Supplier diversity has been a trending topic for the past year, and it's showing no signs of slowing down. And rightly so, it is a great way to bring much-needed business to minority-owned businesses and help bring them into the mainstream. The term supplier diversity is used in the business world to describe efforts to increase the number of businesses owned by minorities or by women that are included as potential suppliers or vendors for a company's purchases.
Supplier diversity can be a tricky concept for businesses to grasp. It's important to understand the different categories of suppliers and how each one can benefit your company. There are three primary supplier diversity categories, SMEs (small and medium enterprises), MBEs (minority-owned businesses), and WBEs (women-owned businesses). Good sourcing programs will target each of these categories. As you begin to develop your supplier diversity programs, make sure you include these three categories as well as smaller subcategories like HUBZones and VOSBs (Veteran-Owned Small Businesses).
Likewise, the need to amplify diversity, equity, and inclusion is no secret. You’ll hear this over and over from leaders of some of the largest companies in the world. Diversity is a critical key to innovation and profitable growth. Yet in spite of the talk about the importance of diversity and inclusiveness, very few organizations are able to achieve it.
In an increasingly diverse and global society, the need for not just embracing diversity but also amplifying equity and inclusion is more vital than ever. Organizations that are able to achieve and maintain this balance are ultimately meeting their goals of creating a culture that people want to be a part of. It often requires organizations to take deliberate action and develop a plan to move towards this goal. No organization is completely immune to the challenges of achieving diversity, equity, and inclusion but there are three very important keys when it comes to moving your organization forward.
Infrastructure
What does it mean to practice diversity, equity, and inclusion under the umbrella of infrastructure? Large organizations that strive for diversity, equity, and inclusion in the workplace cannot ignore the role infrastructure plays in achieving cultural transformation. The starting point for the creation of diversity and inclusion programs and large-scale equity work is understanding organizational infrastructure. Organizational infrastructure is the hidden foundation of any business, organization, network, etc. It consists of the systems, processes, values, and culture that have been implemented by an organization to support its growth and development.
In most cases, it’s the “how” in the “how we do things around here.” Not only do organizations need a solid foundation in order to house and support growth on the inside, but this framework is also important to understand the significance and importance of those engaging with your organization externally. Understanding the significance and importance of the external audience as a whole doesn’t just help with organizational goals, but brings in intrinsic benefits and challenges you to think about how to engage with those who are not yet connected while learning about what it will take to help them join in on what you have built.
Leadership Buy-in
Diversity and inclusion have been touted as the solution for achieving cultural symmetry in the workplace. But what happens after all the outside hires are made and the budgets have been spent? In most cases, most organizations find themselves right back where they started — watching diversity initiatives come to a grinding halt as initiatives fail to take root. And the main question at this point is: why don’t we talk about leadership buy-in in achieving diversity, equity, and inclusion when we talk about diversity and inclusion?
Leadership buy-in is one of the factors that make a difference in the speed of success of diversity, equity, and inclusion initiatives, and it is absolutely essential. It’s how companies create space and opportunity for candidates from marginalized groups to make the leap into corporate America. While many organizations have diversity programs, organizational leaders may not have buy-in or support for the program from top executives or board members. By developing buy-in from key leaders, your efforts can be viewed as a strategic priority instead of an “add-on” to existing business practices. A successful diversity and inclusion program requires changes in culture, behaviors, and processes to support the achievement of stated outcomes.
Diverse Suppliers
Diverse suppliers are essential to diversity, equity, and inclusion in large companies. Supplier diversity is defined as “the participation of businesses in the marketplace that have historically been underrepresented or disadvantaged in winning business with firms in similar supply chain segments.” Although this statement has many definitions, the concept itself remains the same; it seeks to eliminate bias between buyers and sellers. The premise of the practice is based on the idea that, if all available businesses are fairly given opportunities to compete for future opportunities then there will be no bias.
For example, if you were to walk into Apple and ask anyone in a blue shirt if they had diverse suppliers, what do you think they would say? Diversity is an important aspect of Apple’s brand identity. Apple’s diversity scorecard shows that 60 percent of retail team members and more than 50 percent of retail leadership in the United States come from underrepresented communities. Relatively, it is not surprising that the company has made diversity a priority in the procurement of materials for its stores as well.
Granted, we have all heard about the business case for diversity and inclusion — it’s a decision that should be motivated by data and the pursuit of bottom-line results. But at the end of the day, we run businesses because we long to see our mission come to life. Many organizations seek change in diverse communities because it’s what’s right. To truly increase diversity, equity, and inclusion inside your organization, the key is to make it part of your entire culture from the highest levels down. It ultimately boils down to understanding that if you want to impact change and create a sustainable culture shift, diversity needs to be incorporated into every aspect (down to the hiring process).