Item no.
3
City Partner Group
Title of report
Date
Contact
Officer
1.
Social Value
30 April 2015
Alison Page
CEO Salford CVS and Deputy Chair of Salford City Partnership
([email protected] )
Purpose of report
1.1
This report asks Group members to consider the final draft of the Social in
Salford Pledge and its proposed administrative arrangements, and agree that ‘sign
up’ can now commence. The report also asks City Partner Group members to
consider and agree 3 proposed initial social value priorities for the City, which all
signatories to the Pledge will be required to measure.
2.
Introduction
2.1
Social value is about the social, environmental and economic well-being of
Salford and its citizens. Social value considers more than just financial transaction
and
includes
such
outcomes
as
happiness, wellbeing, health, inclusion, empowerment, poverty, and environment. Examples of
actions to promote social value might include: building community resilience;
minimising the carbon footprint of an organisation; encouraging local employment;
and providing good working conditions.
2.2
Since January 2013, Salford City Council and other public bodies have had a
duty to consider social value as part of their commissioning activities under the Public
Services (Social Value) Act 2012, both as part of service specifications and as
‘added value’.
2.3
In July 2014, the City Partner Group agreed social value to be one of its three
priorities for action. At that time, Group members heard about a programme of work
which had been initiated by the Health and Wellbeing Board, aimed at embedding a
social value approach to all public services, partner members’ operational practice,
strategy and planning, as well as private sector investment in the City.
2.4
The City Partner Group noted that as available funds are decreasing, there
are often pressures to reduce quality of service provision. By adopting a greater
emphasis on social value there is sometimes a misconception that this increases
costs. This does not acknowledge the medium to longer term outcome benefits that
social value can bring. For example, by employing long-term unemployed Salford
residents we are taking people off benefits and into paid employment. This in turn
has a beneficial effect on people’s well-being, and has been proven to produce
outcomes which might include a reduction in criminal and anti-social behaviour and
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reducing the burden on health and care services. It also strengthens community
cohesion and fosters a greater sense of happiness and well-being.
2.5
In November 2014, Social Value was the theme of the City Partnership’s
Stakeholder Conference. At that event, attendees heard about the variety of work
already happening in the City to build social value, and witnessed the City Mayor sign
a pledge to ‘Be Social in Salford’, following which he described how this work fits with
the Spirit of Salford and other initiatives, so that everyone can be ‘valued’ in our City.
3.
Key issues for the City Partner Group to consider
3.1
The cornerstone of the social value work is the Social in Salford Pledge, which
was prepared following consultation with stakeholders through the Salford Social
Value Group (a broad working group set up to deliver this project). This Pledge is
intended to provide a consistent and partnership approach to the application of social
value across all organisations in Salford. It is proposed that there is a commitment
from the signatories that social value will be central to service provision regardless of
who the provider is or what sector they are in. This means that there is a real and
tangible commitment to ensuring that public service expenditure generates social
value across the city.
3.2
It is proposed to maximise social value by asking all organisations in Salford to
sign the Social in Salford Pledge. All signatories will commit to the principles stated
therein and to:
•
•
•
Embed Social Value: adapting policies and governance arrangements to
emphasise the role social value will play in services
Deliver Social Value: implementing social value through commissioning and
procurement processes from assessment of assets and needs through to
advertisement and pre-qualification questionnaires, specification, evaluation and
contract compliance.
Demonstrate Social Value: evidence how and when they have introduced social
value into service delivery and the impact that this has made.
3.3
The final draft of the Social in Salford Pledge is attached at Appendix 1 and
will be a multi-agency agreement, owned by Salford City Partnership and driven by
the City Plan. This paper describes proposed operational arrangements.
3.4
As stated above, the Social in Salford Pledge will set out the City’s
overarching policy around social value, and organisations will be signing up to that
policy and its accompanying principles. The proposed arrangements for initial sign
up, checking whether organisations are keeping to the agreed principles, and
measuring social value on behalf of Salford City Partnership are described below. It
should be noted that all organisations are at different stages in terms of
understanding and reporting on the social value that they generate, and one of the
aims of the Pledge will be to start developing a picture of social value across the City,
so that partners can support each other to improve and make the maximum amount
of difference together for the citizens of Salford.
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Signing the Social in Salford Pledge:
3.5
Any organisation working in Salford will be eligible to sign the Social in Salford
Pledge.
3.6
The administration of this ‘sign up’ will be undertaken by Salford CVS.
Organisations will be asked to sign the social value ‘pledge’ which was presented at
the City Partnership Conference in November 2014, and commit to the vision,
principles and arrangements stated in Appendix 1. The pledge also includes a
completed commitment ‘In 2015, my organisation deliver social value through…’ It
should be noted that a number of organisations have already signed the pledge,
including Salford Royal Foundation Trust and Salford City Unison.
3.7
At first sign up, all organisations will be asked to complete a short template
report which will describe what they are already doing in terms of delivering social
value already (for example, are they Living Wage employers? do they monitor waste
recycling or energy use? do they have corporate values? etc). This will be used to
develop a baseline of social value for Salford only, and will not be used as a form of
quality judgement or to stop any organisation from signing the Pledge.
3.8
Signing the Pledge and making a commitment to the principles that it contains,
will give an organisation the chance to:



become a member of an alliance of organisations committing to social value in
Salford (a new Social Value Alliance, which will replace the current Salford
Social Value Group);
help shape policy around social value in the City of Salford;
promote their commitment to social value, using the ‘Social Value in Salford’
branding, which will include a simple ‘badge’ for websites, letters and
promotional materials.
Keeping the pledge
3.9
As stated in Appendix 1, all organisations signing the Social in Salford Pledge
would be required to report annually to the Salford Partnership on their social value
or lose the ‘badge’ status. The process of collecting the social value report or return
would be administered by Salford CVS, who would also maintain all records of the
signatories and the reports that they submit.
3.10 There will be no specified tool for annual social accounting or reporting, but
guidance will be provided on expectations and the ‘minimum standards’ required.
These standards will include a small number of priority social value outcomes agreed
by the Partnership and it will be expected that all signatories will measure these
outcomes. This will allow the outcomes reporting to be flexible for different sizes of
organisations from differing sectors. Each year, all organisations will also be asked to
make a new annual pledge, committing their organisation to a new social value
personal goal for the coming 12 months.
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Social value measurement framework – initial priorities
3.11 Evaluation of whether the Social in Salford Pledge and its principles are
making a difference for the city and its people can be broken down into two broad
areas:


whether what we are doing is the right thing and is generating more social
value (process evaluation);
how much social value are we generating (measuring social value outcomes)
Appendix 1 contains suggestions as to evaluating the first of the above areas, and
this is currently being taken forward through work in partnership with the Centre for
Local Economic Strategies (CLES).
3.12 In terms of measuring social value outcomes, the City Partner Group has
asked for a small number of social value outcomes which could be reported on a
regular basis at a Salford-wide level. It should be noted that a social value
procurement policy has been agreed by the GM Combined Authority as guidance for
local authorities only. This contains 6 broad social value objectives and a large range
of possible social value indicators. It is proposed that any outcomes adopted as
priorities in Salford are aligned with those to be measured at a GM level.
3.13 For Salford, it is proposed that there be one social, one environmental and
one economic priority outcome and that all should link back into the City Plan. These
are:
•
•
•
Increased community strength and resilience
Improved impact of the local environment on people’s wellbeing
Increased number of quality employment opportunities and reduced
poverty for local citizens
Having a small number of social value outcomes will allow Salford City Partnership to
track the difference and progress which is being made over time.
3.14 All organisations who sign the Social in Salford Pledge will be asked to report
against both the City’s 3 priority social value outcomes, AND their own, individually
determined social value outcomes. Guidance will be provided on suggested
indicators which might be used to measure each of the three social value priorities,
but the onus will be put on each organisation to demonstrate how their work is
contributing towards each of the above. Salford CVS will work with the City Council to
report on social value at a City level.
3.15 It is proposed that the Salford Social Value Alliance of organisations who sign
the Pledge, will steer the social value work across the City on behalf of the City
Partnership.
Proposed City Mayor’s Charter Mark
3.16 The City Mayor will be developing a City Mayor’s Social Value Charter Mark
and will also be including social value more explicitly within the City Mayor’s
Employment Charter. Salford City Council is already exploring how social value will
be firmly embedded within their procurement rules.
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2
Conclusions
4.1
Social value supports the two other Partnership priorities of growth and wellbeing. City Partner Group members are now asked to:




Agree the proposed administrative arrangements for the Social in Salford
Pledge
Agree that ‘sign up’ can now commence, with a deadline for ‘founder
members’ of the end of July 2015
Ask Salford CVS to report back to the City Partner Group on the baseline
situation across the City in the autumn
Agree the 3 proposed initial social value priorities for the City, which all Pledge
signatories will be required to measure.
END
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APPENDIX 1
BEING SOCIAL in SALFORD
VISION: In Salford, we will look for relevant social, environmental and economic value from everything that we do,
including service delivery, commissioning and procurement; and aim to use the ‘Salford pound’ to obtain the
greatest benefit for local citizens. Social value considers more than just the financial transaction and includes:
Happiness ✿ Wellbeing ✿ Health ✿ Inclusion ✿ Empowerment ✿ Poverty ✿Environment
We are committed to the following principles:
we create
1. optimising the social, environmental and economic Commissioning will:
well-being of Salford and its people in everything
• ask clear, appropriate questions and embed social
that we do
value in policies, commissioning and procurement
2. thinking long-term – turning investment into longframeworks
lasting outcomes
• give social value significant and proportionate
3. working together across sectors to provide social
weighting within procurement criteria and decisions
value outcomes
• include social value in contract monitoring and
4. having values including inclusion, openness, honesty,
management
social responsibility and caring for others
• engage with providers on an ongoing basis around
5. having a clear and current understanding of how
social value
social value can make Salford a better place to live Delivery will:
6. Working together to measure, evaluate and
• embed tools for monitoring and reporting social
understand social value, as well as reporting publicly
value as part of organisational processes
to the people of Salford about the social value that
• offer social value as part of tender submissions
We will know whether our principles are making a difference by
evaluating such things as:
• the flow of money in the local economy (LM3)
• value of public contracts placed with local providers
• the size of contracts and providers who deliver them
• the level of understanding of the benefits of social value in
commissioners and providers
• the questions asked by commissioners and procurement teams
• whether social value is included in all policies, strategies and
decision-making
• how many and what sort of organisations have signed up to the
social value charter
• the capacity of local providers to report their social value
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APPENDIX 1
Introduction
In Salford, we want to achieve a consistent approach to the application of Social Value across the City. This Pledge for Social Value sets out to
provide a single, shared approach and commitment to Social Value.
Whilst the emphasis is on commissioning and procurement there is a vow from the signatories that social value will be central to their activities.
This means that there is a real and tangible commitment to ensuring that expenditure across the public, community and voluntary services
generates the maximum social value across the City.
There are 3 elements:1) The VISION – A statement of principles which would apply across ALL signatory organisations.
2) The BE SOCIAL IN SALFORD pledge – a simple commitment towards acting in a manner which is socially, environmentally and
economically aware
3) A social value TOOLKIT which is intended to be a practical set of tools for both commissioners/procurement and providers in Salford
What is social value?
Social value asks the question: "If £1 is spent on the delivery of services, can that same £1 be used to also produce a wider benefit to the
community?”. This involves looking beyond the price of each individual contract and looking at the collective benefit to a community.
The Public Services (Social Value) Act 2012 describes social value as “..Improvement to the economic, social and environmental well-being of
an area..” The Act also stipulates that social value should be “relevant” and “proportionate” to the subject matter. This means that for example in
a procurement exercise procurement staff cannot require something wholly unconnected with the provision of the contract itself.
Examples of relevant and proportionate requirements include:
– Encouraging use of local workforce in a construction project in a deprived area with large numbers of unemployed residents.
– Taking environmental sustainability into consideration in an energy contract
– Employing a % of disabled people in a service for Adult learners
Priorities for social value in Salford will be developed from the City Plan 2013-16 and published as part of the social value toolkit.
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APPENDIX 1
Why are we doing this?
The concept of “Value” is not confined to the narrow definition that cheapest price is best. Calculations of value for money are increasingly
refined to cover whole-life cycle costs including social, economic and environmental matters. For example by working collaboratively with
partners to get communities back into work we are effectively making a saving to the public purse in terms of reducing the benefits bill.
It is now suggested that the wider contribution that social value makes to regeneration and creating vibrant sustainable local economies should
be actively pursued with renewed vigour in every sphere of business.
There is also strong evidence1 to show that social value can have pronounced health benefits. For example, by getting long term unemployed
people back into work this results in less poverty which in turns results in better health and less demand for health services such as GP’s and
hospital admissions. Other examples include stipulating only low emission vehicles in a transport contract. This will help to meet sustainability
targets and create less pollution which in turns makes for a healthier environment.
From a provider’s perspective signing the Social in Salford Pledge could increase your chances of winning business with the majority of public
sector and other organisations based in Salford. You will develop a better understanding of social value requirements and therefore better
equipped to submit a winning tender.
Objectives
This is a social value Pledge for the City of Salford. It is a multi agency agreement that commits all signatory partners to demonstrate that social
value is at the core of how agencies spend public money both internally and with external providers. Any organisation based within Salford may
apply to be a signatory to this pledge providing it endorses the Be Social in Salford pledge and commits to implementing the Vision and
principles.
The toolkit will serve as a practitioner’s aid in how to maximise the impact of social value in different situations.
The overriding objective is to make Salford a Social Value City. This means the City will strive to ensure that the majority of public, community
and voluntary sector organisations sign this pledge and the principles contained within it. It will mean that the interests of the City and its
residents will be paramount whilst at the same time seeking to secure best value in service commissioning and procurement arrangements. We
are also seeking commitment around social value from the many private sector businesses in the City, aiming to maximise the benefit from all
money invested in the City.
The toolkit will be an organic resource which evolves over time, responding to its achievements and community needs. The impact of this work
will be reported on at least an annual basis.
What outcomes/cost benefits do we anticipate from this work?
Many organisations in all sectors have had to make budget savings in response to the economic downturn. As costs are reduced there are often
pressures to reduce quality of service provision. By putting greater emphasis on social value there is sometimes a misconception that this
1
Joseph Rowntree Foundation report “Tackling Poverty through Public Procurement”
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APPENDIX 1
increases costs. This ignores the medium to longer term outcome benefits that social value can bring. For example, by employing long term
unemployed Salford residents we are taking people off benefits and into paid employment. This in turn could have a beneficial effect on reducing
criminal and anti social behaviour and reduces the burden on health services. It also strengthens community cohesion and fosters a greater
sense of happiness and well being.
What does it mean to sign the Social in Salford Pledge?
All organisations who commit to the Pledge will be expected to evidence how and when they have introduced social value into service delivery.
This will include:
•
•
•
EMBEDDING SOCIAL VALUE: Adapting policies and governance arrangements to emphasise the role social value will play in the
organisation and its services
DELIVERING SOCIAL VALUE: Implementing social value through commissioning and procurement processes from assessment of need
through to advertisement and pre qualification questionnaires, specification, evaluation and contract compliance.
DEMONSTRATING SOCIAL VALUE: Evidence how and when they have introduced social value into service delivery and the impact that
this has made.
Evidencing the commitment
Each organisation making a commitment will be expected to collect information and report progress to the Salford City Partnership about how
they are delivering the principles contained in the Be Social in Salford pledge.
The City Partnership will look collectively to develop measures which improve social value in the City.
Salford has embraced the concept of social value as a means of contributing towards the achievement of its strategic aspirations. The City
Partnership will monitor the outcomes on an annual basis to ensure that it is working effectively and all signatories are meeting their obligations
and responsibilities
This Social in Salford Pledge is also intended to complement the Salford City Mayor’s employment standards charter:
http://www.visitsalford.info/locate/citymayorsemploymentcharter.htm. The employment charter will encourage local employers to sign up to:



Putting Salford First: creating training and employment opportunities for Salford people, particularly those facing greatest disadvantage.
Buying in Salford: looking to purchase Salford goods and services at every practicable opportunity.
Setting the Standard: promoting the adoption of the best possible working practices and conditions, such as working towards the
introduction of a living wage, a commitment to eradicating the illegal practice of blacklisting and opposing the use of zero-hour contracts.
All signatories of the Pledge will be encouraged to seek endorsement through the employment standards charter to show their commitment to
social value in Salford.
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APPENDIX 1
BEING SOCIAL in SALFORD
SOCIAL IN SALFORD – PLEDGE
I ………………………………………… (name) of …………………..………………………………..(organisation)
pledge to be Social In Salford by implementing the following priciples:
•
•
•
•
•
•
optimising the social, environmental and economic well-being of Salford and its people in everything that we do
thinking long-term – turning investment into long-lasting outcomes
working together across sectors to provide social value outcomes
having values including inclusion, openness, honesty, social responsibility and caring for others
having a clear and current understanding of how social value can make Salford a better place to live
working together to measure, evaluate and understand social value, as well as reporting publicly to the people
of Salford about the social value that we create
and working towards a Salford where consideration of:
Happiness ✿ Wellbeing ✿ Health ✿ Inclusion ✿ Empowerment ✿ Poverty ✿Environment
is an integral part of how we do business.
We will strive to deliver WELLBEING and GROWTH in our City through a social value
approach.
In 2015, my organisation will deliver social value through …………………………………………………..
……………………………………………………………………………………………………………………………………………..
……………………………………………………………………………………………………………………………………………..
……………………………………………………………………………………………………………………………………………..
All employers will be encouraged to sign up to the City Mayor’s Employment Standards Charter.
28/04/2015
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