Corporate Social Responsibility
Amid the chaos of the coronavirus pandemic, civil discourse and protest took centerstage across the globe. Businesses were often expected to make statements and take stances on social and political issues. It is no wonder that corporate social responsibility (CSR) grew into one of the top priorities for CPOs coming out of 2020. According to Deloitte, 67.6% of respondents listed it among their chief priorities, an increase of 22% from 2019.
How are sourcing and procurement innovators prioritizing CSR? By setting value-based goals for their sourcing practices and tracking their performance. They are building out supplier diversity programs and treating them as a strategic priority and not merely a checkbox. In fact, high-performing sourcing and procurement professionals are 3 times more likely to be formally measured on their programs.
What are diverse suppliers? A diverse supplier is a business that is owned and operated by a member or group of members of a traditionally underrepresented or underserved group. The diverse classification includes small businesses and enterprises which are women-owned, minority-owned, veteran-owned, LGBTQ-owned, and/or disability-owned. This mindset is also being adopted to identify and source from sustainable suppliers. Establishing CSR programs extend well-beyond the internal operations of an organization. Prioritizing supplier diversity does not merely promote your organization’s ethical or moral standards, but also drives competition in your vendor base. By advancing these strategies, leading sourcing and procurement organizations are promoting their ethics while also bolstering their bottom line.