Access new value streams

How social procurement is driving competitive advantage

Australian companies who direct spend to Social Enterprises can generate clear competitive advantage over their rivals and access new levers for value creation. 

“The globalised economy is characterised by complex inter-relationships between the business, suppliers, local communities, employees and shareholders.  The lines between are often blurred and rarely linear,” says Faculty consultant and author of soon-to-be released study into Corporate Social Procurement in Australia, Matthew Bonwick.

“Companies which fail to understand the intricacies within this environment and connect their profitability with positive social impact will miss accessing new streams of competitive advantage and measurable outcomes for shareholders,” says Matt.                                                                 

Commissioned by Social Traders, the study indicates that some corporates are already capitalising on this opportunity.  The findings are the result of 31 survey participants with a total market capitalisation of over $221 billion, and five focused case studies conducted between October 2012 – May 2013.  Have a look at the case study of the decade-long partnership between Theiss Services and Marriot Enviro Services here.

While generating positive social impact is the key driver for companies piloting Social Procurement, Mark Daniels, Head of Strategy and Market Development at Social Traders, notes:  “The research also shows us that there are at least four other key benefits to be realised from undertaking targeted Social Procurement initiatives: 

1. Renew Social Licence to Operate

2. Manage risk and build brand equity

3. Drive stronger employee engagement

4. Honour diversity commitments and access innovation”

To be among the first to receive a copy of the research, email Faculty Consultant Matt Bonwick here