Wednesday, 29 May 2024
    Corporates are prioritising social value in procurement selection
    02
    Nov
    member-led

    Corporates are prioritising social value in procurement selection

    Many businesses are focussing on procurement as a way to move the needle on their social value impact. A large slice of the pie of an organisation’s sustainability impact comes from its supply chain so businesses are looking at making procurement as sustainable as possible, with the lowest environmental impact and most positive social results. 

    Research shows that  businesses are doing their part to improve their ethical standing. Using JLL’s Social Value Research data shows us that half of all organisations are already engaged in responsible procurement practices. And, 62% of businesses say they have a social value strategy that addresses responsible procurement. 

    Many strategies have been put in place in recent times, so what’s causing the shift in thinking and making social value à la mode? 

    One reason could be because being environmentally conscious and ethically sound are just some of the values that corporates look for in the suppliers they partner with. Janette McCormick, global head of product sourcing and category management at JLL, says, “There’s an opportunity to generate lasting benefit by building relationships with small and diverse businesses from historically under-represented groups.” 

    Another reason could be the legislation brought about by the government. For example, Australia’s Commonwealth Indigenous Procurement Policy and The Modern Slavery Act 2018. Pair that with businesses own policies, e.g. Lyreco Goodness Microbusiness Support Programme that aims to back ambitious small firms that align with its sustainability criteria. 

    One way that businesses are moving the needle on sustainable procurement is by partnering with advocacy groups, such as Supply Nation, Social Traders, WEConnect International, and the Veteran Community Business Chamber. In this way mature companies can support a diverse range of firms along their own environmental, social, and corporate governance journeys. 

    In summary, assessing social value impact is mutually beneficial for businesses on both sides of the procurement process. We at Procurement Australia love to hear how our members across all industries are putting into practice strategies that contribute towards meeting sustainability goals. We are inspired by their creativity and together, we work towards an exciting future for procurement.  

    Source: https://www.themandarin.com.au/222416-how-companies-are-partnering-with-suppliers-to-deliver-social-impact/