The term Supplier Diversity refers to the proactive business program that promotes the purchasing of goods and services from previously underrepresented communities. These suppliers may include minority-owned, women owned, veteran owned, LGBT-owned, service disabled veteran owned, disabled-owned, and Small Business Administration (SBA)-defined small business concerns. The purpose of the business strategy is to help diversify specific corporate supply chains and help to reflect the demographics of the community in which a company is located in.
The belief is that the more a corporation buys from its local suppliers the more money is pumped into the local economy to help increase employment opportunities.
Supplier Diversity is especially key for the future of countries like America where, according to the US Census, minorities will be the majority population for US children by 2020.