Why Diversity In Your Supply Chain Matters

Julie Starr • June 10, 2021



In today’s economy, many businesses are identifying diversity as a key priority for their future growth. Alongside other initiatives and corporate social responsibility (CSR), customer increasingly expects the companies they do business with to reflect their own priorities when it comes to ethical, diverse and sustainable business practices. 

Your company might be making huge steps towards improving diversity and inclusion within your own workplace, but how far does that extend into your supply chain? 

With the wealth of information and transparency available on the internet, potential clients will be able to tell if you don’t practice what you preach. So why does ensuring diversity in the supply chain matter? 

Customer expectations

If you think that choosing suppliers comes down solely to price, you’re in for a shock in the future. Consumers have high expectations of the companies they do business with. Younger generations in particular have far less brand loyalty than seen previously. They aren’t afraid to vote with their feet and take their business elsewhere. Focussing on diversity and inclusion only in the context of your own organization is only a superficial fix. 

Companies such as Walmart and IBM have made public commitments to spend a significant portion of their budgets with diverse businesses and those who meet certain sustainability criteria. This is becoming a common company policy in organizations across the world, which recognize the multitude of benefits it can have. 

Using a multitude of consumer research and data enrichment services, you will be able to identify exactly what matters to your target market. 

Talent retention 

The battle to find and retain good employees is one faced by most companies. Yet recent research has shown that employees would consider leaving a company that did not reflect their own personal set of values. Since high employee turnover is indicative of low employee engagement, it’s an issue that needs to be addressed. Better, more engaged employees directly contribute to the success of a company. If you have a diverse supply chain policy in place, make sure that this is communicated to existing employees and stakeholders. 

Profit growth

A growing, diverse population means that companies now actively target minority demographics as potential customers. Additionally, more and more businesses are now set up and run by a more diverse cross-section of people. This economic growth can filter through the supply chain, making businesses more profitable. 

Many organizations are investing in working with diverse suppliers as they realize that they can provide exceptional returns.

Competitive edge

Diversifying your supply chain can develop its competitive advantage by developing new target audiences. Millennials and Genz comprise the most diverse generations in history and they value diversity in the companies they buy from. 

Fostering innovation

Diverse, smaller suppliers, working with larger organizations, often find it easier to innovate and adapt to changes rapidly.  This kind of market agility leads to an innovative culture. Innovation pushes markets forward and opens up new opportunities for everyone involved in the process. 

Key points

By embracing diversity and inclusion beyond your own company can be the foundation of success for your company. Using diverse suppliers can boost profits, open up new target markets to your company. It’s also great for stakeholder management and employee engagement too.

By Julie Starr April 22, 2025
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Carbon Offsetting Services Not all emissions can be eliminated—but many can be offset. Specialized outsourcing firms help companies calculate, track, and neutralize their carbon emissions through strategic reforestation projects , renewable energy, or community resilience projects. These providers simplify the path to carbon neutrality, enabling your business to meet emissions targets without overwhelming internal resources. When shared transparently, these efforts can build credibility and show stakeholders your commitment to real climate action. Green Building and Facility Services For organizations with a physical footprint, outsourcing to green building service providers supports both environmental and business performance. Whether you're retrofitting with energy-efficient systems, reimagining interior layouts for LEED certification, or upgrading lighting and HVAC, retrofitting to eco-friendly office design supports long-term thinking. 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