The Power of Social Procurement

Beyond Buying: The Power of Social Procurement

Government spending represents one of the most powerful economic levers available to drive social change. In Australia, state and federal procurement policies are increasingly prioritising social value, ensuring that taxpayer dollars create broader economic, environmental, and social benefits.

From Indigenous employment quotas to circular economy initiatives, procurement is no longer just about choosing the lowest price—it’s about investing in communities, supporting ethical suppliers, and building a sustainable future.

Key Areas Where Procurement is Making an Impact

• Social Enterprises and Indigenous BusinessesPolicies such as Victoria’s Social Procurement Framework and the Commonwealth Indigenous Procurement Policy (IPP) are increasing contract opportunities for social benefit suppliers.
• The NSW Government Procurement Framework now includes provisions that encourage local and diverse businesses to participate.

• Sustainability in ProcurementThe Recycled First Policy is ensuring major infrastructure projects prioritise reused and sustainable materials.
• The Buy Circular Service helps councils transition to more sustainable procurement decisions.

• Diversity and Workforce InclusionThe Building Equality Policy (BEP) in Victoria mandates minimum participation targets for women in construction, creating pathways for underrepresented workers.

Challenges and the Road Ahead

Despite progress, challenges remain. Small businesses and social enterprises often struggle to navigate complex procurement processes. Measuring social impact and ensuring compliance is also a growing focus, with platforms like Catchment providing tools to track, measure, and report on social procurement efforts.

With governments leading the way, businesses that embrace social procurement will not only secure more contracts but also play a direct role in shaping a more inclusive economy.