Australia Post today released a whitepaper highlighting how social procurement creates a competitive advantage and better workforce engagement for organisations, leading to increased economic, social and environmental value.
Releasing 'Unlocking the Value of Social Procurement and Supplier Diversity: Leading Practice Insights' today at Social Traders' social procurement conference, Australia Post's research features findings from organisations such as Salvos Legal, Fortescue Metals, ARA Indigenous Services and Westpac.
Launching the whitepaper, Australia Post Group Chief Financial Officer Janelle Hopkins said that changing social needs, government policy, competitive advantages and workforce engagement made up the four key factors behind social procurement's momentum in recent years.
"Choosing a social enterprise as a supplier can make a positive impact to the community. It creates work for minority groups by leveraging money that would have been spent elsewhere," said Ms Hopkins.
"For example, Indigenous businesses offer 70 times the average rate of employment opportunities for Indigenous jobseekers. This means that your choice of supplier can have a huge impact in changing the community you operate in.
"Social enterprises don't just offer employment opportunities to otherwise marginalised groups, they also provide economic value for our country. For example, there are nearly 12,000 Indigenous businesses contributing around $6.5 billion to the Australian economy every year.
"That's not to say there aren't challenges, but we hope this paper will provoke discussion around how social procurement can be a regular fixture in business activity."
Further facts from ''Unlocking the Value of Social Procurement and Supplier Diversity' include':
There are an estimated 20,000 social enterprises operating across Australia generating up to 3% of GDP and employing 300,000 Australians
Over 95 per cent are small to medium sized enterprises
There are nearly 12,000 Indigenous businesses contributing up to $6.5 billion to the Australian economy each year
It is estimated that for every $100,000 spent with social enterprises, 1.5 jobs are created for those suffering or at risk of disadvantage
Research suggests that for every $1 spent with an Indigenous business, $4.41 is generated in social return
The whitepaper is nowavailable on the Australia Post website at auspost.com.au/SDGs.
Source: Australia Post