Many local, state and federal government agencies have long promoted diverse supplier programs. Today the private sector increasingly sees the business value of supplier diversity as well. Large international corporations have noted supplier diversity programs.
Many large corporations and government agencies require specific certifications. If your company is being asked to document your supplier diversity by a customer, you should investigate which certifications your customer accepts.
Why hire a certified diverse business?
Many organizations require third-party or governmental certification for businesses to be considered eligible for supplier-diversity programs. So why should your company hire a certified minority- or women-owned business (MWBE)?
- Any business can claim to be minority- or women-owned, but a certified MWBE has been evaluated and verified by a third party.
- Penalties for fraud are high, so your company can hire with confidence and without incurring additional evaluation costs.
- Most certification processes require financial data from applicants as well; therefore, a certification offers a degree of reassurance that the company is legitimate and financially stable.
- It costs time and money to become certified, so a company that has invested in this effort demonstrates a level of commitment.
What’s Next? Do your homework.
If your business has never required certification, spend some time looking into the various types of certifications available, the criteria, and then decide which certifications your business plans to accept before creating your policy.
What’s the business case for supplier diversity?
Diverse businesses are often smaller, making them more nimble, faster and more efficient than a large corporation. Nimble companies can respond quickly, and keep their corporate buyers in touch with needs related to the growing purchasing power of diverse and multicultural consumer markets.
ConnXus can help you diversify your supplier base. Learn about our products