JP Morgan Leading way on Supplier Diversity in FS
Major financial services company JPMorgan Chase & Co is increasing diversity across its supply chain through a bespoke programme of initiatives.
The company’s Global Supplier Diversity programme promotes equity and inclusion across its value chain, facilitating the growth and development of businesses it helps.
“Building strong relationships is the cornerstone of our success,” the company says. “We place particular value in our supplier partnerships. It is thanks to the help of a diverse range of suppliers and advisors that we we are able to serve our clients, shareholders, communities and employees more efficiently.”
The firm spends over $2bn with diverse businesses annually, and its strategy leverages its huge procurement function to lower common barriers faced by diverse businesses.
JPMorgan Chase & Co has created a Supplier Diversity Network (SDN), through which certified diverse-owned businesses register with the firm. The SDN is the primary resource through which its supplier diversity and procurement teams identify eligible businesses for consideration in contracting opportunities.
Diverse companies are those owned and operated by women, ethnic minorities, veterans, people with disabilities and members of the LGBT+ community.
“The goal of the Global Supplier Diversity programme is to promote equity and inclusion across the entire portfolio of supply chain partners, thus driving economic growth within the communities where the organisation is doing business,” the company says.
The company also runs the Diverse Supplier Grant Initiative, raising voluntary contributions from top suppliers and corporate partners, and matching every dollar of those contributions.
The programme disburses funds to certified diverse-owned businesses, including Black, Hispanic, and Latino-owned firms, to be used for key compliance measures.
Responsible for managing and administering the scheme end-to-end is the Local Initiatives Support Corporation (LISC), which reports on the impact of this capital assistance on participating businesses.
“Far too many otherwise-qualified diverse businesses are prevented from securing contract opportunities due to the high cost of compliance,” said Ted Archer, Global Head of Business Partner Diversity at JPMorgan Chase, following the programme's launch.
"We’re proud to join LISC, our top suppliers and other corporate partners to create an industry-wide solution that will remove common obstacles to doing business, and contribute to building generational wealth in diverse communities across the country."
