Chapter 9 is titled “Supplier Diversity” and includes the following topics:
- Definition of diversity
- Certification of small businesses
- The National Minority Supplier Development Council
- The business case for diversity
- Best practices and supplier diversity
- Global supplier diversity
- Advocacy organizations
Chapter 10 is titled “Sustainability” and includes the following topics:
- Definition of sustainability
- Specific challenges of sustainability
- Waste reduction
- Hazardous materials
- Carbon footprint
- Ozone depletion
- Guidelines for ISO 14,001
Wharton Magazine: “Supply Chain Diversity: More Than Quotas” Link to article: https://magazine.wharton.upenn.edu/digital/supply-chain-diversity-more-than-quotas/ (Links to an external site.)
Wharton Magazine: “Four Supplier Diversity Reporting Trends” Link to article: https://magazine.wharton.upenn.edu/digital/four-supplier-diversity-reporting-trends/ (Links to an external site.)
- Many organizations are working toward more diversity in their workforce, their executive teams, and supplier networks. How should metrics of diversity be reported for publicly traded companies?
- Many organizations are improving efforts to increase the sustainability of their organizations. How should metrics of sustainability be reported for publicly traded companies?
- How can diversity and sustainability help firms to achieve a competitive advantage?
- Please provide an insightful question about supplier diversity and sustainability.
Reply to the following posts
Many organizations are working toward more diversity in their workforce, their executive teams, and supplier networks. How should metrics of diversity be reported for publicly traded companies?
Maintaining a diverse and ethical workforce is crucial for the success of a company. Today it is seen as one of the prime factors that consumers consider when working and performing business with a company. If a company fails diversity in the eyes of its consumers, it will not only fail, but be struck with a bad image. Thus, it is crucial that companies actively track their amount of diversity and effectively report on it. First, companies need to ensure that they are collecting data pertinent to diversity and ensuring that the information collected is done so ethically. This means that the information must be collected voluntarily, self-identified, used properly, and does not put a benefit on any protected classes. Then, the data must be tracked to ensure that the metrics being obtained make sense and advise of the correct data. Then, companies are obligated to inform the public of these diversity achievements. Personally, I believe that these diversity metrics should be submitted to the U.S. department of labor, so that the results are clearly categorized and in a centralized location. This will make looking up the diversity reports of companies easier to look for. However, the results of the report should have limited ramifications on the company, as the main goal of recruiting is to find talent, not meet quotas (made illegal under U.S. Law). Thus, if a company is majority of one, or two protected characteristics but shows a trend of increasing their diversity. Then that should be labeled as a “good corporate citizen company.” Diversity is an important part of our workforce and it is important that people know what those diversity metrics are.
Many organizations are improving efforts to increase the sustainability of their organizations. How should metrics of sustainability be reported for publicly traded companies?
In addition to diversity, sustainability has become a topic of increasing concern over the last couple of decades. When looking at how the metrics of these company should be reported it gets kind of difficult to narrow down how and where these should be reported. The sustainability of companies is already monitored by multiple governmental agencies from the environmental protection agency (EPA) to the department of transportation. Each of these entities have different regulations a company must follow to ensure that they are being sustainable. Thus, I believe the best way for companies to inform of their sustainability is by providing their metrics to each of these different agencies. For example, the EPA would receive the report of the company’s environmental sustainability, and so forth. I do not believe that companies should be able to release a statement by themselves as numbers can be construed and made to look better that they are. Thus, by using a governmental agency the public would get better knowledge of how companies are being sustainable.
How can diversity and sustainability help firms to achieve a competitive advantage?
As I stated above the demand for sustainability and diversity within companies is only increasing. When looking at how diversity can help a company obtain a competitive advantage by hiring a diverse group of people a company will be also obtain a diverse background. Essentially, different backgrounds bring new innovative ideas and can potentially increase the amount of talent within the company. When looking at the sustainability aspect, Companies that are sustainable often obtain better materials and refine their process. This will allow them to increase their efficiencies and profit threshold. Additionally, like I mentioned earlier people are beginning to look for companies that are sustainability and diverse. Thus, they will capture more of the market if they are higher in these categories than their competitors.
Please provide an insightful question about supplier diversity and sustainability.
When looking at sustainability and diversity within a company, what amount of responsibility does the consumer have to holding these companies accountable?
1. Many organizations are working toward more diversity in their workforce, their executive teams, and supplier networks. How should metrics of diversity be reported for publicly traded companies?
Publicly traded companies should communicate their metrics of diversity through quantitative and qualitative numbers. For example, the company can post on their website or at a shareholder meeting, statistics of how much money they spent annually, quarterly or monthly with a diverse/minority owned businesses. The organization could also share if what was spent or contributed was an increase or decrease from years past. The organization could also relay some of the qualitative goals or achievements that have taken place such as how many diverse/minority owned businesses they have trained or mentored, how many they have helped with education or financially. The organization could also relay to the public and their shareholders want their plans and goals are for these diverse companies over the next year, five years and so on to show that they are committed to helping the diverse workforce flourish.
2. Many organizations are improving efforts to increase the sustainability of their organizations. How should metrics of sustainability be reported for publicly traded companies?
Organizations can again use both quantitative and qualitative metrics to report their sustainability metrics to the public and their shareholders. For example, the organization could make a table similar to the table that can be used for supplier evaluation. In this table they can show which materials/resources are being used, both renewable and non-renewable sources and they can list how much of that material is being used, what was being used previously and what their goal is with the use of those materials/resources. They can also show how many suppliers they use that use renewable sources compared to those that they use that use non-renewable resources. With this they can show comparisons in suppliers that they used in years past, what they use now and what their overall goal is with using suppliers that use sustainable and renewable resources.
3. How can diversity and sustainability help firms to achieve a competitive advantage?
Diversity can help firms reach different demographics and areas that they may not have contact or association with if they were to not have diversity in their firm. This reach can help bring new and lasting partnerships to the firm that will help ensure that the business will have opportunities to remain relevant and competitive. With sustainability, a firm must always look for ways to ensure the business can keep being productive and a lot of that comes down to the materials used and suppliers selected. Remaining sustainable is crucial to success especially if materials dry up. If firms take sustainability seriously and start implementing ways to remain sustainable, they can have an advantage over their competitors who have not taken these steps, and this can open all new opportunities for their firms to grow and remain successful. Overall, firms that implement both diversity and sustainability will open up many previously unexplored areas for business opportunities and long-lasting relationships that will put them ahead of their competitors who have not done so which will give them the edge in having a long-lasting successful business.
4. Please provide an insightful question about supplier diversity and sustainability.
How do companies start the transition to more diverse and sustainable suppliers without it negatively impacting their production during the startup and implementation phase? Especially if the new suppliers need time to develop and create the needed supplies in a quantity that may be larger than they are used to.