for promoting "diversity, equity and inclusion" in corporate organizations. We support the United Nations Sustainable Development Goals SDGs: 10 “Reduced Inequalities” and 17 “Promote Partnerships for the Goals”.

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