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 Aboriginal.procurement@bchydro.com 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!