Thoughts on social buying in Lithuania

Lithuania, having made its procurement green in the last three years, is now working to make it socially responsible. We at OCP are supporting the design, data, and technology through our Lift impact accelerator. Six months into the reform to drive social value through better jobs, inclusion of the marginalized, equality and access to procurement, here are a few early thoughts on how it is going.

That’s why the government is using a bottom-up rather than a mandatory top-down approach. The Public Procurement Office developed a set of non-mandatory social criteria, including equal pay, inclusion of people with disability, and work-life balance. It has been promoting the uptake through:

• Training over 600 buyers and suppliers
• Creating an online network of early adopters to exchange experiences
• Establishing a direct phone line to consult buyers on social criteria application
• Deliver positive encouragement through public recognition and showcasing good examples
• Support with annual planning to select public procurement that can drive social value
• Creating an inter-institutional working group for regular reflection and joint planning.

The Public Procurement Office (Viešųjų pirkimų tarnyba) is setting up systems to collect data about social criteria use in real time to account for its uptake publicly. It intends to use this data to incentivize institutions to increase adoption through positive competition.

The government plans to use the lessons learned this year to decide on the next steps in developing the policy further.

There is dilemma is between dictating change mandatory from the top-down and a bottom-up, non-mandatory approach. The government is struggling with this shift in mindset. As procurement has been used increasingly to pursue multiple policy objectives, especially environmental ones, procurers talk about excessive requirements. Some have been overwhelmed with balancing environmental, social and more traditional procurement objectives (i.e. effectiveness, efficiency, competition, etc.).

It is also hard to avoid a compliance-driven approach. Public buyers have been traditionally particularly compliance-driven, so encouraging going the extra step is hard.

But making social procurement optional and energizing social buying bottom-up is a feasible option.

Here are some social procurement-specific tips I heard recently, especially from Livija Šepetytė and Lina Siksniute-Vaitiekuniene, whom I met at a recent social procurement training by Lithuanian Social Business Association in Vilnius:

• Clarify the WHY beyond compliance. Social procurement is a great opportunity to find meaning in what has traditionally been considered a tedious procurer role. Intentionality and clarity around the impact of specific procurement on society are powerful drivers for buyers to try their best.
• Make sure leadership is genuinely on board. Procurement officers should not be alone; they need real support from their management to ensure alignment with organisational goals and encouragement.
• Think about risks well ahead. There inevitably will be errors and step-backs. Space for mistakes and learning is important in encouraging procurers to explore the new territory of socially responsible procurement.
• Consult, consult, consult. Social procurement, especially, can benefit from early and comprehensive market consultations. It is essential to be creative and organise inclusive discussions with local markets to grasp social issues a particular procurement can solve and mirror that in procurement requirements. Gdynia municipality in Poland, for example, included more than 1,000 stakeholders through consultations to redesign its social services. Ignitis Group‘s Livija Šepetytė said, “Blindly including a social tender requirement without consulting the market is a straight way to failure.” If you’re looking for an excellent example of sustainable procurement within SOEs, especially regarding management and quality control, Livija is your go-to person.
• Think about what makes sense for your context. Food procurement, for example, can help solve different societal issues from infrastructure. Buyer size, geography, sector, or demographics are important factors in selecting the highest point of contribution. Take time to decide how best to drive social value.

If you’ve read this piece and have ideas about accelerating social procurement in Europe, you know where to find me. Till then, keep it social!

Photo credit: Dan Villef