Definition:
Supplier Diversity Program
Adversity.Net, Inc. for Victims of Reverse Discrimination
Supplier Diversity Program is a term used by private corporations and government agencies to indicate that they award contracts and subcontracts to minorities ahead of non-minorities.

          Large corporations, such as Boeing, Kodak, and United Airlines use thousands of contractors and suppliers to supply parts and services to their organization.

          Most of these firms have implemented an aggressive program of encouraging supply and service contracts from minority-owned firms where ever possible.  Smaller, non-minority suppliers are excluded from doing business with firms that have a Supplier Diversity Program.

The Company Line:  These firms cite vague justifications such as "a diverse supplier base helps us meet the challenges of the 21st century".

Translation:  "By our giving preference to minority suppliers -- to the exclusion of non-minority suppliers -- we will keep the U.S. Department of Labor, the U.S. EEOC, the U.S. Department of Justice, and, most importantly, Jesse Jackson off our backs."

          Corporations who have a Supplier Diversity Program require that all suppliers who wish to do business with them agree to the following:

  • That the supplier / subcontractor is minority-owned, and ...
  • That the supplier / subcontractor agrees, as a condition of being awarded a contract, to supply proof that they aggressively hire and subcontract with preferred minorities.

It's a Condition of Doing Business:   Boeing, for example, is an 18 billion dollar aerospace giant and federal government contractor.  Boeing includes the following requirements in its supplier and subcontractor agreements as a condition of doing business with Boeing.  Many other large corporations have similar supplier agreements:

1. [Boeing supplier] agrees to actively seek out and provide the maximum practicable opportunities for small businesses, small disadvantaged businesses or minority business enterprises, women-owned small businesses (collectively referred to as SBs); historically Black colleges and universities and minority institutions (collectively referred to as HBCU/MIs) and Veteran-owned small and service disabled veteran-owned small to participate in the subcontracts it awards to the fullest extent consistent with the efficient performance of its contract.
2. [Boeing supplier's] proposed level of subcontract awards to SBs and HBCU/MIs will be an element in the evaluation of its proposal.
3. [Boeing supplier's] target goals for utilization of small businesses, small disadvantaged businesses or minority business enterprises, women-owned businesses, and historically black colleges and universities and minority institutions under this contract as a percentage of the total contract price are as follows:
([Boeing suppliers] must provide percentages [of minorities and races] in its proposal)
NOTE:   Boeing defines preferred "supplier diversity" suppliers as being owned or controlled by any of the following:
African American (black)
Asian Pacific American
Subcontinental Asian American
Hispanic American
Native American

Note also that Boeing and other practitioners of "Supplier Diversity" do not include any requirement that suppliers hire a certain number of employees or subcontractors who are non-minorities.

Practical Impact:   These types of agreements effectively prevent small, non-minority owned businesses -- especially new companies -- from winning subcontracts from any first-tier Boeing supplier (or from any other company which practices "Supplier Diversity").

          When a company, organization, or government agency advertises the fact that they have a "Supplier Diversity Program" what they really mean is that they will not do business with non-minorities if they can avoid it.  And they usually can avoid it.


Related Terms and Articles:
Boeing is NOT A Good Place for White Guys (this frame)
Kodak Supplier Diversity (this frame)
Definition of Diversity (this frame)
Dirty Racial Politics (new frame)

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