2. Supplier Diversity Programs in the Private Sector: Corporations

Corporations are beginning to use supply chain management as a strategy for increasing profitability, growth, cost containment, and customer value. Supply chain management and supplier diversity share benefits such as enriched reputation, competitive advantage, morale boosting, and innovation; stakeholder relations also accrue from both supplier diversity initiatives have demonstrated a direct impact on consumer purchasing decisions, whereas historically they were presumed to have an indirect impact. This means that such initiatives also have return-on-investment potential. Firms need both resource capital and institutional capital for a long-run competitive advantage, and future research should study the combined effects of both as a source of competitive advantage for firms.

When looking beyond finances to social responsibility, supplier diversity is often seen as a testament to a company’s commitment to producing a socially responsible impact in local communities. Supplier diversity programs also meet customer mandates, leverage governmental initiatives, and comply with federal supplier requirements.