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Social Sourcing

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Social Sourcing

  1. 1. Social Sourcing: Creating Social & Business Value Through Procurement SCMA BC www.corostrandberg.com | Twitter @SustainOurWorld
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 1) Supplier Social Practices & Products
  6. 6. Living Wage
  7. 7. UBC Fair Trade Campus
  8. 8. 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
  9. 9. Health and Safety • Safety record? • Safety program?
  10. 10. Healthy Lives Enabling People We commit to: inspiring and enabling Canadians to experience nature and lead active outdoor lives
  11. 11. Socially beneficial products www.fairware.com
  12. 12. 2) Supplier Ownership
  13. 13. 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
  14. 14. TELUS Supplier Diversity Program:
  15. 15. 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
  16. 16. Supporting Social Enterprises Buy Social and Local Vendors
  17. 17. 1,100+ B Corporations in 120 Industries in 40 Countries
  18. 18. 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
  19. 19. 3) Supplier Capacity Building
  20. 20. 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
  21. 21.  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
  22. 22. 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
  23. 23. 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
  24. 24. http://ow.ly/FSqlh Business Guide to Social Value Creation
  25. 25. Transformational Social Purchasing www.corostrandberg.com
  26. 26. Thank you!

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