BERLIN (Reuters) – SAP will try to allocate 5% of its procurement spending to social enterprises and diverse businesses by 2025 to encourage greater social and environmental responsibility.
The German software group, which has 440,000 clients, appealed on Tuesday to other companies to join it in supporting small businesses owned and run by women or minorities.
SAP’s procurement initiative follows its launch in June of a product to help firms track greenhouse gas emissions in supply chains, backing a view that being transparent about their carbon footprint will be good for business.
Video: Seeing an acceleration in digital transformation, says IBM Services (CNBC)
The new initiative relates to so-called addressable spend, the share of a company’s procurement budget that can be allocated to social or diverse enterprises, which in SAP’s case equated to up to $60 million a year.
“We all need soap in our washrooms, landscaping for our offices, food and drink in our cafeterias, marketing services and office supplies. These and many more are all products and services provided by social enterprises and diverse businesses,” SAP board member Adaire Fox-Martin said.
“This is money we are spending anyway. Why not spend it with suppliers who are delivering social impact as well?”
(Reporting by Douglas Busvine; Editing by Alexander Smith)
News organizations have pressured tech giants for years to pay for content.
Sundar Pichai, the CEO of Google parent company Alphabet Inc., announced the move Thursday in a blog post, opening up about “enduring” memories of his father reading the newspaper each morning.
“I have always valued quality journalism and believed that a vibrant news industry is critical to a functioning democratic society,” Pichai wrote.
The chief executive said the $1 billion investment in news publishers is their biggest financial commitment to journalism to date. He said the company is aiming to create a “different kind of online news experience” through the Google News Showcase.
The showcase, which will initially appear in Google News on Android devices, will feature curated news stories on the platform. Pichai said he hopes the service will “give readers more insight on the stories that matter” as well as help publishers “develop deeper relationships with their audiences.”
It will soon launch on the Google News app on Apple iOS devices and be available through Google’s search function in the future.
“This approach is distinct from our other news products because it leans on the editorial choices individual publishers make about