Transforming global supply chains for social impact through the power of social procurement

The State of Social Procurement is a collaborative initiative by the Schwab Foundation for Social Entrepreneurship, bringing together 18 leading organisations on social procurement. It highlights novel data on social issues in global value chains, provides insights into the business case for social procurement, highlights regulatory developments, and showcases how a maturing ecosystem for social procurement drives positive impact in over 10 countries and regions.

Schwab Foundation for Social Entrepreneurship, Jan 2025

The Global Alliance of Impact Lawyers is proud to have contributed to the latest report by Schwab Foundation for Social Entrepreneurship which highlights a critical and timely issue: the growing role of social procurement in building resilient global supply chains. This comprehensive analysis brings together insights from thought leaders, policymakers, and organisations dedicated to fostering social impact across industries.

Between January 2023 and October 2024, social issues emerged as the second most significant challenge in global supply chains, accounting for 19% of disruptions—just behind legal disputes. October 2024 marked a record high in protests and strikes linked to concerns about livelihoods and working conditions, underscoring the urgency of addressing these challenges.

In response, the report emphasises the power of social procurement—purchasing from social enterprises that prioritise community benefits—as a pathway to resilience. It highlights regulatory developments likely to increase the demand for social impact investments and explores innovative financing mechanisms to support these interventions. Featuring over ten country and regional studies, the report provides actionable insights from regions such as the US, Malaysia, Brazil, and Europe.

The data underscores the immense potential for transformation. While FTSE 100 companies allocate an average of $12 million to corporate social responsibility (CSR) initiatives, their procurement spending averages $5 billion—offering a vast opportunity to drive positive change through social procurement. With supply chains accounting for two-thirds of a company’s potential for impact, the strategic alignment of procurement practices with social impact goals is no longer optional—it is essential.

The Rise Ahead Pledge, backed by 25 organisations that have collectively invested nearly $100 million in social procurement, demonstrates the tangible benefits of this approach. By channeling resources into social enterprises, these leaders showcase how impactful and practical social procurement can be.

This report is a call to action for businesses, policymakers, and stakeholders worldwide. With contributions from organisations like the Global Alliance of Impact Lawyers, it provides the legal and strategic frameworks needed to integrate social impact into the heart of global supply chains—creating a more equitable, sustainable, and resilient future.