1. Social Issues in Procurement
EAUC – EAF Programme

2. EAF Programme Background Train the trainer
Three year project
Reducing negative environmental and social impacts through purchasing
Steering group, partners from Further Education and Higher Education
Training
Train the trainer
Policy and strategy development
Risk based approach to procurement
Supplier engagement
Social issues in procurement

3. Social Issues in Procurement
Agenda
Introductions and objectives
What do we mean by social issues?
What guidance exists?
Coffee
What does good practice look like?
Case Study Review
Where do I start?
Action Planning
Close

4. Social Issues in Procurement
Format and style of workshops
Interactive
Informal
Varied
Proactive

5. Social Issues in Procurement
Objectives
Develop a shared understanding of what we mean by ‘social issues in procurement’
Review good practice – Novo Nordisk
Identify opportunities to build social issues into your procurement activity

6. What do we mean by social issues?
Come up with a list of social issues

7. Social Issues in Procurement
CIPS publication ‘Develop Ethical Purchasing Practices’ identified the following
Forced labour
Employment relationships
Freedom of association
Wages and working hours
Treatment of employees
Law
Health and Safety
Child labour
Discrimination

8. Social Issues in Procurement
As early as 1992 B&Q developed a social policy – they identified the following specific issues
The exploitation of child labour
Bonded labour – including prison camps
Health and Safety
Cottage industry
Migrant workers
Fair wages / living wage
Freedom of association
Equal opportunities
Discrimination
Bullying

9. Social Issues in Procurement
Vodaphone Code of Ethical Purchasing
Child labour
Forced labour
Health and Safety
Freedom of Association
Discrimination
Disciplinary Practices
Working Hours
Payment
Individual Conduct
Environment

10. Social Issues in Procurement
Where is it drawn from?
1948 the General Assembly of the United Nations adopted and proclaimed the Universal Declaration of Human Rights
30 Articles identifying basic human rights to be adopted by member states

11. Social Issues in Procurement
Core Conventions of the International Labour Organisation
Eight ILO Conventions have been identified by the ILO's Governing Body as being fundamental to the rights of human beings at work, irrespective of levels of development of individual member states.
These rights are a precondition for all the others in that they provide for the necessary implements to strive freely for the improvement of individual and collective conditions of work

12. Social Issues in Procurement
Freedom of association
Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87)
Right to Organize and Collective Bargaining Convention, 1949 (No. 98)
The abolition of forced labour
Forced Labour Convention, 1930 (No. 29)
Abolition of Forced Labour Convention, 1957 (No. 105)

13. Social Issues in Procurement
Equality
Discrimination (Employment and Occupation) Convention, 1958 (No. 111)
Equal Remuneration Convention, 1951 (No. 100)
The elimination of child labour
Minimum Age Convention, 1973 (No. 138)
Worst Forms of Child Labour Convention, 1999 (No. 182)

14. Social Issues in Procurement
The CIPS position on Ethical Business Practices in Purchasing and Supply Management distils aspects of current developments in the area, including:
The Ethical Trading Initiative (ETI) Base Code
The Core Convention of the ILO
The UN Declaration on Human Rights
SA8000 (a Social Responsibility Standard developed by the Council on Economic Priorities Accreditation Agency in New York - now known as Social Accountability International (SAI)

15. Social Issues in Procurement
What does all this mean?
General consistency when people talk about social issues
The issues identified are well known and drawn from the same sources
Whilst well developed in certain sectors still ignored in many places
Rhetoric tends to focus on the global challenges rather than the local opportunities

16. What guidance exists?

17. What guidance exists?
OGC / Defra joint note on environmental issues in purchasing – Social issues in procurement
Interpretative Communication on integrating social considerations into public procurement - frequently asked questions

18. What guidance exists? Develop Ethical Purchasing Practice, 2001 – CIPS
The ethical decision – An executive guide to corporate social responsibility, 2004 – CIPS
Social issues in purchasing, February 2006 – Office of Government Commerce

19. What does it say?
Opportunities exist at different stages of the procurement process and can legitimately be incorporated into your activities

20. What does it say?

21. What does it say? But remember:
They must be relevant to the subject matter of the contract
Actions must be consistent with the EU Treaty and the EU Public Procurement Directive
Most progress can be made if social issues are considered at the earliest stages of the procurement cycle

22. Novo Nordisk
Case Study

23. Novo Nordisk Read the materials provided?
What do you like about their approach?
Is any of it relevant to your institution?
What can you apply to your situation?

24. Where do I start?

25. Where do I start?
Are social issues identified in your current purchasing strategy or policy?
Are social issues identified as a priority by any other part of the business?
Have obligations relating to social legislation been considered?
Could you take a risk based approach to identify high spend / risk areas?

26. What social issues are important to your institution?
Produce a list that you think is relevant and useful to you

27. Where do I start?
Consider social issues from the outset, there is most scope early on in the process
Carefully plan the procurement process to ensure it is accessible to a suitable variety of suppliers
Use performance or functional specifications where appropriate for desired social outcomes to encourage innovative solutions
Assemble relevant expertise procurement specialists and end users
Early dialogue with the supplier community – tell them what is important to you.

28. Where do I start?
Here are a number of important social issues that might be relevant to your institution.
Community Benefits
Core Labour Standards
Disability Equality
Employment and Training Issues
Fair Trade
Gender Equality
Race Equality
Including Small and Medium Sized Enterprises
Work Force Skills

29. As a contracting organisation what actions could you take?
Exercise
As a contracting organisation what actions could you take?

30. Action Planning Realistically What can you take forward?
How will go about it?
SMART

31. Summary A complicated and developing area
Starting point is the same as with environmental issues
What's important to you?
What are the risks?
What can you realistically do?
Focus on small steps close to home
Guidance and further support is available

32. jbrannigan@esdconsulting.co.uk www.eauc.org.uk
Many thanks