Why is this a risk?
Most businesses recognise that having a diverse supplier pool is a major competitive advantage and a powerful business tool. A supplier diversity programme aims to proactively identify, build relationships with and purchase goods and services from certified small businesses as well as enterprises owned by minorities (including women, veterans, LGBT people, and disabled persons) that can help achieve corporate objectives.
Most diversity programmes include supporting small businesses that are owned by people from ethnic minorities, women or veterans, as well as disadvantaged-owned and controlled enterprises.
Example of where this risk could affect you
Identifying suppliers that fit into one of the above categories to meet certain government-imposed criteria or community expectations to support such businesses.
What sort of suppliers could be engaged in this risk area?
Any suppliers may have conditions imposed on them, depending on company policy or government regulations.
How are these risks managed?
Diversity risks are normally managed through:
- understanding suppliers' businesses and the services that they are providing to you
- independently validating the criteria for diversity are met.
Which systems and tools do we provide as part of the Supplier Ecosystem™ Initiative to manage these risks?
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