What is Socially Responsible Procurement?
Procurement refers to the full process through which organisations, both public and private, acquire goods, services, or works from other entities. It usually involves a formal selection and contract procedure and obeys different regulations depending on whether it is public or private. Procurement does not refer solely to buying but rather to the entire process that includes need assessment, tendering, evaluation of offers, contracting, management, acquisition, payment, and monitoring.
Socially Responsible Procurement (SRP) expands this potential by integrating social considerations into procurement decisions. This approach encourages buyers to assess not only what is being purchased and at what cost, but also how goods and services are produced, delivered, and managed. It shifts the focus from cost-efficiency alone to long-term societal impact.
SRP is rooted in the recognition that procurement can be used in a strategic way by actively supporting employment, social inclusion, equality, and access to high-quality services, especially in areas such as care, education, health, and community development. The European Union supports this approach to advance these objectives across Member States. They can do this by demanding that potential suppliers have a sustainable, ethical, and transparent supply chains, treat their workers fairly, or employ persons who find it difficult to enter the labour market.
Watch the video below to learn about the power of Socially Responsible Public Procurement (SRPP).
Why Socially Responsible Procurement?
Implementing social responsibility in procurement can generate tangible social outcomes that improve the quality of people’s lives. Procurement has a wide reach, impacting users of public services, workers involved in production and delivery and the staff of the buying organisation. For this reason, SRP holds significant potential to enhance the wellbeing of individuals and communities.
The link between SRP and social economy is not incidental but structural: both aims to reorient economic activity toward social value. SRP can drive opportunities for social economy enterprises, ensuring decent work in compliance with social, labour and environmental standards. Social Economy enterprises can significantly benefit from SRP by participating in both public and private tenders that prioritize social responsibility and sustainable practices, while offering innovative solutions and products.
Social Economy enterprises do not only benefit from SRP: they often hold a competitive advantage compared to mainstream businesses when bidding for SRP tenders, as their business model is inherently aligned with the objectives that SRP promotes. SRP also holds strong potential as a reliable growth and diversification strategy for Social Economy entities. In this sense, SRP should also be understood as a growth strategy for the Social Economy, not merely as a compliance tool. These organisations often face challenges in securing stable sources of income, and SRP can offer a more mission-aligned solution to help them address this issue. Many Social Economy entities deliver essential, often irreplaceable services to rural, disadvantaged, or vulnerable communities, positioning them as strategic partners in inclusive service delivery.
Learn how SRPP works and how it benefits social economy organisations in this short video.
Public vs. private procurement
Public procurement is the process by which public authorities, such as government departments or local authorities, purchase goods, services or works from businesses. Accounting for around 15% of the EU’s gross domestic product (GDP), public procurement plays a vital role in the European economy and is a cornerstone of the EU single market. Public procurement across the EU is governed by three key principles: equal treatment, non-discrimination and transparency. These principles help to create a levelled playing field for companies for all sizes, promote trust in public institutions and ensure value for money for taxpayers.
Private procurement refers to the process by which private organisations purchase goods, services or works to support their operations. Unlike public procurement, which must adhere to strict legal procedures to ensure fairness and transparency, private procurement offers greater flexibility. Private entities can tailor their procurement strategies to suit their specific needs. This may involve direct negotiations with suppliers or requesting quotes from multiple vendors. The goal is usually to achieve cost-effectiveness, efficiency and alignment with the organisation's operational or strategic objectives.
Although they are not bound by the same legal rules as public bodies, many private organisations still adopt best practices, such as sustainability criteria, to ensure value for money and responsible sourcing.
Within the EU
In December 2024, the European Commission launched a call for evidence and a public consultation on the Public Procurement Directives. As announced in the President’s political guidelines, the Commission will propose a revision of the Directives to modernise EU procurement rules and ensure they remain fit for current challenges.
The current EU legal framework for public procurement is primarily based on Directive - 2014/24/EU, which enables public authorities to use procurement in a strategic way, not merely as a purchasing tool, but also as a means of support broader social, environmental and innovation objectives. This framework encourages participation from a wide range of businesses, particularly small and medium enterprises, while allowing member states to adapt its provisions to their national contexts.
Under the 2014 Directives, public buyers can:
- Reserve contracts for economic operators that promote social and professional inclusion of people with disabilities or disadvantaged individuals.
- Apply socially responsible criteria when awarding contracts, boosting social inclusion, gender equality, quality of employment, upskilling and reskilling of workers, job creation, accessibility and design for all, and other measures supporting social sustainability.
- Include contract clauses that reflect ethical or sustainability standards.
- Use simplified rules for specific social services.
These choices can drive positive change and support more inclusive, sustainable and innovative communities across Europe.
Barriers and challenges
Despite all the advantages SRP can bring to public, private, and third sectors, there are still many obstacles to its wider uptake.
Limited awareness – Social Economy entities are often overlooked because they are incorrectly assumed to be less competitive and perceived as providers of more expensive or lower-quality products. Awareness of SRP is also limited: many public and private officials are unfamiliar with the concept itself and with the scope of the social value it can deliver. Although related, these are two distinct issues. Demystifying these misconceptions could unlock significant potential for both the SE sector and the uptake of SRP.
Regulatory Complexity – the rules for procurement can sometimes be complex, unclear, and extensive, discouraging buyers to procure from Social Economy entities and vice versa.
Structural Constraints – as most Social Economy Entities are small- or medium-sized, they face financial limitations in accessing some markets. Wavering market cycles are particularly hard on smaller entities and large contracts can be out of reach for many Social Economy entities. The increasing competition from for-profit companies, and limited coordination among Social Economy entities may shorten their prospectives. Yet procurement could also serve as a growth and diversification strategy, providing these entities with a more stable and mission-aligned source of income compared to reliance on grants.
Different Interpretations and Measurement Gaps – Sometimes there is a lack of a shared understanding of what constitutes social impact. Strengthening monitoring mechanisms and impact measurement frameworks is essential to ensure credibility and avoid superficial compliance. Without robust verification, there is a real risk of “impact washing,” when social claims are made without delivering tangible results.
Readers interested in learning more can explore the publications below.
Step by Step: Implementing SRPP
Implementing SRPP requires a structured approach — from defining objectives to monitoring results.
This step-by-step guide presents six essential stages to help public buyers integrate social considerations effectively and achieve measurable impact.
Watch the video below for a concise overview of practical and effective SRPP implementation.
1. Plan & Set Goals
Effective SRPP begins with a clear definition of the social objectives to be achieved through public procurement. These should align with the organisation’s mission and respond to local social needs — such as employment inclusion, gender equality, accessibility, or ethical sourcing. Setting measurable goals and formal policies ensures coherence across departments and accountability over time.
Tips from Good Practice: Barcelona City Council (Spain) launched the +SCC Programme (Socially Responsible and Sustainable Public Procurement) to systematically include social and environmental criteria in all municipal contracts.
Through participatory planning, the City defined priority sectors and measurable inclusion targets, backed by a municipal decree, a practical guide, and a mixed commission that monitors progress and impact.
2. Engage the Market Early
Early market engagement helps public buyers understand market capacity and encourage participation by social enterprises and SMEs. Preliminary consultations allow authorities to share their objectives, receive feedback, and ensure that requirements are realistic and inclusive.
Tips from good practice: The South Moravian Region (Czech Republic) conducted preliminary market consultations for the construction of a children’s sanatorium. The dialogue helped test the feasibility of environmental and social requirements before publication, improving supplier readiness and tender quality. The approach was recognised as a Procura+ Award best practice.
3. Prepare Tender Documents
Tender documents should integrate social requirements throughout the process: in selection criteria (who can bid), award criteria (how bids are scored), and contract performance clauses (requirements during execution). Requirements must be clear, verifiable and proportionate to ensure transparency and equal treatment.
Tips from good practice: Kolding Municipality (Denmark), under the LANDMARK project, embedded binding ethical clauses in its textiles and laundry procurement. Suppliers had to demonstrate compliance with ILO core conventions, provide traceability documentation and accept independent audits. This ensured fair labour practices across the supply chain.
4. Evaluate Offers Fairly
Evaluating offers based on both price and social value ensures the best price-quality ratio (BPQR). Transparent scoring methods and documented weighting for social criteria increase fairness and incentivise bidders to invest in social outcomes.
Tips from good practice: In Bremen (Germany), within the LANDMARK project, the public procurement agency introduced evaluation grids combining social and price criteria. These criteria became standard practice in multiple contracts, ensuring that social value was systematically considered in award decisions.
5. Award & Monitor Performance
Social commitments must continue beyond contract award. Including performance clauses tied to specific KPIs allows contracting authorities to monitor compliance and impact during implementation. Regular reviews and corrective measures ensure that social objectives are achieved in practice.
Tips from good practice: The City of Oslo (Norway) developed the “Oslo Model”, requiring suppliers to comply with ethical labour standards and human rights in supply chains. The city introduced audits and inspections to verify compliance, setting a benchmark for responsible contract management across Europe.
6. Measure Impact & Share Results
Collecting data on social outcomes and sharing results improves transparency and learning. Measuring the number of jobs created, training delivered, or working conditions improved allows authorities to refine future SRPP strategies and demonstrate tangible impact.
Tips from good practice: Loures Municipality (Portugal) established a Verification Group to oversee social criteria compliance and published regular reports on contract outcomes. This ensured independent verification, accountability, and continuous improvement in socially responsible procurement.
Across Europe and beyond, public authorities and local actors are showing how procurement can be a powerful tool to drive social innovation, support the social economy, and deliver meaningful public value. Here are a few examples:
- Socially Responsible Procurement in Local Authorities, Sweden
Several Swedish municipalities have successfully integrated social considerations into their procurement procedures, working with social enterprises and cooperatives to promote work inclusion and local development. In cities such as Gothenburg and Söderhamn, public buyers have used reserved contracts and social clauses to create job opportunities for people far from the labour market, while supporting the growth of work integration social enterprises.
Under Directive 2014/24/EU, Article 20 and Article 77, contracting authorities may reserve contracts for social economy entities and apply social criteria in service delivery. These practices demonstrate how local governments can combine economic efficiency with social impact and stronger community engagement.
Result: Increased participation of social enterprises, inclusive employment opportunities, and better awareness of SRPP among local authorities.
- Circular and Inclusive Procurement- Berlin, Germany
The City of Berlin has integrated social and environmental objectives into its public procurement strategy, using it as a lever to promote a more circular and inclusive economy.
Through initiatives such as Re-Use Berlin, public authorities cooperate with social enterprises to deliver recycling, repair and reuse services. These collaborations reduce waste, support sustainable consumption, and create employment opportunities for long-term unemployed and disadvantaged people.Result: A circular economy approach that links green transition with social impact and fair employment.
For further examples and to explore how the European Union supports socially responsible public procurement across Member States, discover the initiatives, reports and training actions promoted by the European Commission below.
EU-Level Initiatives and Support
The European Commission actively promotes socially responsible public procurement (SRPP) through tools, training and targeted initiatives that build capacity and encourage implementation across Europe.
Awareness-Raising and Good Practices
The report is a flagship EU initiative that illustrates how contracting authorities across Europe have successfully integrated social criteria in procurement.
Three accompanying videos highlight concrete cases under the #WeBuySocialEU campaign:
- #WeBuySocialEU – Socially responsible public procurement #1 (EN and FR)
- #WeBuySocialEU – Socially responsible public procurement #2 (EN and FR)
- #WeBuySocialEU – Socially responsible public procurement #3 (EN and FR)
These resources provide inspiration, guidance and replicable examples to support the uptake of SRPP.
I. Buy Social: Business-to-Business Market (2022-2025)
Funded under the Single Market Programme, this initiative fosters partnerships between social economy organisations and mainstream businesses. It promotes the integration of sustainability and social impact into corporate value chains, while helping social enterprises expand their revenues and market access. Five projects are currently ongoing, ending between late 2024 and early 2025. Read more
II. Socially Responsible Public Procurement Promotion (2022-2025)
Under the Single Market Programme, a Call for Tenders was published in 2022 divided into two different projects (lots).
Lot 1 provided trainings in 12 Member States (AT, BE, BG, CY, EE, ES, FI, LT, LU, MT, PT, SI) for public buyers and social economy entities to raise awareness and improve the implementation of SRPP. A total of 16 training events took place (with two sessions in BE, CY, ES, and PT), reaching 854 participants—601 from Contracting Authorities and 253 from SEEs, plus other stakeholders.
As results, several country-specific training modules were created and are hosted on the EU Academy, tailored to each country’s legal framework and social economy landscape. Lessons, prepared by national experts and consulted with Social Economy support organisations and institutional partners, include short and long videos, PDFs, quizzes, and testimonials. Learners can explore the link between public procurement and social economy actors in their own or other Member States.
An EU-wide communication campaign was also developed, resulting in:
- 5 video interviews
- 1 pedagogical video
- 6 micro-content videos
- 2 animated videos
- the establishment of a network of national SRPP Ambassadors
All of them available on the EISMEA YouTube Channel
Lot 2 aimed to improve the understanding of policies and methodologies for SRPP impact measurement.
The resulting report is presented below.
The report proposes a new SRPP framework built on 4 key indicators and applies it to 75 procurement procedures from 2023–2024, highlighting success factors, challenges, and relevant examples.
Both projects (Lot 1 and Lot 2) concluded in March 2025. More info
III. Buying for Social Impact (2018-2020)
The project “Buying for Social Impact”, commissioned by the Executive Agency for Small and Medium-sized Enterprises and the European Commission, aimed to promote the use of social considerations in public procurement procedures. The project was carried out by a consortium of European organisations active in the promotion of local development and social economy enterprises.
The project focused on encouraging contracting authorities to use public procurement to pursue social goals and increasing the capacity of social economy organisations to participate in public procurement procedures and access new markets. Actions were targeted at 15 countries: Croatia, Czechia, Denmark, France, Germany, Greece, Hungary, Italy, Ireland, Latvia, the Netherlands, Poland, Romania, Slovakia, and Sweden. The project team looked at how the social aspects of the EU Public Procurement Directive (2014/24/EU) were transposed at national level, identified good practices on socially responsible public procurement, and mapped the capacity of social economy organisations to access markets.
Visit the EU Academy
The EU Academy hosts a dedicated Community on Socially Responsible Public Procurement (SRPP), offering tools and knowledge to help contracting authorities and social economy actors integrate social criteria into public procurement practices across Europe.