Social enterprise engagements may require more flexibility as they chase ESG objectives
With an estimated US$13 trillion annual global procurement spend, the evidence is there that this model can transform businesses in the near future. However, although social enterprises can be effective partners in achieving companies’ ESG goals, the companies themselves must first overcome some structural barriers that come with traditional corporations.
For instance, the majority of the social enterprise respondents claim that payment and delivery terms are the common challenges in doing business with corporations.
Increasing corporate business flexibility will not only solve that issue but also help accelerate progress towards tangible ESG metrics. Some corporations have also shown creative approaches in solving hurdles within their partnerships with social enterprises, such as introducing advanced payments, supporting capacity-building accelerators, and sharing in-house expertise.
More importantly, the flexibility social enterprises are flexibilities that modern, agile businesses working in a hyperconnected world need to make anyway, and already are across industries.
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