Seoul City’s Steps toward Socially Responsible Public Procurement

Buying Social in Seoul City

November, 2015

Seoul Metropolitan Government

Ⅱ. Steps so far...

Ⅰ. Contexts

Contents

Ⅲ. Steps ahead ...

Contexts

3

Ⅰ.

4

What’s problematic in existing public procurement?

Low costGood profit

Small budgetHigh quality

Value for money

◆ Efficiency-oriented market persists

◆ Small businesses fall behind

◆ Trickle-down economics doesn’t realize

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Ⅱ.

Steps so far...

Expand public procurement from small businesses, etc.

7

The reform of gov’t contract system for social innovation (May 2012)

Creating a level playing field

Small businesses, enterprises of people with disabilities, women, minorities

Lower the barrier to entry

Promote employment stability for vulnerable social group

Stimulating integration

Introduce additional point for companies to expand employment

Enact an ordinance to eradicate overdue wages

Present capacity rather than past business showings

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Institutional framework for enhancing social value

Open-door policy to start-up/small company

• 「An ordinance on public procurement」

• 「A Guide to taking account of social

considerations in public procurement」

• Using CSR criteria in tendering procedures

• Raising awareness of the importance of social

responsibility

• Lowering the barrier to entry

• Limiting competitive bidding to social

economy enterprises

• Introducing/increasing additional point for

social economy enterprises

Connection between CSR and public procurement

Measures to reinforce the publicity of the gov’t contract system(November 2013)

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The parties• Seoul Social Economy Network, etc(6)

• Seoul Metropolitan Government, Seoul Metropolitan

Office of Education, Boroughs, etc(28)

• (Common) Studies on social values, institutional

framework for social values

• (Public authorities) Public procurement disclosure

system, social econonomy ecosystem

• (Social economy community) Advance of governance,

inter-company transaction

Items of agreement

공공계약의 사회적가치를 반영하는 계약제도 공공성 강화방안MOU on the public procurement based on the social values(July 2015)

2015 Seoul Socially Responsible Procurement Expo(October 2015)

Business matchmaking venue for social economy

1 2 3 4

Purchasing plan(Public authorities)

Application for a business talk

(Social economy enterprises)

Business talks planning

(Social economy division)

Business talks Open

(Two parties)

A declaration of vison for SRPP

Seoul Mayor, chiefs of borough, heads of social economy councils

$303million in 2020(5% of the size of public procurement)

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Ⅲ.

Steps ahead...

Steps ahead...

Vision : Social innovation and decent job creation through SRPP

Vision and Goal

Socially responsible procurement expo on a regular basis

Strategies

Public procurement disclosure system

Online platform for public procurement

Goal : $303million in 2020(5% of total)$130million in 2016(2.2% of total)

* $86million in 2015(expected)(1.4% of total)

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Youth ambassador for public procurement

Certification of excellent goods&services for public procurement

SRPP-friendly institutional framework

Thank you!