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Procurement

Social Responsibility in Bids

An interesting article from Innovators Mag came through on our bids and tenders alert last week, which talked about Socially Responsible Public Procurement (SRPP) and measuring the social impact of public sector procurement.

The article cited a recent report by the European Commission: “Making socially responsible public procurement work: 71 good practice cases”. The report examines how procuring bodies – and, of course, suppliers – can make SRPP visible, through the promotion of a range of factors including “employment opportunities, decent work, social inclusion, accessibility, design for all, ethical trade, and compliance with social and environmental standards”.

From the supplier side, how often are you asked to show how you would promote social responsibility? In our experience, questions in this area are becoming ever-more frequent, and just some of the examples we’ve seen in the last couple of years include asking how suppliers would:

  • Increase employment opportunities in the local area
  • Create apprenticeships for young people
  • Support local charities and underprivileged groups
  • Reduce the supplier’s and awarding authority’s carbon footprint
  • Demonstrate a local presence
  • Demonstrate a commitment to gender and ethnic equality
  • Use sustainable business practices
  • Adopt family leave policies for domestic violence

What we need to do is think outside the box a little – both on the supplier, and procurement sides

The article notes that many suppliers might “find it hard to incorporate a social dimension in their bids”. This may be true, particularly for certain industries which require specialist skillsets or where your product/service may not naturally lend itself to providing social value as a direct output. Supporting charities has often been an ‘easy win’ for companies to talk about, but it is no longer enough. What we need to do is think outside the box a little – both on the supplier, and procurement sides.

Innovators Mag points to a great example of putting this into practice from The City of Helsingborg (Sweden), which hosted a market consultation exercise to share with potential suppliers its aim to create job opportunities and/or internships for the unemployed through its procurement for cleaning services. This was built into the procurement evaluation criteria. Of the six organisations that took part in the market consultation, four became suppliers, and five unemployed people were provided with jobs or internships in the contract’s first year.

The Helsingborg example also shows that it isn’t enough to simply talk about what you do in terms of social value – you have to offer proof. Many procuring organisations also expect you to continually measure and report on your social actions.

With the effects of the global pandemic ongoing throughout 2020 and no doubt into 2021, SRPP will surely only increase as we look to ‘fix’ our economies. It’s definitely time for all parties to think more creatively about how they can give back to our communities through responsible procurement.

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