Socially Responsible Public Procurement Ethical Procurement

Christine Storry25 March 2011

Introduction

• Buying Social – EC Guidance on SRPP

• Ethical Procurement• Fairtrade example

“Buying Social”

• Employment• Decent Work• Compliance –

social/labour rights• Equal opportunities• Accessibility design• Sustainability criteria

inc ethical trade + CSRAll whilst observing the principles of the Treaty for the European Union (TFEU)

Benefits of SRPP

• Contribution to enhancing compliance to social development goals

• Stimulation of socially conscious markets• Demonstrating socially responsive

governance• Stimulating integration• Ensuring more effective public expenditure• Further the European social model

Buying Social - Strategy

• Set objectives for SRPP• High-level political commitment and leadership• Risk measurement and prioritisation• Raised awareness of SRPP by key stakeholders• Implementation of strategy• Measurement of effective implementation• Overview of procurement process• Stages of procurement process

Assessing Need

• At preparatory stage• Best stage to identified social

standards required• Allows time to work how and why

social considerations can be included• Once needs assessed, can then

determine the subject matter of the contract

Increasing Opportunities

• Encouraging large organisations to voluntary address supplier diversity

• Publish forward plan of major procurement activities

• ‘Meet the buyer’• Developing business support programmes• Sub-dividing into lots• Set-asides for sheltered workshops

Defining Requirements - Contract

• Need translated into technical specification

• Must relate to the subject matter of the contract

• Not reduce competition, transparent, non-discriminatory

• Performance based / function specs• Use of variants

Supplier Selection

• Exclusion criteria – may have a social context

– eg, failure to pay social contributions

• Technical capacity– eg, if contract requires know-how of a

social consideration

Contract Award Criteria

Social award criteria can be applied if they:

• Are linked to subject matter (derived from needs analysis)

• Do not confer unrestricted freedom of choice• Expressly mentioned in contract notice and tender

documents• Comply with the fundamental principles of EU law

Use of Social Labels

• Can be included in technical spec only IF linked to the subject matter

• Cannot require a specific certification/ label either ethical or eco

• Need to define relevant (to subject-matter) criteria only, but can stipulate which label fulfils criteria, but must allow alternative proof of evidence

• Labour conditions – not included in spec• Production/process methods – if linked to subject

matter of contract

Contract Performance Conditions

Social considerations can be included if they are:

• Linked to performance of contract• Published in the contract notice• Comply with EU law• Allows for supply chain management

Monitoring + Compliance

Ethical Procurement

“Ethical procurement is procurement which ensures that suppliers, and the organisations in their supply chains, are monitored on a regular basis to assess whether workers’ rights and labour conditions conform to the International Labour Organisation core conventions, and taking remedial action to improve ethical working practices, where necessary. Ethical procurement should ensure that there is no disadvantage to those working, or living, on or near a supply (or production) site, and that the price paid for the product reflects a fair and equitable market value. In addition, and where appropriate, the principles of fair trade should be taken into account.”

“Labour is not a Commodity”

• No 29 – Forced Labour• No 87 – Freedom of Association and Protection of

the Right to Organise• No 98 – Right to Organise and Collective Bargaining• No 100 – Equal Remuneration• No 105 – Abolition of Forced Labour• No 111 – Discrimination (Employment and

Occupational)• No 138 – Minimum Age• No 182 – Worst Forms of Child Labour

Relevance

• Workwear and uniforms• IT equipment (hardware)• Construction materials• Compliance with the core conventions

to be included in contract performance conditions

• Non-discriminatory – most countries have signed up to them

• But, to be effective – must be monitored

Barriers - Perceived –v- Actual

Perceived barriers:• EU regulations• Costs more• Difficult to include

in contracts

Actual barriers:• What is it?• Political will• Knowledge +

awareness• Why should we

bother

Procurement Options

• EFTA’s guidance1) Variant bids2) Contract performance clauses3) Include in subject matter of contract

• Still have to list the 12 FT criteria in contract (European Parliament Resolution – 06/07/06)

• Verification – eg FT labels

Fairtrade in Procurement

Bristol’s Food Charter

#3 – Adopt food procurement practicesthat service as a model of health, socialand environmental responsibility whilstmaintaining Bristol’s accreditation as aFairtrade City.

In effect – this provides political commitmentat Bristol City Council.

The Balance

Sustainability

Collaboration

Fairtrade

‘Austerity’ budget

Reputation

Expectation

Useful Links

• http://www.swspn.org.uk/drupal/sites/default/files/EUL14136_SocConsidPubProcu_101210[1].pdf

• http://ww2.defra.gov.uk/• www.fairtradesouthwest.org.uk• http://www.european

-fair-trade-association.org/observatory/index.php/europeanmodelonftpp

• http://www.buyfair.org

Contacts

Christine Storry – Bristol City CouncilTel: 0117 922 4336Email:

christine.storry@bristol.gov.uk