| 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) |
