NAIDOC Week - a time to celebrate the rich culture, identity, and achievements of Aboriginal and Torres Strait Islander peoples. But let's also remember—NAIDOC Week has its roots in activism and protest. It's a powerful reminder that while we honour the past and present, there's still work to be done.

Unlike National Reconciliation Week, which centres on fostering relationships and mutual understanding between Indigenous and non-Indigenous Australians, NAIDOC Week is driven by First Nations voices. It's a celebration of strength, resilience, and leadership within our communities.

So, as we celebrate, let's also honour the activist spirit that NAIDOC Week was built on. Real change means challenging systems and shifting mindsets. In areas like procurement and employment, Indigenous participation must be more than a symbolic gesture; it must be recognised as a strategic and moral imperative. It's about equity, empowerment, and ensuring First Nations voices are not just heard, but embedded in the decisions that shape our future.

Good intentions, patchy outcomes

Let's not pretend there hasn't been progress. Over 3,000 organisations now have RAPs. Indigenous businesses are contributing more than $16 billion in revenue and generating $42.6 billion in social value annually. RAP organisations—many of which are Supply Nation members—spent $4.6 billion with Indigenous suppliers last year. That's real money. That's real impact. And for every dollar spent, Indigenous businesses create $3.66 of economic and social value, improving lives, strengthening Culture, and building generational wealth.

But let's also not pretend that this is the norm. Because it's not. We could continue to improve these results.

Too many companies are still stuck in the "safe zone"; acknowledging Country at events, hosting NAIDOC morning teas, and calling it a day. Meanwhile, Indigenous employment targets are missed. Procurement policies are ignored. Or not audited.

Two-thirds of Commonwealth contracts that should have included Indigenous participation were exempted. Of the ones that weren't, only 20 per cent were checked for compliance; and over a quarter of those were non-compliant.

So yes, there's progress. But there's also a lot of performative noise.

Why we're still falling short

Many companies are not asking the right questions.

They're not asking how Indigenous procurement is embedded across the supply chain. They're not asking whether their head contractors are delivering. They're not asking whether their RAP is driving outcomes or just optics. And they're not acting on the responses they don't like.

And let's be honest—some of it is racism. Some of it is laziness. Most of it is convenience.

It's easier to say "we tried" than to do the hard work of building relationships, shifting culture, and holding people accountable. But that's what real leadership demands.

A multidimensional return on investment framework

We need to do this properly.

You don't establish a mine site, build an airport, or construct a city tower with a five-year horizon and a vague plan. These projects involve multiple stages, operational systems, and rigorous metrics. International industry learnings are applied, and accurate, timely, and trackable reporting is used by boards and executives. Success is celebrated, accountability is enforced, and continuous improvement is embedded in the process.

The same level of discipline and strategic thinking must be applied to Indigenous participation. If boards and executives genuinely want a return on their investment in Indigenous procurement—or social procurement more broadly—they must move beyond surface-level metrics and embrace a multidimensional ROI framework. This framework captures tangible financial returns, intangible value creation, and social impact, offering a holistic understanding of the true benefits of Indigenous engagement.

Tangible financial returns are perhaps the most straightforward to quantify. Companies that actively engage Indigenous suppliers and communities often gain access to government contracts that require Indigenous participation. For example, Commonwealth tenders exceeding $7.5 million mandate Indigenous content. Moreover, businesses that align with ESG principles, including Indigenous engagement, are increasingly favoured by large corporates and investors.

Risk mitigation is another critical financial benefit. Companies that neglect Indigenous engagement risk reputational damage and financial penalties. Telstra's $50 million fine for selling unsuitable products to Indigenous customers, and Rio Tinto's global backlash following the destruction of Juukan Gorge, are stark reminders of the cost of inaction. On the flip side, proactive engagement fosters trust, reduces conflict, and ensures smoother project execution.

Intangible value creation

This includes brand equity, innovation, and employee engagement. In today's socially conscious market, a company's commitment to reconciliation and Indigenous empowerment enhances its public image and stakeholder trust. Karen Mundine of Reconciliation Australia notes that RAP performance is increasingly influencing investor decisions.

Companies known for respectful partnerships with Traditional Owners gain a social license to operate, which can be a decisive factor in industries like mining and infrastructure.

Internally, Indigenous engagement builds cultural capability and fosters innovation. Collaborating with Indigenous businesses introduces diverse perspectives and problem-solving approaches. These partnerships often lead to improved services and products, as Indigenous suppliers bring unique insights rooted in community experience. Furthermore, employees feel more connected to their company's values, boosting morale and retention.

Social ROI

Social ROI extends the impact of Indigenous participation to communities and society at large. Every dollar spent with Indigenous businesses generates an estimated $4.41 in social and economic value. This multiplier effect includes job creation, skills development, and increased economic independence. For instance, a $1 million contract with an Indigenous supplier could yield over $3.6 million in community benefits, such as employment opportunities and local investments.

How to Translate the Framework into Action

Executive ownership - Assign responsibility to senior leaders and integrate Indigenous participation into board agendas.

Operational integration - Embed RAP commitments into procurement, HR, and project management systems.

Cultural capability - Invest in training, mentorship, and inclusion audits.

Build strong partnerships - Co-design initiatives with Indigenous communities and businesses.

Measure progress - Establish KPIs across financial, social, and reputational dimensions.

Transparency and public reporting - Publish RAP outcomes and sustainability disclosures.

Continuous learning and adaptation - Use feedback from Indigenous stakeholders to inform each RAP cycle.

The bigger picture: why this matters

This year's NAIDOC Week theme, "The Next Generation: Strength, Vision & Legacy," is a powerful reminder that young Indigenous Australians are not just the leaders of tomorrow; they are shaping the future today.

For corporate leaders, this theme is a call to action: to step up, lead with purpose, and leave a legacy that empowers the next generation. By aligning business strategies with this vision—through Indigenous employment, procurement, and leadership development—executives can ensure their impact endures beyond quarterly results.

This isn't just about procurement. It's about power. It's about access. It's about rewriting the rules of who gets to participate in the economy, and who gets to shape it. Procurement is not merely a transactional process; it's a lever for systemic change.

When Indigenous businesses are included meaningfully in supply chains, it redistributes economic power, opens doors to opportunity, and challenges long-standing structures of exclusion. It signals that First Nations people are not just contributors to the economy; they are architects of it.

True reconciliation demands more than symbolic gestures; it requires dismantling barriers and building pathways to equity. Because reconciliation without economic inclusion is just rhetoric. And we've had enough of that.

We need to build a future where Indigenous businesses are thriving, where Indigenous people are leading, and where corporate Australia is a genuine partner in that journey.

Charles Prouse is a Nyikina man with more than two decades of experience in Indigenous affairs. He is a leader in education and has a Master of Public Administration.

Footnotes

1. Supply Nation. (2024). The Sleeping Giant Rises: The Social and Economic Impact of Indigenous Businesses. Retrieved from https://supplynation.org.au/resources/the-sleeping-giant-rises/

2. Australian National Audit Office. (2022). Procurement under the Indigenous Procurement Policy. https://www.anao.gov.au/work/performance-audit/targets-minimum-indigenous-employment-or-supply-use-major-australian-government-procurements

3. Department of Finance (Australia). Indigenous Procurement Policy (IPP). Retrieved from: https://www.finance.gov.au/government/procurement/clausebank/indigenous-procurement-policy-ipp

4. Australian Competition and Consumer Commission (ACCC). (2022). Telstra pays $50 million penalty for unconscionable conduct towards Indigenous customers. Retrieved from https://www.accc.gov.au/media-release/telstra-to-pay-50m-penalty-for-unconscionable-sales-to-indigenous-consumers

5. Parliament of Australia. (2020). Inquiry into the destruction of 46,000-year-old caves at the Juukan Gorge. Retrieved from: https://www.dcceew.gov.au/about/reporting/obligations/government-responses/destruction-of-juukan-gorge

6. Reconciliation Australia. (2023). RAP Impact Measurement Report. Retrieved from https://www.reconciliation.org.au/reconciliation-action-plans/