SAP India: Driving Social Change through Procurement

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SAP India has launched a social procurement initiative (Credit: SAP)
SAP India has launched a social procurement initiative, seeking to encourage corporate buyers to source from these social enterprises

SAP India has rolled out an innovative social procurement initiative designed to bolster social enterprises by integrating them efficiently into the corporate supply chains.

The effort is a testament to SAP's commitment to sustainable development and is also in line with the developmental priorities of India.

This initiative is particularly timely, given that the World Economic Forum has noted India as having over two million social enterprises, with nearly a quarter being led by women.

These enterprises are spread across several key sectors including healthcare, education, agriculture, clean energy and financial inclusion and are known for their sustainable and inclusive business models that boost local entrepreneurship.

Through this new approach in procurement, SAP is championing the cause of sourcing from these social enterprises.

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This not only helps in achieving economic and environmental impact but also assists big corporations in fulfilling their goals related to Corporate Social Responsibility (CSR), diversity and sustainability.

The concept of social procurement is relatively nascent but teeming with potential as it has shown to yield measurable benefits both socially and business-wise.

Aligning procurement with India's national priorities

The agenda of SAP's initiative works well with several key programmes of the Indian government, namely the Government eMarketplace (GeM), Open Network for Digital Commerce (ONDC), Make in India and initiatives supporting Farmer Producer Organisations (FPOs).

These frameworks are intended to open up opportunities for local enterprises and ensure procurement activities bolster wider developmental objectives.

SAP's focus revolves around promoting manufacturing that is both sustainable and ethical.

By aligning itself with organisations that adhere to responsible production practices, SAP aims to foster the production of goods that are environmentally friendly and socially responsible.

This alignment ultimately enables global brands to source products and services that not only meet high ethical standards but also satisfy the increasing consumer demand for sustainable options.

Social entrepreneurs, recognised as crucial agents of change, can receive significant backing from SAP.

The tech giant collaborates with local incubators to help these enterprises scale their innovative ideas into sustainable business ventures.

Over the years, SAP’s endeavour has supported more than a hundred organisations, aiding them in expanding their operations and making substantial contributions to their communities.

Extending support also to the agricultural sector, SAP plays an essential role in empowering small scale farmers by enhancing their procurement readiness through FPOs.

The initiative aids these farmer groups in accessing broader markets, which translates to fair and stable incomes.

Furthermore, SAP provides mentorship and resources to ensure their products are market-ready, thereby creating employment opportunities and strengthening the fabric of India's agricultural economy.

“This initiative underscores our commitment to ensuring that good, ethical and sustainable, corporate practices are woven into the fabric of business," comments Manish Prasad, President and Managing Director for the SAP Indian Subcontinent. 

Manish Prasad, President and Managing Director for the SAP Indian Subcontinent

"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.”

Transforming business through purpose

As part of this initiative, SAP India along with Sattva Consulting has released a report titled ‘Social Procurement: Paving the Way for Business Resilience and Sustainability’.

This report underscores the significance of social procurement as a strategic priority, showcasing its ability to deliver profound societal and economic benefits.

"The study highlights social procurement’s potential to unlock economic value by engaging social enterprises, FPOs and MSMEs, fostering resilience and inclusivity in supply chains," adds Srikrishna Sridhar Murthy, CEO and Co-Founder of Sattva.

Srikrishna Sridhar Murthy, CEO and Co-Founder of Sattva

"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.”


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