Maximising “Community Benefits” in public procurement: tensions and trade-offs

This study aims to illuminate the challenges involved in implementing community benefits (CBs), a sustainable public procurement policy that ensures that there are positive social and economic outcomes for the local community when public money is spent on goods, works and services.

Interviews and focus groups were conducted with public sector buyers and suppliers in Wales with experience in implementing CBs. Resource dependence theory was used to examine the extent to which dependence on resources effects CBs implementation.

Whilst the study confirms that implementation of CBs improves economic and social outcomes, there can also be challenges for public sector organisations and their constituent supply chains. These include tensions between CBs and other policies, differing views between buyers and suppliers, and the unintended consequences of promoting one form of CBs over another.

The research found that Welsh Government influences the buyer-supplier dyad through regulatory and financial power. We elaborate on resource dependency theory by adding four constructs (powerful stakeholders, intra and inter organisational issues, challenges and enablers) to better understand the flows of power and resources in this research context.

Buyer and supplier practitioners and policymakers may find the factors leading to successful CBs implementation useful, such as ensuring closer communication and liaison at early contract stages.

Community benefits are aimed at improving socioeconomic issues through public procurement.

This study addresses the need for research into how public sector organisations and suppliers seek to implement socio-economic sustainability measures, and the lack of research on CBs implementation to date. It is also novel in adopting a dyadic approach and a resource dependency perspective.