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Can universities use their spending power to deliver social change?

bobphotoWhen you’re living through an era of austerity, proving your economic worth at every opportunity plays a vital part in everyone’s survival strategy.

Charities, Whitehall departments, local government… they all need to crunch the numbers to make their case.

Faced with the double whammy of government funding cutbacks and falling student numbers, universities are no different. Any opportunity to demonstrate impact will be taken, whether it’s the value of hosting a conference or the contribution of international students to a city economy.

But are our universities doing as much as they could to deliver economic and social impact, particularly when you consider their considerable spending power? In recent years I’ve helped Liverpool John Moores and Liverpool Hope universities to push more spend through fair trade organisations and social enterprises. I’m now in the process of doing the same at the University of York.

New Start readers will be well aware of the broader benefits this can bring, particularly when it’s targeted at local organisations. It creates job and training opportunities, helps recycle money within the local economy and enables universities to act as business incubators – nurturing enterprises with so much more added value. For example, York already has 12 social enterprises run by either staff or graduates.

Universities are uniquely positioned to take the lead on this agenda, both as academic thinkers and by putting their money where their mouth is. Aside from the moral imperative, it makes business sense. There’s a growing body of evidence to suggest that a university’s stance on fair trade and social enterprise is an important factor for students and their parents, employers and other stakeholders.

The UK University Central Admission Service (UCAS) for undergraduate applicants surveyed its applicants on attitudes towards business responsibility and sustainability. Some 42% of student applicants said ‘teaching sustainable development on my course will help me to secure the job I want’ and 57% want to hear more in prospectuses about the institutions approach to sustainability. Similarly, a recent survey of graduate trainees working in business showed that 70% agreed sustainability is important to business and can create new opportunities and jobs. However, only 35% of them felt they had received sufficient training in sustainability from their universities.

There are also a number of emerging league tables which rank both universities and programmes with regard to their performance in these areas. The People and Planet Green League ranks UK institutions by their sustainability performance with a key measure being to what extent sustainability is embedded in the curriculum. Also the Beyond Grey Pinstripes survey provides an alternative ranking of business school MBAs based on the integration of responsible management education in the curriculum.

There are currently 140 Fairtrade universities in the UK, while 25 institutions have secured funding from UnLtd to help create start-up social enterprises. In the increasingly competitive world of higher education – where most students, whether home-grown or international, are fee-paying – it’s a way to stand out from the crowd. The University of York was an early mover in achieving Fairtrade University status and provides an excellent selection of Fairtrade-certified products available right across the campus. The university’s head chef Andrew Wood also decided to use fair trade products such as Divine Chocolate produced by social enterprise Divine for all external and internal events. It adds to the story of why we are different.

But this shouldn’t just be a case of tinkering at the edges to get good PR. It needs to be an ethos that runs through the institution, influencing spending decisions across the board. The approach I’ve taken at my previous universities has been to set up a Fairtrade steering group made up of senior staff from across the institution. Crucially, this includes the procurement team – the people who ultimately put spending plans into practice.

Aside from establishing a Fairtrade steering group, there are practical steps all universities can take in achieving Fairtrade status. Firstly, staff and students and procurement need to work together to select the products which can be switched to Fairtrade. It is then key to communicate these decisions to staff and students by using annual events such as Fairtrade Fortnight to raise awareness of the social, economic and environmental benefits procuring Fairtrade products brings to disadvantaged communities. Furthermore, embedding issues of global trade justice into the university curriculum is a great way of  creating conversations between staff and students on how procurement and consumption can have an impact on sustainable development.

There are also regional purchasing consortia in higher education that can speed up the process by preparing frameworks and contracts that help universities target social enterprise suppliers.

Procurement is an area that all institutions are looking at as a way to drive better value for money. It’s also an area that can deliver better social value from their spend.

Bob Doherty
Bob Doherty is professor of marketing at The York Management School, University of York. He will be speaking at the biennial Conference on University Purchasing (COUP) in Liverpool on 10 September, www.coup.ac.uk
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