Whether you realize it or not, every purchase made has an impact. Take a simple cup of coffee for example. Buying this coffee obviously gives the store and its employees profit. It gives the companies and employees who sourced the coffee beans and materials of the cup profit. The cup itself impacts the environment based on the materials it’s made up of. And of course, it impacts you, the consumer. Understanding the implications of every purchase made is critical towards improving each aspect of every purchase. This is what social procurement aims to target. More specifically, “social procurement is about using your existing purchase to capture those impacts to achieve overarching institutional, governmental, or individual goals that help shape inclusive, vibrant and healthy communities” (Buy Social Canada).

One unique aspect of social procurement is the environmental impacts and social inequality it takes into account. Going back to our coffee example, if we were to look at each aspect of purchasing one cup of coffee, we could analyze both its social inequality and environmental implications. We can take into account the sourcing of different materials and sustainability of packaging in order to fully understand how socially and environmentally sustainable products are. These considerations play into the concept of the circular economy, an economy that focuses on recycling and reusing materials to keep them cycling in the economy for longer (Ellen Macarthur Foundation). By being environmentally conscious in every stage of production, manufacturing, and shipping, companies can actively better their own carbon footprint, and along with that, the environment.

But, arguably the most important aspect of social procurement is its ethical and social impacts. Not just does the workplace follow equal protocol but rather, more overarching ideas like does this company strive to empower its workers? Finding, supporting, and even turning your own enterprise into one that keeps these questions in mind can make the biggest social impact. Take Du Anyam, an Indonesian-based social enterprise for example. Beyond the environmental and economic questions, they asked and addressed themselves, they strive to set up a supply chain that empowers all of their artisans and communities that they work with. No matter what purchase it is, much of the profit the company makes actually goes back into the rural communities that they work with. From supporting their artisans to creating digital literacy programs, you know that Du Anyam is reinvesting back into creating an impact in their community. Creating a social enterprise model similar to this can make all the difference, as we need companies that can uplift and empower their workers now more than ever. 

It is worth noting that social procurement will never succeed without the support of governments in the form of policies and enforcement. For example in Chile, the government passed policies and guidelines dictating a gold-standard model for what rules Chilean companies should follow regarding social procurement. Luckily, Chile’s model of social procurement proves that the enactment of this idea isn’t abstract nor improbable, but instead takes planning and support. As the world continues on its path towards widespread modernization, creating more companies that focus on the social impacts of their businesses and each purchase they have becomes vital to protecting our workers and artisans.

Find out more about Du Anyam and let’s make impact together.