By following this template organisations can develop a comprehensive supplier diversity approach to improving diversity and inclusion within their supply chain.
Supplier diversity is a key driver for creating a more inclusive and equitable business environment. By using diverse suppliers, companies in the resources sector can help to empower marginalised communities and ensure a fair and ethical supply chain.
Embracing a diverse range of suppliers – including businesses owned by minorities, women, Indigenous groups, and other underrepresented communities – also contributes to the resources sector’s long-term success as it navigates the complex landscape of global markets.
Key advantages include:
As outlined above, engaging diverse suppliers in the resources sector provides a range of economic and strategic advantages that can contribute to long-term success. For companies, added benefits include:
By realising the economic and strategic advantages of using diverse suppliers, resource companies can:
Engaging diverse suppliers is not just a compliance requirement; it is a strategic imperative for long-term success in the dynamic and competitive resources sector.
Supplier diversity is a critical component of corporate social responsibility. By choosing diverse suppliers, companies not only contribute to the social and economic advancement of underrepresented communities but also demonstrate a commitment to fair business practices.
This inclusive approach aligns with stakeholders’ expectations for ethical and socially responsible conduct, leading to increased stakeholder satisfaction. Stakeholders – including customers, investors, employees, and the broader community – are more likely to support and engage with companies that prioritise supplier diversity.
Define goals for supplier diversity that are:
For example: “Achieve a 20% increase in the procurement of goods and services from Indigenous-owned suppliers within the next two financial years.” This goal not only outlines the specific diversity category (Indigenous-owned), making it clear and focused, but it also sets a measurable target with a defined timeline, allowing for effective tracking and evaluation of progress.
Leadership buy-in is not just a symbolic gesture but a catalyst for real and sustainable change in supplier diversity practices. Leaders play a crucial role in:
Develop policies that promote fair competition and provide opportunities for diverse suppliers. Address potential barriers and biases in the procurement process. See the Supplier Diversity Policy template.
Define key performance indicators (KPIs) for measuring the success of your supplier diversity program. These could include:
These KPIs collectively will work to ensure alignment with diversity objectives while contributing to the sustainable and inclusive growth of the company.
Monitoring compliance with diversity goals, tracking cost savings or efficiencies achieved through supplier diversity, and assessing the impact on local community development are essential. Regular reporting and assessment processes should also be established.
Collaboration with industry associations, government bodies, and community organisations to support supplier diversity efforts should be outlined and formalised.
Establish mechanisms for receiving feedback from suppliers and stakeholders. Demonstrate a commitment to continuous improvement based on feedback and evolving industry best practices.
Summarise the key points of the guide and emphasise the long-term benefits for the company of fostering diversity in the supply chain. Encourage ongoing commitment and engagement from all stakeholders.
Include relevant templates, checklists, and additional resources to support the implementation of supplier diversity initiatives.