Exploring Social Procurement

Transcription

1 Exploring Social Procurement Andy Horsnell, Co-founder Common Good Solutions Inc. A Little Context Every year $400 billion nation-wide (municipal, provincial, and federal governments) Nova Scotia Government: $1 billion MASH Sector (municipalities, education, social and health services): $1 billion Cape Breton Regional Municipality: $36 million Empire (Sobeys), Emera, IMP, Michelin each spend millions Presented by 1

2 1/10 of 1% = $400,000,000 Michelin Tire & the Flowercart $1 million annual contract Supported employment for 40 people, working full-time, at a living wage Presented by 2

3 What I ll Cover 1. What is Social Procurement? 2. Why Social Procurement? 3. Trends in Procurement 4. Social Procurement Strategy: Barriers & Recommendations 5. Buy Social Canada WHAT IS SOCIAL PROCUREMENT? Presented by 3

4 Social Procurement creates a social value from existing purchasing Social Procurement Process Government Purchasing Product Or Service Social Value Social Procurement Demand Supply Social Value Presented by 4

5 WHY SOCIAL PROCUREMENT? Social Procurement for Government Double Value Proposition: Get the goods and services you need to run your programs and administration Invest directly in enterprises that are directly helping to meet health, social service, environmental, education mandates Presented by 5

6 Social Procurement for Corporations Double Value Proposition: Get the goods and services you need to run your business Social value benefits: o Enhance your brand and social license within your community and amongst your employees o Build a more resilient, diverse supply chain o Enhance long-term competiveness and profitability It Doesn t Have to Be Either / Or Social Impact Financial and Social OR Financial ROI Presented by 6

7 Social Procurement is About Creating Shared Value Shared value is creating social and economic opportunities. Improving societal problems with a business model. Michael Porter, Harvard Business School Presented by 7

8 TRENDS IN PROCUREMENT Shifting Procurement Policy and Practice Best Quality Business Only Analysis Lowest Price Avoid Risk Best Quality Environ ment Social Value Lowest Price Avoid Risk Best Quality Protect Environ ment Lowest Price Avoid Risk Added Green 2000 Added Social to Create Sustainable Procurement Presented by 8

9 Progression of Social Procurement Legal Minimum External Ethical Philanthropy CSR Engage Stakeholders Collaborate Transform Initiate Integrate Former Context Emerging Context BARRIERS & RECOMMENDATIONS Presented by 9

10 Government and Corporate Purchasers Key Barriers and Challenges Contract Size and Number: Prefer Large & Few Bidding Qualifications: Avoid Risk (Perceived) Barriers: Legal and Trade Agreements How to identify social suppliers? Social Enterprise Suppliers Key Barriers and Challenges Capacity to meet an increased demand Business skills, especially marketing and sales Measuring and demonstrating social impact Presented by 10

11 When all else is equal, telling your social impact story is essential, and social value suppliers are terrible at it! Corporate purchaser seeking social value products Shared Barriers and Challenges Learning how to do social procurement together: Lack of policies, relationships and best practices Measuring Success: What is social impact and how can it be measured? Presented by 11

12 Recommendations for Purchasers Provide leadership across the organization Change the policy and practices Initiate implementation steps Establish impact measurement goals Recommendations for Social Enterprise Suppliers Enhance business readiness Establish certification process Enhance market & customer knowledge Insure quality and competitive pricing Establish impact measurement tools Presented by 12

13 Recommendations Build New Relationships: Define the value proposition Host events and learning opportunities Initiate experiments and pilots Share the learning IMPLEMENTING SOCIAL PROCUREMENT IN GOVERNMENT Presented by 13

14 Select Social Impact Objectives Broad Over Arching Benefits: Poverty Reduction Community Economic Development Social Inclusion Employment and Training Opportunities Select Social Impact Objectives Purchasing from targeted businesses: Social Enterprises Locally-owned businesses Customer owned businesses Owned by / serving: Aboriginal, women, immigrants, persons with disabilities, persons of colour, youth, and/or rural Presented by 14

15 Change Current Purchasing Practices Identify Direct Contract Opportunities Add Social Values into Evaluation of Bids Simplify the RFP Process Unbundle Current Contract into Smaller Pieces Require Community Benefit Agreements Evaluate Social Values in Supplier Supply Chain BUY SOCIAL CANADA Presented by 15

16 buysocialcanada.ca What is a Buy Social Certification? A stamp of approval that helps guide buyers to choosing products & services that benefit their communities social betterment It also helps sellers who sell products/ services that benefit communities to connect with more and bigger buyers. It encourages social buying and purchasing. Presented by 16

17 What are the benefits? Encourages social value purchasing across community, public and private sectors. Provides external social enterprise certification that buyers can trust. Provides space where buyers and sellers can find one another. For More Information about Buy Social Stephanie Pronk Common Good Solutions Inc. Presented by 17

18 Andy Horsnell Common Good Solutions Inc. Presented by 18