Supplier Diversity: Corporate Social Responsibility’s Next Challenge

Supplier Diversity — Image by the author — Canva
  • It has spoken with a loud voice and forced changes in the thought process of institutions like sports to change names and get rid of the excess baggage of racism associated with racial slurs and flying confederate flags that bring back flashes of servitude, violence, and inequality.
  • It has demonstrated that it has a heart that inclines it to do the right thing in the return of millions of dollars received through our nation’s stimulus package to allow the funds to be provided to small and disadvantaged businesses that desperately need it more.
  • It has made commitments and demonstrated a mindset to be more diverse, inclusive, and provide more equality within its employee workforces.

What Is Supplier Diversity?

Why it’s important

It All Begins With Supply Chain Dynamics

Supply chain pathway — Image by the author — Canva.com

What’s the Current State of Supplier Diversity?

The challenges

  • Difficulty in being discovered by bigger companies. Having a lack of ability to ramp up expensive marketing campaigns and create awareness and branding keeps diverse suppliers from being noticed on the supply chain radar of large companies
  • Purchasing, procurement, and other decision-makers within corporate purchasing departments are not attuned to how their supplier diversity program works. This is a direct reflection of the lack of commitment to supplier diversity. Although companies preach that they have the policy to include supplier diversity as part of their corporate social responsibility initiative, often there is no practice of that policy.
  • There is still, in many instances, an underlying fixation through the corporate supply chain, that corporate bottom lines will be adversely affected with emphasis on supplier diversity, something that is entirely refuted by the evidence of those corporations that have fully embraced the supplier diversity concept.
  • Corporate purchasing departments often view diverse supplier services as a commodity and do not see the full value of working with ethnic minority or women-owned businesses.

Why Corporate America Should Have a Stake in Supplier Diversity

It’s profitable

  • Companies discover more innovative products/services for them to use or sell.
  • There is a positive increase in competition, resulting in better prices and service levels.
  • Diverse suppliers enable large corporations to serve, emerge, and engage in untapped markets.
  • Diverse suppliers purchase more of the corporation’s products and services.
  • Diverse suppliers may become acquisition candidates that allow large corporations to grow and capture markets that they otherwise might not have been able to without them.
  • It helps large corporations to be more flexible, agile, and resilient.

It’s the right thing to do

Where Do We Go From Here?

Image by the author — Canva.com
  1. Stop the empty words and walk the walk that you talk about.

How Everyone Can Play a Part in Increasing Supplier Diversity and Help Make America Be Its Best.

Making a difference one by one — Image by the author- Canva.com

“What connects us is stronger than what divides us.”

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Business attorney, entrepreneur, content marketer, and published author. I help you communicate your marketing message and generate sales. www.landerslaw.com

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Roy Landers

Roy Landers

Business attorney, entrepreneur, content marketer, and published author. I help you communicate your marketing message and generate sales. www.landerslaw.com

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