Inclusive Procurement: Definition, Importance, and Best Practices
In the realm of Diversity, Equity, and Inclusion (DEI), understanding and addressing Inclusive procurement is crucial. Inclusive procurement is a significant aspect of this discourse, but what exactly does it entail?
Definition:
Inclusive procurement is the practice of ensuring that businesses owned by underrepresented or marginalised groups—such as women, minorities, persons with disabilities, LGBTQ+ entrepreneurs, and small or disadvantaged businesses—are given fair opportunities to participate in supply chains. This approach promotes economic equity and diversity by fostering inclusive business practices across industries.
Why is Inclusive Procurement Important?
- Promotes Economic Equity – By supporting diverse suppliers, organisations help bridge wealth gaps and contribute to a more equitable economy.
- Encourages Innovation – Businesses with diverse suppliers benefit from unique perspectives, leading to more innovative solutions.
- Enhances Brand Reputation – Consumers and investors increasingly prefer businesses that prioritise diversity and corporate social responsibility.
- Meets Regulatory Requirements – Many governments and institutions mandate supplier diversity initiatives, making inclusive procurement a compliance necessity.
- Strengthens Local Communities – Supporting small and diverse businesses leads to job creation and economic growth at the community level.
Example:
A global technology company implemented an inclusive procurement strategy by allocating a percentage of its annual supply chain spend to diverse vendors. The company partnered with minority-owned IT service providers and women-led logistics firms. Within two years, not only did the initiative enhance the company’s innovation pipeline, but it also improved brand perception and resulted in increased customer loyalty.
Conclusion:
Inclusive procurement is a powerful tool for advancing Diversity, Equity, and Inclusion (DEI) in business operations. By actively engaging with diverse suppliers, organisations foster economic empowerment, innovation, and stronger communities. As corporate and government entities increasingly prioritise inclusive procurement, businesses that adopt these practices will gain a competitive edge while making a positive social impact.
References:
Fairchild, D., Rose, K., & Tell, B. (2018). Inclusive Procurement and Contracting. Policy Link. https://emeraldcities.org/wp-content/uploads/2021/06/Inclusive-procurement_02.21.18-002-1.pdf
Theodorakopoulos, N., Ram, M., & Beckinsale, M. (2013). Human resource development for inclusive procurement by intermediation: A situated learning theory application. The International Journal of Human Resource Management, 24(12), 2321-2338. https://www.tandfonline.com/doi/abs/10.1080/09585192.2013.781433
Brooks, J., Commandeur, D., & Vera, E. (2019). Inclusive procurement and transparency–connecting smallholder farmers to school feeding. Gates Open Res, 3(495), 495. https://gatesopenresearch.org/documents/3-495
Be impressively well informed
Get the very latest research intelligence briefings, video research briefings, infographics and more sent direct to you as they are published
Be the most impressively well-informed and up-to-date person around...