7.3 Benefits

Quantifying Indigenous supply chain spend through various categories offers numerous benefits, significantly enhancing the transparency and impact of procurement practices. When industries categorize their spending on Indigenous suppliers, they gain deeper insights into their economic engagement with Indigenous communities, fostering a more nuanced understanding of where and how their procurement choices make a difference. This categorization includes third-party certified Indigenous-owned businesses, self-declared Indigenous-owned businesses, Indigenous community-owned businesses, and relationships with Indigenous communities.

Firstly, quantifying spend on third-party certified Indigenous-owned businesses allows industries to clearly demonstrate their commitment to verified and credible Indigenous partners. This certification provides an assurance of authenticity, ensuring that the benefits of procurement directly reach Indigenous communities. The transparency gained through this process strengthens trust and builds stronger relationships between industries and Indigenous communities. It also helps industries meet their corporate social responsibility objectives and aligns with investor expectations regarding ethical and sustainable business practices.

For self-declared Indigenous-owned businesses, quantifying spend is equally important. It showcases support for smaller or emerging businesses that may not have third-party certification but are integral to the economic fabric of Indigenous communities. By recognizing these businesses in their supply chain, industries can foster inclusivity and support grassroots economic development. Additionally, expressing this spend in the context of the community to which these businesses belong helps illustrate the broader impact of procurement on local Indigenous economies and social structures.

Quantifying spend on Indigenous community-owned businesses highlights a direct investment into the communal aspects of Indigenous community life. These businesses often reinvest profits back into the community, contributing to wider social, educational, and health initiatives. Industries that direct their spend towards these businesses are therefore not only engaging in economic transactions but also contributing to the holistic development of Indigenous communities.

Furthermore, the categorization of spending on relationships or partnerships with Indigenous communities represents a more collaborative and integrated approach to business. These partnerships often go beyond simple transactions and involve joint ventures, collaborative projects, or capacity-building initiatives. Quantifying spend in these areas demonstrates a deeper level of commitment to Indigenous communities, highlighting a shift from transactional relationships to long-term, sustainable partnerships.