Socially Responsible Procurement

1. Socially Responsible Procurement December 20, 2012 Boston City Councillor Tito Jackson

2. Challenges to Socially Responsible Procurement • 1) Obtaining commitment from leadership of institutions • 2) Going against Supply Chain rationalization • 3) General opposition to perception of preferential treatment • 4) Lack of familiarity with minority-owned enterprises • 5) An emphasis on meeting quotas Boston City Councillor Tito Jackson

3. University of Pennsylvania case study • 1990s: UPennbecame much more invested in surrounding Philadelphia neighborhoods • Put more human and economic capital into revitalizing neighborhoods • Began awarding contracts to locally-owned and minority-owned businesses Boston City Councillor Tito Jackson

4. University of Pennsylvania case study • “Buy West Philadelphia” Program • Made purchasing from locally-, female-, and minority-owned businesses a priority • In the 1980s Penn was purchasing $800,000 locally. • In 2010, they purchased $95 million in goods and services from West and Southwest Philadelphia • Joined with Northeastern Peer/Aspirant University (Drexel University) to bridge the gap between procure-to-pay technology business requirements and supplier capabilities. • Economic Opportunity Plan • Guided the contracting of minority-owned businesses and employment of the local and minority labor force in construction projects • Penn aspired to having 20%-25% of construction projects over $5m awarded to minority- & women-owned companies and sought to create local jobs through new construction projects with targets for minority & female labor force participation. Boston City Councillor Tito Jackson

5. UPenn Local Community Supplier Spend by Fiscal YeaR http://www.purchasing.upenn.edu/supply-chain/local-community-supplier-spend.php

6. Total African American Supplier Spend by Fiscal Year (Upenn) http://www.purchasing.upenn.edu/supply-chain/african-american-supplier-spend.php

7. University of MIAMIcase study • 1990s: Northeastern Peer/Aspirant School, the University of Miami, began placing particular emphasis on supplier diversity • Recently awarded the Southern Florida Minority Supplier Development Council’s ‘Corporation of the Year’ award for supplier diversity programs • Established Business Development Program to oversee supplier diversity efforts Boston City Councillor Tito Jackson

8. University of MIAMIcase study • Business Development Program • Implemented to advance the utilization of women and minority suppliers to the University’s procurement process. • Oversees set goal of at least 10 to 15 percent of purchasing dollars spent with minority- and women- owned businesses throughout each University department. • Mentor/Protégé Program • Pairs UM executives with a minority business based on their specialty and specific business need • UMatch Program • Industry-specific, commodity-driven matchmaker events that target women- and minority-owned businesses • Supplier Diversity Advisory Board and Action Group • Composed of key stakeholders to help propel the full supplier diversity program. Boston City Councillor Tito Jackson

9. UMIAMI Local Community Supplier Spend Source: Minority Business Entrepreneur (MBE) magazine

10. Recommendations for Northeastern University • Require larger contractors partner with local vendors in Roxbury/Mission Hill. • Provide incentives for local purchasing that tie purchasing staff’s performance evaluations to their use of local vendors. • Develop a system to monitor the performance of the supplier diversity program and evaluate it over time. • Forge community-based partnerships to identify potential local vendors, as well as understand the local business landscape. • Dedicate University resources to providing technical assistance to aid local businesses in addressing issues such as marketing, logistics, and resource management. Boston City Councillor Tito Jackson