The HACR Corporate Inclusion Index (CII) serves as an evaluation tool for Corporate America’s Hispanic diversity and inclusion practices in four key areas: Employment, Procurement, Philanthropy, and Governance. This week, we will highlight some key points from the Procurement pillar of the 2019 HACR CII Report and what they tells us about the progress and obstacles still faced by companies in maintaining diversity throughout their supply chain.
WHAT DOES THE PROCUREMENT PILLAR MEASURE?
The procurement pillar of the HACR CII measures the impact of a company’s supplier diversity strategy. Many companies are starting to recognize that, much like overall employee diversity, supplier diversity is also a business imperative. Supplier diversity impacts large firms and small businesses enabling them to grow their consumer base, develop community relationships, and build their brands among potential new customers and partners. By providing vendor opportunities to underrepresented suppliers and facilitating the success of Hispanic-owned businesses, corporate giants have the power to promote the economic development of the local and regional areas surrounding these businesses. It’s a win-win situation for everyone.
WHAT DID WE LEARN?
Procurement continues to be an area with enormous opportunities for improving Hispanic inclusion. Based on aggregate outcomes from the 2019 HACR CII survey, there are several areas that Corporate America and its Hispanic constituents should continue to follow closely:
Corporate America can continue to work on improving the diversity of their suppliers by strengthening their partnerships, starting with ones within their own internal networks. Hispanic employee resource groups (ERGs) can facilitate relationship building with Hispanic business owners in the community. Once connected, the businesses that require further development in order to become qualified can be matched with resources or programs that could be mutually beneficial to the continued growth of both organizations.
Most importantly, companies should also strive to continue developing and improving the tracking of their suppliers at all levels of the supply chain. Research indicates that companies with the ability to track their supplier diversity strategy goals see a significant increase in their earnings. Not only is harnessing the power of diverse suppliers critical, but so is tracking the impact of supplier diversity initiatives on growth and success.
To learn more about procurement trends and best practices, download a copy of the 2019 HACR Corporate Inclusion Index report here.