The Principles of Social Value
The Principles of Social Value provide the basic building blocks for anyone who wants to make decisions that take a wider definition of value into account, in order to increase equality, improve wellbeing and increase environmental sustainability.
They are generally accepted social accounting principles and are important for accountability and optimising social value.
The Principles are not individually remarkable but when they are applied collectively, they have the power to dramatically improve how we make decisions to optimise impacts.
The Principles have been drawn from principles underlying social accounting and audit, sustainability reporting, cost benefit analysis, financial accounting, and evaluation practice.
The Principles of Social Value can be distinguished from other approaches by the need to actively involve those stakeholders affected by activities, so their experiences are respected and their voices influence decisions and support organisations to optimise their value.
An account of social value is a story about the changes experienced by people. It includes qualitative, quantitative and comparative information, and also includes environmental changes in relation to how they affect people’s lives.
The Principles:
Find about more about each of the Principles
+ Principle 1: Involve Stakeholders
Inform what gets measured and how this is measured and valued in an account of social value by involving stakeholders. Learn more →
+ Principle 2: Understand What Changes
Articulate how change is created and evaluate this through evidence gathered, recognising positive and negative changes as well as those that are intended and unintended. Learn more →
+ Principle 3: Value the Things That Matter
Making decisions about allocating resources between different options needs to recognise the values of stakeholders. Value refers to the relative importance of different outcomes. It is informed by stakeholders’ preferences. Learn more →
+ Principle 4: Only Include What Is Material
Establish the boundaries of what information and evidence must be included in an account of value to give a true and fair picture, and one that is based on the evidence from stakeholders so decisions taken focus on the changes that matter. Learn more →
+ Principle 5: Do Not Overclaim
Only claim the value that activities are responsible for creating. [Learn more →
+ Principle 6: Be Transparent
Demonstrate the basis on which the analysis may be considered accurate and honest, and show that it will be reported to and discussed with stakeholders. Learn more →
+ Principle 7: Verify the Result
Ensure appropriate verification of results in line with the decisions being supported. In cases where results are being reported to external audiences and/or are supporting significant decisions, independent assurance is required. Learn more →
+ Principle 8: Be Responsive
Pursue optimum Social Value based on decision making that is timely and supported by appropriate accounting and reporting. Learn more →
Watch here for more insights about The Principles of Social Value
Applying the Principles
By applying The Principles, it is possible to create a consistent and credible account for the value that is being created or destroyed. The outcomes, and the measures and values of outcomes, can remain specific to the context, activity, and the stakeholders involved.
The Principles help us to create an account that meets the needs of different audiences and purposes. So, although The Principles provide a consistent framework, they do not create a one-size-fits-all approach, and they can be effectively applied to meet the level of rigour required for each scenario from operational decision-making to large-scale investment decisions.
Adopting The Principles of Social Value will sometimes be challenging as they are designed to make invisible value visible. Value is often invisible because it relates to outcomes experienced by people who have little or no power in decision-making. Applying The Principles will help organisations become more accountable for what happens as a result of their work, and means being accountable for more than whether the organisation has achieved its objectives – but it also means identifying opportunities to increase the value of activities and create meaningful change in people’s lives.
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