The role of anchor institutions in social value

Anchor institutions are organisations who are firmly embedded in their community and have a vested interest in the prosperity and welfare of the local area. They offer stability, essential services, generate employment, and have significant influence over the health and wellbeing of local communities.

According to NHS England¹, “by strategically and intentionally managing their resources and operations, anchor institutions can help address local social, economic and environmental priorities in order to reduce health inequalities.”

Social value encompasses a wide range of contributions that organisations make to society, beyond their core services. It includes fostering cohesion within the community, promoting sustainability, enhancing the wellbeing of the local population and championing diversity. Anchor institutions are therefore uniquely positioned to champion social value.

Integrating social value

An example of an anchor institution driving social change is NHS Cheshire and Merseyside. Recognising their role as an anchor institution, they have embarked on a journey to embed social value at the core of their operations. Their approach involved co-production with local communities, businesses and stakeholders to create a Social Value Charter which reflects the principles and actions needed to integrate social value across the partnership.

Like many organisations, NHS Cheshire and Merseyside recognise the important role of anchor institutions in embedding change at scale. With a stake in the local area, anchor institutions make significant local procurement and investment decisions. Their Anchor Institution Framework was developed to drive and monitor tangible achievements in delivering social value. It provides a framework for anchor institutions in their area to work collaboratively to uphold commitments ranging from fair wages to environmental sustainability.

Ways anchor institutions can benefit their communities

Anchor institutions have the potential to positively impact their communities across six fundamental areas:

Workforce

Pay people the real living wage and create opportunities for local communities to develop skills and access jobs.

Procurement

Purchase from organisations which consider their environmental, social and economic impacts in the local area.

Infrastructure

Widen access to community spaces, support high quality, affordable housing and support the local economy.

Environment

Reduce carbon emissions, reduce waste and protect the natural environment.

Local anchor partners

Collaborate with other local anchor organisations to increase scale and impact locally.

Community engagement

Collaborate with communities to help address local priorities.

Accountability and transparency are also important factors to delivering social value. Tracking progress, measuring impact and being accountable to local communities will reinforce a culture of collective responsibility and continuous improvement. 

The role of anchor institutions in promoting social value has never been more crucial. Through proactive engagement, co-production and collaboration, these organisations can serve as catalysts for positive change and shaping a sustainable future for all.

If you need any help in developing a Social Value Charter for your organisation or ICS, get in touch with us at the Social Value Network on agem.socialvalue@nhs.net

1 NHS England: Anchors and social value https://www.england.nhs.uk/about/equality/equality-hub/national-healthcare-inequalities-improvement-programme/our-approach-to-reducing-healthcare-inequalities/anchors-and-social-value/