For the final instalment of our Good Business series this side of the year, MD Jo Sutherland sat down with Andy Daly, Head of Corporate Partnerships at Social Enterprise UK, a membership organisation for businesses with social or environmental purposes.
Could you start by telling us a bit about your background and what brought you to your current role?
This is actually my second career. I started as an English language teacher, teaching in various countries and even running a language school in Barcelona. It was a fantastic experience, but I eventually wanted to do something more impactful. I’d started hearing about social enterprises and, after completing a leadership programme called On Purpose in 2012, I found myself drawn deeper into the world of social enterprise and social impact.
Since then, I’ve worked with various social enterprises, gradually building my expertise, especially in procurement. Around six years ago, I joined Social Enterprise UK, and I now lead our corporate partnerships. My work involves creating a marketplace where social enterprises can trade with corporate procurement teams. In essence, I help build bridges between social impact businesses and larger corporations.
What specifically drew you to social enterprise as a model?
Traditionally, we’ve viewed sectors in very distinct silos: business, charity, and government. Social enterprises, however, are a blend. They combine the social mission of the not-for-profit sector with the efficiency and rigour of business.
What I find so exciting is that the social enterprise space applies business principles to address social and environmental issues sustainably rather than be entirely dependent on grants or donations. It offers a way to drive social impact with a financially viable model, which I find very compelling. Social enterprises are proof that you can generate profit while creating meaningful change.
Let’s talk about procurement. Have you seen a shift in procurement priorities, particularly among corporates?
Absolutely. Procurement used to be primarily about cost and risk management — how to consolidate suppliers and reduce expenses. But over the last decade, and especially in more recent years, there’s been a noticeable shift toward sustainability, innovation, and social value.
Now, I often hear from procurement leaders that they wish they had adopted this approach sooner. There’s a greater awareness that procurement isn’t just about the bottom line; it’s about values too. Many professionals now view it as a way to align their personal ethics with their career, which makes the work more fulfilling.
With this shift, how do you think the role of procurement is perceived now?
Procurement as a function used to feel under appreciated. I’d often hear procurement professionals lament that they didn’t have a ‘seat at the table’. That’s changed significantly. Procurement is now recognised as a strategic value-adding function, especially as businesses focus on ESG standards. You even see job titles now that reflect this broader role, such as ‘Supply Chain Sustainability Manager’.
In procurement conferences now, ESG is at the top of the agenda. If you’re interested in social value, social enterprises are the experts in creating it, so procurement functions are increasingly engaging with these businesses.
Could you explain more about how the Social Value Act and the upcoming Procurement Act could affect social enterprises?
Social Enterprise UK was involved in writing the Social Value Act over a decade ago. This legislation requires public sector commissioners to consider social value alongside economic value when spending public funds. It’s been a powerful tool for promoting social value.
Big suppliers working with the government are required to report how many SMEs and social enterprises are in their supply chains, which boosts accountability and transparency. The upcoming Procurement Act will strengthen these requirements further. For social enterprises, this is great news because it creates more opportunities to compete and to deliver their unique social impact in government contracts.
Many small businesses, including social enterprises, struggle with long payment terms. What’s Social Enterprise UK’s stance on fair payment practices?
This is a significant issue. The government’s Prompt Payment Code encourages businesses to pay suppliers promptly, yet only about 18% of businesses have signed up. Payment terms of 60 days, or even longer, can put huge strain on smaller suppliers. I’ve seen some of our corporate partners adopt zero-day payment terms for social enterprises, paying them in the next payment cycle, which is amazing but rare. We believe fair payment practices are essential, especially if businesses want to support a diverse supplier base.
What advice do you give to social enterprises trying to win contracts with larger organisations?
I’d say it’s a mix of managing expectations, networking, and effective messaging. Firstly, these processes take time: often 6 to 18 months from the initial conversation to a signed contract and payment, so it is important to build timelines like this into your business development planning. Networking is essential too; social enterprises often lack connections to key people in large organisations, so attending industry events and trade shows is important.
Finally, don’t rely on the fact you’re a social enterprise to win business. You still need to offer an outstanding product or service and communicate its value clearly. Being a social enterprise is the ‘cherry on top’, but it won’t win you the contract on its own.
Can you share any success stories where partnerships with corporates have made a real impact?
One of our standout case studies is the partnership between Zurich Insurance and CBRE. When Zurich was tendering for a facilities management provider, they explicitly required that social value and social enterprises be central to the contract.
CBRE won the tender and, from day one, 35% of the subcontracted spend went to social enterprises, with plans to increase that to 50%. This partnership has enabled businesses like Corps Security, a social enterprise and one of the oldest security companies in the world, to secure a significant share of the contract.
Another example is Tarem Services, a minority-led social enterprise providing cleaning services. Thanks to the contract with Zurich, they’ve expanded outside London to locations including Swindon and Farnborough. It’s a fantastic example of how social procurement can scale social impact.
Tell us about your Buy Social Corporate Challenge. What does it aim to achieve?
Our Buy Social Corporate Challenge is the world’s largest commitment to social procurement. Social Enterprise UK started this programme in 2016 with seven partners, and it now includes more than 30 big businesses from various industries, all committed to collectively spending £1 billion with social enterprises.
Together, they’re proving that companies of any size and sector can engage with social enterprises – and we’re on track, having hit the halfway mark toward our £1 billion goal. The impact has been significant, with thousands of jobs created and more than 1,000 social enterprises involved. It’s not just a UK initiative; other countries have been inspired to set up similar programmes. It’s great to see the global ripple effect.
Follow our Good Business Campaign
Find out more about our Good Business campaign here, and read our previous interviews:
- Robb Cunningham, Clean Growth UK Q&A
- Alan Stenson, Neutral Carbon Zone Q&A
- Sebastian Bachelier, Living Wage Foundation Q&A
- Andrea Charlson, Madaster UK Q&A
- Guenaelle Watson, 360 Workplace Q&A
Would you like to get involved? Email jo@magentaassociates.co.
