Social procurement

Social procurement is when governments, businesses, or other organisations use their buying power to achieve not only the best value for money, but also positive social, environmental, and community outcomes.

In plain terms:

- It’s about choosing suppliers and contractors not just because they can deliver a product or service at the right quality and price, but because they also create broader benefits.

- These benefits might include providing jobs or training for people who are disadvantaged in the labour market (such as long-term unemployed, people with disability, or First Nations peoples), supporting local small businesses, using environmentally sustainable practices, or reinvesting profits into community programs.

- For example, if a council needs catering for an event, they might hire a social enterprise café that employs young people who are at risk of homelessness. The catering still needs to meet price and quality standards, but the purchase also creates social value by helping those young people gain skills and employment.

It’s essentially buying with impact, making purchasing decisions that deliver the required goods or services and contribute to wider positive change.