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What is social procurement?

3 March 2026

Sector News Best practice

Joanne Barrow
Head of Marketing and Digital Solutions

Embed social enterprises into your supply chain, turn your buying power into business value.

The business case for social procurement - more than doing good

Every dollar you spend is a strategic decision. Social procurement lets you direct that spend to generate measurable social value - above and beyond the goods, services, or construction you're purchasing.

Leading organisations are already embedding social procurement into their supply chains to hit sustainability and ESG targets, diversify supplier bases, and future-proof their operations. It's one of the strongest ways your business can drive social performance, delivering social value alongside profit.

By partnering with certified social enterprises, purpose-driven businesses built to create change, you can achieve your social performance goals while solving real operational challenges.

What social enterprise delivers for your business

Stop viewing social impact as a cost. Start treating it as a capability. Social enterprises help you:

Unlock social value embedded in everyday spend
Drive long-term employment outcomes for people furthest from the workforce
Tackle entrenched disadvantage in the communities where you operate
De-risk your supply chain with agile, locally anchored suppliers
Create environmental benefits that strengthen your sustainability credentials

5 business benefits of embedding social procurement

1. Transform lives and your community footprint

Social procurement provides employment opportunities for marginalised people, empowers disadvantaged communities, and funds initiatives that advance social equity and environmental sustainability. It converts your operational spend into measurable community impact and gives your business positive stories worth telling.

2. Build a more resilient supply chain

Global supply chains carry global risk. Social enterprises are local, lean, and agile - able to pivot quickly when disruption hits. Partnering with them reduces your dependence on offshore suppliers, shortens your supply chain, and delivers high-quality, sustainable solutions closer to home.

3. Earn deeper customer loyalty

Today's customers don't just buy products, they buy values. Positioning your organisation as a purpose-driven leader strengthens brand trust, deepens customer loyalty, and differentiates you in competitive markets. Social procurement makes that positioning credible and measurable.

4. Win more government contracts

Governments across Australia are actively prioritising suppliers that demonstrate social and sustainable value. Embedding social procurement into your operations gives you a genuine competitive edge when tendering for public-sector work - where these criteria increasingly determine who wins.

5. Attract and retain the talent you need

Purpose-driven organisations don't just attract top talent, they keep it. Employees want to work somewhere that makes a difference. Embedding social enterprises in your supply chain signals a genuine ESG commitment, builds a culture of pride and engagement, and reduces the costly churn that comes from disengaged workforces.

Wallara Logistics

Social procurement in action

Mirvac & Green Connect: Reduced waste and supported ethical labour through sustainable partnerships.
Natura Pacific & Yarrabilba: Combined biodiversity conservation with employment for incarcerated individuals.
Icon & Assembled Threads: Created PPE while building a circular economy and providing jobs for marginalised workers.

Partner with Social Traders

Social Traders has been the leading industry body for social enterprise and social performance since 2008.

We bring the deep expertise, access to the certified supplier network, and the measurement tools you need to embed social procurement as a genuine value creator for your business.

Here's what you get when you work with us:

Access to a national network of certified social enterprises, ready to supply
Expert advisory support to integrate social performance into your procurement strategy
Impact measurement tools to track, report, and share your results with confidence

Learn how we can help