# Making the Case for Social Procurement Harnessing Social Procurement to Mitigate Risks and Drive Change. ## The Power of Social Procurement Two-thirds of a company's potential for positive or negative impact comes from its supply chain. FTSE 100 companies typically allocate an average of $12 million to their corporate social responsibility (CSR) budgets. But their procurement spending averages $5 billion, which holds tremendous potential for positive impact through social procurement - the practice of buying goods and services from social enterprises and other, impact-first organizations. ## Social procurement and corporate sustainability Recent policy signals, including changes to affirmative action frameworks in the United States and adjustments to the EU’s CSDDD, have prompted questions about the future of positive impact in supply chains. Yet these shifts are coinciding with stronger commercial drivers that support buying from social enterprises, particularly as companies focus on resilience, risk diversification, and operational continuity. As supply chains become more volatile, suppliers that are locally embedded, mission-driven, and designed to deliver social outcomes are increasingly valued for their stability, adaptability, and long-term alignment.Social procurement continues to offer a direct, tangible way to operationalize responsible business commitments without adding layers of reporting complexity. It can bring innovation into existing purchasing categories, strengthen local ecosystems, engage employees, and unlock cost-efficient, agile solutions from mission-driven suppliers. In this moment of recalibration, directing a small portion of procurement spend toward social enterprises is not a symbolic gesture but a practical, future-fit business decision that aligns business performance with people and the planet.The business case for engagement is multi-dimensional: ## Catalog *Browse catalog items* ## Demand and supply drivers The following demand and supply drivers are contributing to the maturing field of social procurement ### Business Development Stakeholders are driving accountability in value chain practices, with the UK Procurement Act 2024 requiring companies bidding for contracts over £20 million to disclose social enterprise spending, and U.S. consumers showing willingness to pay a 10% premium for eco-friendly products. Companies like Mars are responding by integrating sustainability, procurement, and R&D under unified leadership to deliver innovative solutions. ### License to Operate Value chains often lack transparency: Only 6% of businesses report effective visibility, exposing companies to risks like stakeholder scrutiny and reputational damage. This opacity presents a risk, requiring companies to innovate and invest in improving non-financial performance. Partnering with social enterprises enables businesses to address these vulnerabilities. ### Employee Branding Employees increasingly expect responsible practices across all areas of operations, making value chains a key opportunity to demonstrate social and environmental leadership. Integrating social enterprises into supply chains, even for small items like office essentials, visibly reinforces a company’s commitment to impact and inspires employees by aligning organizational values with meaningful actions. ### Sustainability Pressures According to the 2024 CPO Compass, 77% of procurement executives reported a rise in pressure to improve ESG performance over the last three years.[1] Social procurement offers a tangible way to showcase this evolution, redefining relationships with suppliers while supporting the company’s broader strategic objectives. ### Procurement Strategy CPOs can secure a strategic role by championing social procurement, aligning sustainability with corporate goals while delivering social, environmental, and economic benefits. This approach positions procurement as "Orchestrators of Value," leading innovation and leveraging social enterprises' superior environmental performance. ### Driver of Innovation Social procurement fosters innovation in circular models, supporting activities like repair and upcycling. Lamborghini partners with Cartiera to turn car waste into luxury goods, while Groupe Seb and Groupe Arès launched RepareSeb to offer repair services aligned with EU Right to Repair regulations. ### Talent Acquisition Social procurement aids talent acquisition, with 70% of CPOs in Deloitte’s 2023 survey citing it as a differentiator. Zurich Insurance's program attracts hires drawn to its sustainability agenda, with new employees highlighting social procurement as a key reason for joining, according to Head of EMEA Procurement, Jaime Paiva. ### Value for Money Social enterprises are trusted, innovative suppliers, excelling in impact, service, and value. Over 90% of the $700M spent in Social Enterprise UK’s Buy Social Challenge has been cost-neutral or better, with social enterprises often surpassing expectations in price, quality, and innovation. ### Intermediary Organizations Intermediaries connect social enterprises with corporate procurement, sharing best practices and expanding networks. Platforms like SAP Business Network, the largest B2B e-commerce hub, now verify "People and Planet First" suppliers, giving companies seamless global access to social enterprises. ### Capacity-Building Programs Capacity-building programs like the 100+ Accelerator, backed by Anheuser-Busch InBev, Coca-Cola, and others, equip social enterprises to thrive in corporate value chains. Supporting 148 companies in 38 countries, they help scale operations and refine processes, aligning training with corporate needs to unlock mutual opportunities. ### Our Partners This section of the report has been prepared byMiller Center for Social Entrepreneurship, telos and Yunus Social Business. *Partner organizations and sponsors* Last update was made on 13 January 2026.