What does "Supplier Diversity" include?

"Supplier Diversity" is a strategy aimed at involving a variety of suppliers, particularly those from underrepresented communities, such as minority-owned, women-owned, and veteran-owned businesses. By incorporating a wide range of suppliers, organizations can enhance competition, innovation, and responsiveness in their procurement processes while also contributing to broader economic equity and inclusion.

The practice focuses on identifying and supporting diverse suppliers to ensure that procurement opportunities are available to various sectors of the community. This approach often leads to positive outcomes not only for the organization but also for the local economy and social fabric.

The other options do not align with the principles of supplier diversity. Limiting suppliers primarily seeks cost reduction, while favoring large corporations over small businesses contradicts the essence of promoting diversity. Establishing contracts based on historical performance may overlook potential diverse suppliers who may not have substantial past performance records but can offer unique value and contributions. Therefore, the correct choice emphasizes the importance of inclusive procurement practices.