Supplier diversity can be one part of a solution to the recent riots in England, helping more social inclusion and building stronger communities. The riots themselves seemed to come from nowhere: Many of us watched with shame and bafflement: the world outside watched in fascinated amazement at what seemed to be the mindless violence and theft. And there has been a back-lash about what happened and pundits from all sides have been giving their views… and now there is even a back-lash against the back-lash. What we can say is that unlike the riots in the UK in the 1980’s, Los Angeles in 1992 and in France in 2005, they were not overtly political or racial. Common features included looting, arson, attacks on the police: The riots spanned different places, races, ages and sex, and race although part of the equation was not the defining factor: Indeed ethnic minorities in some ways were the heroes of the riots; For example the 3 law abiding Muslim youths who died in Birmingham and Tanq Jehan the father of one of the dead boys who spoke so powerfully about collective humanity. Driving issues did seem to be about a cadre of young people, a big majority of the rioters were young, male and from poor neighbourhoods who appeared to have no stake in where they lived, or did not care. | And why was this? There are several possible explanations: The changing nature of the economy; the shortage of jobs especially for the less skilled, and this is going to get worse; the crumbling of family structures, and other reasons. In short: all the frustrations of an underclass that feels increasingly marginalised. Budget cuts don’t help, and there is also rampant cynicism as young people see for example bankers and politicians fiddling their expenses. So for us one of the things that comes out of the riots (and this does not excuse them) is the lack of work and also a vision for young people of a viable future. Part of any solution is about the availability of jobs: Here locally generated businesses, small and medium sized enterprises will be an important basis of any recovery and the provision of potential jobs. SME’s are a driving force of the economy, and the majority of any new jobs will be in this sector…and then there is the link with procurement and generating more business and jobs, especially with SME’s. Procurement is a huge business: Most large organisations procure: they use suppliers, often forming at least a third of the basis of their turnover. It is the way the inter-connected markets work and supplier diversity puts diversity into this procurement process. It adds the logic of being fair and equitable in employment and service delivery into buying and work with suppliers. Supplier diversity starts with reminding large companies about the importance of SME’s and ensuring that they are part of the procurement process, and this includes second and third tier suppliers. Diversity is part of this, and ensuring that any supplier has the free and fair opportunity to compete for business based on their own merits. | Business benefits are an important part of the equation of supplier diversity. These are well charted in the US and it is early days in the UK and mainland Europe, so as yet we do not have too much evidence. But we do know that by broadening their supplier base companies gain access to new ideas, increase their competition, widen the number of suppliers they can look at. It also helps to align supply chains and products with the diverse market place and customers out there…and big global companies like Johnson and Johnson for example know this, from all the markets they operate in from Africa to India to across Europe. Supplier diversity can help through effectively supporting small and diverse businesses to help regenerate communities and encourage new entrepreneurs, most of them young. One example is from France who had their own riots not so long ago. Adive is a French non-for-profit organization created in February 2009. Its work is concerned with creating a direct relationship between SME’s settled in disadvantaged areas or minority-owned businesses with large companies. The aim is to help these diverse SME’s to build capacity, increase their sales, develop their activities, and importantly to generate jobs and wealth creation in order to foster social and economic development of disadvantaged areas. The approach helps to promote hope and a positive vision for local people. Contact us if you have any comments on this blog.  Previous Blog/News entry
View all Blogs/News |
Home
