7 ways to promote supply chain diversity
Working with diverse-owned suppliers improves equity, inclusion and profitability.
July 30, 2021
Fostering inclusive environments is better for everyone.
It increases employee engagement and reduces their likelihood of leaving, the Society for Human Resource Management finds. Nearly 70% of employees and job seekers say a diverse workforce is an important factor when evaluating companies and job offers, according to Glassdoor’s Diversity and Inclusion Workplace Survey.
But being more inclusive is also better for the bottom line. Companies in the top quartile for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more likely to have long-term value creation per McKinsey’s 2018 Delivering Through Diversity Report. Those with the most ethnically and culturally diverse boards are 43% more likely to experience higher profits.
“We can't collectively deliver on our goals, unless the majority of the collective are actually at the table, have the resources that they need to thrive and have the ability to be part of the conversation,” says Arielle Moinester, program strategist of Women’s Earth Alliance.
Regardless of a company’s size, structure or culture, there are ways to implement justice, equity, diversity and inclusion practices.
One Step Closer J.E.D.I. Collaborative (which stands for justice, equity, diversity and inclusion) has a 10-step guide to help companies within the natural products industry be more proactive.
Take a “J.E.D.I. lens” and try to commit to nontraditional suppliers and distributors for your base resources, says Cynthia Billops, vice president of operations, membership and belonging for One Step Closer (OSC), a nonprofit in the natural products industry that formed to tackle industry challenges.
“Think about who your vendors are and who you are working with,” says Nikki McCord, founder of McCord Consulting Group which offers business consulting including diversity training. “Be deliberate. See where diversity, equity and inclusion fits into multiple aspects of your business.”
Below are seven more suggestions from innovators within the natural products industry to help you create a more diverse, equitable and inclusive supply chain.
Define company values on diversity, equity and inclusion
A company should start by thoughtfully defining its internal values on diversity, equity and inclusion. Don’t rush it through, McCord (right) says.“There’s needs to be a balance between urgency and doing it thoughtfully,” McCord says, to make sure programs and initiatives are sustainable.
“It's important that you build a foundation,” she says. “And you authentically integrate this into your practices, so that we're not having the same conversation in the next five years.” If a company asks an employee to work on improving diversity, equity and inclusion and it’s not in their formal job description, they need to be paid for their time.
“This isn’t like giving OSHA training where you are presenting new regulations to keep employees safe,” she notes, because doing DEI training is both emotional and complicated.
“Part of the process is creating a space where people can ask questions,” says McCord, whose job as a facilitator is to help people evolve from a hurtful way of thinking.
Seek out diverse partnerships
Understand that the supply chain is diverse, says Errol Schweizer, who spent 14 years at Whole Foods including a seven-year stint as national vice president of grocery managing $5 billion in product sales across 75 categories.
“That’s a big misconception,” says Schweizer (left), who hosts a podcast called The Checkout and serves as a mentor, advisor or board member to approximately 25 natural product companies. “When you’re thinking about logistics, fulfillment, retail, wholesale, farmer workers, processing workers—it’s a very diverse group of folks who are actually doing the work.”Companies need to look at ownership and governance: who is benefiting and who is making the decisions. “We have an incredibly large amount of diversity in this country, just not in leadership and ownership in the natural products and larger food industry,” he says.
Review who is making decisions at an executive role both internally and externally.