TIAA — a Fortune 100 financial services company and pension fund giant — has been a longtime supporter of diverse and unique suppliers, but now has plans to strengthen its commitment by spending more on goods and services from those minority firms.
According to a statement from the company, TIAA launched its Supplier Diversity Program nearly 30 years ago to support the need to build relationships with diverse and diverse-conscious enterprises.
TIAA recently published its Supplier Diversity Economic Impact Report, in which it includes initiatives to develop strong working relationships with suppliers owned by minorities of unique backgrounds, including women, veterans, disabled people, and lesbian, gay, bisexual and transgender (LGBT) individuals.
“We are proud of the work we’ve done to support and celebrate diverse and minority-owned businesses, but we know we must do more,” said Glenn Richter, Chief Financial Officer at TIAA, in a statement. “As our nation continues to reel from the lasting effects of COVID-19 and the ongoing racial and social tensions, we are committed to expanding and strengthening this program, especially as many minority-owned businesses continue to face unprecedented economic challenges.”
Outside of its commitment to working with diverse suppliers, the report also reveals several ways in which the Supplier Diversity Program has created economic growth for many communities, including those of its participants.
According to the report, TIAA had a direct impact on small and diverse suppliers in 2019 after purchasing $130 million from diverse businesses in the U.S. Those purchases were then able to support 825 jobs and $53 million in wages and benefits at those businesses.
Additionally, those same purchases indirectly impacted the supply chain industry, and as a result, small and diverse businesses were able to purchase $51 million in goods and services from their suppliers and support an additional 327 jobs.
Moreover, it was reported that employees at those small and diverse businesses generated an additional $64 million in economic activity and produced 478 more jobs in their communities.
TIAA’s unwavering support includes developing a broad range of capabilities within its supplier base by offering:
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- Diversity training for our suppliers, which helps them engage with TIAA and to educate non-diverse suppliers on working with diverse businesses.
- Supplier diversity mentorship program, which connects diverse-owned businesses with experienced and committed mentors to expand the reach and support the growth of their companies.
- Supplier summits, which include opportunities to hear from thought leaders and experts on industry best practices.
- Scholarships providing diverse suppliers with full tuition to the Tuck Diversity Business Program at Dartmouth University, totaling $24,500 in 2019. In 2020, it will increase to 10 scholarships totaling $49,000.
To view TIAA’s full Supplier Diversity Program Economic Report, click here.