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Conceptualising Social Value: Perspectives of the Public, Private and Third Sectors in the UK

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Conceptualising Social Value: Perspectives of the Public, Private and Third Sectors in the UK Conceptualising Social Value: Perspectives of the Public, Private and Third Sectors in the UK Submitted for the Degree of Doctor of Philosophy At the University of Northampton 2018 Payal Jain © [Payal Jain] [2018]. This thesis is copyright material and no quotation from it may be published without proper acknowledgement. Abstract 1 | P a g e In present times when economic recession has impacted all the countries in the world to some extent, different approaches have been adopted by governmental and non-governmental organisations to maximise the provision of social benefit. The UK Government, for instance, launched the Social Value Act in 2012 and implemented it in 2013, requiring organisations to create social and environmental value in addition to the economic value during public procurement processes. This act encouraged the collaboration of public, private and third sectors to focus on social value creation for the benefit of beneficiaries. However, the construct of social value remains ambiguous and subjective as it is understood and practiced differently by societal stakeholders, leading to the conduct of this research study. This research study takes a qualitative approach to study the concept of social value within the UK society. The research utilised Q method to understand the construct of social value and interviewed individuals creating social value in the UK to understand the process of social value creation. Results from the Q method indicated four different facets of social value: action-driven, outcomes-driven, sustainability-driven and pluralism-driven social value. The results from the qualitative data provided insights into the process adopted by stakeholders for the creation of social value, which includes three phases: individual and collaborative responses, resource mobilisation and impact on social value creation. Both the studies complemented each other and provided analytical and valuable insight into the construct of social value that can be helpful in future research and/or practice related to social value. ACKNOWLEDGEMENTS 2 | P a g e The author wishes to thank everyone who has provided support in the conduct of this research study. I am deeply indebted to my supervisors: Dr Richard Hazenberg and Dr Frederick Seddon, and my Director of Studies Professor Simon Denny, who have not only guided me, but also were my pillars of support throughout my PhD journey. Their advice and support has been incredibly important and invaluable for me. I also want to thank all those individuals and organisations who willingly participated in this research study and provided their vital input. I would like to extend my special thanks to the University of Northampton for funding this research that allowed me to become an integral part of it. I am thankful to the Graduate School for their support especially David Watson and Twiggy Spagnuolo, who offered me support and advice throughout my PhD. I also want to extend my thanks to my fellow PhD students, both past and present, for being there when I needed them. In particular, I want to thank Oanh, Claire, Anna, Kemi, Maher, Siham, Ouarda, Sheng and Stephen. Finally, I would like to thank my parents who supported me all the way through and encouraged me in my endeavours. Also, special thanks to my husband Varun, who supported and encouraged me to switch countries and begin this PhD journey, without whom I wouldn’t be where I am today. Table of Contents LIST OF TABLES .................................................................................................................................................... 8 3 | P a g e LIST OF FIGURES .................................................................................................................................................. 9 ACRONYMS………………………………………………………………………………………………...10 CHAPTER 1: INTRODUCING SOCIAL VALUE ............................................................................................................. 12 1.1. Introduction: Impetus on Social Value Creation ............................................................................................. 12 1.2. The Climate for Social Value Creation in the UK ............................................................................................ 13 1.3. Research aims and objectives .............................................................................................................................. 17 1.4. Thesis structure ........................................................................................................................................................ 18 CHAPTER 2: FUNDAMENTALS OF SOCIAL VALUE CREATION .................................................................................. 19 2.1. The Concept of ‘Social Value’ ............................................................................................................................. 20 2.1.1. History of ‘Social Value’................................................................................................................................. 22 2.1.2. Modern Perceptions of ‘Social Value’ ...................................................................................................... 26 2.2. The Definitional Problems of ‘Social Value’.................................................................................................... 28 2.3. The Elements of Social Value Creation ............................................................................................................. 31 2.3.1. Social Capital ................................................................................................................................................... 33 2.3.2. Ethical Capital ................................................................................................................................................. 34 2.3.3. Political Capital ............................................................................................................................................... 35 2.3.4. Cultural Capital ............................................................................................................................................... 36 2.3.5. Human Capital and Intellectual Capital ................................................................................................... 37 2.3.6. Economic Capital and Financial Capital .................................................................................................. 38 2.3.7. Physical Capital ............................................................................................................................................... 39 2.3.8. Environmental Capital and Natural Capital ............................................................................................ 39 2.4 Summary ................................................................................................................................................................... 42 CHAPTER 3: INTRODUCTION TO SOCIAL ENTREPRENEURSHIP ............................................................................... 45 3.1. Origins of ‘Social Enterprises’ .............................................................................................................................. 45 3.2. The meaning of ‘Social Enterprise’ ................................................................................................................... 46 3.3. ‘Social Enterprises’ in: ........................................................................................................................................... 47 3.3.1. The UK ............................................................................................................................................................... 48 3.3.2. Outside the UK ............................................................................................................................................... 49 3.4. ‘Social’ Entrepreneurship and ‘Social’ Enterprise .......................................................................................... 50 3.4.1. Understanding ‘Social Enterprise’ .............................................................................................................. 50 4 | P a g e 3.4.2. ‘Social Value’ Creation in Social and Business Enterprises ................................................................ 53 3.4.3. Measurement of ‘Social Value’ and ‘Social Impact’ ............................................................................. 54 3.5. Social Value Creation in the Public, Private and Third sectors ................................................................. 56 3.5.1. Third Sector...................................................................................................................................................... 56 3.5.2. Public Sector ................................................................................................................................................... 59 3.5.3. Private Sector .................................................................................................................................................. 60 3.6. Summary .................................................................................................................................................................. 62 CHAPTER 4: RESEARCH METHODOLOGY ............................................................................................................... 64 4.1.
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