Social procurement is the act of spending wisely, ensuring every dollar spent in your business goes toward a cause that’s meaningful to you. It is crucial to creating a better future society, and small business owners like you can make a big difference by getting on board. Unsure what it is or how it can benefit your business or wider society? Don’t worry – we’ve got you covered. Here are five things small business owners need to know about social procurement:
- It Will Give You a Competitive Advantage
Social procurement sends benefits rippling out, meaning your individual actions can improve society. However, there’s nothing wrong with acknowledging the fact that social procurement does give you a competitive advantage over other businesses and brands. Many brands are seeing growth, increased popularity, and better sales as a direct result of their social procurement engagement and activities.
- There Are Various Ways to Achieve It
There is no one set way to achieve social procurement in your company, making it highly flexible and accessible to all businesses. Just some of the ways you can achieve social procurement include:
- Policy – You can put targets and measurements in place to ensure that your business is trying to make a positive social impact. This policy should reach across all departments of your company.
- Contracts – Any contracts you create can be adjusted to reflect your commitment to social procurement and the use of social enterprise businesses and suppliers. This helps all stakeholders understand your commitments and goals.
- Suppliers – You can switch and change suppliers to find those that are the best option for social procurement goals. This is especially important when you have struggled to fulfill your commitments because suppliers are not aligned with your social procurement targets.
- Existing Connections – Recognize businesses and social enterprises that already exist within your supply chain.
- Guidance – Speak to mentors, brokers, and other appropriate peers and advisors for guidance on achieving your social procurement goals.
No single social procurement strategy will work for every business, so use these angles to find the right approach for you.
- You’ll Attract Better Candidates
As it stands, many Gen Z and millennial workers are willing to turn down job offers that do not align with their values. One way to attract and retain top talent in all departments is with social procurement. This is because millennials and Gen Z employees want sustainability, social responsibility, and ethics to be high on the agenda of their employers.
4. Expect to See It Across the Board
If you’re feeling hesitant about social procurement, it is important to know that you’re likely to see it more and more as time goes on. It saves corporations from underdevelopment, which is why there are increased budgets for it. Indeed, across the world, many government budgets are now allocating funds to it. The sooner you’re able to recognize the opportunity social procurement presents, the easier it will be to adapt and start reaping the rewards.
5. It Can Align with Specific Values
Many areas of social procurement revolve around human rights and increased social inclusion, but social value can also apply to economic problems, environmental issues, and other areas of change.
So, if you’re dedicated to working against the 380 million tonnes of plastic produced annually worldwide, you can achieve your goals through social procurement. Make your commitment to sustainability and reducing the environmental impact of your supply chain the driving force behind your social procurement plans.
Now that you understand a little more about this powerful strategy, how will your social procurement goals boost your business and change the world?
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