Businesses urged to make social-value driven decisions
As of this summer, the UK government will consider the social value of an organisation when awarding government contracts. The move is expected to transform the process of government procurement, better support small businesses, and reduce impact on the environment. This purpose driven approach to procurement will attract a more diverse range of companies bidding for government contracts, including small businesses, charities, and social enterprises.
John Hackston, Head of Thought Leadership at The Myers-Briggs Company, one of the world’s largest business psychology providers commented: “It is extremely encouraging to see the government take such a positive stance in support of value-driven decision making, as they can enable real change through policy and shine a light on the importance of social purpose for modern businesses.”
As a Certified B Corporation, The Myers-Briggs Company considers the impact of its decisions on its workers, customers, community, and the environment. Certified by the non-profit organisation B Lab, B Corporations balance purpose and profit, and aim to use business as a force for good. This ethical approach to business is delivering results: in a B Lab and Ella’s Kitchen survey, UK B Corps reported an average growth of 14% at the start of 2018 – 28 times faster than the 0.5% growth in UK GDP over the same twelve month period.
The research also found that B Corp status had a positive influence attracting a new consumer base and recruitment, with a third (35%) of B Corp certified UK companies reporting that they had attracted new audiences since joining up and almost half (48%) indicating that prospective staff had been attracted to the business specifically because it was a B Corp.
Hackston continued, “B Corps and similar purpose-driven initiatives are the way of the future and something all organisations should consider. When businesses align themselves with social purpose, they attract and retain top talent, and foster a sense of community amongst stakeholders that goes beyond meeting the bottom line. Adding social value to your organisation doesn’t have to be complicated either, but it does require strong commitment. For us it has been about working with our charity partner, adoption organisation PACT, and engaging with our local business community in Oxfordshire to spread the word about B Corps. It’s a testament to our dedicated and passionate employees that we have been able to successfully incorporate social value into our business, and make a real difference in our local community.”
“Running a business is no longer just about profit; organisations who take account of their wider societal role and the power they have in changing and shaping it look increasingly set to thrive. Social purpose must be engrained in your company values, both internally and externally, and needs full commitment at every level in order to translate to business success. We hope this new government focus on the social value of organisations pushes more business leaders to think about how and why they operate, and how they can use their influence for good.”