Companies warned against ‘social value washing’

Big companies and government should be wary of “social value washing”, as community benefits begin to play a more prominent role in large-scale developments.
A social value expert discussed the issue on the latest Let’s Talk Social Value podcast.
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Hide AdThe intervention comes ahead of a major social value conference, which will take place in Birmingham this week.

Isabelle Parasram, is chief executive of The Institute for Social Value, which has just been launched to supersede Social Value UK, warned against box-ticking exercises and businesses who only participated in social value in order to win a contract.
Similar to “green-washing”, the social value version is defined when a company briefly participates in and talks up its commitment to community benefits to enhance its reputation, but fails to live up to deliver in the long-term.
Ms Parasram also praised the new Labour government, indicating social value was likely to become an increasingly important function under their administration.
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Hide AdIn the latest episode of Let’s Talk Social Value, run by social value agency Samtaler, which has just been released.
Isabelle Parasram, chief executive of The Institute for Social Value, said:
“There is a question on how we avoid social value washing.
“Sometimes organisations come to us because they want to win a contract.
“They know they have a percentage to achieve and they want to know how to tick whatever boxes are required so that they can win a bid.
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Hide Ad“When they come to us they can sometimes be a bit surprised that we invite them to go on a journey of development.
“Through that they can learn how to genuinely create impact.
“When it comes to social value washing, that’s why we want every organisation to come on a journey of development within their social value portfolio.
“We want to see that movement rather than to come in, achieve a certain goal, and then leave.”
On the new Labour government, she added:
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Hide Ad“The government will be looking again at the National Procurement Policy Statement – that’s very exciting from my point of view.
“There will be much more engagement on social value, much more emphasis placed on social value by this new government.
“We are seeing this already with what I would call shoots of development.”
Sarah Stone, director of Samtaler, said:
“The increasing role played by social value and community benefits is hugely welcome, but it brings with it risks too.
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Hide Ad“We know that so-called green-washing exists, and so too does social value washing.
“There will undoubtedly be challenges in future to ensure that large companies are committed to proper social value and don’t use it as a façade.
“That will be measured by positive impact felt in the very communities who are supposed to benefit from this.”