What is Supplier Diversity?
‘Supplier Diversity’ refers to granting financial support to suppliers that are owned by traditionally underrepresented groups such as women, African Americans, the LGBT community, etc.
In the USA, there are 16 categories of minorities and discriminated groups that are recognized legally. Hence, in order to categorize one’s supplier to be a part of this group, the supplier needs to be certified as a ‘diverse supplier’ via third-party agencies.
Diverse certification ensures that the business is owned and managed by a qualifying underrepresented group of individuals. It also opens new avenues for business with the federal government, since it is mandated by law in order to increase the number of opportunities for such businesses.