Building a Social Procurement Policy: What to Include and Why
Looking to create an effective social procurement policy for your organisation? Get started with this essential guide.
Procurement is no longer just about price and efficiency. It is about purpose.
A well-crafted social procurement policy enables organisations to align their purchasing decisions with their values and turn everyday transactions into long-term social and environmental success stories.
By integrating social procurement into your environmental, social and governance (ESG) or corporate social responsibility (CSR) framework, your business can create lasting change while meeting operational goals.
In this guide, we explore what social procurement is, why it matters and how to build an effective policy tailored to your organisation's goals.
Pictured: Alex Baker, Supported Employee, Endeavour Foundation
What Is a Social Procurement Policy?
Social procurement is the practice of sourcing goods and services from businesses that deliver positive social or environmental outcomes.
These include social enterprises, not-for-profits and disability-inclusive workplaces.
In Australia, social procurement is rapidly gaining momentum across sectors as more organisations recognise the value of aligning their supply chains with social impact goals.
Pictured: Supported Employee, Endeavour Foundation Business Solutions – Kew
Why a Social Procurement Policy Matters
Embedding social procurement into your operations is more than just best practice – it creates a strategic advantage for your business. A formal policy empowers your organisation to:
- Embed social impact into procurement processes
- Align with ESG and CSR commitments
- Demonstrate leadership in sustainability and inclusion
- Meet government or industry compliance requirements
- Track and report on community impact
Research from the Centre for Social Impact Swinburne revealed that 64% of organisations in Australia and New Zealand that engaged in social procurement did so without clear spending targets.
This signals a significant opportunity. While intent exists, many businesses lack the structure needed to turn values into action.
By establishing a dedicated social procurement policy, your organisation moves from ad hoc efforts to a focused, accountable approach. It’s a technique that ensures your procurement choices consistently deliver meaningful, measurable results.
Pictured: Patrick, Supported Employee, Endeavour Foundation Business Solutions - Geebung
What to Include in a Social Procurement Policy
Here are several essential elements to consider for your social procurement policy:
1. Purpose and Objectives
Clearly define the purpose of your social procurement strategy. State how it aligns with your ESG or CSR goals and outline the positive outcomes your organisation seeks to achieve, such as inclusive employment, sustainability or community development.
2. Scope of the Policy
Identify the areas of procurement where social impact can be prioritised. This may include office supplies, facilities management, marketing, catering, logistics or manufacturing services.
3. Definitions
Provide clear definitions of key terms such as ‘social enterprise’, ‘inclusive employment’, ‘Indigenous business’ and ‘ethical sourcing' to ensure clarity for stakeholders.
4. Supplier Eligibility Criteria
Outline what qualifies a supplier as eligible for your social procurement initiatives. This may include certification (such as Social Traders), demonstrated social impact or employment of disadvantaged groups.
5. Targets and Metrics
Set clear goals and performance indicators. For example, aim to direct a certain percentage of annual procurement spend to social enterprises or to track the number of inclusive jobs supported through supplier partnerships.
6. Roles and Responsibilities
Define who within your organisation is responsible for implementing, monitoring and reporting on the policy. This can include procurement teams, sustainability leads or executive sponsors.
7. Reporting and Accountability
Establish a system for regular reporting on progress. This ensures transparency, encourages continuous improvement and helps share success stories with internal and external stakeholders.
8. Supplier Engagement
Include plans to educate and support existing suppliers in aligning with your policy. You may also want to partner with organisations like Social Traders to access a certified supplier network.
Pictured: Chloe Haidenhofer, Supported Employee, Endeavour Foundation
Take the First Step
Creating a social procurement policy doesn’t have to be complex.
Begin by identifying potential impact areas in your current supply chain. Then, engage with certified social enterprises to learn what partnerships might look like.
At Endeavour Foundation Business Solutions, we support businesses across Australia with professional services that create inclusive employment for people with disability.
From document destruction to packaging and recycling, we help companies achieve procurement goals that align with both commercial and community outcomes.
Ready to make your purchasing more purposeful?
Contact us today to explore how we can support your social procurement journey.