Socially Responsible Public Procurement Ethical Procurement

1. Socially Responsible Public Procurement Ethical Procurement Christine Storry 25 March 2011

2. Introduction • Buying Social – EC Guidance on SRPP • Ethical Procurement • Fairtrade example

3. “Buying Social” • Employment • Decent Work • Compliance – social/labour rights • Equal opportunities • Accessibility design • Sustainability criteria inc ethical trade + CSR All whilst observing the principles of the Treaty for the European Union (TFEU)

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. Monitoring + Compliance

14. 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.”

15. “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

16. 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

17. 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

18. Procurement Options EFTA’s guidance Variant bids Contract performance clauses 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

19. Fairtrade in Procurement

20. Bristol’s Food Charter #3 – Adopt food procurement practices that service as a model of health, social and environmental responsibility whilst maintaining Bristol’s accreditation as a Fairtrade City. In effect – this provides political commitment at Bristol City Council.

21. The Balance Reputation Collaboration Expectation ‘Austerity’ budget Sustainability Fairtrade

22. 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

23. Contacts Christine Storry – Bristol City Council Tel: 0117 922 4336 Email: christine.storry@bristol.gov.uk