Letterworks Blog

CSR valued at 10% of Price

Posted by: Letterworks on: 8th March 2010

It was with mixed feelings that we got the scores of a recent (unsuccessful) opportunity to tender to a county council.

The good news was that Letterworks scored highest (out of 30 companies) in the Corporate Social Responsibility marks. We were also in the top quartile for marks awarded for Health and Safety, financials, organisation, environmental and quality control factors.

The bad news is that all of those marks are eclipsed by the score for pricing. All of the other factors put together is less than the number of points awarded for pricing. 25 points awarded for CSR and 250 for prices.

Therefore for a company like us, all of the good work we do that can be proven historically is wiped out by the hypothetical pricing mark awarded. (It is clearly stated that the prices required are not binding and are illustrative only.)

My gripe is that companies can and do submit ridiculously low prices knowing that there will not be any redress when they don’t honour them.

Of course I know that competitive pricing is essential and we wouldn’t still be in business if we didn’t have a realistic cost structure, but are these authorities really valuing hypothetical prices ten times more than CSR. The answer unfortunately is yes.

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