Social return on investment in the public sector
Open accessAbstract
Purpose: Social return on investment (SROI) is a systematic way of incorporating social values of different stakeholders into public sector decision-making on sustainability. This study aims to identify salient factors that influence SROI implementation. Design/methodology/approach: The interactions of four Dutch municipalities and their social enterprises were examined, by analyzing relevant documents and interviewing key actors. Findings: External forces appear to have little influence on SROI implementation. Management systems, legal restrictions in relation to privacy and the administrative burden appear to hinder SROI implementation. Findings suggest that trust among the parties involved and their representatives is a major driver for SROI development. SROI is not measured well enough, which complicates analyzing and reporting its development. Research limitations/implications: Achieving collaboration through trust is a characteristic of stewardship theory, and therefore useful for studying social sustainability. Combining agency and stewardship theory provides useful insights concerning the application of control mechanisms versus empowerment. Practical implications: Barriers can be overcome by informing and engaging suppliers in SROI initiatives. Furthermore, findings of this study suggest that it is easier for municipalities to incorporate SROI when social firm activities are insourced. An independent procurement function stimulates SROI development. Engaged professionals can make the difference in SROI policy implementation, more so than written policies. Social implications: SROI enables social sustainability. SROI can be used by public agencies to provide meaningful activities for the long-term unemployed and underprivileged adolescents. Originality/value: The study is the first empirical work that relates public procurement to SROI implementation and its effect on suppliers. The findings provide valuable insights into government influence on social enterprises.
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Organisational leadership is a crucial facilitator for GPP engagement, particularly regarding environmental, human rights, philanthropic and safety issues.
“Organisational leadership is a crucial facilitator for GPP engagement, particularly regarding environmental, human rights, philanthropic and safety issues (Bansal & Roth, 2000), including management support (Vluggen et al., 2020).”
From Green public procurement as an effective way for sustainable development: A systematic literature review and bibliometric analysis (2025) · cites this paper as Vluggen et al., 2020
Management support is a facilitator of GPP.
“Management support Vluggen et al. (2020)”
From Green public procurement as an effective way for sustainable development: A systematic literature review and bibliometric analysis (2025) · cites this paper as Vluggen et al. (2020)
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- Authors
- Vluggen, R., Kuijpers, R., Semeijn, J., & Gelderman, C. J.
- Affiliations
- Open University of the Netherlands (NL)
- Venue
- Journal of Public Procurement
- Publisher
- Emerald
- Published
- 2020-04-15
- Volume
- 20
- Issue
- 3
- Pages
- 235-264
- ISSN
- 1535-0118 (ISSN-L)
- 2150-6930
- OpenAlex
- W3020672786
- Cited by
- 46
- References
- 76
- Citations by year
- 2026: 5 · 2025: 6 · 2024: 6 · 2023: 8 · 2022: 18 · 2021: 1 · 2020: 2
- FWCI
- 7.73
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- Locations
- Journal of Public Procurement (publishedVersion, cc-by)
- Research Publications (Maastricht University) (publishedVersion, cc-by)
- DSpace (Open University in the Netherlands) (submittedVersion, cc-by)
- Research Publications (Maastricht University) (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Public Procurement and Policy
- Social Sciences › Public Administration › Public Policy and Administration Research
- Social Sciences › Economics, Econometrics and Finance › Finance › Community Development and Social Impact
- Keywords
- social return on investment, social enterprises, public sector decision-making, social sustainability, municipalities, public procurement, trust, stewardship theory, agency theory, implementation barriers, supplier involvement, insourcing, long-term unemployed
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