In today’s economy, businesses are looking for a competitive edge. Many are finding that edge through Aboriginal procurement. Canada’s estimated 34,000 Aboriginal companies are open for business and ready to provide the goods and services the economy needs to forge ahead and create jobs and prosperity for all Canadians.
A good Aboriginal procurement program helps organizations advance their business case for inclusion. It is a hallmark strategy designed to strengthen corporate social responsibility and enhance relationships with the Aboriginal community for the benefit of both sides.
It also makes good financial sense! Engaging the Aboriginal market will help entire communities become fully-participating members of their local economies and, by extension, the Canadian economy as a whole.
Many progressive organizations work with Aboriginal businesses to not only purchase products and services but also to develop long-term, strategic partnerships. In 2001, the federal government conducted more than $262.6 million worth of business with Aboriginal suppliers. By 2003, that number had risen to $487 million.
Corporate Canada is also keeping pace — in 2007, oil giant Syncrude announced that its dealings with Aboriginal businesses over the past 30 years had surpassed the one billion dollar mark. Off-shore investors have also begun investing in Canadian Aboriginal businesses.
Canada’s Aboriginal companies are open for business and, today, our nation stands at the crossroads of a unique procurement opportunity. Many of Canada’s larger businesses are forging ahead with Aboriginal procurement relationships. Yellowknife-based Diavik Diamond Mine has spent more than $1.5 billion with Aboriginal businesses since 2000 and, in the past ten years, Manitoba Hydro has purchased goods and services from Aboriginal businesses worth a total of $300 million.
The reasons for this upsurge of interest by corporate Canada in Aboriginal businesses are varied. One factor that is often cited is that companies enter into business arrangements with Aboriginal firms in response to legislation and land claims issues. However, a study, carried out in 1997 by the Saskatchewan Indian Federated College, reported that no company said they were compelled to work with Aboriginal businesses because of legislation or licensing requirements.
In the same study, 16 per cent of businesses polled said they were motivated by good corporate citizenship while the overwhelming majority of 84 per cent said their reason for supporting Aboriginal procurement was that it made good business sense. More…
