Why Local Councils Should Embed Social Procurement—Mandated or Not

Local councils play a critical role in shaping vibrant, inclusive, and economically sustainable communities. While social procurement is not currently mandated within their procurement policy frameworks, councils have a unique opportunity to lead the way in leveraging procurement as a tool for social good. By embedding social procurement into their practices, councils can drive positive change, strengthen local economies, and create lasting community impact—all while achieving their core service delivery objectives.

Social Procurement: A Game-Changer for Local Councils

Social procurement goes beyond traditional purchasing—it’s about making every dollar work harder for the community. It ensures public spending supports and prioritises local businesses, creates employment for priority jobseekers, and promotes sustainability. While the private sector and broader local government procurement bodies increasingly recognise the value of social procurement, local councils have the ability to set the benchmark for socially responsible spending.

Councils that take the lead in social procurement will:

• Strengthen Local Economies: Supporting social enterprises and diverse suppliers keeps money circulating within the community, driving job creation and resilience.
• Increase Social Equity: Procurement choices can be a powerful tool to uplift priority jobseekers, including supporting diversity suppliers Indigenous businesses, women-led enterprises, and individuals facing employment barriers.
• Meet Community Expectations: Ratepayers increasingly demand ethical and community-focused spending. Councils that respond proactively build trust and public support.
• Future-Proof Against Policy Shifts: While social procurement isn’t mandated now, legislative changes are inevitable. Councils that act early will be ahead of the curve.

Despite the absence of a formal procurement policy mandate, local councils can seamlessly integrate social procurement into their frameworks through practical and achievable steps.

The Cost of Inaction

Ignoring social procurement isn’t just a missed opportunity—it’s a liability. Councils that fail to modernise their procurement policy may struggle with:

• Economic Leakage: Without a focus on local and social enterprises, taxpayer money flows out of the community rather than reinvesting locally.
• Reputational Risk: Councils that lag behind in ethical procurement may face scrutiny from residents, media, and advocacy groups.
• Missed Funding Opportunities: State and federal funding programs increasingly prioritise councils that demonstrate social impact in their local government procurement strategies.

Taking Action: How Councils Can Embed Social Procurement

The path to embedding social procurement doesn’t have to be complex. By taking decisive steps now, local councils can lead the way in ethical and impactful spending.

1. Commit to a Social Procurement Policy
   Formalising a strategy ensures alignment with broader council goals. A policy should define objectives, supplier preferences (e.g., social enterprises, local businesses, Indigenous suppliers), and impact measurement frameworks.
2. Integrate Social Impact into Contracts
   Weighted evaluation criteria should prioritise suppliers that deliver measurable social benefits. Contracts should require accountability in delivering these outcomes.
3. Build and Support a Diverse Supplier Network
   Engage with local businesses, social enterprises, and impact-driven organisations to expand procurement options. Supplier development programs can help smaller enterprises meet council requirements.
4. Track, Measure, and Communicate Impact
   Councils should implement robust reporting mechanisms to quantify the success of their social procurement initiatives and showcase tangible benefits to the community.

Be the Council That Leads Change

Social procurement isn’t just about compliance—it’s about making a real difference.

Local councils that proactively adopt social procurement will position themselves as leaders in responsible governance, community development, and sustainability. This forward-thinking approach strengthens public trust, attracts potential funding and partnership opportunities, and sets a precedent for state and federal local government procurement policies.

While a mandate may not yet exist, the opportunity for councils to lead by example is clear. By embedding social procurement now, local councils can future-proof their procurement policy, maximise community impact, and establish themselves as champions of ethical and impactful spending.

The question isn’t whether councils should adopt social procurement—it’s whether they can afford not to.