Sunday, May 12, 2013

Can We Ignore Social Sustainability in Procurement?


In one of the posts on this blog, Mr. Vinay Sharma, Director, African Development Bank wrote, “I also believe that while environmental sustainability has adequately been spoken about when discussing procurement, the issue of social sustainability still requires to be more comprehensively discussed.” This is indeed an experienced observation and I completely agree with him. I heard a resonance of the same idea when I was attending a workshop on Credibility Principles for Voluntary Sustainability Standards recently, organized by Iseal Alliance, an umbrella body for sustainability standards. One of the participants from Social Accountability International (SAI) raised a similar question – why stakeholders are not talking about integrating social standards in public procurement while discussing sustainable procurement? The speaker, I observed, was least prepared for this question. She, after lot of thoughts and internal processing, explained that it is probably because of difficulty in applying it in procurement process. The discussion continued but the question persisted.

The very idea of integrating environmental and social concerns in public buying is to look not just at the economic upfront cost of product and service but also look at the product and service in its entirety and ask a more wider question: does public buying provide best value for money over a product’s life cycle? When we discuss only environmental sustainability in public procurement we are obviously focusing only on two pillars of sustainable development.  A basic understanding of geometry tells us that three-legged structures are more stable than two-legged ones! In the same way, we just cannot hope for sustainable development without integrating social concerns in decision-making process. Governments around the world have a lot to do on appreciating equality and diversity; observing core labour standards; ensuring fair working conditions; increasing employment and skills; and, developing local communities. Governments, often, seem unable to ensure these in practice despite existence of laws on paper. In fact, government’s attempts to ensure social compliance through legislations, has not yielded much result on ground. The government cannot withdraw from its stated objective of working for societal growth.

But what I found baffling is that this situation is not unique to developing countries where awareness about sustainability in low and penetration of sustainable public procurement (SPP) is negligible. Even European countries, which pioneered public procurement as a tool to promote sustainable development, have all along been focusing only on environmental issues. They, somehow, dropped/missed the word ‘social’ from sustainability pyramid and have used ‘green’ interchangeably with ‘sustainable’. The European Parliament’s directive 2004/17/EC of 2004, legal framework for GPP in European Countries, has clarified how public purchasers can include environmental considerations in their procurement processes and procedures. This answers why EU talks about green procurement rather than sustainable procurement. I was looking at EU GPP criteria for products and services on their website but did not find mention of any social criteria such as rights of workers, minimum living wages, non-discrimination etc. However, I did take a note of ‘training of workers’ mentioned in case of procurement of services.  I have no clue as to why other social criteria are none of their concern! 

                                                     (TO BE CONTINUED IN NEXT POST....) 

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