At Finsbury Green we want to be the leaders in social procurement!
As sustainability leaders we understand the significance of this new policy direction for government and business and have delivered the technology and supply chain that enables customers to connect more easily with social enterprises and deliver profound social impacts in a way we’ve never seen before.
We are taking this lead for customers who use our procurement technology Sourceit and outsource to validated social enterprises in our supply chain, to not only help these organisations remain viable but to achieve corporate social responsibility (CSR) objectives.
Sourceit, our sourcing software, has driven greater transparency and contestability in the market and this feature enhances that ability. It is used by many organisations across Australia including state governments, financial institutions, corporate business and retailers.
How organisations spend their money, who they purchase from and what they purchase, can have significant social impacts.
Social procurement is about choosing to purchase a social outcome when they buy goods or services. For example, a local government with high levels of unemployment could strategically use their procurement to help address this issue by requiring successful tenderers to employ a percentage of their labour force from the local unemployed population.
Social procurement can be delivered by organisations that incorporate these outcomes into their normal processes or can be subcontracted out to organisations that have expertise in delivering the social benefit. These organisations include indigenous businesses, Australian Disability Enterprises, Fair Trade Businesses and can also include minority-owned and women-owned businesses.
For government, additional value is created through the delivery of social benefits beyond just the products and services, because they are achieving other government goals that would not otherwise be created.
For business, added value is created in the integration of CSR into the procurement process, attracting and retaining staff through values driven activity.
For the not-for-profit sector the added value is created by keeping money in the social economy for longer, where it can create more social benefit.
For example, under the Victorian Government’s recently enacted Social Procurement Framework, businesses that use social enterprises in their contracts have a competitive edge. The public sector will be required to redefine value for disadvantaged groups and social returns from its billions of annual spending.
How it works
In Sourceit we have activated a feature for Supplier Classifications that works in conjunction with Production Method, Product Categories and Supplier Location to automatically filter suppliers that best match the quote request. They include:
Businesses that are at least 50% Aboriginal or Torres Strait Islander owned.
Not-for-Profit organisations that provide employment opportunities to people with disability.
Suppliers that are gender equitable and employ people who are disadvantaged and/or disabled.
Suppliers who tackle social problems and improve communities by contributing 50% of their profits.
At the heart of Finsbury Green’s ethos is to continue to add validated social enterprises to our supply chain, which will help build a fair, inclusive and sustainable Australia through procurement.
It’s very much the right thing to do.