08 August 2023
Social Value Accounting (SVA) allows us to understand an organisation’s contributions to social and environmental wellbeing, providing a comprehensive picture of its performance.
The Scope of Social Value Accounting
Social Value Accounting is a broad and versatile methodology that can be interpreted differently by various firms. Its purpose is to consider the broader benefits and costs generated by an organisation, showcasing its commitment to social responsibility and environmental sustainability.
SVA Pledges: Creating Positive Change
A crucial aspect of Social Value Accounting lies in constructing meaningful pledges that align with an organisation’s values and objectives. These pledges serve as a roadmap, guiding the company towards fulfilling its social and environmental objectives. Let’s explore some generic examples of corporate social value pledges:
Create Employment and Skills Opportunities
To achieve this pledge, organisations can implement various initiatives, such as:
- Generating new jobs in the local economy to boost employment rates.
- Offering work experience placements to nurture talent and provide practical learning opportunities.
- Establishing careers information and guidance centres to assist individuals in making informed career choices.
Create Safe, Vibrant, and Sustainable Communities
This pledge emphasises the importance of contributing to the betterment of local communities:
- Supporting community projects financially or with resources to enhance safety and vibrancy.
- Prioritising spending with local suppliers to boost the local economy.
- Engaging with Voluntary, Social, and Community Enterprises to foster community development.
- Providing skills to community projects in-kind, enabling them to achieve their goals effectively.
Implement Environmentally Sustainable Practices
Organisations can adopt environmentally responsible practices to achieve this pledge:
- Diverting waste from landfill to reduce their ecological footprint.
- Providing carbon literacy training to staff and stakeholders to enhance awareness and encourage sustainable behaviours.
Support the Vulnerable and Most in Poverty
To fulfil this pledge, companies can actively contribute to initiatives aimed at assisting the vulnerable and underprivileged:
- Offering financial support to food, fuel, and furniture poverty initiatives.
- Ring-fencing employment opportunities for individuals from disadvantaged or underrepresented backgrounds.
- Volunteering time and resources to promote healthy living and support homelessness schemes.
Promote Digital Inclusion
To bridge the digital divide, companies can undertake the following initiatives:
- Volunteering to support digital inclusion programs that provide access to technology and digital skills.
- Contributing to the purchase or implementation of digital/IT equipment to enable individuals to access digital resources.
Management Accounting Reporting
The implementation and accounting of social value commitments closely resemble standard cost centre reporting. However, the focus shifts from micro-level accounting to macro-level monitoring of deliverables. The management accountant collaborates with responsible staff to track progress and timelines for achieving social value targets.
Conclusion
Embracing Social Value Accounting offers organisations, the opportunity to make a meaningful impact on society and the environment. By pledging and committing to social value initiatives, businesses can play a pivotal role in creating positive change. At Morrissey Chartered Accountants, we recognise the importance of SVA in providing a comprehensive picture of an organisation’s contributions to society and the environment. Through transparent reporting and monitoring of deliverables, we strive to uphold the social contract with stakeholders and the communities we serve. Together, let’s make a difference and build a more sustainable and inclusive future.
If you require further information, please do not hesitate to contact our team at Morrissey Chartered Accountants.