SYDNEY, Australia, March 25, 2025 /PRNewswire/ — Both businesses and governmental entities in Australia have significantly increased their expenditures with verified social enterprises. The latest report from Social Traders reveals that over twenty organizations invested more than $1 million collectively with these certified social enterprises during the previous fiscal year.

Since 2018, Social Traders has monitored the progress of social procurement by documenting the spending habits of both corporate and governmental entities with verified social enterprises. The amount allocated for social procurement increases annually, having reached an impressive total expenditure of $1.1 billion with social enterprises over the past seven years. This aggregated investment has generated:

• Over 10,000 job opportunities and more than 918,000 training hours provided for individuals who would typically be excluded from employment.
• $88.1 million provided for affordable and accessible community services
• 56,500 tonnes of waste redirected away from landfills
• $13.1 million contributed to charitable organizations

Social enterprises function much like regular businesses, yet their primary aim is to address social and environmental issues. In Australia, there are more than 12,000 such enterprises, which collectively contribute approximately $21 billion annually to the nation’s economy.

Social procurement involves businesses and governments opting to purchase from social enterprises, leveraging their buying influence to create additional social benefits alongside the acquisition of products and services.

“The elegance of social procurement lies in the fact that it’s merely a company conducting its usual operations – purchasing products and services, yet opting for alternative vendors,” Ms Anderson explained.

When you incorporate social enterprises into a supply chain, a company receives products and services of equal quality while simultaneously generating positive social and environmental impact within the same transaction. Transitioning to socially responsible purchasing helps build a fairer, more equitable, and sustainable world.

ASX-listed infrastructure service company Downer has been crowned the FY24 Big Spender in social procurement after investing $12.5 million with social enterprises in the previous fiscal year.

It led among more than 20 organizations that invested over $1 million in certified social enterprises, which includes entities like ANZ, Westpac, Australia Post, Charter Hall, John Holland Group, Lendlease, Mirvac, and Visy Industries.

“As a major entity functioning throughout Australia and New Zealand, we recognize the substantial influence our purchasing strategies exert on our communities,” stated Fraser Stowers, Group General Manager of Procurement and Property at Downer.

The impact report highlights an increasing recognition of social enterprises across both business sectors and consumer bases. The National Online Directory for Certified Social Enterprises, known as Social Enterprise Finder, saw approximately 18,160 monthly visits on average during the fiscal year 2024.

“In spite of current business uncertainties and the rising anti-DEI sentiments, we’re observing that our business members continue to remain committed to their social and sustainability initiatives,” stated Ms Anderson.

Rather than focusing on adherence, aim for a competitive edge. Many companies understand that pledging to act ethically and promote inclusivity can foster staff and customer loyalty, thereby supporting business expansion—especially during unstable periods.

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