The percentage of spend that goes to suppliers from diverse backgrounds, such as minority-owned or women-owned businesses.
Businesses are made up of people, and people are diverse. It makes sense, then, that diverse businesses contribute to a thriving economy. One way that businesses can promote diversity is by tracking their supplier diversity, meaning the percentage of spend that goes to suppliers from diverse backgrounds, such as minority-owned or women-owned businesses. This key performance indicator can shed light on a company’s commitment to supporting underrepresented groups and can lead to actionable insights for improvement.
Supplier Diversity: Why It Matters
When a company invests in supplier diversity, it’s not just a feel-good gesture. It can have a significant impact on the economy and even the business itself. Research has shown that diverse suppliers tend to be more innovative and offer different perspectives, which can lead to better products and services. Additionally, supporting diverse suppliers can help to build stronger relationships with customers who value diversity and inclusion.
Supplier diversity also has a ripple effect on the wider community. When diverse suppliers are given opportunities, they can grow their businesses and hire more diverse employees. This can help to reduce economic disparities and promote social equity. By tracking supplier diversity, companies can hold themselves accountable for making a positive impact on the world.
Celebrating Diversity in Business Spending
Tracking supplier diversity is not just about meeting a quota or checking a box. It’s an opportunity to celebrate the diversity that exists within the business community and the world at large. By seeking out diverse suppliers and giving them a chance to succeed, companies can help to break down barriers and promote a more inclusive economy.
One way to celebrate diversity in business spending is by highlighting diverse suppliers in marketing materials and on social media. This can help to promote their businesses and show customers that the company values diversity and inclusion. Additionally, companies can host events or webinars that feature diverse suppliers and give them a platform to share their stories.
Another way to celebrate diversity in business spending is by partnering with organizations that support diverse businesses. For example, a company might partner with a local women’s business center to identify and support women-owned businesses in the area. By working together, businesses and organizations can create a more robust ecosystem that supports diverse suppliers and promotes a more inclusive economy.
Tracking supplier diversity is just one way that businesses can promote diversity and inclusion. However, it’s a powerful tool that can lead to meaningful change. By celebrating diversity in business spending, companies can build stronger relationships with customers, promote social equity, and create a more innovative economy. So let’s raise a glass to supplier diversity and continue to push for a more inclusive world.