Employment requirements in public procurement : Can shared value be created?

Abstract: Social sustainability is one of the three dimensions that make up sustainable development. The social dimension has for long been seen as the weakest and has often been ignored in favour of the economic and ecological dimension. The importance of the social dimension is getting more recognition both by the private and the public sector and as a result of external pressures, companies have started to work with their social responsibility to strengthen their competitiveness on the market. From this way of working, the concept of creating shared value has been introduced by professor Michael E. Porter and lecturer Mark R. Kramer who suggests that companies can create economic value by creating societal value and thereby create shared value. They argue that companies can, by addressing a social issue and using their power, create shared values in our society. Employment requirements in public procurement is one way of addressing the social sustainability in the society and together with the prevailing construction boom and the shortage of manpower, companies must look for new places to recruit. Hence, the purpose of this descriptive research is to contribute with knowledge on how employment requirements are used in Sweden and study the development of the concept creating shared value. Additionally, it is investigated if employment requirements in public procurements can be used to create shared value. Two examples of varied character serve the basis of the empirics. The theory of creating shared value originates, as mentioned earlier, from creating social value and thereby creating economic value which, in turn, creates shared value. The study shows that, even though Porter and Kramer’s theory of creating shared value might not be fully applicable in public procurement, employment requirements can be a way of creating shared value in the society. Through collaboration between the private and the public sector, social issues such as unemployment, can be addressed and mitigated.