PETALING JAYA: Every business spends money to keep its operations running. But what if they could help a small business grow, create jobs and provide livelihoods for communities?
To encourage greater corporate participation in social procurement, Star Media Group (SMG) is organising the inaugural Star Social Enterprise (SE) Open Day in conjunction with International Social Enterprise Day, observed on the third Thursday of November each year.
Led by SMG’s Social Impact team, in strategic partnership with ASBhive and the National Entrepreneurship Institute (Insken), the event will bring local social enterprises and corporate buyers together to explore procurement partnerships that deliver business value and positive social impact.
While many organisations already contribute to communities through corporate social responsibility programmes, charitable giving and volunteer initiatives, social procurement offers another way to create impact.
This is particularly relevant as environmental, social and governance (ESG) considerations become increasingly important.
Businesses are expected to look beyond their immediate operations and consider how their supply chains affect people and communities.
The Malaysia Social Procurement Country Report 2024 found that 70% of social enterprises surveyed had sold products or services to companies.
Yet, half of these transactions were one-off purchases.
The findings point to a gap between initial corporate interest and the development of a consistent customer base.
For social enterprises, a single order generates income but recurring business offers greater stability.
It allows them to forecast demand, retain employees, improve operations and expand their reach.
Not every social enterprise will be equipped to fulfil every order. Each has different capabilities and operational limitations.
Many have developed viable business models around practical social and environmental needs.
Some employ persons with disabilities, others create income opportunities for underserved communities while some transform discarded materials into useful products.
Their business models may differ but they share an ambition to combine commercial activity with a purpose beyond profit.
By considering social enterprises alongside conventional suppliers, companies can build more inclusive supply chains while supporting businesses that generate tangible community benefits.
Under the Malaysia Social Entrepreneurship Blueprint 2030, the government aims to increase the sector’s annual revenue from about RM100mil in 2022 to RM2.6bil by 2030.
Companies can begin by identifying products and services already offered by social enterprises and assessing them against their usual requirements.
For example, companies could order festive hampers from social enterprises supporting women from underserved communities, engage caterers that employ persons with disabilities or source corporate gifts made by local social businesses.
The difference lies in choosing suppliers whose businesses also create opportunities for others.
The important step is to move beyond one-off purchases and give capable suppliers opportunities to secure repeat business.
To help facilitate these connections, the Star SE Open Day will feature business-to-business matchmaking sessions, allowing corporate buyers to meet potential suppliers, explore their offerings and discuss collaborations that align with their procurement needs.
The programme will also include a panel discussion titled “Why Aren’t Corporates Buying From Social Enterprises?”
Representatives from SMG, Insken and ASBhive will examine the barriers to greater corporate participation and explore how businesses can turn good intentions into sustainable commercial partnerships.
For corporate buyers, these sessions offer an opportunity to discover alternative suppliers and explore new sourcing possibilities.
Social enterprises can showcase their capabilities, better understand corporate expectations and connect with potential customers.
The initiative reflects SMG’s wider commitment to creating positive change through its Social Impact team, which leads the group’s work across education, healthcare, community development and other areas of need.
The Star SE Open Day will take place on Nov 17 from 9am to 2pm at Menara Star in Petaling Jaya.
Corporate leaders, procurement teams and ESG decision-makers are encouraged to explore how their purchasing decisions can deliver value beyond the transaction.
For enquiries, email socialimpact@thestar.com.my.
