Google Vows to Spend $2.5 Billion with Diverse Suppliers in 2022
A Brief Summary
The tech giant has plans to expand its supplier diversity program beyond the U.S. this year. It pledges to spend $2.5 billion with diverse suppliers in 2022. The supplier diversity plans also focus on mentoring, development and partnership programs. The company has decided to expand its program after surpassing last year's $1 billion goals by $500 million.
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The decade-old supplier diversity program has come back into the limelight and gained momentum following the brutal killing of George Floyd by police and the protest that followed in 2020.
Jennifer Moceri, vice president of global procurement & chief procurement officer, said: "We want to help build an inclusive economy that works for everyone. This extends within our company and accounts for the economic impact that we can have when we buy goods and services."
The spending goal will join many other efforts that are already underway to make the procurement process more inclusive for google suppliers.
Google's Certification Access Program, in association with San Ramon, California-based R Mo Diversity Solutions, in 2021, provides eligible suppliers with financial support and eliminates administrative burdens to secure diversity certification. The Accelerated Payments Program makes payments to suppliers within 15 days of invoice approval instead of 45 days.
Google has been associated with Dartmouth college to offer digital technology training for entrepreneurs from underrepresented and minority backgrounds.
Over 400 diverse business leaders will have graduated from the Dartmouth course and received more than $7,50,000 in scholarships by the end of 2022. The program requires applicants to register as Google suppliers and is available free, while registration does not guarantee admission, Dartmouth's website says.
Dartmouth's website says: " "The Digital Excellence Program is designed to help make participants' businesses more attractive suppliers to corporations, prepare them for growth in the market, and ensure they are working with clients for increased business,"
"We are proud of exceeding our first spend goal and the programs we have created to elevate diverse suppliers. Yet we know we have more to do and look forward to continuing that work." Moceri said.
Google gets added to the list of other tech giants spending billions each year with diverse suppliers and partners. Microsoft spent around $4 billion with diverse-owned businesses globally in FY2019. Meanwhile, IBM spent $2.1 billion for its suppliers worldwide in 2020.