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Download resourceOver the past year, our clients have highlighted an increasing demand for social procurement. Across both the construction and ICT sectors, social procurement is now a non-negotiable and is no longer a box-ticking exercise. It has become a decisive factor in winning contracts and building long-term trust.
More recently, we’ve seen that up to 40% of the evaluation criteria is now linked to social and sustainable outcomes in public tenders. That speaks volumes about how our public sector defines value and impact.
Why Social Procurement Matters Now More Than Ever
Organisations that embed social procurement into their operations are not just doing good; they are making smart business decisions. By intentionally directing spend to suppliers that deliver social and environmental value, businesses can:
- Strengthen brand reputation and stakeholder trust
- Drive innovation through diverse and dynamic supplier networks
- Improve employee engagement by aligning with purpose-driven values
- Enhance risk management and long-term resilience.
Government Policy is Clear and Consistent
Across Australia, the policy landscape is fully aligned. Federally, initiatives such as the Australian Industry Participation Policy (2013) and Indigenous Procurement Policy (2015) aim to localise economic benefit and workforce development. At the state level, frameworks like Victoria’s Social Procurement Framework (SPF) and Western Australia’s Social Procurement Framework (2021) policy push further, embedding social impact into procurement evaluation and decision-making.
Map of social procurement policies
These policies are not simply aspirational. They are shifting the baseline of expectations, ensuring that every public dollar spent contributes to broader community, economic, and environmental outcomes.
Where Social Procurement Creates Tangible Impact
We’ve seen the outcomes first-hand through client projects and supplier partnerships.
Social procurement is delivering measurable results, including:
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Creation of meaningful employment pathways for individuals facing disadvantage
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Growth of Indigenous-owned, minority-led, and social enterprise businesses
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Millions of dollars reinvested into local communities and services
These are not abstract figures. They represent transformed lives, stronger communities, and a more inclusive economy.
Social Enterprise Impact
A great example is our social enterprise client Give Industries, an electrical contractor based in Melbourne and Queensland that donated 100% of its profits to charities.
Electrical contractor and social enterprise Give Industries donates 100% profits to charity.
Through electrical contracting services, Give Industries is able to donate to charities like the Fred Hollows Foundation and Original Power, to maximise social return and long-term impact.
The Risk of Inaction
Organisations that lag behind face real consequences. Missing tender opportunities, underperforming on ESG goals, and eroding trust with stakeholders are all tangible risks. More importantly, inaction means missing the chance to be part of a growing movement that’s redefining the role of business in society.
Getting Started: Practical First Steps
For leaders looking to act, the path forward starts with clarity and commitment.
Consider the following steps:
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Review your procurement processes through a social impact lens
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Set clear, measurable goals aligned to your organisational values
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Build partnerships with suppliers who share your purpose and vision.
Social procurement is no longer optional. It’s strategic, measurable, and aligned with the future of sustainable business. Embrace it now and be part of shaping an economy that delivers value well beyond profit.
At Sedo Group, we want to help businesses understand social procurement and set you up for success. Whether you’re just starting out or looking to strengthen your existing approach, we’re here to guide you through the process with practical advice and tailored support.
Get in touch with our social procurement consultants to explore how social procurement can create real value for your organisation and community.
Frequently Asked Questions
Can Sedo Group help us with our tender response?
Absolutely. Sedo Group supports clients with bid writing, Local Industry Development Plans (LIDPs), and social value strategies. We help you articulate your impact clearly, meet government compliance requirements, and improve your success rate on tenders. Visit sedogroup.com.au to learn more.
What are the risks of not engaging in social procurement?
Without a clear social procurement approach, businesses risk missing out on tenders, falling short on ESG goals, and losing trust with government and community stakeholders. Inaction can also signal a lack of alignment with modern business values, something that matters to buyers, employees, and partners alike.
How do I start implementing a social procurement strategy?
Start by reviewing your current spend and supplier relationships through a social impact lens. Then set clear, measurable goals that reflect your values and align with relevant policies. Partnering with social enterprises and Indigenous businesses is a great place to begin. Our social procurement consultants can help you build a tailored roadmap from there.
What are examples of social procurement outcomes?
Examples include creating job pathways for people facing barriers to employment, partnering with Indigenous businesses or social enterprises, reducing carbon emissions, and reinvesting in local services. These outcomes are measurable and meaningful and they’re exactly what government buyers want to see.
How much weight do social and sustainable outcomes carry in government tenders?
We’ve seen tenders where up to 40% of the evaluation weighting is linked to social or sustainable outcomes. That’s a significant portion, and it reflects how government buyers are redefining value. Social procurement is no longer a bonus. It’s a core part of how tenders are assessed.
How does social procurement give my business a competitive advantage?
Social procurement helps your business stand out in competitive tenders by demonstrating your commitment to social value. Governments and buyers are actively looking for suppliers who contribute to inclusion, sustainability, and local economic development. It shows you understand the bigger picture and positions your business as a trusted partner.
How do I measure the impact of my social procurement activities?
You can measure impact by tracking spend with social or Indigenous suppliers, counting job outcomes, and evaluating local economic or environmental benefits. Sedo Group provides clear frameworks and templates to help you monitor, report, and communicate your impact to clients and stakeholders.
Is social procurement mandatory for private businesses?
While not always mandatory, social procurement is increasingly expected, especially when bidding for public sector work. Many agencies now require it as part of their tender criteria. Businesses that can demonstrate social impact will have a clear edge in today’s procurement landscape.
What policies drive social procurement in Australia?
Key policies include the Victorian Social Procurement Framework (SPF), Queensland’s Buy Queensland policy, the Indigenous Procurement Policy (IPP), and the Local Jobs First policy. These frameworks guide how social impact is built into procurement. Our social procurement consultants have deep experience helping clients align with all of them.
What’s the difference between social procurement and strategic procurement?
Strategic procurement focuses on aligning purchasing with commercial goals like cost efficiency, compliance, and risk reduction. Social procurement builds on this by embedding social value into the procurement process, ensuring that what you buy also benefits the community. At Sedo Group, our social and strategic procurement consultants help you combine both to maximise impact and results.
What is social procurement and why is it important?
Social procurement is when organisations use their purchasing power to create positive social, economic, and environmental outcomes. It’s important because it allows everyday spending to have a meaningful impact, such as supporting jobs, diversity, and stronger communities. It’s also increasingly a key factor in government tender evaluations.