From checking the box to driving impact – Perspectives on how to develop a supplier diversity program that is less narrowly scoped and more wholeheartedly adopted

Abstract

Supplier diversity programs are a concrete way for companies to act out Environment, Social and Governance (ESG) commitments and strategies. Literature however suggests that commitment to supplier diversity programs from buyers, suppliers and stakeholders in the business can be less than wholehearted. The scoping of supplier diversity programs can also be narrow and somewhat binary, only partially reflecting the multi-faceted nature of diversity. This paper contributes to this special issue a study of three supplier diversity programs and shares perspectives of supplier diversity leaders in the case companies studied. We find opportunities for companies to move from a focus on D&I compliance, towards a focus on competitive advantage and ESG impact. We suggest approaches for scoping and designing supplier diversity programs that more closely mirror the complexity of diversity and suggest expanded buying criteria. Finally, we contribute future research pathways and managerial suggestions.