Why businesses should include social enterprises in their supply chain

Proving social value is becoming increasingly important for businesses because stakeholders—such as consumers, investors, employees, and regulators—are placing higher demands on organisations to demonstrate positive societal impact beyond just financial performance. For organisations, this shift means several things: 

 

1. Integrating social impact in their strategy 

 

• Purpose-driven initiatives: Businesses will need to align their core activities with broader social and environmental goals. This could include addressing issues like climate change, social inequality, community development, or ethical sourcing. 

 

• Measurement and transparency: Organisations will need to establish frameworks to measure their social impact. Tools like social return on investment (SROI), environmental, social, and governance (ESG) metrics, and sustainability reports will become standard practice. 

 

2. Reputation and brand equity: 

 

• A company’s reputation will be increasingly shaped by its contributions to societal well-being. Organisations that fail to prove their social value may face backlash from consumers, employees, and the public, whereas those that effectively demonstrate positive impact will likely build stronger, more loyal customer bases and attract top talent. 

Consumer preference: Many consumers now prioritise brands that align with their values, which means businesses will need to show that they are ethical, inclusive, and community-focused to maintain competitive advantage. 

 

3. Investor Expectations: 

 

• Investors are placing more emphasis on sustainable and socially responsible investments. As a result, organisations will need to provide clear evidence of how their activities create positive social value to attract investment from funds focused on ESG criteria. 

 

• Risk mitigation: Investors increasingly recognise that companies failing to address social issues may face long-term risks, including regulatory challenges or reputational damage. 

 

4. Innovation and collaboration: 

 

• Businesses will be encouraged to innovate in ways that address social issues—whether through new products, services, or business models. This could involve collaboration with social enterprises , local governments, and other stakeholders to create joint solutions to societal challenges. As someone who has worked on the Place based agenda I can see the benefits of this but everyone should have an equal playing field -each bringing unique currency to the agreement. Currency may be in the form of ideas, money, resources, expertise. 

 

5. Employee engagement 

 

• Employees, especially younger generations, are looking for employers whose values align with their own. Organisations that demonstrate a commitment to social value may have an easier time attracting and retaining top talent, especially in roles where employees want to contribute to a cause beyond just earning a salary. 

 

6. Regulatory and legal requirements : 

 

• Governments around the world are tightening regulations around corporate responsibility. For example, businesses may be required to report on their ESG practices, show how they are addressing climate change, or meet certain standards of worker welfare. Being proactive about social value can help companies stay ahead of compliance requirements. 

 

7. Long-term sustainability: 

 

• Ultimately, proving social value is not just about short-term gains; it’s about ensuring long-term sustainability. Companies that focus on creating value for society are likely to be more resilient in the face of economic shifts, societal changes, and environmental challenges. 

 

My organisation works as a supplier of training and development using creative means. We deliver interactive theatre based experiences to educate employees on sexual harassment, mental health and psychological safety at work. This innovative way of engaging people sticks. For every workshop purchased by a business a percentage of the profit goes back into community programmes. 

 

Would your business like to work with us at Soundproofbox? 

 

Contact info@soundproofbox.org