Building a Supplier Diversity Program? Learn from the U.S. Government.

Time-tested practices of the federal government can help companies develop more inclusive supply chains.

by

Chris Parker

and

Dwaipayan Roy

by

Chris Parker

and

Dwaipayan Roy

February 09, 2024

Illustration by Ricardo Santos

Summary.

Large companies are striving to increase their purchases from small, diverse-owned businesses (SDBs) — those that are 51% or more owned and operated by an individual or group that is part of a historically underrepresented or underserved group (e.g., women, racial minorities, veterans, LGBTQIA+, and people with disabilities). Despite their pledges, they are struggling to meet their goals. The practices of four federal agencies can help them make their programs more effective.

Since George Floyd’s murder in 2020 and the nationwide protests in the United States to address racial injustice that it sparked, large companies in the United States have been increasingly looking to supplier diversity programs as a means to advance racial equity.

Chris Parker is a Kogod Research Professor and associate professor of information technology and analytics at American University and a visiting associate professor of business administration at the University of Virginia’s Darden School of Business.
Dwaipayan Roy is an assistant professor of business administration at the University of Virginia’s Darden School of Business, where he studies socially responsible operations. He previously worked as a project manager at the Royal Bank of Scotland.

Building a Supplier Diversity Program? Learn from the U.S. Government.

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