What is social enterprise procurement?
Social enterprise procurement is when a business or government chooses to buy goods and services from a Social Enterprise. Switching to social enterprise procurement delivers the same quality while helping create a fairer and more sustainable world.
Social procurement is a way for businesses to meet sustainability and ESG goals simply by switching suppliers. That could include local suppliers, indigenous suppliers, Social enterprises and others. Social enterprise procurement is a specific type of social procurement that creates some of the most impactful procurement outcomes, that complements sustainable and inclusive procurement.
When you buy from a social enterprise, you are purchasing quality goods and services that your business needs, while buying community impact in the same transaction. The best part is this is spend already allocated for essential op-ex - money that would have been spent anyway. It’s not money budgeted separately for CSR, yet it achieves the same CSR or sustainability goals.
Some of Australia’s leading brands across all industries are already buying from social enterprises. John Holland, The Victorian Government, Microsoft, Lendlease, Westpac, Coca Cola Amatil, Mirvac, Microsoft, SAP and Transurban are just some of the well-known brands leading the way.
Social Traders enables business and government to create positive impact by deeply integrating social enterprises into their supply chains. We support businesses to build the systems, structures and internal culture to prepare them to buy from social enterprise. We also certify social enterprises and support them to strengthen their business model. A full list of current certified social enterprises can be found on the Social Enterprise Finder.
The business case for social enterprise procurement
By allocating a small portion of procurement spend to social enterprises, business and government have changed the lives of some of the most vulnerable people in the country. But buying from social enterprise also makes good business sense:
Stakeholders, customers and employees will increasingly expect employers to make a contribution to the community. The good news is this is possible, by simply buying goods and services you would have done anyway, without compromising on cost or quality.
Incorporating social enterprise into existing supply chains is a very real and immediate means of delivering the corporate social responsibility stakeholders expect – while boosting business at the same time.
Let’s make sure the money Australians spend today is helping build a stronger economy for decades to come.
Watch John Holland talk about their social enterprise procurement success in the video below.
"I have the privilege of working in a role that allows me to see first-hand the positive impact these opportunities have on individual lives. We are delivering a social value above and beyond the value of what we are buying" - Kavan, Industry Capability & Inclusion Manager. Watch the John Holland social enterprise procurement success story.
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