Social Procurement in Victoria: Everything You Need to Know

Modern procurement is about more than purchasing goods and services at the best price. Across Victoria, businesses and government organisations are increasingly expected to create positive social, economic and environmental outcomes through the way they buy, hire and deliver projects.

This approach is known as social procurement.

Whether you’re delivering a construction project, managing infrastructure, operating in waste management or supplying industrial services, understanding social procurement is becoming essential for long-term business success.

At Jarara & Co, we partner with organisations across Victoria to help them strengthen Indigenous participation, build meaningful Aboriginal business partnerships and achieve measurable social procurement outcomes.

What Is Social Procurement?

Social procurement is the practice of using purchasing decisions to create broader benefits for people, communities and the environment while still achieving value for money.

Rather than focusing solely on cost, quality and delivery, social procurement considers how every purchasing decision can contribute to positive social outcomes.

These outcomes may include:

• Supporting Aboriginal-owned businesses
• Increasing Indigenous workforce participation
• Creating local employment opportunities
• Promoting supplier diversity
• Strengthening community development
• Improving economic inclusion
• Supporting sustainable business practices

By embedding these objectives into procurement strategies, organisations can create lasting value that extends well beyond the completion of a project.

Why Social Procurement Matters in Victoria

Victoria has become a leader in integrating social value into procurement practices. Many public sector projects now encourage organisations to deliver measurable community benefits alongside commercial outcomes.

This means businesses are increasingly expected to demonstrate how their procurement activities contribute to:

• Employment opportunities
• Supplier diversity
• Skills development
• Community investment
• Indigenous economic participation
• Inclusive workplaces
• Sustainable local economies

For many organisations, social procurement has become an important factor when competing for government-funded projects and major infrastructure contracts.

The Victorian Social Procurement Framework

The Victorian Government’s Social Procurement Framework encourages government buyers to use procurement as a way to generate positive social and economic outcomes while achieving value for money.

The framework identifies several social objectives, including increasing opportunities for Aboriginal Victorians through procurement, employment and supplier engagement.

For businesses working on government projects, understanding these objectives can help strengthen procurement strategies and improve project outcomes.

Indigenous Participation and Social Procurement

One of the most significant priorities within social procurement is increasing Indigenous participation.

This includes creating opportunities through:

• Employment
• Apprenticeships
• Supplier engagement
• Workforce development
• Community partnerships
• Aboriginal-owned business procurement

By partnering with Aboriginal-owned businesses, organisations contribute to stronger local economies while supporting long-term Indigenous economic participation.

These partnerships also help businesses create genuine social impact rather than simply meeting contractual obligations.

Benefits of Social Procurement

Stronger Communities

Procurement decisions can directly contribute to employment, education, business growth and community development.

Every contract has the potential to create opportunities that benefit local communities for years to come.

Greater Supplier Diversity

Working with a broader range of suppliers creates more resilient supply chains while encouraging innovation and collaboration.

Supplier diversity also opens opportunities for Aboriginal-owned businesses and other social enterprises to participate in major projects.

Better Tender Outcomes

Government agencies and major contractors increasingly assess suppliers on their ability to deliver measurable social value.

Businesses with established social procurement strategies are often better positioned when responding to competitive tenders because they can demonstrate practical outcomes rather than future intentions.

Stronger ESG Performance

Environmental, Social and Governance (ESG) performance has become an important priority for many organisations.

Social procurement supports the social component of ESG by creating employment, supporting diverse suppliers and strengthening community partnerships.

Long-Term Economic Growth

Supporting local businesses and Indigenous enterprises helps create stronger regional economies while encouraging sustainable business growth across Victoria.

Industries That Benefit from Social Procurement

Social procurement applies across many industries, including:

• Construction
• Civil infrastructure
• Waste management
• Industrial services
• Engineering
• Manufacturing
• Property development
• Utilities
• Transport
• Local government

Regardless of industry, organisations can create measurable social value through thoughtful procurement decisions.

How to Develop an Effective Social Procurement Strategy

Successful organisations approach social procurement as an ongoing business strategy rather than a compliance exercise.

Key steps include:

Set Clear Objectives

Identify how procurement activities will contribute to employment, supplier diversity and community outcomes.

Partner with Aboriginal-Owned Businesses

Building long-term partnerships creates sustainable opportunities for Indigenous businesses while strengthening procurement outcomes.

Increase Indigenous Workforce Participation

Develop recruitment, training and mentoring programs that create meaningful employment pathways for Aboriginal and Torres Strait Islander people.

Measure Social Outcomes

Track indicators such as:

• Procurement spend with Aboriginal-owned businesses
• Indigenous employment
• Apprenticeships
• Community investment
• Supplier diversity
• Workforce participation

Regular reporting demonstrates accountability and helps identify opportunities for improvement.

Build Genuine Relationships

The most successful procurement strategies are based on collaboration, trust and long-term partnerships rather than one-off transactions.

Common Challenges

Many organisations recognise the value of social procurement but encounter challenges such as:

• Understanding procurement expectations
• Finding Aboriginal-owned suppliers
• Building culturally respectful partnerships
• Measuring social outcomes
• Meeting reporting requirements
• Integrating procurement into existing business processes

Working with experienced Indigenous organisations can help simplify implementation while ensuring meaningful and measurable outcomes.

How Jarara & Co Supports Social Procurement

Jarara & Co is an Aboriginal-owned business dedicated to strengthening Indigenous participation across Victoria’s construction, waste and industrial sectors.

We work with organisations to develop practical social procurement strategies that create lasting value for businesses and communities.

Our services include:

• Social procurement planning
• Aboriginal business partnerships
• Indigenous workforce participation
• Indigenous participation reporting
• Workforce strategy
• Community investment initiatives
• Supplier engagement
• Social procurement compliance support

Our focus is on helping organisations create authentic partnerships that deliver measurable social outcomes while supporting commercial success.

The Future of Social Procurement in Victoria

Social procurement is continuing to shape the way organisations deliver projects across Victoria.

Businesses that invest in meaningful partnerships, Indigenous employment and community engagement today will be better positioned to meet future procurement expectations while strengthening their reputation and creating lasting social value.

By embedding social procurement into everyday business decisions, organisations can contribute to stronger communities, more inclusive workplaces and sustainable economic growth.

Partner with Jarara & Co

At Jarara & Co, we believe procurement should do more than deliver projects—it should create opportunities that benefit people, businesses and communities.

Whether you’re preparing for a government tender, developing a supplier diversity strategy or looking to strengthen Indigenous workforce participation, our team can help you build a practical and measurable social procurement approach.

Together, we can create stronger partnerships, support Aboriginal businesses and deliver lasting social impact across Victoria.

Contact Jarara & Co today to learn how we can help your organisation achieve meaningful social procurement outcomes while building a stronger future for Victorian communities.