The concept of ‘Social Value’ is an area of growing government, public and commercial interest. However, its meaning is often clouded in uncertainty, with many definitions, and the lack of an internationally recognised measurement framework and standards of practice.
 
While the concept of Social Value has relevance to both for-profit and not-for-profit entities, its growing importance is principally driven by investment or financial management decisions associated with entities with a not-for-profit focus.

The problems and challenges for valuers in the for-profit sector are, perhaps, better understood than they are in the not-for-profit sector. However, the lack of an internationally recognised valuation framework has the potential to result in jurisdictions and/or valuers developing their own divergent approaches and definitions. This has the potential to lead to reduced consistency, transparency and comparability across borders and asset classes, creating significant debate and reducing the credibility of such valuations amongst stakeholder groups.

In this Perspectives Paper we explore some of the concepts surrounding Social Value and seek your comments to determine whether standards or guidance material are required.

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