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CCEG SOCIAL VALUE & INTANGIBLES REVIEW As an example of what is achievable, Everledger is building a data network for tracking diamonds in circulation using their identifying features and serial codes to help eliminate crime due to fraudulent transactions. The public ledger means diamonds can be traced back to their origins, and makes it difficult to sell stolen gems not on record. Similar technology could be applied to other industries concerned with authenticity and traceability such as leather manufacturing.

Ethical and environmentally responsible supply chains One part of the UK Higher Education sector ripe for early adoption would be Scotland. Here changes in legislation involve not just the introduction of new EU procurement rules but more significantly, the Scotland only Procurement Reform Act. This highly prescriptive item of legislation brings regulated procurement activity to recurrent spend as low as £12.5k per year, as well as specific requirements for publishing and reporting on procurement strategies. Additional rules are still emerging specifically in relation to construction procurement, with Advanced Procurement for Universities and Colleges Ltd (APUC) working in partnership to support the sector in relation to these.

where multiple organisations are connected via a single ledger could be scalable, given the degree of supply chain integration and political support already garnered (Figure 2). A successful pilot using Blockchain procurement in Scotland could pave the way for roll-out across the rest of the UK university sector.

In summary, as Blockchain technology becomes more As an example of what can be done using the current common, it’s easy to see the potential for procurement. system, APUC continues to move forward using the As well as using crypto currency to purchase goods and traditional model (Figure 2) to gain greater understanding of services (underpinned by Blockchain), the technology offers a whole new way to the ethical and environmental check and monitor social and standards across the supply A successful pilot using Blockchain procurement in Scotland environmental value in the chain. All collaborative could pave the way for roll-out across the rest of the supply chain while lowering agreement suppliers have UK university sector. the cost of transactions and been prioritised based on risk and spend using in-house developed supplier assessment improving efficiency. UK Universities, through on-going tools. Human rights in the supply chain are also an increasing collaborative work and supportive regulatory frameworks, area of concern. Traditional methods and best practice along with in-house expertise in Blockchain development approaches with options for more wide ranging international (for example the Open University Knowledge Media collaboration, using the power of public procurement to Institute) has a wonderful opportunity to take the lead, including certification of procurement professionals through drive real and effective change, are being explored. qualifications underpinned by Blockchain technology It is easy to see how a Blockchain approach to this well- itself. It won’t happen overnight. But we should not miss defined procurement challenge, based on a local network the opportunity.

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February 2017

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Social Value and Intangibles Review February 2017  

CCEG Social Value & Intangibles Review (SVIR) – February 2017 Centre for Citizenship, Enterprise and Governance journal on Social Impact and...

Social Value and Intangibles Review February 2017  

CCEG Social Value & Intangibles Review (SVIR) – February 2017 Centre for Citizenship, Enterprise and Governance journal on Social Impact and...

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