Organizations of all sizes are increasingly seeing the value of doing business with local supply chains and specifically with diverse businesses within their communities. Although companies understand in theory the value of implementing a diverse supplier business strategy, there are many that have not incorporated a supplier diversity strategy within their organization.
The public sector to varying degrees has understood the value of engaging with local and diverse suppliers and has added language within their procurements to ensure participation. Studies have shown that local and diverse supplier engagement will:
- Strengthen the local economy
- Increase employment
- Reduce crime
- Improve social services
- Improve educational opportunities
When communicating why supplier diversity is important to an organization, some of the reasons given can include:
- It is good business to do business with the communities that support your business. It improves the community tax base and leads to social and economic development
- Diverse suppliers can introduce innovative services and solutions to your business, as well as an expanded talent pool
- Organizations can attract socially conscious consumers who will do business with you
- Diverse suppliers can open new markets to a company
- A commitment to supplier diversity supports corporate social responsibility, which is linked to employee retention
- Meeting the regulatory requirements of government and corporate organizations and demonstrating a history of commitment to working with diverse suppliers.
