As companies step up to take more significant roles within their communities, businesses are turning to new ways of prioritising social value and corporate social responsibility (CSR). Understanding their differences is crucial for businesses to carve out their purpose and successfully execute the same. 

Social Value vs CSR: Definition and Scope

It’s time we clearly differentiate between Social Value and Corporate Social Responsibility (CSR). To do that, we have to define both concepts before heading into their scopes. 

Social Value is all about the benefits to society that a business creates beyond its main objective. It’s the value that the company adds to society in terms of education, employment, and social welfare. Social value initiatives aim to provide solutions to societal problems. 

CSR, on the other hand, is a broad concept focused on incorporating social and environmental awareness into a company’s operations. It’s a way of being accountable to stakeholders and involves taking responsibility for the social and environmental impact of business operations. 

The scope of Social value initiatives lies mostly outside the company, as the goal is to tackle societal issues. On the other hand, CSR focuses on internal changes to make the company more socially responsible while still maintaining its business objectives. 

In summary, Social Value is external while CSR is Internal. Social Value initiatives aim to provide solutions to societal problems, while CSR initiatives look to incorporate social and environmental awareness into the company’s operations. 

Key Differences between Social Value and CSR

The primary focus of social value is on creating positive outcomes for the society and the environment, while CSR aims to ensure that businesses conduct themselves ethically while balancing the interests of all stakeholders. 

Social value initiatives can lead to long-lasting and meaningful changes in a community, providing values and positive outcomes that align with the company’s broader goals. Whereas CSR measures the company’s impact on society, the economy, and the environment and the steps a company will take to address those impacts. 

Moreover, social value initiatives are likely to affect the day-to-day operations of the company, and the business owner must be willing to accept the changes that will arise. In contrast, CSR is more focused on mitigating negative impacts that a company may have on the society or the environment. In CSR, a company explores ways to balance the business’s goals with the positive outcomes sought by stakeholders. 

Stakeholder engagement is another critical difference between the two. Social value initiatives prioritise addressing the needs of specific stakeholder groups to alleviate social issues in the community. CSR, on the other hand, involves a general group of stakeholders and focuses on implementing best practices to improve the overall sustainability of the company. 

Implementation is another key element that distinguishes social value from CSR. Social value initiatives require hands-on, direct involvement from the company in its efforts to foster positive change in the community. In contrast, CSR is more of an indirect process mainly involving audits, reporting, and providing a code of conduct to employees. 

Lastly, the consistency in outcome evaluation reports. Social value initiatives tend to measure success based on tangible outcomes such as social stability, availability of jobs, education, and a better environment. On the other hand, CSR initiatives focus more on sustaining the balance between the company’s success and its societal impact, often done through assessments and audits. 

Businesses that prioritise meaningful and lasting change can leverage social value initiatives, while those focused on balancing ethics and profit can use CSR to guide their strategies. It’s essential to understand how both concepts interact to make fact-based decisions that will maintain long-term relevance within the community.

Examples of Social Value and CSR Initiatives

The phrase “doing well by doing good” is the essence of social value initiatives. Companies engage in social value creation to make a positive impact on society, while also bringing benefits to their business, such as increased brand reputation and customer loyalty.

One example of social value creation is promoting environmental sustainability. Companies can reduce their carbon footprint and waste production, conserve natural resources, and shift towards renewable energy sources. By doing so, they not only contribute to a cleaner and healthier planet but also save costs in the long run.

On the other hand, corporate social responsibility (CSR) initiatives go beyond social value creation and prioritise ethical and moral values in business conduct. CSR can encompass various aspects, such as philanthropy, human rights, diversity and inclusion, and supply chain ethics. For instance, a company may establish a foundation that supports education in low-income communities, donate a portion of their profits to a charity, or ensure that their suppliers adhere to fair labour practices.

 CSR initiatives can improve the company’s reputation and attract employees and customers with higher ethical standards. Both social value and CSR initiatives have their benefits and can inspire positive changes in the world. The key point to remember is that while social value creation focuses on creating a positive impact on society, CSR encompasses all aspects of ethical business conduct. Companies that truly care about social impact often combine both approaches to make a meaningful difference.

To enhance your social value, join MatchMyProject and connect directly with local community organisations to collaborate on impactful projects.