When it comes to developing or expanding an inclusive supplier diversity program that reaches and engages certified LGBT businesses, experts from National Gay & Lesbian Chamber of Commerce (NGLCC) corporate partners say getting executive support and maintaining active connections with your corporation's marketing team and employee resource group (ERG) are essential.
Supplier diversity representatives from Merck & Co., American Airlines and Morgan Stanley lent their expertise in an NGLCC-hosted tele-learning session called, "LGBT Supplier Diversity - How to Build the Business Case for Inclusion and Make the Connection," moderated by Theresa Harrison, vice chair of the NGLCC Procurement Council and director of supplier diversity at Ernst & Young.
Sherri Macko, panel expert and manager of the diversified supplier program at American Airlines, said the program presented its case for including LGBT suppliers in the program to the company's executive-level diversity committee about four years ago.
"We really saw the value [of including LGBT vendors and suppliers in the supplier diversity program] and we knew that it was the right thing to do and a really good business decision," Macko said. "We know a lot of our customers are LGBT and as far as allies, we really had the support from the executive team. I can't say enough about having executive support."
Now that American Airlines has an established LGBT-inclusive supplier diversity initiative in place, Macko said she makes sure the company's LGBT employee resource group, GLEAM, keeps her "in the loop," tries to get GLEAM involved when the company sponsors NGLCC events, and works directly with the marketing team.
"I try to make it a priority to stay closely connected to them because they can refer a supplier to me," Macko said. "The key is just staying connected to those groups, and we all make sure we do that."
Panel expert and site sourcing manager of global procurement for pharmaceutical manufacturer and distributor, Merck & Co., Brent Friedman, said Merck & Co. began looking into getting involved with the NGLCC in 2006 after determining that the company's diversity segments mirrored its employee resource groups, notwithstanding the LGBT population. Merck & Co. program had all but LGBT supplier groups covered, and decided LGBT suppliers could offer a great deal to the company. Friedman and the procurement group then presented 10 key reasons to justify the business case for getting involved in LGBT supplier diversity to present to the higher-ups at the company, including the ability for LGBT suppliers to add more competitive bids into the mix, the fact that the LGBT demographic has specific medical needs that Merck can help address pharmaceutically, and wanting to take a proactive approach and serve as an industry leader in supplier diversity initiatives.
"It has been a pretty easy sell internally and very much the right thing to do," Friedman said.
In the question-answer portion of the session, panelists were asked how their companies have benefited through their participation in the NGLCC Supplier Diversity Initiative.
Panelist, Dionne Monsanto, director of human resources at Morgan Stanley, said that the networking opportunities the NGLCC has made available are "really amazing."
"We find that the impact of having the procurement specialists, buyers and [employee networking group] members in the same room with the vendors, all sharing information with our diversity groups, is the most beneficial," Monsanto said. "And if we're having any particular challenges, there are so many resources [provided by the NGLCC] nationally."
Victoria Fulkerson, senior manager of supplier diversity and corporate relations at the NGLCC, said that the organization doesn't always do things "in a cookie cutter way," but makes sure everyone involved in the Supplier Diversity Initiative is working with corporate partners and having conversations with executives to make the best business case for including LGBT suppliers and vendors in their supplier diversity programs.
"NGLCC really is here as a resource for each of you to build a case for supplier diversity at your companies," Fulkerson said.
In 2011, the Human Rights Campaign's Corporate Equality Index will begin scoring corporations on their ongoing firm-wide external engagement with the LGBT community in a category that addresses supplier diversity programs and includes rating a company's demonstrated utilization of certified LGBT suppliers.
The NGLCC will be holding another "Ask the Experts" LGBT supplier diversity call Tuesday, Sept. 15 at 2 p.m. EST, which will be moderated by NGLCC Procurement Council Chairman Irwin Drucker, who is the program director of GLBT and International Programs for IBM's global procurement. Panelists on this next call will include representatives from NGLCC corporate supplier diversity partners JPMorgan Chase, KPMG, PepsiCo, and Wyndham Worldwide. Additional calls are currently being scheduled for early October.
To participate in the next tele-learning supplier diversity call, RSVP to corporaterelations@nglcc.org or call the NGLCC at 202-234-9181. When sending your request to participate, please be sure to include your name, title and company. Call-in details will be shared upon receipt of your request.
