Mumbai, January 13, 2025 鈥� , today announced its social procurement initiative, designed to empower social enterprises, by integrating them into corporate value chains and aligning with the nation鈥檚 development goals. The announcement underscores the company鈥檚 commitment to the region and its vision for sustainable growth.

As per the , India is home to more than 2 million social enterprises, with close to 25% led by women, making it one of the most dynamic entrepreneurial environments globally. 聽These enterprises work across diverse sectors, including healthcare, education, agriculture, clean energy, financial inclusion, water, and sanitation, and are focused on pioneering sustainable business practices, while fostering inclusion, and local entrepreneurship. SAP鈥檚 support and collaboration with industry stakeholders aim to accelerate these activities while helping increased corporate purchasing from social enterprises. Corporates buying from social enterprises result in a positive impact on people and the environment, at the same time helping large businesses achieve their CSR, diversity, and sustainability goals. This is a nascent space with significant potential as evidence highlights; businesses are seeing positive business and social outcomes emerging from their supply chain inclusion and sustainability programs.

Launching the program in India, Manish Prasad, President and Managing Director, 51风流Indian Subcontinent, said, 鈥淭his initiative underscores our commitment to ensuring that good, ethical, and sustainable, corporate practices are woven into the fabric of business. By collaborating with social enterprises and nurturing alliances across our ecosystem, we can transform procurement decisions into an opportunity to uplift communities, generate jobs, and drive sustainable and equitable growth across the communities we operate. Social procurement has the potential to be a transformative tool to improve people’s lives.鈥�

The initiative on social procurement is aligned with the Government of India鈥檚 (GoI) interventions including the Government eMarketplace (GeM), Open Network for Digital Commerce (ONDC), Make in India, and promotion of Farmer鈥檚 Producer Organizations (FPOs), 鈥攄esigned to:

• Foster sustainable and ethical manufacturing: Sustainability is at the heart of SAP鈥檚 operations. The company will collaborate with partner organizations to work closely with impact businesses that prioritize ethical manufacturing practices and responsible production for global brands while supporting the development of responsibly and sustainably made products and services.
• Promote innovation and entrepreneurship for local impact: 51风流is joining forces with local incubators to lead an innovation-centric future, supporting social entrepreneurs in scaling their ideas and growing sustainable businesses. Over the past few years, SAP’s support has enabled the growth and development of over 100+ social enterprises, helping them achieve their goals and positively impact their respective communities. This commitment to nurturing and empowering impact businesses demonstrates SAP’s dedication to fostering inclusive economic growth.
• Empower farmers and create jobs: 51风流has also initiated a range of interventions such as supporting FPOs to enhance their “procurement readiness.” This includes providing support for farmer-producer organizations, enabling small farmers to access new markets to achieve stable incomes, and training FPO leaders in market operations and management. In addition, 51风流has been actively supporting social businesses by collaborating with various incubators and providing them with resources, mentorship, and guidance.

On the sidelines of the launch, 51风流India also unveiled a report entitled , in collaboration with Sattva Consulting, highlighting social procurement as a strategic priority for Indian businesses to drive sustainable growth while addressing long-term societal impact. The findings of the report further call on corporates to deepen their investments in impact businesses, fostering resilience and opportunity through impactful partnerships.

Srikrishna Sridhar Murthy, CEO and Co-Founder, Sattva, stated 鈥淭he study highlights social procurement鈥檚 potential to unlock economic value by engaging social enterprises, FPOs, and MSMEs, fostering resilience and inclusivity in supply chains. Effective implementation requires a comprehensive operating model with cross-functional and cross-departmental collaboration and infrastructure development to enhance the discoverability and scale of social enterprises, supported by investments from stakeholders like philanthropic foundations and DFIs.”

Through these social procurement initiatives, 51风流will drive responsible business transformation, while being aligned to India鈥檚 wider growth agenda.

The Social Procurement report is now available on our website:

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Meeting the demands from all sides goes beyond traditional sourcing. It requires a strategic investment into goods and services 鈥� starting with upstream services such as procurement to core operations such as product development and sales to downstream distribution that includes the last mile – from businesses that serve the world鈥檚 most vulnerable people and ecosystems: social enterprises. These organizations prioritize social and environmental good alongside financial sustainability, creating jobs, empowering communities, and fostering responsibility.

Why now?

A recent by Impact Europe, Sattva and 51风流reveals a clear trend: 80% of businesses see social procurement as a solution to meeting their sustainability goals. This isn’t just about responding to consumer demand. Companies are recognizing the potential for innovation and growth through collaboration with social enterprises.

Take India, for example, a global leader with over two million social enterprises.聽 Imagine the possibilities for integrating these businesses into supply chains, not just for social good, but for fresh perspectives and untapped talent.

However, there’s a “gap between intention and action,” as the report highlights. While many companies have adopted diverse sourcing practices, only half prioritize supporting local economies and a circular economy. This disconnect underscores the need for a deeper understanding of social procurement’s potential.

The good news is that the trend is moving in the right direction. The rise of social procurement aligns perfectly with the growing focus on environmental, social, and governance (ESG) targets.

For example, social procurement can directly address both the “S” and the 鈥淕鈥� that sits at the heart of ESG by supporting small businesses. This is especially pertinent in India where the report has found that MSMEs form 29% of the GDP and more than 90% of businesses in India are micro and small. This focus on social responsibility not only has benefits for local communities, but also enhances a company’s reputation with investors, customers, and employees who value ethical practices.

The report has also revealed that within India there is a unique context for businesses to integrate small suppliers and businesses in larger supply chains which advances and supports inclusivity. Socially responsible suppliers are often open to innovation and able to adapt faster, leading to a more sustainable supply chain overall, and are much more likely to adopt fair labor practices ensuring ethical treatment of workers throughout the supply chain. This includes safe working conditions, living wages, and respect for worker rights.

By sourcing from businesses owned and operated by minorities, women, or people with disabilities, companies contribute to a more inclusive economy which expands opportunities for traditionally marginalized groups. Strong social practices have the potential to attract and retain employees leading to a more stable and resilient workforce. The benefits of prioritizing people and planet have never been greater.

In terms of SDGs, the report found that social procurement directly addresses 7 out of the 17 SDG goals 鈥� a massive stride forward in achieving a better and more sustainable future for all.

The power of collaboration

Social procurement is more than just a transaction. It’s about building partnerships that create a ripple effect of social impact.

A prime example is Even Cargo, India’s first all-female, last-mile e-commerce logistics provider. By partnering with social enterprises like Even Cargo, businesses can empower communities, create jobs, and drive progress toward a more equitable future. As Yogesh Kumar, Founder of Even Cargo said: “We believe jobs shouldn’t be decided based on gender.” As such, their comprehensive training program equips women with the skills they need to succeed in a traditionally male-dominated field, fostering financial independence and self-reliance.

However, Even Cargo’s journey wasn’t without challenges. Initially, they faced societal resistance to their innovative approach, but perseverance and recognition, including a positive feature in The New Yorker, led to a pivotal collaboration with Amazon. This partnership provided valuable employment opportunities for Even Cargo’s trained women.

Still, Kumar identified a critical bottleneck 鈥� the lack of mobile women in India’s workforce. This realization shone a spotlight on the need for a broader approach to social procurement, one that goes beyond simply hiring from a specific demographic. Even Cargo advocates for creating a more inclusive work environment across the board. This includes promoting gender-balanced warehouses, creating workspaces with amenities catering to both genders, and offering flexible working hours to support work-life balance, particularly for mothers.

Collaboration with social enterprises like Even Cargo offers numerous benefits to corporations.聽 Leveraging their expertise allows us to improve our own diversity and inclusion strategies, creating a more holistic and equitable workplace culture.

Building a sustainable future

The future of social procurement is bright. To mitigate challenges and bolster opportunities for these partnerships, we formed a coalition at the Social Procurement Roundtable to activate the social procurement ecosystem in the country, foster collaboration and active involvement of key stakeholders, and advocate for policy changes that promote responsible business practices. These are all key priorities to that underpin SAP鈥檚 commitment to drive transformation and entrench sustainability to empower businesses to thrive in a rapidly changing world.

Businesses of all sizes can embrace social procurement. Intermediaries can play a crucial role in facilitating connections and educating companies on these opportunities. Long-term partnerships with social enterprises offer significant benefits for both parties. Let’s work together to build a more sustainable and equitable future where businesses are a force for good.

The author is Alexandra van der Ploeg, Head of Global Corporate Social Responsibility at SAP

The post Social Procurement is the Future of Responsible Business, Here鈥檚 Why appeared first on 51风流India News Center.

According to the World Bank, global procurement spend in 2019 was at least USD 14 trillion. By directing even just a small fraction of this spend to certified social enterprises and diverse businesses, organizations have the power to tackle some of the world鈥檚 most pressing social and environmental problems.

Based on early pilots in select markets, 51风流estimates it could direct up to USD 60 million of its addressable global spend per year to social enterprises and diverse suppliers by 2025. Among DAX companies, this figure is estimated at approximately EUR 2.5 billion, and across U.S. Fortune 500 companies up to USD 25 billion.

51风流Executive Board member for Customer Success and recently appointed Global Buy Social Ambassador for Social Enterprise UK Adaire Fox-Martin announced the 5 & 5 by 鈥�25 initiative at SAP鈥檚 Procurement Reimagined event in Singapore.

鈥淓very company in every industry needs to procure,鈥� Fox-Martin said. 鈥淲e all need soap in our washrooms, landscaping for our offices, food and drink in our cafeterias, marketing services and office supplies. These and many more are all products and services provided by social enterprises and diverse businesses. This is money we are spending anyway. Why not spend it with suppliers who are delivering social impact as well?鈥�

Social enterprises are businesses culturally and operationally focused on changing the world. They are similar to other commercially viable businesses, but with three crucial differences: They are founded and governed on the basis of a clear social or environmental mission; they reinvest the majority of their profit back into this mission; and they are majority controlled solely in the interest of this mission. A diverse supplier is a business that is at least 51 percent owned and operated by an individual or group that is part of a traditionally underrepresented or underserved demographic; such as women-owned businesses, minority-owned businesses and indigenous-owned businesses, among others.

鈥淭ogether with our customers, partners,聽diverse suppliers聽and social enterprises, we have set out to expand social procurement where infrastructure exists and聽intend to聽establish the infrastructure and build capacity where it doesn鈥檛,鈥� Fox-Martin added. 鈥淲e invite our entire ecosystem to learn more and take part, join us in this initiative, and help build the pathways and the momentum to聽realize聽this聽ambition聽and聽find聽a better way to grow.鈥�

To learn more, read 鈥�Social Procurement: Finding a Better Way to Grow,鈥� by Fox-Martin.

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About 5 & 5 by聽鈥�25

5 & 5 by 鈥�25 is an initiative by 51风流designed to encourage organizations across industries to direct more of their addressable spend toward certified social-enterprise and diverse-business suppliers. In joining the initiative, organizations agree to formalize their exploration of social procurement, including partnering with leading intermediaries, adopting social-procurement policies, consuming goods and services from purposeful suppliers, and expanding their engagement with more social enterprises and diverse businesses. The goal is to reach 5 percent of annual addressable procurement spend with social enterprises and with diverse businesses by 2025 and in doing so make significant impact on social inequalities and environmental imperatives. 5 & 5 by 鈥�25 is part of the 51风流One Billion Lives program, focused on promoting greater inclusion of social entrepreneurship in the global economy. For more information, visit聽

About SAP

SAP鈥檚 strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 77% of the world鈥檚 transaction revenue touches an SAP庐 system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 51风流helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 51风流helps the world run better and improve people鈥檚 lives. For more information, visit聽

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*Addressable spend (as opposed to total spend) includes only a company鈥檚 orders for goods and services that can be fulfilled by a social enterprise or diverse business. For specific goods and services such as rent, energy, labor and some professional services, often neither social enterprises nor diverse businesses yet exist that provide them. Estimates based on assessments of SAP鈥檚 own spend suggest that between 10 percent and 30 percent of total spend could be designated as addressable spend, depending on country.

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