How compliance imperatives stifle the impact of social procurement

Since their introduction, Indigenous procurement policies have exceeded their mandated targets in the construction industry and thus been promoted as an effective social procurement initiative to increase Indigenous peoples' participation in the economy. However, despite the claimed success of these policies they have been found to suffer from poor implementation and compliance monitoring. It is thus unclear if Indigenous procurement policies generate social value for Indigenous businesses and communities. Addressing the lack of knowledge in this area, this empirical paper presents the results of 18 interviews with Indigenous contractors to document the impact Indigenous procurement policies have on the businesses they are meant to benefit. Despite the claimed successes of Indigenous procurement policies, the results indicate that Indigenous contractors may suffer from being used by larger companies to 'tick the box' and comply with the requirements of Indigenous procurement policies, without being invited to compete for ongoing work packages or employment on the live project. It is concluded that, if Indigenous procurement policies are to create social value, greater commitment may be needed by industry and policymakers to realise the opportunities these policies create. This research has implications for Indigenous procurement policies, social value theory and practice. These implications include theoretical and practical insights on what to avoid to maximise the impact of Indigenous and other social procurement strategies more broadly, as economies recover from COVID-19.