Measuring ROI from Social Procurement: Financial and Social Value Combined
Procurement is no longer just about saving costs. It's about creating value that resonates far beyond the balance sheet.
Purpose-led businesses are redefining what Return on Investment (ROI) really means.
Social procurement isn’t just a cost decision. It’s a strategic move that delivers both financial performance and measurable social value, from inclusive employment to stronger community outcomes.
So how can your business confidently assess the real ROI of social procurement?
Let’s break it down.
What Is Social Procurement ROI?
Social procurement is the practice of sourcing goods or services from suppliers that create positive social or environmental outcomes, such as social enterprises and disability-inclusive workplaces.
While these partnerships deliver commercial results, the true ROI of social procurement includes:
- Inclusive employment opportunities
- Skills development and training hours
- Reduced reliance on government support
- Improved environmental outcomes
- Enhanced brand reputation and employee engagement
When measured holistically, these outcomes drive long-term value - not just for your business, but for society.
1. Quantifying Financial Returns
Like any procurement activity, social procurement must make commercial sense. Key financial metrics to track include:
- Cost efficiency: Compare pricing and delivery outcomes against traditional suppliers.
- Operational performance: Assess turnaround times, service quality, and reliability.
- Risk mitigation: Working with mission-aligned suppliers can reduce reputational and ESG risks.
At Endeavour Foundation Business Solutions, our secure document destruction services deliver competitive value, while also employing people with disability in rewarding, supported work.
2. Measuring Social and Environmental Impact
This is where social procurement truly sets itself apart.
Social enterprises and impact-driven suppliers often provide impact reporting to help you quantify the broader value of your spend.
Key metrics may include:
- Jobs created for people facing barriers to employment
- Training and upskilling hours provided
- Carbon reduction or landfill diversion metrics
- Community contributions and reinvestment figures
Tip: Align these metrics with your organisation’s ESG, CSR, or Reconciliation Action Plan goals to demonstrate contribution toward strategic outcomes.
3. Strengthening Stakeholder Value
Beyond numbers, social procurement can strengthen internal and external relationships:
- Brand trust: Customers and investors increasingly favour purpose-led brands.
- Employee engagement: Staff feel proud to work for businesses making a difference.
- Community partnerships: Social procurement builds local economic resilience.
According to Social Traders, social procurement spend in FY24 created over 10,000 jobs and 918,000+ hours of training for people facing disadvantage. These are outcomes your business can be part of.
4. Embedding ROI in Your Procurement Strategy
To maximise and measure ROI from social procurement, it’s essential to:
- Set clear social impact targets
- Choose suppliers that offer transparent reporting
- Include impact data in your own ESG/CSR reporting
- Brief internal teams on how to evaluate both financial and non-financial performance
Done well, social procurement becomes a strategic investment, not a cost.
The Bottom Line: Purpose and Performance Can Coexist
Social procurement isn’t charity. It’s smart, future-focused business.
It’s about selecting suppliers who deliver quality outcomes and align with your mission. When you consider both financial and social ROI, the value becomes undeniable.
Ready to Make Your Procurement Count?
Endeavour Foundation Business Solutions partners with councils and businesses across Queensland, New South Wales and Victoria to deliver commercial services that drive community impact, from document destruction and packaging to ethical recycling.
Explore how we can help you meet procurement needs and deliver lasting social value.