Want to make a positive impact? Maybe change your supplier?

SustainabilityArticleSeptember 1, 2023

Poverty, inequality, climate change. In the face of challenges like these, can individuals really make a difference? Yes, in the way they choose to spend their money. And the impact can be even greater for companies and their procurement budgets.

By Vincent Landon

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Wander into a supermarket and you’ve doubtless seen the Fairtrade label indicating better prices, decent working conditions and a fairer deal for farmers and workers in developing countries. Producers and businesses have met a rigorous set of social, economic and environmental standards. And by choosing Fairtrade, individuals can create change through their everyday actions.

Social enterprises take consumer power to the next level. They are businesses with a clear and primary social or environmental mission. They may also provide employment opportunities for those most marginalized from the workforce. How they operate, who they employ, how they use their profits and where they work is transforming lives and communities around the world.

In the UK alone, there are 100,000 social enterprises that contribute GBP 60 billion to the economy, employ 2 million individuals and importantly make a positive difference to people and planet.

Take WildHearts Group, an office supplies, print and talent development supplier, which uses all its profits to deliver social and environmental projects. It provides free training and education for disadvantaged school children and marginalized groups in the UK. It also empowers women in developing countries through micro-loans and access to education and health programs. The main picture shows some of the group’s microfinance clients in Ghana. Founder and CEO Mick Jackson says WildHearts has transformed more than 2 million lives.

Or what about IT consulting business Auticon, all of whose consultants are on the autism spectrum. In the UK, for instance, only about 29 percent of autistic adults are estimated to be in full-time employment. By creating favorable work environments and offering support mechanisms, Auticon provides its clients with a means to tap into the talents of autistic people while offering its team rewarding long-term careers.

Auticon currently employs more than 150 autistic professionals across the UK, Germany, France, Switzerland and the U.S.

Meanwhile, at Change Please coffee shops, 100 percent of profits goes towards giving people who are homeless, a living wage job, housing, training and new opportunities.

By choosing social enterprises to provide the products and services that they need to run their business, companies can use their purchasing power to exert leverage and influence and, ultimately, make a difference.

Zurich Insurance Group (‘Zurich’) spends about USD 2.5 billion globally a year on products and services such as IT services, office furniture, toiletry products and stationery. Sustainability considerations play a key role in sourcing and procurement decisions and Zurich aims to work with suppliers who:

  • Generate a positive social impact.
  • Minimize the environmental footprint of the goods and services provided.
  • Ensure the highest ethical and professional standards.

“We want to work with organizations that are helping to make the world a better place,” says Philip Soderberg, Global Head of Procurement and Vendor Management.

Zurich now integrates social enterprises in its supply chain and is constantly looking for more to become regular suppliers. For example, Zurich’s spending in the UK with WildHearts Group has impacted 7,500 lives around the world through programs addressing gender inequality and social mobility. Meanwhile, eight consultants have found employment thanks to the partnership with Auticon.

In Barcelona, the staff canteen is operated by Rubricatus Foundation, a social enterprise that employs people with disabilities. The foundation’s practices also align with Zurich’s sustainability standards, such as reducing food waste, offering seasonal and local products, and using kitchenware materials that respect the environment.

Another supplier example is in Ireland with GiveMeTap, who use a portion of the profits generated by selling their water bottles to fund water projects in Africa.

Social enterprises including Change Please, Corps Security, Tarem Cleaning Services and Encore Environment largely manage Zurich’s recently opened Swindon office in the UK via CBRE property management services.

Zurich has also selected a sustainable supplier for its new range of merchandise. It has teamed up with global gifting and sustainable merchandise consultancy Mace, part of the international community of certified B Corporations, recognized for its high social and environmental performance.

Buying less, preventing waste and ensuring that items are sourced ethically and made of sustainable materials. These are some of the key criteria that influence our merchandise guidelines.

Last but not least, we are working with Social Fabric in Zürich to recycle the massive hoardings promoting the Amazônia photo exhibition, which have been prominently displayed in the heart of the city. The hoardings will be made into more than 500 tote bags.

Recycling helps protect the environment but there’s more to this initiative. Social Fabric employs refugees who may otherwise struggle to find work.

Zurich’s work with social enterprises has earned the highest recognition – platinum status – from the Catalyst Business Commitment, which assesses how companies work with businesses that help benefit people and planet.

Social enterprises contribute to reducing inequality, creating jobs, improving social justice, building a more inclusive economy and to environmental sustainability. Buying from them empowers communities and supports the transition to a low carbon and circular economy.

And, it goes without saying, they provide those products and services with no compromise on quality or value for money.

If you are not already using social enterprises, what are you waiting for?


Photo credits: WildHearts Group