SAP SE has announced 5 & 5 by ’25, a corporate initiative targeting five per cent of addressable spend with social enterprises and with diverse businesses by 2025. In setting this target, SAP aims to inspire organizations around the world to buy more goods and services from purposeful suppliers, making a positive collective impact on the societies they operate in.
According to the World Bank, global procurement spend in 2019 was at least USD 14 trillion. By directing even just a small fraction of this spend to certified social enterprises and diverse businesses, organizations have the power to tackle some of the world’s most pressing social and environmental problems.
Based on early pilots in select markets, SAP estimates it could direct up to USD 60 million of its addressable global spend per year to social enterprises and diverse suppliers by 2025. Among DAX companies, this figure is estimated at approximately EUR 2.5 billion, and across U.S. Fortune 500 companies up to USD 25 billion.
SAP Executive Board member for Customer Success and recently appointed Global Buy Social Ambassador for Social Enterprise UK Adaire Fox-Martin announced the 5 & 5 by ’25 initiative at SAP’s Procurement Reimagined event in Singapore. “Every company in every industry needs to procure,” Fox-Martin said. “We all need soap in our washrooms, landscaping for our offices, food and drink in our cafeterias, marketing services and office supplies. These and many more are all products and services provided by social enterprises and diverse businesses. This is money we are spending anyway. Why not spend it with suppliers who are delivering social impact as well?”
Social enterprises are businesses culturally and operationally focused on changing the world. They are similar to other commercially viable businesses, but with three crucial differences: They are founded and governed on the basis of a clear social or environmental mission; they reinvest the majority of their profit back into this mission, and they are majority controlled solely in the interest of this mission. A diverse supplier is a business that is at least 51 per cent owned and operated by an individual or group that is part of a traditionally underrepresented or underserved demographic; such as women-owned businesses, minority-owned businesses and indigenous-owned businesses, among others.
“Together with our customers, partners, diverse suppliers and social enterprises, we have set out to expand social procurement where infrastructure exists and intend to establish the infrastructure and build capacity where it doesn’t,” Fox-Martin added. “We invite our entire ecosystem to learn more and take part, join us in this initiative, and help build the pathways and the momentum to realize this ambition and find a better way to grow.”
HEADLINES YOU MIGHT HAVE MISSED FROM BRAND SPUR
To commemorate the 2020 Child Health Day, Africa’s foremost media company, TVC Communications; owners of TVC, TVC News, Max FM (Lagos & Abuja) & Adaba FM in partnership with Procter & Gamble recently donated Pampers Baby Diapers to post-natal mothers at Nigeria’s biggest Maternity Hospital in Lagos; Ayinke House Maternity Hospital, Ikeja Lagos, Nigeria.
The global pharmaceutical industry has experienced significant growth in the last two decades, with pharma revenues worldwide reaching $1.25trn in 2019. Besides generating huge profits, some of the leading companies responsible for the research, development, production, and distribution of medications also witnessed a substantial market cap growth this year.
The COVID-19 pandemic has disrupted or halted critical mental health services in 93% of countries worldwide while the demand for mental health is increasing, according to a new WHO survey. The survey of 130 countries provides the first global data showing the devastating impact of COVID-19 on access to mental health services and underscores the urgent need for increased funding.
The next battle in the 50-year-old games console wars will be shaped by the increasingly contrasting strategies of the two leading players, Sony PlayStation and Microsoft Xbox, according to the latest research from Strategy Analytics.