B4SI News

Driving Social Impact Through Ecosystem Building and
Procurement with SAP Corporate Social Responsibility

The Challenge

SAP, a global leader in enterprise software, is committed to unlocking the best in every business, and that means embedding sustainability at the core of business operations. For the SAP Corporate Social Responsibility (CSR) team, this translates into delivering long-term social and environmental impact alongside business value for SAP and organisations worldwide.

One area of focus within their portfolio is global investment in impact-led or social procurement. For context, traditional CSR budgets pale in comparison to procurement budgets. The World Economic Forum reports that FTSE 100 companies typically allocate $12 million USD to CSR budgets, whereas procurement spend can exceed $5 billion USD, highlighting a major untapped opportunity.

SAP recognises that true scalable impact lies not just in CSR initiatives, but in directing procurement spend toward businesses with a social mission.

The challenge is to embed social procurement into core operations — aligning it with business goals, ensuring quality and cost efficiency, and enabling systemic, sustainable change — rather than treating it as a separate or secondary initiative.

The Solution

Through a three-pronged strategy, the SAP CSR team embedded social procurement into the company’s broader ecosystem, which aligns with B4SI’s three routes to Social Impact.

First, SAP invests in ecosystem building, supporting social enterprises globally and
promoting policy and market readiness. In Europe, SAP joined the European Commission as a co-funder, supporting the Buy Social Europe B2B consortium project led by Euclid Network, Buy Social UK, and Social Enterprise World Forum, creating a more connected ecosystem of Social Enterprises across 17 countries.

Second, it drives impact-led procurement directly, by engaging the community generating $6.1 trillion in annual commerce across the SAP Business Network. SAP works alongside customers, partners, and suppliers to increase awareness for People and Planet First verification on the Network, and connections between buyers and suppliers across markets where they invest in ecosystem building (e.g. Brazil, Europe, India, and the United States).

Finally, SAP fosters employee engagement through pro bono consulting and skills-based volunteering. This hands-on involvement enhances enterprise capacity while providing employees with purpose-driven opportunities to hone their leadership skills and apply their expertise. Staff from marketing and data teams, for instance, have supported digital transformation initiatives within social enterprises. In 2024, 1,063 SAP pro bono consultants contributed their time and expertise generating an in-kind contribution of more than €7.2million euros.

The Impact

SAP’s approach to social procurement demonstrates how aligning business strategy with social and environmental impact creates shared value. By embedding impact into procurement, SAP is narrowing the gap between CSR ambitions and actual spend. One of the largest areas of spend for a company includes talent costs. Whether sourcing contingent labour, service providers, or hiring directly, there are opportunities to think differently about the partners you work with to fill your talent pipeline.

SAP CSR has strategic partnerships with innovative social enterprises – for example, such as StartSteps in Germany. Building on a successful pilot in 2024/25, the program supported through the Federal Employment Agency will continue. However, demand has far outstripped program capacity: more than 1,500 people expressed interest, yet only a small fraction (7% of all applicants) could participate due to the eligibility criteria of the government-issued training voucher. To address this gap, a new program track will launch in 2025, opening access to a much broader group of motivated participants who want to acquire SAP skills and transform their careers.

There are thousands of verified social enterprises and other sustainable organisations on the SAP Business Network, including those that provide everyday products like coffee. Coffee providers such as Change Please, Equal Exchange, and I Love Coffee can all be found on the Network. Customers are discovering social enterprises like these and making purchasing decisions based on need, cost, and quality, while also increasing investment in societal issues like:

  • alleviating homelessness (Change Please)
  • fair wages and environmental stewardship (Equal Exchange)
  • inclusive employment (I Love Coffee)

To ensure a growing pipeline of companies that can provide quality goods and services on the SAP Business Network, SAP CSR connects employees everywhere with social enterprises, helping them solve business-critical issues and enabling them to scale and thrive. Imagine the opportunity if you could unlock the discovery of potential suppliers that increase your organisation’s ability to generate economic, social, or environmental impact through every day spend.

Through its leading technology — including the SAP Business Network — and collaboration with its CSR team and investments, SAP sets a powerful example of how ecosystem building and procurement can drive large-scale social change. Its replicable model, rooted in collective ecosystem investment, impact-led procurement, and employee engagement, positions SAP as a leader in redefining procurement as a tool for sustainable, inclusive growth.

“Sometimes the easiest way to start is with something simple, like a cup of coffee. Switching your office coffee supplier to one aligned with your company’s social and sustainability goals can be a small step that makes a big difference.”

Jennifer Beason

Global Director for Impact Entrepreneurship, SAP

KEY TAKEAWAYS

SOCIAL PROCUREMENT SHOULD NOT BE AN AFTERTHOUGHT:

It’s a strategic lever that aligns business and societal needs without compromising quality, price, or efficiency.

START SMALL, THINK BIG:

Simple decisions, like choosing a socially responsible coffee vendor, can open the door to broader systemic change.

COLLABORATION IS ESSENTIAL:

Ecosystem building is foundational. No single organisation can shift procurement systems alone.

INTEGRATE ACROSS FUNCTIONS:

Social impact is most powerful when it’s embedded across departments — from procurement to HR to CSR.

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