On January 10, 2024, over 40 corporate procurement, supply chain, and sustainability leaders, along with social enterprises and ecosystem enablers, convened to explore the growing potential of social procurement in building sustainable and inclusive supply chains. The event provided a platform to discuss how procurement practices, when strategically aligned with business and social objectives, can drive inclusive growth, support marginalised communities, and foster sustainable ecosystems.
SAP’s approach to Social Procurement and scaling Social Enterprises
The event commenced with a welcome address by Sagarika Bose, Head of CSR at SAP India, who highlighted SAP’s commitment to empowering social enterprises over the past 15 years. This dedication has been realised through a diverse range of initiatives, including ecosystem-building efforts, incubation programs, and pro bono consulting support. SAP has also leveraged research as a tool for driving change, as demonstrated through its recent collaborations with Sattva and CMS on various impactful research initiatives. A cornerstone of SAP’s efforts is the ‘India Social Procurement Coalition,’ a collaborative initiative uniting stakeholders such as ANDE, CMS, Sattva Consulting, Praxis Global Alliance, and Access Development Services, to foster collaborative conversations on innovation and inclusivity in procurement practices.
Unlocking Business and Impact Potential through Social Procurement
Manish Prasad, President & Managing Director of SAP Indian Subcontinent, emphasised the pivotal role of collaboration in advancing social procurement, stating, “Mile sur mera tumhara, to sur bane hamara”—a call for unity and shared purpose.
In a fireside chat with Srikrishna Sridhar Murthy, Co-founder and CEO of Sattva, the discussion explored the evolving role of MSMEs in driving social procurement. The conversation highlighted that despite social procurement’s immense potential—currently accounting for only 2% of the $100 trillion global GDP—it remains an underutilised strategy. Scaling social procurement requires dismantling structural barriers, particularly those faced by micro, small, and medium enterprises.
The chat underscored how social procurement generates multifaceted benefits, from creating employment opportunities to reducing carbon footprints, making it a holistic approach that aligns business growth with sustainable development. Real-world examples demonstrated the impact of innovative platforms like the GeM Sahayak 2.0 initiative, which reduces barriers for grassroots enterprises by leveraging technology. The discussion also explored the importance of integrating a gender lens into social procurement practices. A case study from Jharkhand showcased how women-led enterprises are thriving when provided with capacity-building support tailored to local cultural contexts. Financial inclusion emerged as another critical theme, emphasising the need for innovative credit mechanisms to empower MSMEs in aligning their operations with sustainability goals while ensuring economic resilience.
Building Inclusive Growth Through Socially Responsible Public Procurement in India
The keynote speech led by Satya N. Meena, CFO of Government e-Marketplace (GeM), highlighted how this platform is revolutionising public procurement in India. With a transparent and efficient digital framework, GeM has become a game-changer, enabling processes such as reverse auctions that have saved the government up to 33% on procurement costs.
GeM’s inclusivity initiatives, including the “Womaniya on GeM” program and targeted support for SC/ST entrepreneurs, are creating unprecedented opportunities for local producers, startups, and marginalised communities. With a staggering ₹3.51 trillion in Gross Merchandise Value (GMV) and over 4.51 million orders processed in 2023 alone, he highlighted how GeM has proven that inclusivity and efficiency can go hand in hand.
Launch of Social Procurement Report
At the event, we launched a report that examines the experiences of EU-based companies with an Indian footprint and the impact of regulatory changes on the momentum for social procurement. The report outlines key trends, best practices, and actionable insights in social procurement across various industries, along with case studies showcasing social procurement in action. Aarti Mohan, Co-Founder and Partner at Sattva Consulting, provided an overview of the report and highlighted its key findings. Read the full report here: https://www.sattva.co.in/publication/social-procurement/
De-mystifying Partnerships: The ‘Bottles to Buttons’ initiative
Hari Kumar, Sustainability & Governance Manager at H&M, and Shekar Prabhakar, Co-Founder & CEO of Hasiru Dala Innovations, shared an inspiring account with Aarti Mohan and event participants, highlighting how partnerships can amplify impact within the social procurement landscape. Hari emphasized H&M’s commitment to social causes but noted the unforeseen challenges in working with recycled materials. Developing products like buttons made from recycled plastic required addressing impurities and meeting strict regulatory standards, a process that initially slowed production. However, the collaborative journey demonstrated how innovation and perseverance could align technical norms with sustainability goals.
Shekhar shared how Hasiru Dala’s mission to create economic justice for marginalised waste pickers inspired them to think beyond niche markets. Their collaboration with H&M allowed them to showcase how a financially sustainable, scalable model could make waste-picking a viable livelihood option. Together, they proved that impactful social procurement requires balancing parity in price, quality, and usability with scalability.
Hari and Shekhar underscored the importance of fostering a mindset of collaboration, finding internal champions, and taking bold leaps of faith to scale social procurement.
Social Procurement in Practice: The Corporate View
Ashwani Narang, VP & Business Head – Intelligent Spend and Business Network, SAP, moderated the discussion with key corporate leaders and began by highlighting the increasing vulnerabilities in global supply chains, referencing McKinsey’s research that points to frequent supply chain shocks. He raised a critical question: how much of every ₹100 spent actually benefits women and tribal communities? He noted that only 1.2% of companies are aware of their tier-3 suppliers, underscoring the rising importance of social procurement.
Ram Vaidyanathan, Head of Environmental Sustainability at Godrej Group, shared insights on the company’s decade-long commitment to sustainable supply chains. He emphasised that while India’s supply chain is fragile, the key to long-term success lies in careful adaptation rather than disruptive change. Ankit Todi, Chief Sustainability Officer at Mahindra Group, added that a sector-specific approach is essential, particularly in industries like automotive, where long-term relationships with suppliers require gradual improvements. He stressed the importance of collaboration and local sourcing to build stronger, more resilient supply chains.
Prabhakar L, Executive VP & Head of Social Investments at ITC Ltd., highlighted the importance of long-term thinking and sustainability. He shared how their social forestry initiative, which began with a focus on livelihoods, has evolved to address environmental concerns like GHG reduction. He noted that success is rooted in establishing foundational systems and layering them over time.
Ashwani Narang also pointed to the importance of traceability and accountability in supply chains, especially when it comes to reputational risks like child labour or supplier bankruptcy. Ram Vaidyanathan discussed the need for transparency in setting clear expectations for suppliers, particularly in the agriculture sector. He shared examples of how digital systems have helped Godrej navigate complex issues like rising palm oil prices due to climate change.
Prabhakar L responded by addressing the fear around transparency, stating that while companies may hesitate to report data due to reputational risks, the real challenge is shifting mindsets within organizations and fostering collaboration. He emphasized that meaningful progress can only be achieved when all stakeholders work together. Ankit Todi added that change requires balancing corporate pragmatism with activism, where businesses must focus on both economic outcomes and social causes.
Galvanising Action on Social Procurement: A Roundtable
The roundtable discussion, moderated by Sagarika Bose and Shiv Kumar, Founder of Catalyst Group, centred around key challenges and opportunities in social procurement. The importance of peer accountability among corporates was highlighted, with an emphasis on fostering a competitive ecosystem to drive action. The difficulty of scaling monitoring frameworks across ecosystems, especially for smaller organizations, was also noted. The value of coalitions to unite corporates, academia, and social entrepreneurs was emphasized, underscoring the potential of such collaborations to address issues like partnerships, resource leverage, and policy influence. However, translating multi-stakeholder collaboration into effective operating models remains a challenge.
The conversation also turned to fostering entrepreneurship within marginalised communities, with a focus on supporting vendors from SC/ST backgrounds as the first step. Coalitions were seen as a way to provide corporates with databases to identify these vendors. Challenges such as long timelines, budget constraints, and the complexity of the procurement process were discussed, particularly in the context of initiatives like mini-grid installations. The discussion concluded with a call for gradual vendor development rather than abrupt changes, advocating for transparency in pricing and procurement processes. Key recommendations included supporting social green entrepreneurs and simplifying the vendor onboarding process to make it more efficient.
Conclusion and Call to Action
The discussions at the event made it clear that social procurement is more than just an ethical imperative—it’s a strategic business opportunity. By integrating innovation, inclusivity, and sustainability, organisations can create long-term value for both their stakeholders and communities. As corporates move from experimenting with social procurement to making it a core strategy, they are demonstrating its scalability and alignment with business goals. Social procurement is increasingly seen as a way to drive employment, equality, and environmental sustainability, all of which are essential to sustained business growth.
Technology plays a crucial role in enabling businesses to track and reduce their carbon footprints across the supply chain, while also addressing geopolitical challenges. Looking ahead, the ongoing work of the India Social Procurement Coalition will continue to drive progress in this area. Through collaboration, businesses, governments, and communities can align social and environmental goals to ensure a more inclusive and resilient future. The journey towards a developed India hinges on these collective efforts.
The key challenge remains connecting various stakeholders, tools, and technologies to ensure that the benefits of social procurement reach everyone. Continued awareness-building and education will be necessary to make this vision a reality.
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Sattva has been working with various non-profits and social organisations as well as corporate clients to help them define their social impact goals. Our focus is to solve critical problems and find scalable solutions. We assist organisations in formulating their long-term social impact strategy by strategically aligning with business to provide meaningful solutions to social issues.
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