In today's business landscape, diversity and inclusion have become key drivers for success and growth. Companies that prioritize supplier diversity not only demonstrate their commitment to equality but also create economic opportunities for underrepresented communities. Hewlett Packard Enterprise (HPE) is a leading example of a company that has implemented a robust supplier diversity program, making significant strides in driving inclusion and economic impact.
Setting the Standard in Supplier Engagement and Clear Disclosure
HPE stands out for its transparent disclosures and active engagement with suppliers. The company provides clear information on its supplier diversity spend, categorizing spend amounts, sharing progress over multiple years, and outlining future goals. This level of transparency allows stakeholders to track HPE's progress and understand its economic impact throughout the value chain.
HPE's supplier diversity program goes beyond mere spend numbers. The company actively engages with suppliers, ensuring they have the opportunity to attain certifications and align with HPE's values. By partnering with diverse businesses in high-margin, high-growth sectors such as financial services, HPE demonstrates its commitment to inclusion and representation in industries where underrepresented groups have historically been marginalized.
Driving Diversity in High-Growth Sectors
In the finance sector, HPE considers diversity in its banking allocation decisions and partnerships. The company has partnered with Black-, Latino-, women-, veteran-, and disabled veteran-owned banks as part of its bond offering, distributing $100 million in bonds and supporting underrepresented businesses in the process. HPE continues to foster partnerships with diverse businesses in finance, including short-term borrowing and share repurchase programs.
HPE has also made significant efforts to promote diversity within its legal partnerships. The company requires law firms to have a minimum number of racially or ethnically diverse attorneys and underrepresented minority or women attorneys. Failure to meet these requirements results in a portion of invoiced spend being withheld. In 2020, HPE reported that 93% of their engaged firms met these diversity requirements.
Furthermore, HPE extends its commitment to diversity beyond Tier 1 suppliers. The company mandates that its direct business partners and suppliers allocate a minimum of 10% of contracted work to diverse businesses. This approach ensures that diversity is not limited to a few select suppliers but permeates throughout HPE's entire supply chain.
Supplier Diversity as a Business Opportunity
Supplier diversity is not just a moral imperative but also a strategic business opportunity. By increasing spending with diverse businesses, companies can review their partnerships, introduce procurement flexibility, and drive up the quality of products or services while remaining cost-competitive. This approach benefits not only the company but also the communities it serves.
Traditionally underrepresented sectors, such as financial services, legal services, and technology fields, offer significant opportunities for minority suppliers to thrive. By extending contracts to minority suppliers in these high-margin, high-growth sectors, companies can drive innovation, increase competition, and make their supply chains more resilient and agile.
Transparent Disclosure and Demonstrating Impact
Transparent disclosure is crucial for companies to honor their commitments to diversity and inclusion. By sharing measurable and impactful actions, companies can build trust among stakeholders and demonstrate their dedication to advancing racial equity. Supplier diversity is a tangible way for companies to show their commitment and make a positive impact on underrepresented communities.
HPE's supplier diversity program serves as a model for other companies. By actively engaging with suppliers, providing clear disclosures, and fostering partnerships in high-growth sectors, HPE demonstrates its commitment to driving inclusion and economic impact. The company's efforts go beyond surface promises, creating a strong reputation and fostering trust among stakeholders.
Hewlett Packard Enterprise's supplier diversity program sets a high standard for other companies to follow. By prioritizing diversity, HPE drives inclusion and economic opportunities for underrepresented communities. The company's transparent disclosures, active supplier engagement, and partnerships in high-growth sectors showcase its commitment to diversity and demonstrate measurable impact. Supplier diversity is not just a social responsibility but also a strategic business opportunity that can boost innovation, competition, and overall business performance.