Inclusive supply chains can stimulate economic growth and job creation in underrepresented communities, as diverse suppliers often operate in these areas. It can help to boost business performance through:
Increased innovation and creativity, as diverse perspectives and experiences bring fresh ideas to the table.
A better understanding of, and connection with, customers, tapping into a wider range of cultural and demographic insights.
Improved reputation, brand image and commitment to responsible business.
More broadly, potential benefits include economic regeneration:
According to research by McKinsey & Company, businesses with more diverse executive teams have 39% better financial returns.
Research from Aston University suggests that Ethnic Minority Businesses’ contribution to GDP could increase four-fold to £100 billion with the right kind of business support.
and social impact:
Diverse and inclusive supply chains support organisations with their commitment to diversity and inclusion to ensure that all potential suppliers have a fair and equal opportunity to compete for business.
Engagement with diverse and inclusive supply chains has the potential to drive social value for underrepresented communities while supporting economic growth.
What do we know about what happens in practice?
Despite these potential benefits, Business in the Community’s (BITC) Race at Work Charter Survey 2023 found that UK employers reported poor performance on supplier diversity and inclusive supply chain action:
34% of employers said they had an Executive Sponsor with responsibility for inclusivity in supply chain practices.
32% said that they ask their suppliers what action they are taking on race in the tendering process.
23% of respondents said yes to setting targets to increase the diversity of their suppliers.
18% of employers said that they were signed up for the Department for Business, Energy, and Industrial Strategies prompt payment code.
What’s needed now?
More data. Research is needed to gather insights and perspectives from leaders and employees that identifies the levers for change to supply chains in businesses.
Business in the Community Survey
As part of their Diverse and Inclusive Supply Chains project, Business in the Community launched a ‘Leadership, employees, and procurement’ survey on 21st March (closes on 7 June 2024) in collaboration with YouGov. The aim of the survey is to better understand current practices, identify opportunities for improvement, and ultimately foster more diverse and inclusive supply chains.
Who should fill out the survey?
Leaders who hold budgets and have an opportunity to influence customers, buy goods and services and collaborate with procurement partners through their supply and value chains.
Employees who work within an organisation that engages with external suppliers to deliver their business outcomes. BITC are interested in stories of progression in the workplace and the opportunities employees have had to influence key issues in their organisation.
Small business owners, founders, consultants, charitable organisations, social enterprises and self-employed individuals detailing their procurement and supply chain experiences.
What will happen to the insights?
This is a two-phased project:
Phase 1 – Findings will be analysed in collaboration with YouGov and published in October 2024. This will include clear practical calls to action based on evidence of any disparities and trends found. Data will be examined by demographic group, social background, location, and region as well as key intersections, where evidence and data allow.
Phase 2 – Is a thematic deep dive analysis with academics from Queen Mary University of London, University of Dundee and the University of York. Analysis will be categorised by UK nations and regions, the intersection of demographics such as ethnicity, gender, age, disability, neurodiversity and LGBTQIA+ will be explored, where sufficient data are available.
How can you contribute?
You are invited to complete the survey in your capacity as a Leader or Employee and to share this link with your business and supply chain networks, particularly those schools that hold the Small Business Charter.
Complete the survey here.
Dr Kathlyn Wilson is an Associate Professor at Hertfordshire University Business School. She chairs the Chartered ABS Race Equality Action Group and is a member of the Chartered ABS EDI Committee.
References
McKinsey & Company (2023). Diversity matters even more: The case for holistic impact. https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-matters-even-more-the-case-for-holistic-impact
Kašperová, E Roberts, R., & Ram, M. (2022). Time to change: a blueprint for advancing the UK’s ethnic minority businesses. https://www.aston.ac.uk/sites/default/files/CREME_NWG_Time_to_change_report_.pdf