A supplier diversity program is an organization’s documented intent and program to provide economic development opportunities for small, diverse business enterprises, which include, but are not limited to, small enterprises, minority, women and disabled veteran-owned suppliers. In other words, it is a corporation’s commitment to work with underutilized minority-owned vendors as suppliers.

Most corporations define diverse suppliers as a business enterprise that is at least 51-percent owned, managed and controlled by one or more of the following:

  • Women
  • Minorities: African-American, Hispanic-American, Native-American or Asian-American
  • Service-Disabled Veterans
  • Lesbian, Gay, Bisexual or Transgender Individuals

In the past, many companies that practiced supplier diversity felt that they are making a sacrifice just to contribute to society, or are merely doing these non-mainstream businesses a favor. However, minority-owned businesses are no longer non-mainstream!

Corporations who are committed to diverse vendor relationships have a lot to choose from! According to research from The Business Journals SMB Insights group, the number of minority owned small and mid-sized businesses has grown by 79% over the last 10 years, reaching 11.1 million.

This growth is about 10 times faster than the 7.6% overall growth rate for U.S. small businesses during the same period. These businesses employ more than 6.3 million people and generate more than $1.8 trillion in revenue annually, according to the research.

Corporations with supplier diversity initiatives find that there are significant benefits to utilizing diverse vendors in their buying process – not only for suppliers and their supply chains, but also for their business. Minority-owned businesses play a vital role in creating jobs and driving economic growth in our communities. Having a diverse and inclusive supply chain is a social and economic imperative.

According to studies, companies that focuses “heavily on supplier diversity” usually generate a greater return on procurement investments than the typical business.

Each year, the Minority Business Network convenes to begin the process of selecting The Corporate 101, a prestigious list of corporations that fully embrace supplier diversity. The board considered such factors as senior-level support of supplier diversity, innovative supplier development initiatives, mentor/protégé programs and participation with minority supplier development councils.

The Corporate 101 is a testament to the important work of supplier diversity and its impact on the global economy. Take a look at the list here