1. Social Sourcing:
Creating Social & Business Value
Through Procurement
SCMA BC
www.corostrandberg.com | Twitter @SustainOurWorld

2. What is social sourcing?
Use of purchasing power to create social value
Social Ownership
• Local
• Inner city
• Social enterprise
• Diversity
Social Practices and Products
• Living wage
• Fair trade
• Health and safety
• Social / community benefit
• Socially beneficial products
Social Capacity Building
• Sustainable livelihoods
• Supplier social engagement

3. Drivers
• Expectations for business role in society
• Corporate social responsibility
• Green procurement
• Shift in how value for money is defined
• More strategic role of procurement
department

5. 2010 Olympics: Buy Smart
• Outreach to and opportunities for Social
Enterprise, Inner City and Aboriginal suppliers to
secure contracts
• Results:
– $1.2M 15 inner city businesses
– $56.7M Aboriginal business
– Catering, office supplies, lost and found services,
bouquets, printing, janitorial, construction

6. 1) Supplier Social Practices & Products

7. Living Wage

8. UBC Fair Trade Campus

9. Catering Services at Robson Square
Key Issues and
Constraints
Evaluation Strategy/Criteria Weighting
(160)
A. General Proposal Requirements
Corporate Structure Experience, qualifications, etc. 10
Food quality and variety Menu variety and innovation
Range of options including fair trade, organic,
healthy, locally produced
45
Services Service delivery and performance 25
Sustainability Addressing ethical, environmental and social
responsibility (including donations of leftover
food to food bank, training and job skills to
disadvantaged, etc.)
45
B. Financials 30
C. Submission Quality 5

10. Health and Safety
• Safety record?
• Safety program?

11. Healthy Lives
Enabling People
We commit to: inspiring and enabling
Canadians to experience nature and lead
active outdoor lives

13. Socially beneficial products
www.fairware.com

14. 2) Supplier Ownership

15. Why Local?
Several interesting things happened recently
in this rural part of southwestern Ontario.
100 mile market
L&M markets
$20M/yr
125+ local suppliers
Most small, owned by local residents &
employing local people in the community

16. TELUS Supplier Diversity Program:

17. BC Hydro, City of Vancouver, UBC,
Finning Canada, the Ministry of
Tourism, and several other large
organizations have turned to
Starworks for assistance with
sub-assembly tasks
Social Enterprise: Starworks
For over 25 years BC Hydro
field operations has used the
skilled staff at Starworks to
produce Tie Wires
As a result of BC Hydro’s
need for Tie Wires, 5
individuals with disabilities
have regular employment

18. Supporting Social Enterprises
Buy Social
and Local Vendors

19. 1,100+ B Corporations in 120 Industries in 40 Countries

20. International Social Enterprise Accreditation Process
Launches in Canada April 2015
• The business or entity’s primary purpose is to create social,
environmental or cultural value and impact
• They reinvest or distribute more than half their profits towards their
social purpose

21. 3) Supplier Capacity Building

24. Social Sourcing
• Policy; desirable not mandatory requirement
• Piloting various approaches
– Bid opportunities for social enterprises
– Social sustainability work plans
• Social enterprise or community hiring
• What services, how many hours?
• If community hiring link to supportive training
• Contract negotiations: # hours by people with
barriers
• Reporting and monitoring (6 months)
• Future plans to develop framework

25.  Corporate objective: Succeed through
relationships
 Aboriginal Contracting & Procurement
Policy & Strategy
 Goal: Support Aboriginal businesses
build their capacity & BC Hydro develop
enduring relationships with Aboriginal
communities
 Aboriginal business directory
 Senior Aboriginal Procurement Advisor
 Aboriginal.procurement@bchydro.com
 Direct awards, select tenders and set
asides
Aboriginal procurement

26. How to
• Management framework
– Policy, objectives, plan, buyer and client training
• Procurement toolkit
– Request supplier social workplan
– Evaluation criteria
– Simplified RFP process
– Small direct sourcing pilots
– Unbundling
– Sub-contractor requirements
• Identify opportunities and database
• Contract management / audit / monitor

27. Benefits
• Brand and reputation
• Employee morale
• Build supplier relationship
• Open up vendor pool
• Supply chain diversification
• Lower cost of supplies
• Improve local relationships
• Social license to operate
• Meet customer expectations
• Innovation and creativity
• Local insight
• Support local economy

28. http://ow.ly/FSqlh
Business Guide to Social Value Creation

29. Transformational Social Purchasing
www.corostrandberg.com

30. Thank you!