Public Sector vs. Private Sector
Difference Between Public Sector And Private Sector
There are a few elements on which social responsibility must be handled differently by the public sector than the private sector, although the issues are similar.
It is primarily about the public sector which is bound by a different regulatory framework, and it must ensure that the requirements being set are compatible. In reality, this affects
* The possibilities for choosing suppliers because of such “Ethical” profile. The principles of equality and non-discrimination ensures inter alia which means choosing on suppliers based on nationality should not be done.
* Doubtful volumes. The public sector can not guarantee the volumes in the same way as compared to the private sector.
* The relationship between suppliers and customers are also different, and must be treated accordingly. Contracts in public sectors are generally short and are subject to competition. The private sector has greater opportunities to work with suppliers, with a longer term investment.
The procurement process can vary greatly between private and public sectors. It will also be reflected in the way that business implements socially responsibility in their purchases.