Methodology
In assessing the Top 10 Companies for Supplier Diversity, the most critical factors are the percent of the total procurement budget going to minority- and women-owned businesses, tying executive compensation to supplier-diversity results, having mandatory Tier II supplier diversity, community commitment (loans, education, mentoring of suppliers) and requiring third-party certification. Companies also were penalized if they included all small businesses, including those owned by white men, as "diverse suppliers" or excluded certain categories from supplier-diversity requirements.
Here are The 2007 DiversityInc Top 10 Companies for Supplier Diversity:
No. 1: Xerox
Also No. 7 on The 2007 DiversityInc Top 50 Companies for Diversity list, No. 7 for Recruitment & Retention, No. 10 for Latinos, No. 3 for Executive Women and No. 1 for GLBT Employees.
A long-time supplier-diversity leader, Xerox sends 30 percent of its procurement budget with Tier I minority- and women-owned suppliers. The company also includes GLBT suppliers in supplier-diversity tracking, compared with 22 percent for the Top 50 and virtually no other companies nationwide. Xerox also audits its supplier-diversity numbers.
No. 2: Sempra Energy
Also No. 29 on The 2007 DiversityInc Top 50 Companies for Diversity list.
The California utility spends 19 percent of its procurement budget with Tier I minority- and women-owned suppliers, audits its supplier-diversity numbers and ties procurement compensation to successful supplier-diversity results.
No. 3: Comerica
Also No. 37 on The 2007 DiversityInc Top 50 Companies for Diversity list.
The Detroit-based bank spends 33 percent of its procurement budget with Tier I minority- and women-owned suppliers, a staggering amount. They obtain that percentage by calculating opportunity dollars, which include all of the dollars with goods/services in areas where M/WBEs have the opportunity to participate. They examine all of the businesses with delegated purchasing responsibility and look at their budgets for a year. They do take into account if there is an area where they know there is not a large pool of suppliers and they may exclude that area, but the company says very few areas are excluded. Comerica also integrates supplier-diversity initiatives into its overall corporate-business-plan goals and provides formal external training or mentoring programs for suppliers.
No. 4: Hewlett-Packard
Also No. 49 on The 2007 DiversityInc Top 50 Companies for Diversity list.
HP spends 29 percent of its procurement budget with Tier I minority- and women-owned suppliers, audits its supplier-diversity numbers and provides financial assistance for diverse suppliers.
No. 5: Consolidated Edison Company of New York
Also No. 8 on The 2007 DiversityInc Top 50 Companies for Diversity list, No. 2 for Recruitment & Retention, No. 1 for Latinos and No. 4 for Executive Women.
This company spends 14 percent of its procurement budget with Tier I minority- and women-owned suppliers and provides formal external training or mentoring programs for suppliers.
No. 6: Bank of America
Also No. 1 on The 2007 DiversityInc Top 50 Companies for Diversity list, No. 1 for Recruitment & Retention, No. 3 for Latinos, No. 8 for Asian Americans, No. 1 for Executive Women and No. 3 for GLBT Employees.
The No. 1 company on the Top 50 includes GLBT suppliers in supplier-diversity tracking, requires second-tier supplier diversity and ties procurement compensation to successful supplier-diversity results.
No. 7: McDonald's
The fast-food giant spends 54 percent of its procurement budget with Tier I minority- and women-owned suppliers and provides financial assistance for diverse suppliers.
No. 8: Eastman Kodak
Also No. 35 on The 2007 DiversityInc Top 50 Companies for Diversity list, No. 6 for GLBT Employees and No. 1 for People With Disabilities.
The long-time diversity leader spends 22 percent of its procurement budget with Tier I minority- and women-owned suppliers, includes GLBT suppliers in supplier-diversity tracking and ties procurement compensation to successful supplier-diversity goals.
No. 9: KeyBank
Also No. 31 on The 2007 DiversityInc Top 50 Companies for Diversity list.
The Cleveland-based bank company spends 11.75 percent of its procurement budget with Tier I minority- and women-owned suppliers and integrates supplier-diversity initiatives into its overall corporate-business-plan goals.
No. 10: DaimlerChrysler
Also No. 42 on The 2007 DiversityInc Top 50 Companies for Diversity list.
The auto company spends 7.5 percent of its procurement budget with Tier I minority- and women-owned suppliers, audits its supplier-diversity numbers, requires second-tier supplier diversity and provides formal external training or mentoring programs for suppliers.
