JPMorgan's Determined bid to Increase Supplier Diversity

In so many ways, JPMorgan Chase & Co is a leader in the field of financial services and beyond, setting an example for competitors to follow. 

Things are no different when it comes to the increasingly-discussed matter of supplier diversity, into which the organisation is pouring extensive resources.

Look no further than JPMorgan Chase's Global Supplier Diversity programme, which is is focused on facilitating the growth and development of businesses in its supply chain network.

Promoting equity and inclusion

For more than three decades, JPMorgan Chase has been dedicated to the development of—and collaborating with—a wide variety of businesses from diverse and traditionally underrepresented groups.

This includes companies owned and operated by women, ethnic minorities, veterans, people with disabilities and members of the LGBT+ community.

The overarching 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.

Thanks to this strategy, JPMorgan Chase dedicates more than US$2 billion to diverse suppliers on an annual basis, while leveraging its undeniable power and influence to overcome barriers frequently faced by these firms. 

Building on this, JPMorgan has created the Supplier Diversity Network (SDN), allowing businesses certified as being owned by diverse groups to register. 

The SDN is now the primary resource through which the finserv giant's supplier diversity and procurement teams identify eligible businesses for consideration in contracting opportunities.

Funding diverse-owned businesses

Expanding on the above, JPMorgan Chase runs a first-of-its-kind 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. Impact metrics include new contracts with corporations, new RFPs for which businesses qualify, job creation and revenue growth.

“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."

******

Check out the latest edition of FinTech Magazine and sign up to our global conference series – FinTech LIVE 2024. 

******

FinTech Magazine is a BizClik brand.