Diversity & Equality

Supplier Diversity

Supplier diversity takes creative and proactive steps towards ensuring equal opportunities for under-represented businesses, such as ethnic minority-owned, women-owned and disabled-owned to bid for business (contracts and procurement opportunities) with the private sector.

This is a new and growing area of activity relating to diversity and equality in the UK and in Europe more generally. MDA provides a range of services and advice in this area, in part drawing on experience gained to date in the UK but also relating this to the considerable experience and expertise developed in the US over recent years.

The business case for Supplier Diversity

One of the key arguments for developing supplier diversity as part of an approach to diversity and equality, and corporate social responsibility more generally, is the development of the business case. Considerations include:

• In a growing, vibrant and flexible economy, with the inevitable mobility of people, goods and services, diversity is increasingly seen as a business asset. As well as being seen as competitive, and in order to grow, it is important for organisations to reach out to untapped resources that diverse suppliers represent. Products and services offered to consumers should incorporate a wider audience and understanding of a range of populations and communities.
• As part of their approach to diversity, companies and organisations are beginning to recognise the business benefits of working with under-represented businesses. For larger organisations, often these form part of their corporate social responsibilities. More generally, more organisations are beginning to incorporate diversity principles into their purchasing policies.
• Taking such action can stem from enlightened self-interest. Companies and organisations need to be able to service a culturally diverse community and client base. Under-serviced and under-represented communities profit from market creation and economic stability. By promoting supplier diversity, companies and organisations in the wider community benefit, creating a 'win-win' solution for all.

Benefits of supplier diversity

• A wider and more loyal customer base
• Increased flexibility, being able to identify changes in the market place and react to them quickly
• Greater innovation and forward thinking
• Increased reputation as a socially responsible company which takes diversity seriously
• Risk reduction: a guard against accusations of discrimination
• Potential widening of the customer base

MDA have been involved in a range of initiatives around supplier diversity and are in a position to advise companies and organisations on how to begin to develop supplier diversity, and/or to consolidate approaches already in place.

Some of MDAs recent work has been to support and advise a major initiative across Europe on supplier diversity. This is Supplier Diversity Europe that promotes supplier diversity across Europe. It is a membership-driven and European based project and focuses initially on five countries, including the UK, Germany, Sweden, the Netherlands and France. A range of companies are involved in the Forum, and further information is available atwww.migpolgroup.com/forum/