Supporting social considerations through public procurement – economic perspective Gustavo Piga, Rome Tor Vergata University Tünde Tátrai, Corvinus University of Budapest 2nd Interdisciplinary Symposium on Public Procurement Budapest

Economic Social Environmental Transparency Strategy SPP Culture Risk management

Topics Included in Broader Policies Integrating Other Policy Objectives with Procurement Specific topics Environment Social Innovation Anti-social dumping x Biodiversityx Chemical treatmentx Climate change, reduction of CO 2 emissionsx CSR (including human rights and ILO Core Labour Standards)xxx Energy efficiency and management, use of renewable energyx Environmental technologyx x Green ITx x High-tech, research and technology x Integration of people with disabilities x Promotion of SMEs x Sustainable developmentxxx Sustainable economic growth and employmentxxx Sustainable farming and foodxx Sustainable production and consumptionxxx Sustainable timberxx Sustainable transportx Waste managementx Source: European Commission (2011).

Fighting courruption Transparency Supporting environmental protection Easing up the fiscal crisis by slowing down public procurements Supporting social considerations Efficient spending of public money Increasing employment Supporting SMEs Decreasing go- round debt Tátrai, Nyikos (2012)

7-stages Model of PP Development Stage 1.Sourcing and delivery of goods and services Stage 2.Compliance with legislation/regulation Stage 3.Efficient use of public funds Stage 4.Accountability Stage 5.Value for money Stage 6.Supporting of broader government policy objectives Stage 7.Delivery of broader government objectives Telgen, Harland and Knight (2007)

stages Model for Sustainable Public Procurement

The goal is to render the entire procurement process sustainable at the level of contracting authorities and to raise public procurement to the level of policy and its inclusion in sustainability strategies at government and international level.

McCrudden (2004) Labour standards and unemployement Employement opportunitis of disabled workers Racial equality Promoting human rights transnationally (ILO)

Gender equality Teresa Medina-Arnáiz (2010) – Spanish case „the principle of equal treatment between women and men, as well as the express prohibition of any type of discrimination on the grounds of gender can be seen as a guiding principle for legal systems and as such, should be integrated and observed in all public action (gender mainstreaming) – Contractor selection phase – Award critera – Condition for performance of contracts

Social responsibility procurement in East Asian States David Seth Jones (2011) Social responsibility – Supporting SMEs – Creating opportunities for small or start up venture firms – Fostering environmental sustainability through green purchasing and environmentally sustainable construction – Promoting work safety in site management in public works.

Conclusions Disproportionality of objectives – or controversal objectives – All the objectives are becoming secondary objectives… Reducing competition – exclusion of bidders, increase costs, risk of litigation – Motivation Data, measurement, monitoring – Evaluating the relevance of social considerations is to consider its total impact on society and economy

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