Property firms are being encouraged to integrate Indigenous businesses into projects through targeted procurement and stronger supplier relationships.
Kate Russell, CEO of Supply Nation said there are opportunities to incorporate Indigenous business into every element of a project, from start to finish.
Supply Nation, established in 2009, is non-profit enterprise promoting supplier diversity supporting the growth of Aboriginal and Torres Strait Islander owned businesses.
It now has a national database of more than 5,700 verified Indigenous businesses.
The top three industry sectors represented on the database are construction, facilities management and education and training.
Since its establishment 15 years ago, Supply Nation has facilitated over $20 billion in procurement spend from its corporate, government and non-profit members to verified Indigenous businesses. Last year alone that figure was $4.6 billion.
“Property firms and Council members should consider committing to a target percentage of procurement spend with verified Indigenous businesses on a project and overall organisational basis,” Ms Russell said.
“Devoting resources to the development of in-house knowledge of Indigenous businesses with the right products and services as well as establishing strong relationships with suppliers is a good first step.
“Many companies have had success in approaching supplier diversity differently. This may include breaking down packages of work to make them more accessible for Indigenous businesses as well as supporting sustainable growth.
“Other companies consider how they can leverage their internal SME, knowledge and resources and share them with Indigenous businesses, investing above and beyond a contractual relationship.”
Ms Russell recommends companies consider implementing a Reconciliation Action Plan (RAP) which provides a framework to promote reconciliation between Indigenous and non-Indigenous Australians.
“A RAP can outline practical actions and outcomes for engagement with Indigenous businesses and developing respectful relationships and positive social impact.
“A RAP should empower employees to take decisions that foster increased engagement. “
Ms Russell said procurement from Indigenous-owned businesses creates direct positive economic impact but also leads to increased social value through jobs growth, and increased education and training opportunities.
“Our research indicates that Indigenous businesses are more likely to hire Indigenous employees and trainees.
“We shouldn’t expect Indigenous businesses to give back or be more socially responsible than any other business, however a significant number of businesses have community-based and educational projects, mentoring programs and scholarships.
“Some businesses are giving more than 50 percent of profit back into communities and traineeships.
“They are “profit-for-purpose” driven.
“Supply Nation expects that new research we are soon to announce will confirm that for every dollar spent with Indigenous businesses there is multiple dollars of positive social value accrued.”
Last year, the Property Council announced a Guide to Social and Indigenous Procurement, developed in collaboration with Social Traders and Supply Nation.
The Guide provides practical advice to businesses looking to extend their social impact through their procurement choices and show cases the significant work already underway through a series of case studies.