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Guestlecturer3-UTSPresentationSocialProcurementcreatingSocialImpactAPRIL92019FINALDRAFT1.pptxSocial Procurement
The very real opportunity to create Social Impact
Presented by
Brendan Lonergan M Bus (UTS)
Chief Executive Officer
Beehive Industries Co-operative Ltd.
9th APRIL 2019
Beehive Industries Co-operative
Established in 1971
Initially as a special project of the City of Sydney with a $50K grant
To provide support for Sydney Seniors who were socially isolated
Today we operate as a NFP Social Enterprise Co-operative
Supporting Seniors , Persons with Disability and the Long term unemployed
With around 180 regular members and a further 70 unemployed persons . Each day we provide free breakfast morning tea and lunch to 40 – 60 people as well as food parcel giveaways 3 days a week
Who are the “Beehivers”
They are mainly Seniors
They persons with disability over the age of 25
They are long term unemployed over 50
They are all living on Aged Pension , Disability Support Pension or the New Start Allowance
Over 60% live alone
Most live in Housing commission , boarding houses , temp accom
Some live in homeless shelters
Some of the people that we support
How do we support them
Primarily be providing a socially inclusive and supportive environment where their contribution is valued
By providing free breakfast , morning tea and lunch
Food parcel giveaways 3 days a week
Community transport
Support programs including
ESL Classes. Digital Inclusion , Low Cost Meal for Seniors program
Health info sessions, Employment training and support
Outings , Special event lunches and more
How do we fund this support
We are a registered NDIS service supplier
We are also participate in the Federal Continuity of Service scheme
Over 80% of our revenue is generated by our Social Enterprise operations
We provide packaging assembly and mail- house services to corprate and government sector clients
Whilst we are a registered charity with DGR status we are not currently receiving cash donations of any great value
We are fairly successful with in kind and other forms of donor support
NFP Social Enterprise Beehive Industries Co-op
Beehive Industries Co-operative
Video Link https:// www.youtube.com/watch?v=JNPVsWsKCb4
What is currently our main driver for business
As a Social Enterprise providing commercial packaging assembly and mail house services to corporate and government sector clients
We have a huge number of direct and indirect competitors
Increased awareness of Social Procurement creates an opportunity to engage with organisations looking to make a social impact
What is social procurement?
When buyers use their purchasing power to achieve social outcomes beyond the products and services they require, they are undertaking social procurement.
Source – Social Traders Australia
Social Procurement provides an opportunity to generate greater value through the procurement process.
For government the added value is created through the delivery of social benefits beyond the benefits conferred by the products and services being purchased; they are achieving other government goals, adding value that would not otherwise be created.
For corporates the added value is created in a range of areas including; brand development through the integration of corporate social responsibility into the procurement process; staff attraction and retention through values driven activity.
For the not-for-profit sector the added value is created by keeping money in the social economy for longer, where it can create more social benefit.
KEY PLAYERS in the Social Procurement arena
A growing opportunity
Procurement in Australia is estimated to be
approximately $600 billion, and social
procurement buying goods or services from
social enterprises, including indigenous
business and disability service organisations) is
on the rise.
Benefits are positive Improvements in peopleʼs lives;
• Social inclusion; • Employment and training; • Local sustainability; • Diversity and equality; • Fair trade; • Service innovation.
How can we do it?
• Policy Focus: Using policy tools to ensure contractual supplier delivery on social impact objectives; • Contract Focus: Including social impacts in tenders and contracts through specifications, scope and weightings; • Supplier Focus: Developing social benefit suppliers and/or building the social benefit capacity of all suppliers; • Market Development Focus: Development of markets that can more effectively address complex social issues.
Contracting tools can be used to support social procurement:\
• Social Clauses: requirements for the delivery of social benefits /impacts within the contract; • Unbundling Large Contracts: smaller parts of contracts having social impact specifications;
• Social Tendering: work offered specifically for social impact or amongst social benefit suppliers;
• Social Benefit Subcontracting
• Purchasing Agreements
Source CSI Dec 2010
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Global Stationery Giant partners with local charity a 1st in Co Branding for Staedtler
Social Procurement creating added opportunity
We then connect to this NRMA opportunity ?
Adding impetus to Social Procurement Discussions
UN – Global Development Goals
ISO 20400
Corporate Reputation building opportunities
Social Impact consultants
Sustainability
7 core subjects of ISO 20400
Social Responsibility – ISO 26000
7 Core Subjects
Since 2010
Sustainable procurement is good for business
Sustainable procurement leaders:
90% improve their brand reputation
70% develop stronger, more reliable and longer-lasting supplier relationships
50% have more innovative, sustainable products and services that result in increased sales
45% improved ranking in ‘green’ financial indices
30% delivered cost savings
Source: Ecovadis and HEC, 2017 - 7th Sustainable Procurement Barometer on 120 companies in Europe and the US
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Leveraging social procurement to create further community support partnerships
Social Impact consulting – Deloitte
Government support
CORPORATE BUYERS
Social Traders – Certified BUYER members include
GOVERNMENT BUYERS
EDUCATION SECTOR BUYERS
?
The US Govt $3.5B Procurement Initiative
How do we measure the impact of this
Revenue generated
Employment support and training opportunities created
Increases in number of service users supported
Expansion in support programs partially funded by this work
Improvement in mental health
And much much more
Certification , accreditation even awards are one way to measure the value of what you do
However the real measurement is a lot more personal than that
We use the Beehiver SMILE INDEX !
Thank you for your time
Questions ??
Brendan Lonergan
Chief Executive Officer
Beehive Industries Co-operative
