How social enterprise sourcing can contribute to ESG progress
Social enterprise engagements may require more flexibility in pursuing ESG objectives
With global procurement spending estimated at US$13 trillion, it is evident that this model has the potential to transform businesses in the near future. However, while social enterprises can be effective partners in achieving corporate ESG objectives, companies themselves must first overcome some structural barriers that come with traditional businesses.
For example, the majority of respondents from social enterprises say payment and delivery terms are common challenges in doing business with businesses.
Increasing the flexibility of corporate operations will not only solve this problem, but will also help accelerate progress towards tangible ESG measures. Some companies have also demonstrated creative approaches to addressing barriers within their partnerships with social enterprises, such as introducing upfront payments, supporting capacity building accelerators and sharing internal expertise.
More importantly, flexible social enterprises are flexibilities that modern, agile businesses working in a hyperconnected world have to do anyway, and that already exist across industries.
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