Even though, Social Equity is mentioned as one of the 7 factors for shaping Modern Procurement from BCG in a recent article in ProcurementMag, companies put a lot of efforts into sustainability and environmental actions.
Many are not paying much attention to the “S” in their ESG (environmental, social & governance) procurement activities. Procurement has a major impact on creating greater social equity, not only through more diverse teams in the supply chain, but especially by providing opportunities for diverse suppliers – companies that are majority owned by individuals or groups that are traditionally underrepresented or underserved.
This could include setting a goal for the percentage of diverse suppliers used by the company, spending with diverse suppliers, opportunities provided, and more.
By working with diverse suppliers, companies can generate revenue for these organizations as well as income for their employees, helping to reduce the wealth gap within minority populations.
Are you including social actions in your ESG procurement efforts?
Here’s another article from McKinsey on ”Enabling Socially Responsible Sourcing Throughout The Supply Chain”.