In a recent blog, we explored the key differences between genuine Tier 1 and Tier 2 diversity spending partners and shadow-organization suppliers that are “diverse” in name only. The ultimate goal is to ensure that your diversity spending dollars are actually advancing diversity and benefiting communities in need.

There are six questions to ask if you wish to determine whether you are working with a true diversity partner or merely a “pass through” entity that has no tangible impact on diversity. This time, we will explore the first of those six questions in greater depth.

Question #1: Is your diversity supplier helping to create American-based jobs?

Sourcing products and services under a “diverse” label is easy. Doing it in a way that creates jobs in under-represented American communities and targeted Empowerment Zones is much harder. This is the real magic of Tier 1 and Tier 2 diversity spending programs — and one of the hallmarks of a true diversity partner.

Getting to the bottom of this issue requires that you ask some specific follow-up questions. If the supplier organization is eager to answer those questions for you, it’s a very good sign that they are a bona fide diversity partner. However, if they are vague or evasive in their answers, you’re likely working with a shadow-organization supplier.

· Where are the products made?

· What specific community has been targeted for job growth through the manufacturing and fulfillment of that product? Is it, in fact, an under-represented American community or a targeted Empowerment Zone?

· How many jobs are being created for this community or Empowerment Zone and how is that job growth being measured?

The Caracal Difference

Caracal’s products and services are sourced directly from minority-owned and women-owned American businesses whenever possible, accelerating job growth in diverse communities. We create good-paying jobs in American communities in need of a hand up, not a hand out.

Looking ahead

This blog series will continue to look at the differences between bona fide diversity spending partners and transaction-oriented suppliers. Stop back in a few weeks as we explore the financial structure of the different types of supplier organizations. As they say in the movies, “follow the money.”