The Corporate Social Responsibility (CSR) of Supplier Diversity

Today’s business and economic world is changing at an unprecedented rate. The world is growing more socially conscious, fueled by the exponential growth of information sharing and knowledge resources. With all of this economic, sociological and technological change, corporations are responding by implementing Corporate Social Responsibility (CSR) efforts.

The idea of Corporate Social Responsibility has grown from a fringe concept, to a common practice, with many Fortune 1000 companies creating entire CSR departments, dedicated to developing a corporation’s specific CSR initiatives. Sustainability, safety, community outreach and, in particular, diversity are some of the key CSR issues facing companies today.

Our nation is changing demographically as much as it is changing economically. By the year 2050, the US Census Bureau anticipates that more than half of the nation’s population will be African American, Asian and Hispanic. This affects not only your customer base, but your supplier base as well.

One way for large corporations to establish roots within our growing communities is by reaching out to qualified diverse suppliers. Diverse suppliers offer a link to the communities in which your customers reside. By ensuring diversity within the supply chain, corporations are providing direct support of our communities that also need to thrive as consumers, creating a symbiotic relationship that sustains a corporation going forward. The practice of diversity and inclusion in the supply chain is no longer progressive thinking, it is essential thinking.

In the (not too distant) future, the idea of Corporate Social Responsibility will become antiquated. So closely will current CSR initiatives become ingrained in the everyday mentality and process of corporations, the need to make such a distinction will no longer be necessary.

As corporations mature and begin to reach that point of sophistication, it is essential for these companies to embrace diversity and other CSR initiatives in order to both strengthen the company and the community. One cannot survive without the other, and the corporations that are slow to realize this will slowly be replaced by those who see the direction our world, our society and our economy is heading.

As corporations mature and begin to reach that point of sophistication, it is essential for these companies to embrace diversity and other CSR initiatives in order to both strengthen the company and the community together. One cannot survive without the other, and the corporations that are leading the efforts in this area will become stronger, more respected, and market leaders as the convergence of business, social responsibility, and community involvement come closer together.

Diversity in the Workplace, Still a Priority?

Is Diversity in the workplace still a priority? Does it still have the same level of importance in this economic time?

It should! And, possibly, it might even be more important than it once was. Allow me to offer an explanation.

Every company appears to be cutting costs, reducing staff and doing anything possible to lower its operating costs, as if they are in total survival mode. That is understandable, considering the economic meltdown that occurred. However, I wonder how much thought or strategy was invoked while reducing staff as it relates to positioning themselves for future success.

I believe that diversity can be part of a strategy to help your company grow. Whether we are talking about full-time employees, contract workers, or supplier diversity, all can be positively leveraged to contribute directly to your future expansion plans.

Specifically, if you are trying to establish your product or service in new markets, new countries, specific cultures, or are marketing to specific age groups, etc., having a diverse base of employees and suppliers can significantly contribute to faster execution and ultimately help in achieving your goals.

• Having a diverse employee base provides instant access to various backgrounds, cultures, experiences, environments, and points-of-view
• Trying to solve a problem within a homogenous group might have one answer, and solving that same problem within a diverse group may have multiple answers, possibly resulting in more expedient, more cost effective, or other creative approaches
• Working with a diverse supplier base can provide the same leverage when companies are seeking solutions

Can you grow without diversity? Possibly you can. However, diversity is an ingredient in the overall recipe. Without one ingredient you can still make a cake, but the cake won’t be sweet without sugar, won’t be chocolaty without cocoa, and won’t be tall without baking powder. Even if you have all the ingredients, adding something different, something you haven’t tried before, can really turn your cake into something special.

I have always believed that one strength of America is our diversity. So many different people and so many different groups have contributed to the overall success of America and its history. It’s America’s story. It is that very story that leads me to believe that a focus on diversity in the workplace can only lead to a stronger, more resilient and prosperous company.