Social Procurement: A guide for Social Enterprises

Social procurement is a powerful tool for corporations to leverage their purchasing power to drive positive social change. This strategic approach integrates social and environmental considerations into procurement processes enabling corporations to meet their Corporate Social Responsibility (CSR) and Diversity, Equality & Inclusion (DEI) targets. Fortunately, there is a thriving social enterprise sector ready to fulfil their procurement needs; win-win for corporations and social enterprises!

For social enterprises, direct procurement from corporations presents a unique opportunity to amplify their impact. However, by partnering with corporations through direct procurement, social enterprises can also:

• Improve Financial Stability: Contracts with corporations can provide a steady stream of revenue, enabling social enterprises to expand their operations to increase their impact.
• Enhance Brand Recognition: Partnering with corporations can elevate the profile of social enterprises, attract more customers and open new market opportunities.
• Gain Invaluable Expertise: Delivering on corporation contracts requires social enterprises to sharpen operational efficiency and improve product quality, ultimately equipping them to outshine the competition.

The partnership between corporations and social enterprises through direct procurement is a mutually beneficial arrangement. Corporations gain access to high-quality products or services while supporting social enterprises that align with their values. Social enterprises, in turn, receive consistent business opportunities, expand their reach, and impact.

We spoke with Chloe Cannon one of our expert Business Associates. Chloe is a procurement expert who has been key in running our Purchase Power programme and she was happy to share her advice.

1. Undertake horizon scanning: First, identify key target customers by sector, market segment and buying needs. Then, research corporate websites, news releases, communications about strategic priorities and annual reports to uncover corporate procurement needs where your social enterprise could add value.
2. Identify decision-makers: Research the specific individuals within corporations who are responsible for procurement decisions and focus outreach and communication efforts on the most relevant contacts.
3. Tell your story: Be clear in the value that you add and articulate this clearly.  This should be in terms of the products or services you offer first, demonstrating you match or exceed what existing suppliers offer the customer, then the social value you can bring as an added differentiator.
4. Position as a strategic partner: Research their business objectives and clearly position yourself as a strategic partner by demonstrating how you can help them reach those objectives.
5. Quantify your impact: Providing clear evidence of how your social enterprise aligns with a corporation’s specific goals, backed by numbers, makes them more likely to choose you.

As social procurement gains momentum, corporations and social enterprises are collaborating to develop innovative practices and expand the scope of their partnerships.

The team learned about impactful partnerships between large corporations and smaller social enterprise suppliers at the Social Enterprise World Forum.

This collaborative approach is paving the way for a more equitable and sustainable future, where businesses and social enterprises work together to create a positive impact on society.

If you are a social enterprise seeking to partner with corporations through direct procurement, consider exploring programs like our Purchasing Power Programme, designed to connect social enterprises with corporate procurement and HR departments. Through social procurement partnerships, corporations and social enterprises can amplify their collective impact, driving positive social change and building a more sustainable and equitable world.