Supplier Diversity Policy Example – Procurement Policies

Supplier Diversity Policy Sample

In this article, we’ll look at the key elements that make up an example Supplier Diversity Policy. We’ve included some starter/boilerplate information to help you get started writing this policy for your company. If you’re looking for help in setting up your policies & procedures or employee manual/handbook, our team can assist.

Supplier Diversity Policy Template

The following are the main elements that should be included in your Supplier Diversity Policy:

1. Title Page

• Policy Title: Supplier Diversity Policy
• Company Name: The name of the organization implementing the policy.
• Policy Number (if applicable): For easy reference within the company’s policy structure.
• Version Control: Date of creation, last review, and version number.
• Effective Date: The date the policy becomes operational.
• Approval Authority: Name and title of the individual who approved the policy.

2. Purpose/Objective

• A brief statement explaining why the Supplier Diversity Policy exists. This section outlines the policy’s purpose in relation to the company’s goals, regulatory requirements, or ethical standards.
• Describe what problem or issue the policy addresses.
• Example Purpose/Objective:

The Supplier Diversity Policy aims to enhance inclusivity in procurement by actively seeking and engaging minority-owned, women-owned, and small businesses. It strives to create equitable opportunities, fostering a diverse supplier base that reflects the community’s demographics. By prioritizing these businesses, the policy supports economic growth and innovation, ensuring a wide range of perspectives and solutions. It also seeks to build long-term partnerships with diverse suppliers, contributing to their development and success. This approach not only strengthens the supply chain but also aligns with broader corporate social responsibility goals

3. Scope

• A description of who the Supplier Diversity Policy applies to (e.g., employees, contractors, vendors).
• Specify any exceptions to the policy.
• Explain departments or roles affected, if necessary.
• Example Scope:

This policy aims to enhance diversity in procurement by actively encouraging the inclusion of minority-owned, women-owned, and small businesses in the supply chain. It applies to all procurement activities and seeks to create equitable opportunities for diverse suppliers. By integrating these businesses into the procurement process, the policy supports economic growth and innovation. It is relevant to all departments involved in purchasing decisions and requires regular monitoring and reporting to ensure compliance and effectiveness. The policy underscores the organization’s commitment to fostering an inclusive and diverse supplier base

4. Definitions

• Clarify any key terms or jargon used within the Supplier Diversity Policy to ensure understanding.
• Avoid assumptions about familiarity with industry-specific terminology.
• Example Definitions:

The Supplier Diversity Policy aims to enhance diversity in procurement by actively encouraging the inclusion of minority-owned, women-owned, and small businesses. It falls under the category of Procurement Policies and seeks to create equitable opportunities for diverse suppliers. By prioritizing these businesses, the policy supports economic growth and innovation within underrepresented communities. It also aligns with broader organizational goals of fostering inclusivity and social responsibility. Through strategic partnerships and outreach, the policy ensures a more diverse supply chain, contributing to a more equitable business environment

5. Policy Statement

• A detailed outline of the Supplier Diversity Policy itself, including all rules, expectations, and standards.
• It should be direct and clear so that it leaves no ambiguity about the company’s position or requirements.

6. Procedures

• Step-by-step instructions on how to implement or comply with the Supplier Diversity Policy.
• Include any forms, tools, or systems that employees must use.
• Describe the responsibilities of different roles in ensuring adherence to the policy.
• Example Procedures:

The Supplier Diversity Policy outlines steps to enhance procurement from minority-owned, women-owned, and small businesses. It mandates identifying diverse suppliers, setting annual diversity goals, and integrating these goals into procurement processes. The policy requires regular reporting on progress and performance, ensuring accountability. Training programs for procurement staff are implemented to raise awareness and support for diversity initiatives. Collaboration with external organizations and participation in diversity events are encouraged to expand the supplier base. Continuous evaluation and improvement of the policy are emphasized to maintain its effectiveness

7. Roles and Responsibilities

• List the roles responsible for enforcing or overseeing the Supplier Diversity Policy (e.g., managers, HR).
• Define who is accountable for reporting, monitoring, and updating the policy as needed.
• Example Roles and Responsibilities:

The Supplier Diversity Policy assigns roles and responsibilities to ensure diverse procurement practices. Procurement teams are responsible for identifying and engaging with minority-owned, women-owned, and small businesses. They must track and report on diversity metrics and ensure compliance with diversity goals. Management is tasked with supporting and promoting diversity initiatives, providing necessary resources, and fostering an inclusive procurement environment. Suppliers are encouraged to register and certify their diversity status. Regular training and awareness programs are conducted to educate staff on the importance of supplier diversity

8. Compliance and Disciplinary Measures

• Outline how compliance will be monitored or enforced.
• Describe any consequences or disciplinary actions for failing to follow the policy, including the escalation process.

9. References and Related Documents

• Include links or references to any laws, regulations, or company guidelines that support the Supplier Diversity Policy.
• Reference related company policies that connect or overlap with the document.

10. Review and Revision History

• State the review cycle (e.g., annually, biannually) and who is responsible for reviewing the Supplier Diversity Policy.
• A history section that lists all revisions made to the document, including dates and reasons for changes.

11. Approval Signatures

• Signature lines for key decision-makers who have authorized the policy (CEO, department head, HR manager).

12. Appendices or Attachments (if needed)

• Additional information, FAQs, or case examples to provide more context or clarify how the Supplier Diversity Policy applies in specific situations.
• Any relevant forms or templates employees need to complete.