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Disability Inclusion in Corporate Supplier Diversity Initiatives.
Nanette Goodman1, Fatma Altunkol Wise2, Fitore Hyseni2
1Burton Blatt Institute, Syracuse University, Syracuse, NY, USA. njgoodma@syr.edu.
Supplier diversity programs are growing, but disability inclusion is inconsistent. Only 38% of Fortune 500 companies include disability-owned businesses, highlighting a gap in current initiatives.
Area of Science:
- Business and Management
- Sociology
- Economics
Background:
- Supplier diversity initiatives aim to include underrepresented businesses in supply chains.
- Programs have expanded from racial/ethnic minorities to include women, veterans, LGBTQ+ individuals, and people with disabilities.
Purpose of the Study:
- To investigate the extent of disability inclusion in the supplier diversity initiatives of Fortune 500 companies.
Main Methods:
- Utilized a novel dataset of supplier diversity and Disability, Equity, and Inclusion (DEI) statements from Fortune 500 companies.
- Combined this data with corporate financial information from Compustat and other sources.
Main Results:
- 75% of Fortune 500 companies have supplier diversity programs, but only 49% of those include disability-owned businesses (38% overall).
- Inclusion rates vary by company size, industry, and government contractor status.
- Among the top 100 companies, 89% included disability, a significant increase since 2005.
Conclusions:
- The lack of disability as a diversity category in federal contracting regulations affects inclusion.
- Aligning supplier diversity programs with the Americans with Disabilities Act requires addressing Small Business Administration and federal contracting requirements.
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