EDA Journal Vol 14 No 3 | Page 21

Social procurement frameworks are a particularly effective tool for employers to target their procurement while also making clear their intentions when it comes to ethical practice . Encouraging anchor institutions to adopt social procurement frameworks and working collaboratively to address shared challenges can be particularly effective . More so when , as a result of being part of the local community , they have a clear view of the specific challenges and opportunities within that community .
GROW 21 was a direct response to the recognition that economic benefits were not being shared equally . A joint initiative between Give Where You Live and G21 – Geelong Region Alliance , GROW G21 comprises businesses , government and community organisations working together to change the outlook for areas of high unemployment in the G21 region . GROW ’ s four core strategies are to increase and target jobs – social procurement , placebased investment , demand-led employment brokerage and tracking and measuring job outcomes . GROW ’ s Social Procurement Guidelines provide practical direction for improving local content and social outcomes through the procurement cycle .
Melton City Council included a 10 per cent target for suppliers to offer employment to local people experiencing unemployment when seeking procurement of open space services . This led City Wide , the open space service provider , to partner with the Brotherhood of St Laurence who connected with currently unemployed potential employees to provide the necessary preemployment training and mentoring .
At the state level , the Victorian Government ’ s Social Procurement Framework aims to ensure government spending is distributed more equally across the community . The framework explicitly seeks to increase supply chain opportunities for businesses owned by Victorian Aboriginals and social enterprises that support disadvantaged or disabled Victorians and increase employment opportunities for these marginalised groups . The framework identified the need to improve market access and increase the visibility of Victorian social enterprises and Aboriginal business sectors . The Victorian Government has also developed guides to support and educate business and social enterprises so they can effectively tender for Victorian government contracts .
Social Traders is a not for profit that seeks to promote social procurement and works with social enterprises to achieve certification and help them take advantage of social procurement schemes .
While there is still more to be done to increase employment in disadvantaged areas – and with COVID-19 having deepened some of these inequalities – initiatives such as GROW 21 and the Melton City Council procurement provide examples of how anchor institutions , including local government , can begin to create change .
PRIORITISING PROGRESSIVE PROCUREMENT Anchor institutions , and large local businesses , can use their procurement processes and decision making to deepen local supply chains and encourage socially virtuous business development , spending and investment .
While there are many Australian examples which prioritise local purchasing , such as Gold Coast City Council ’ s Buy local procurement policy , they need to go much further . There needs to be a program of working actively with local suppliers to build capacity , the creation of formal networks between anchors , and the setting of clear expectations from anchors that suppliers are creating social , economic and environmental value in accessing procurement opportunities .
Anchors should begin by forensically examining their spend to understand the share that could be met locally while still meeting cost and quality requirements . The next stage is to publicise those opportunities and work with local businesses to make them aware of upcoming procurement opportunities , develop their local offer , and build capacity to bid for the work . Progressive procurement seeks to use the resources and assets in the public sector to create a fairer economy . A coordinated approach among anchors could increase procurement impact by bundling opportunities for local suppliers .
While CWB is focussed on local procurement , values are as important as where the money goes . The City of Sydney ’ s Sustainable Procurement Policy seeks to embed social and environmental purpose in the procurement decision making by emphasising ‘ the purchase and use of products , services and suppliers with good environmental and social responsibility records ’. This includes schedules that guide contractors and against which procurement has to be reported , including targets for sustainability , social inclusion ( e . g . First Nation Peoples and disadvantaged groups ) and local purchasing .
Purpose-driven procurement does place the burden on anchors to interrogate bids they receive from suppliers to ensure they meet the requirement , and for suppliers to provide evidence of their values . A move towards certification would allow businesses to easily show they can meet those purpose standards .
For example , Reconciliation Action Plans provide a framework for organisations to support the national reconciliation movement and provide a way for organisations to show the values . Supply Nation works with Aboriginal and Torres Strait Islander businesses to build their capacity and at the same time applies a strict verification process that gives suppliers confidence that those businesses are Indigenous owned .
The State of Social Procurement in Australia and New Zealand survey ( CIPS 2021 ) found organisational values and strategic goals were cited as the most important factor in developing social procurement strategies , followed by government policies and legislation . Eight six per cent of respondents felt social procurement would become even more important , with 78 per cent stating it will become more important for managing organisational reputation and providing an opportunity for ethical investment , which is on the rise .
SOCIAL PRODUCTIVE USE OF LAND AND PROPERTY As significant land owners , anchor institutions should be looking to ensure where possible that this land is used to add social value . This could be using it for affordable housing , underpinning creative activities , providing opportunities for community use and building social and human capital .
There are some positive emerging initiatives around use of public land for affordable housing , and many councils provide access to facilities at no cost for community uses . However , it is a very
ECONOMIC DEVELOPMENT JOURNAL VOL 14 NO 3 2021 21