A theoretical framework of social value in construction employment

Construction companies are increasingly being required to demonstrate the social value they create when tendering for public sector projects and for socially responsible private clients. However, the concept of social value remains theoretically under-developed and there are many unanswered questions about how to define and measure it. Addressing these important questions, the aim of this empirical paper is to present a novel theory of social value in the context of social procurement practices in the construction industry. Using a theory of value embedded with employer of choice literature, we theorise that construction companies create social value when they provide employment that promotes 'work benefits' and 'culture benefits'. We test this theory using a semi-structured survey of 55 construction workers. The results show that construction industry employers create social value when they provide work benefits like adequate training, feedback, pay and advancement in the organisation, and culture benefits like fostering good quality working relationships, helping employees feel strong about their personal identity and values and high levels of engagement with local communities and workers, in the context of construction employment in Australia. The theory presented in this paper provides promising avenues for practitioners and future research. Researchers can test or develop this theory in other settings. Practitioners can use this theory to plan for social procurement or evaluate their existing business practices.