Discussion Note: Localizing Social Value [978 KB]
Discussion Note: Localizing Social Value
April 2023
Summary
The concept of social value is defined as “the additional benefit to society of procuring a good or service, over and above the direct benefit and value of the good or service to the procuring entity.” Also known as preferential procurement rights, this discussion note explores the possibility of institutionalizing this policy reform at the local government level. Through roundtable discussions and key informant interviews, this note documents challenges and opportunities raised by ecosystem stakeholders such as a universally accepted definition of social enterprises, compliance costs to formalizing a business, capacity-building, metrics, and mindset shifts needed to support and scale social value procurement.
Specific recommendations include initiation of a social value opportunity assessment, maintenance of a social value registry, and issuance of a series of ordinances to mainstream social value procurement. The discussion note lists demand and supply side challenges and recommendations for the local government, the impact community, and national stakeholders.
Low fidelity prototype template and tools to localize social value are also available for download in the Discussion Note’s Appendix.