Supporting social considerations through public procurement – economic perspective

Gustavo Piga, Rome Tor Vergata UniversityTünde Tátrai, Corvinus University of Budapest

2nd Interdisciplinary Symposium on Public Procurement Budapest 2014.09.22.

Economic

Social

Environmental

Transparency

Strategy

SPP

Culture

Risk management

Topics Included in Broader Policies Integrating Other Policy Objectives with Procurement

Specific topics

Environment

Social

Innovation

Anti-social dumping x

Biodiversity x

Chemical treatment x

Climate change, reduction of CO2 emissions x

CSR (including human rights and ILO Core Labour Standards) x x x

Energy efficiency and management, use of renewable energy x

Environmental technology x x

Green IT x x

High-tech, research and technology x

Integration of people with disabilities x

Promotion of SMEs x

Sustainable development x x x

Sustainable economic growth and employment x x x

Sustainable farming and food x x

Sustainable production and consumption x x x

Sustainable timber x x

Sustainable transport x

Waste management x

Source: European Commission (2011).

Fighting courruption

Transparency

Supporting environmental

protection

Easing up the fiscal crisis by slowing

down public procurements

Supporting social considerations

Efficient spending of public money

Increasing employment

Supporting SMEs

Decreasing go-round debt

Tátrai, Nyikos (2012)

7-stages Model of PP Development

• Stage 1. Sourcing and delivery of goods and services

• Stage 2. Compliance with legislation/regulation• Stage 3. Efficient use of public funds• Stage 4. Accountability• Stage 5. Value for money• Stage 6. Supporting of broader government policy

objectives• Stage 7. Delivery of broader government objectives

Telgen, Harland and Knight (2007)

1

4

3

2

6

5

7

7-stages Model for Sustainable Public Procurement

• The goal is to render the entire procurement process sustainable at the level of contracting authorities and to raise public procurement to the level of policy and its inclusion in sustainability strategies at government and international level.

McCrudden (2004)

• Labour standards and unemployement• Employement opportunitis of disabled

workers• Racial equality• Promoting human rights transnationally (ILO)

Gender equality

• Teresa Medina-Arnáiz (2010) – Spanish case• „the principle of equal treatment between women

and men, as well as the express prohibition of any type of discrimination on the grounds of gender can be seen as a guiding principle for legal systems and as such, should be integrated and observed in all public action (gender mainstreaming)– Contractor selection phase– Award critera– Condition for performance of contracts

Social responsibility procurement in East Asian States

• David Seth Jones (2011)• Social responsibility– Supporting SMEs– Creating opportunities for small or start up venture

firms– Fostering environmental sustainability through

green purchasing and environmentally sustainable construction

– Promoting work safety in site management in public works.

Conclusions

• Disproportionality of objectives – or controversal objectives– All the objectives are becoming secondary objectives…

• Reducing competition – exclusion of bidders, increase costs, risk of litigation– Motivation

• Data, measurement, monitoring– Evaluating the relevance of social considerations is to

consider its total impact on society and economy

www.publicprocurement.hu

Thank you for your attention!