Council contractors which pay a living wage, create jobs and trade in an “ethical way” are the first to gain a new Birmingham City Council “kite mark”.

In future all firms who supply more than £200,000 of goods and services to the council each year will be obliged to comply with the new Birmingham Charter For Social Responsibility.

Currently that number totals 505 firms which, as existing contracts come up for renewal, will have to prove they are decent employers, source supplies from Birmingham first, create jobs locally, trade in a green and ethical way and put something back into local community.

If they come up to scratch they can put a ‘B’ for Birmingham business charter mark on their vehicles, letter heads, websites and uniforms.

Among the first 17 firms to receive the award is Amey the city council’s roads contractor, house builder Wilmott Dixon and Mytim Active, which runs Birmingham’s municipal golf courses.

Cabinet member for contracts and performance Stewart Stacey said the charter was about squeezing extra value from the £1.2 billion the council spends on procurement.

He said: “This is about getting extra value for Brummies but also about transforming the way of doing business in our city as whole. In fact it is about creating a new Birmingham way of doing business.”

He said he did not want companies to do this ‘just because it is in their contract’ but hoped they would see the value in being socially responsible.

He highlighted the fact that some firms have voluntarily adopted the charter – including accountants KPMG, uniform maker Beeline and Wolverhampton based social enterprise Revolver.

Coun Stacey added that as well as the 17 charter award winners, a further 35 companies were working on their applications.

Council leader Sir Albert Bore said the Charter was an important part way to use the council’s purchasing power to drive local employment and create apprenticeships for young people.

He added: “I also want companies to be partners in our communities. It is about employers being an integral part of the communities.”

Among those getting the badge was highways contractor Amey. Managing director Nick Gregg said that as a major employer in Birmingham they want invest in and support the local community.

“We understand the positive impact we can have in the areas in which we operate,” he said.

Midlands chairman of KPMG Mike Steventon added: “As a business we strive to be an active member of the community by hiring local, supporting neighbouring business and schools and committing to protect the environment we work in.”