How can you measure diversity and inclusion in potential suppliers and partners?

If you are truly committed to building an inclusive workplace and to doing business in a more positive way, then it’s not just about your own internal environment. Who you work with and how your supply chain operates impact your culture and your reputation.

In today’s business environment, diversity and inclusion (D&I) are no longer just ethical considerations; they are strategic imperatives. UK businesses are increasingly expected to demonstrate their commitment to D&I, not only within their own organisations but also throughout their supply chains. Measuring the diversity and inclusion policies and practices of potential suppliers and partners is essential for ensuring alignment with corporate values, meeting regulatory requirements, and fostering innovation.

Why measuring supplier diversity and inclusion matters

  1. Regulatory and compliance requirements – The UK government and industry bodies are placing greater emphasis on supplier diversity, with procurement frameworks encouraging or mandating D&I considerations. Businesses working with the public sector or large corporations may need to show evidence of supplier diversity.
  2. Enhanced innovation and performance – Diverse supply chains contribute to fresh perspectives, creativity, and problem-solving. Research shows that companies with diverse partners tend to be more adaptable and innovative.
  3. Reputation and brand value – Consumers and stakeholders increasingly expect businesses to take social responsibility seriously. Working with diverse suppliers strengthens brand reputation and appeals to ethically conscious customers.
  4. Market competitiveness – Ensuring diversity and inclusion in supply chains can open doors to new markets and create opportunities for partnerships with businesses owned by underrepresented groups.

How to measure diversity and inclusion in suppliers and partners

  1. Request supplier D&I policies – Ask potential suppliers to provide their diversity and inclusion policies and evidence of implementation. This can include hiring practices, equal opportunity commitments, and inclusion initiatives.
  2. Use supplier questionnaires – Develop a D&I assessment questionnaire to gather data on workforce demographics, leadership representation, and internal inclusion efforts.
  3. Check certifications and accreditations – Look for recognised certifications such as the Minority Supplier Development UK (MSDUK) certification, Disability Confident accreditation, or the Living Wage Employer mark.
  4. Review workforce and leadership composition – Examine the supplier’s workforce diversity statistics, particularly in leadership and decision-making roles.
  5. Assess inclusive procurement practices – Determine whether the supplier actively engages with diverse subcontractors and promotes inclusive procurement within their own supply chain.
  6. Monitor supplier conduct and culture – Beyond policies and statistics, engage with suppliers to assess workplace culture, employee testimonials, and external recognitions for inclusion efforts.
  7. Set clear D&I expectations in contracts – Establish clear supplier diversity and inclusion commitments within contractual agreements and request periodic reporting to track progress.
  8. Benchmark against industry standards – Compare supplier D&I metrics against industry benchmarks and best practices to ensure alignment with evolving expectations.

Taking action: creating a diverse and inclusive supply chain

To truly embed D&I within the supply chain, you should:

  • Set internal D&I goals related to procurement.
  • Partner with organisations that promote supplier diversity.
  • Provide mentorship and development opportunities to diverse suppliers.
  • Regularly review and refine supplier selection criteria to ensure inclusivity.

By taking a structured and measurable approach to supplier diversity and inclusion, businesses can drive meaningful change while also strengthening their own competitive advantage. Prioritising D&I in supplier selection isn’t just about compliance—it’s about building a resilient, innovative, and ethically responsible business for the future.

As a first step, why not ask potential suppliers and partners to complete the FREE Inclusion Journey Location Finder tool so that you can review how they compare to other organisations.

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