- What is the Social Purchasing Portal (SPP)?
- Why do you think this model works?
- What is the "social value" of the SPP transactions?
- What is a Living Wage?
- Key Messages
- Some Relevant Statistics
- How do I know the SPP works?
- How does Corporate Social Responsibility make good business sense?
- How does the SPP help business purchasers?
- How does the SPP help business suppliers and social enterprises?
- What do you expect from purchasers involved in the SPP?
- What do you expect from suppliers involved in the SPP?
- Who can I direct questions to regarding the Calgary SPP?
- Is the Social Purchasing Portal available anywhere else?
What is the Social Purchasing Portal (SPP)?
The Social Purchasing Portal is a web-based, business to business database that leverages existing purchases of goods and services to expand business opportunities for suppliers who provide an added social value. Every business uses office supplies, couriers, catering, promotional materials, and similar goods and services. In Calgary, economic and social development opportunities result from directing these existing business purchases to local businesses that support the livelihoods of their employees in a holistic manner.
Why do you think this model works?
The SPP is effective because it uses a demand-driven business model to create social value for both Calgary's business community and marginalized populations. The portal encourages community involvement at a number of levels, and not only meets the needs of local business; it makes our communities more inclusive and sustainable.
What is the “social value” of the transactions that occur through the SPP?
Improving the sustainability (financial, human, personal, social and physical assets) for families of marginalized workers generates community spill over effects in the form of increased spending at local businesses, higher rates of home ownership, greater investment in education and small business, leading to more robust housing and small business markets in our city.
What is a Living Wage?
The amount of income workers require to meet their basic needs, to maintain a safe, decent standard of living in their communities and to save for future needs and goals. The Organization for Economic Co-operation and Development (OECD) defines low wages as earning less than two-thirds of the national median hourly wage.
Taking into consideration the Low-Income Cut-Off points established by the federal government and adjusting for the rate of inflation locally, the Living Wage in Calgary is $12 an hour plus benefits. This means that anyone working full-time needs to earn at least $12 an hour (or $13.25 an hour without benefits) in order to maintain a livelihood that meets their basic needs.
Key Messages
- No one who works full time should live in poverty
- Significant savings could be realized by reducing poverty in
our city:
Healthcare savings of at least $3.35 million, $4.9 million per
year associated with the education system and $32.6 million per
year in other areas of the local economy. (Sustained Poverty Reduction:
The Case for Community Action United Way of Calgary and Area –
Feb. 2005)
- John Rudolph, the owner of Alberta Furnace Cleaning raised
wages, invested in new equipment and training for workers and
in the process increased the company’s profits, while their
actual labour cost as a percentage of sales dropped. (“Raising
wages boosted profits, peace of mind”, Edmonton Journal,
Nov. 17, 2002)
- Living Wages are good for workers and their families, employers,
businesses and communities.
Some Relevant Statistics
- The majority of Alberta Children living in poverty live in working
families - 57.9%. (Sustained Poverty Reduction: The Case for Community
Action United Way of Calgary and Area – Feb. 2005)
- One in four Calgary households (renters and owners) are spending
greater then 30% of gross household income on housing costs, and
are therefore at risk of becoming homeless. (City of Calgary Fact
Sheet: Poverty in Calgary, 2003)
- From Sept. 1, 2003 to Aug.31 2004 the Calgary Interfaith Food-bank
distributed 43,008 food hampers to 106,561 Calgarians. (Calgary
Inter-Faith Food Bank, 2004)
How do I know the SPP works?
Vancouver’s Fast Track to Employment (FTE) initiated the SPP in partnership with the BC Technology Social Venture Partners in 2003 and experienced immediate success. The program continues to grow and now includes over 60 suppliers and 149 purchasers.
How does Corporate Social Responsibility make good business sense?
Business is increasingly under public scrutiny. A recent Globe-Scan poll conducted for its annual Corporate Social Responsibility Monitor shows that 83% of Canadians believe that corporations should go beyond their traditional economic role. Finding ways to directly and effectively demonstrate corporate involvement can satisfy the concerns of customers and create a more positive image for business in Calgary.
How does the SPP help business purchasers?
Businesses still buy products and services on the basis of price, quality and service. The portal enables them to inject social value into their buying decisions, giving them the opportunity to contribute to their community. It provides a direct and meaningful way to practice corporate social responsibility.
How does the SPP help business suppliers?
Businesses participating in the portal as suppliers of goods and services gain access to a pool of potential new customers and the opportunity to participate in workshops and networking events, all of which have the potential to grow their business. Improving workplace practices cuts down staff turnover and can increase service quality, attracting more customers and potentially increasing profits.
What do you expect from purchasers involved in the SPP?
Purchasers are expected to give consideration to the suppliers involved in the Social Purchasing Portal where and when they offer relevant and competitvely priced goods and services. They may if they choose, adopt a competitive bid program with a “best value” philosophy of procurement, which means that price will not be the only factor under consideration when buying decisions are made.
What do you expect from suppliers involved in the SPP?
Suppliers are expected to meet at least 3 out of the 5 Asset Areas in terms of their workplace practices, while also providing competetively priced goods and services that are relevant to businesses in Calgary.
Who can I direct questions to regarding the Calgary SPP?
Please contact the Calgary SPP Facilitator at (403) 204-2681, or
e-mail: info@sppcalgary.org
Is the Social Purchasing Portal available anywhere else?
The Social Purchasing Portal is available in Vancouver, Toronto, Winnipeg, Surrey, Fraser Valley, Vancouver Island and the Waterloo Region with another ten communities engaged in the process.
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