Download - Social Sourcing
Social Sourcing:
Creating Social & Business Value
Through Procurement
SCMA BC
www.corostrandberg.com | Twitter @SustainOurWorld
February 13, 2013
What is social sourcing?
Use of purchasing power to create social value
Social Ownership • Local • Inner city • Social enterprise • Diversity
Social Practices and Products • Living wage • Fair trade • Health and safety • Social / community benefit • Socially beneficial products
Social Capacity Building • Sustainable livelihoods • Supplier social engagement
Drivers
• Expectations for business role in society
• Corporate social responsibility
• Green procurement
• Shift in how value for money is defined
• More strategic role of procurement department
2010 Olympics: Buy Smart
• Outreach to and opportunities for Social
Enterprise, Inner City and Aboriginal suppliers to
secure contracts
• Results:
– $1.2M 15 inner city businesses
– $56.7M Aboriginal business
– Catering, office supplies, lost and found services,
bouquets, printing, janitorial, construction
1) Supplier Social Practices & Products
Living Wage
UBC Fair Trade Campus
Catering Services at Robson Square
Key Issues and
Constraints
Evaluation Strategy/Criteria Weighting
(160)
A. General Proposal Requirements
Corporate Structure Experience, qualifications, etc. 10
Food quality and variety Menu variety and innovation
Range of options including fair trade, organic,
healthy, locally produced
45
Services Service delivery and performance 25
Sustainability Addressing ethical, environmental and social
responsibility (including donations of leftover
food to food bank, training and job skills to
disadvantaged, etc.)
45
B. Financials 30
C. Submission Quality 5
Health and Safety
• Safety record?
• Safety program?
Healthy Lives
Enabling People
We commit to: inspiring and enabling Canadians to experience nature and lead
active outdoor lives
Socially beneficial products
www.fairware.com
2) Supplier Ownership
Why Local?
Several interesting things happened recently
in this rural part of southwestern Ontario.
100 mile market
L&M markets
$20M/yr
125+ local suppliers
Most small, owned by local residents &
employing local people in the community
TELUS Supplier Diversity Program:
BC Hydro, City of Vancouver, UBC,
Finning Canada, the Ministry of
Tourism, and several other large
organizations have turned to
Starworks for assistance with
sub-assembly tasks
Social Enterprise: Starworks
For over 25 years BC Hydro
field operations has used the
skilled staff at Starworks to
produce Tie Wires
As a result of BC Hydro’s
need for Tie Wires, 5
individuals with disabilities
have regular employment
Supporting Social Enterprises
Buy Social
and Local Vendors
1,100+ B Corporations in 120 Industries in 40 Countries
International Social Enterprise Accreditation Process
Launches in Canada April 2015 • The business or entity’s primary purpose is to create social,
environmental or cultural value and impact
• They reinvest or distribute more than half their profits towards their
social purpose
3) Supplier Capacity Building
Social Sourcing
• Policy; desirable not mandatory requirement • Piloting various approaches
– Bid opportunities for social enterprises – Social sustainability work plans
• Social enterprise or community hiring • What services, how many hours? • If community hiring link to supportive training
• Contract negotiations: # hours by people with barriers
• Reporting and monitoring (6 months) • Future plans to develop framework
Corporate objective: Succeed through relationships
Aboriginal Contracting & Procurement Policy & Strategy
Goal: Support Aboriginal businesses build their capacity & BC Hydro develop enduring relationships with Aboriginal communities
Aboriginal business directory Senior Aboriginal Procurement Advisor [email protected] Direct awards, select tenders and set
asides
Aboriginal procurement
How to
• Management framework – Policy, objectives, plan, buyer and client training
• Procurement toolkit – Request supplier social workplan – Evaluation criteria – Simplified RFP process – Small direct sourcing pilots – Unbundling – Sub-contractor requirements
• Identify opportunities and database • Contract management / audit / monitor
Benefits
• Brand and reputation • Employee morale • Build supplier relationship • Open up vendor pool • Supply chain diversification • Lower cost of supplies • Improve local relationships • Social license to operate • Meet customer expectations • Innovation and creativity • Local insight • Support local economy
http://ow.ly/FSqlh
Business Guide to Social Value Creation
Transformational Social Purchasing
www.corostrandberg.com
Thank you!