Beyond Volunteering: Making Social Procurement a Priority in ESG
This article is part of our ‘ESG Insights: Driving Impact through Inclusion’ series, which was originally published on our LinkedIn on August 26, 2025. To get immediate access to future articles in our exclusive content on ESG and inclusion, be sure to Follow us on LinkedIn.
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Introduction
As ESG (Environmental, Social, and Governance) strategies become mainstream in global business, many corporations have embraced the “S” — social — pillar by encouraging volunteering, charity drives, or community beautification events. These efforts are positive and visible, but often limited in scope and sustainability. For companies seeking authentic, long-term, and measurable social impact, it is time to look “beyond volunteering.”
Social procurement, especially from enterprises led by persons with disabilities (PWD), offers a strategic way forward. This article explores why social procurement should move from an afterthought to a core ESG strategy, dispels persistent myths, and provides actionable steps and policy examples for corporations ready to lead real change.
The Comfort of “Easier” Social Initiatives
Corporate social responsibility (CSR) often defaults to activities that are easy to organise, publicise, and celebrate: workshops, tree plantings, or single-day volunteering. These initiatives:
Offer short-term employee engagement
Create media-friendly photo opportunities.
Require little structural change in supply chains or business models.
However, while such projects can be morale-boosting, their impact tends to be temporary and rarely challenges the systems that perpetuate exclusion or marginalisation. As a result, many companies find their ESG reports filled with activity but lacking evidence of real, sustainable outcomes.
Why do corporations lean toward easy wins?
Perceived low risk and complexity
Legacy expectations of CSR
Immediate, tangible results for marketing or annual reports
But as ESG matures, so do expectations from investors, regulators, employees, and customers. There is increasing scrutiny on whether social initiatives deliver lasting change, and an urgent call for companies to rethink what the real “S” in ESG entails.
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Social Procurement: A Powerful, Sustainable Approach
Definition
Social procurement is the intentional use of an organisation’s purchasing power to generate social value, especially by including enterprises that are PWD-owned or employ marginalised groups. Unlike volunteering, procurement embeds social inclusion into everyday operations — making impact habitual, not occasional.
“Procuring from a social benefit supplier rather than an ordinary (mainstream) supplier introduces a significant added social value that goes beyond the traditional focus on cost, quality, and delivery. This added social value stems from the intentional social, economic, and environmental impacts that social benefit suppliers are designed to deliver as part of their core mission.”
Why is social procurement more impactful and sustainable?
Economic Inclusion: Delivers direct opportunities for marginalised suppliers, creating jobs and supporting financial independence for PWD and underrepresented communities.
Systemic Change: Procurement fosters long-term capacity-building and economic participation rather than one-off gestures.
Scalability: As businesses grow, so does the reach and impact of their supply chains, amplifying social value.
Reputation & Risk Management: Embedding social value in procurement supports compliance, resilience, and future-proofs brands as ESG expectations rise globally.
Evidence of Success
Governments worldwide increasingly integrate social goals into procurement. Australia’s Social Procurement Framework and the UK Social Value Act encourage spending with enterprises that demonstrably improve social and economic outcomes. Companies that consciously include disability-led suppliers report enhanced innovation, improved accessibility of products/services, and higher trust from consumers and talent.
“Australia’s social enterprise ecosystem is vibrant and diverse, with an estimated 12,000 social enterprises contributing $21.3 billion to the economy and employing 206,000 people. The sector’s growth reflects its deep roots in Australian history, particularly in First Nations communities, and its alignment with modern social and economic challenges.”
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The Extra Value of PWD-Led Businesses
Corporations sometimes select “safe” or “familiar” social enterprises for procurement, missing the unique advantages that PWD-led businesses provide. Why choose PWD-led social enterprises?
Lived expertise results in products and services that are inherently accessible and often more innovative.
Authentic representation: Employment and leadership within these enterprises directly address the disability employment gap.
Community empowerment: Procurement drives a ripple effect, uplifting entire communities by creating inclusive economies.
Disability-led social enterprises not only advocate for inclusion — they embody it, making them potent partners for companies seeking to demonstrate real ESG progress.
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Dispelling Myths: Cost, Quality, and Complexity
Despite clear benefits, several misconceptions persist around social procurement, particularly with PWD-led businesses. Let’s tackle the most common ones:
Myth 1: Social procurement costs more and is a “charity spend.”
Fact: Social enterprises, especially those led by PWD, operate competitively. Many deliver higher-quality products/services and superior customer support, as their business models depend on impact and client satisfaction — not donations. Multiple studies have also shown that diverse suppliers bring greater innovation and process efficiencies, turning “cost” into long-term value.
“According to a 2023 report from the McKinsey & Company, organisations with diverse leadership and suppliers are 35% more likely to have financial returns above their respective national industry medians.”
Myth 2: The quality isn’t up to standard.
Fact: Social enterprises must work harder to prove themselves in the market, often exceeding industry benchmarks to remain competitive. Many have obtained relevant certifications, and leading disability-led enterprises now service large corporate and government contracts.
Myth 3: It is hard to find and contract with PWD-led social enterprises.
Fact: Numerous directories (such as Social Traders Australia, Buy Social Canada, and the UK’s Social Enterprise Directory) make sourcing easier than ever. Some regions have “matchmaking” programs and certification schemes, while global supply chain consultancies can help corporations integrate social value suppliers seamlessly. Procurement guidelines for social value are available through the World Economic Forum and public-sector toolkits.
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Actionable Solutions: Making Social Procurement Mainstream
How can companies move from volunteering to impactful procurement with PWD-led businesses? Here are practical steps:
1. Map Opportunities in Your Supply Chain
Conduct an assessment to identify goods or services your business regularly purchases that could be sourced from disability-led social enterprises. Opportunities often exist in design, catering, cleaning, print, digital media, and logistics.
2. Set Ambitious – but Realistic – Social Procurement Targets
Just as with environmental goals, set measurable targets for integrating social value suppliers (e.g., “10% of annual spend will go to social enterprises, with at least half to disability-led organisations by 2027”).
3. Develop Inclusive Procurement Policies and Guidelines
Update RFP processes to encourage or require bidders to demonstrate social value and inclusion. Provide procurement teams with training and tools for supplier engagement and evaluation.
“A request for proposal (RFP) is a document used by companies to announce a project. The proposal generally describes the project and invites qualified contractors to bid on it. Most organizations prefer to launch their projects using RFPs, and many governments always use them.”
4. Leverage Certification and Partnerships
Work with organisations that certify and support social enterprises (such as Social Enterprise UK, Social Traders, or local PWD enterprise networks) to expand your vendor pool and ensure credibility.
5. Build Capacity, Not Dependency
Offer supplier development programs, joint ventures, or preferred payment terms to help social enterprises scale. Engage them as strategic partners rather than as one-off vendors.
6. Share and Celebrate Success
Report impact stories internally and externally. Share both business and social outcomes, and highlight the role of PWD-led partners to inspire others and drive sector-wide change.
“Founded in 2015, Impactpool supports nearly a million members worldwide by providing tools for career growth and connecting organisations with top talent. Your Impact Story is what you do to make the world better. Share yours to get invaluable exposure to the whole sector and inspire others committed to social impact.”
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Policy Examples and Global Practices
Australia’s Social Procurement Framework: Requires government projects to include social value outcomes, with a focus on disability employment and Indigenous business.
The UK Social Value Act: Mandates that social value is factored into public procurement, encouraging contracts with social enterprises, including those led by or employing persons with disabilities.
Canada’s Buy Social Corporate Challenge: More than $250 million in contracts for social enterprises have been pledged by leading companies, with targeted support for accessibility and diversity.
UN Sustainable Procurement Frameworks: Encourage ESG-aligned practices and prioritise businesses demonstrating measurable social impact globally.
“SAP aims to direct 5% of addressable procurement spend to social enterprises and diverse suppliers by 2025. Chandos Construction aims that by 2025, at least 5% of our purchasing will be spent with social impact organisations.”
In each case, governments and major corporations are not just asking “what did we do to help?” but “how is our core business driving sustainable, inclusive economies?”
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Conclusion: Leading with Purpose — and Impact
The next era of ESG will be shaped by companies that look past quick wins and invest in deeper, systemic change. Social procurement from disability-led and other social enterprises is the way forward:
It embeds inclusion into business as usual.
It delivers measurable, sustainable, and authentic impact.
It demonstrates values in action, building trust and long-term business value.
By making social procurement a core ESG strategy, your company can be a catalyst for change, shaping a world where inclusion and innovation go hand in hand. Move beyond volunteering—make your purchasing power work for the greater good.
Ready to get started? Connect with local social enterprise directories, update your sourcing policies, and join the global movement redefining the “S” in ESG for real and lasting impact.
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Design Studio MZ+MM makes Social Procurement sensible.
Design Studio MZ+MM is a social enterprise (SEE Mark No. SEE 0114) based in Hong Kong, providing various types of graphic design services. Currently, the team is composed of hearing-impaired and hearing designers who practice disability inclusion, which is the primary reason for promoting "diversity, equity and inclusion" in corporate organizations. We support the United Nations Sustainable Development Goals SDGs: 10 “Reduced Inequalities” and 17 “Promote Partnerships for the Goals”.
In addition to providing job opportunities for diverse talents, this social enterprise also helps corporate clients implement advanced governance concepts. We also firmly believe that Design Studio MZ+MM is still the only social procurement solution practitioner and provider in Hong Kong, providing professional design services in the true sense of social procurement and adding multiple levels of added social value. To learn more about the vision and mission of this social enterprise, please click this link to jump to the Social Impact page.
