Change is on the way in how we perceive ‘economic’ value
The bedrock upon which modern economies are built is that of using surpluses to invest capital so that more surpluses can be generated. The ‘capitalist’ doctrine (or is it a religion) mandates that these new surpluses are reinvested into the economy through the purchase of further goods and services or the buying of shares so that increasingly more value is derived. In this way the pie gets bigger, so the theory goes, and everyone is a winner (reality suggests the theory may have some holes).
The reinvestment of surpluses might occur after a little self-indulgence by the owners, you know the odd family holiday or super yacht depending on the scale of the returns. What is not acceptable, as it undermines the very capitalist principle, is to spend all the surpluses on bling or lock it all up in a bank to look at. If you doubt this just look at the history of paintings. During the 15th and 16th Century Spanish nobles were painted for public display wearing fine furs, bedecked in jewels, surrounded by chests of doubloons with gold ornaments on ivory tables and ostentatious hats and homes on display, as well as exotic servants or hunting dogs. They did this as culturally it epitomised success.
By the late 17th Century Spain was on the decline, soon to vanish as a global player, while Dutch merchants, very much on the up, were painted wearing simple black and white clothes and sat at rustic tables with ledger books open, perhaps with the family in the background engaged in some wholesome activity. They did this as culturally it epitomised success. Just try to imagine someone like Bill Gates having a life size portrait on public display of himself dressed in multi-coloured silks and furs surrounded by gold and silver ornaments and wearing a flamboyant hat covered in jewels. Hard, isn’t it? Perhaps this proves the cultural longevity of the Dutch approach to PR.
So, what has all of this to do with social value? We’ll there is a economic cultural change underway, of which the foundation Bill Gates and his wife started is a good example. This change in doctrine emphasises a broader understanding of value, which makes sense really when you think about it. The desire to see all value as monetary in nature has led to the all-powerful concept of GDP. This unitary measure of value means it’s possible to show growth / improvement (the blessing of strict adherence to the ‘capitalist’ faith) by destroying the natural environment or increasing climate change. Thankfully social value provides us with a different view of how the world can be. It places a value on engaging people so that the impact of decisions being made on them can be understood. The aim of social value is to achieve marginal gains across many initiatives that ultimately, when combined, add up to considerably improved net positive impact on the lives of individuals, the communities they are part of and the fabric of society itself.
There is an increasing awareness of the significance of measuring social value to better appreciate the importance of the marginal gains in wellbeing that can be experienced by people and to use this knowledge to inform better decision making. Recognising this, along with the need to ‘guide’ the market, many countries have adopted social value legislation. Such legislation typically requires that prior to embarking on the procurement of goods or services the public sector, and its supply chain, consider how the procurement process and eventual supply can secure wider social, economic and environmental benefits for communities. This is very much to be welcomed as “by changing the way we account for value, we believe that we will end up with a world with better wellbeing and more equality for all” (1).
Let’s look forward to paintings of the wealthy of the future highlighting the individuals and communities that, through their success, have benefited from improved wellbeing because of the universal adoption of social value principles.
Positive Steps Outdoors is a registered social value broker. We work with companies to help innovate and deliver their social value offering. Get in touch to see how we can help you too.
1. Social Value UK – www.socialvalueuk.org