Encouraging diversity and inclusion across Johnson & Johnson’s global supply chain is a critical component of engaging with suppliers. It’s good for business; we benefit from new thinking and perspectives that drive innovation. It’s also good for society, because when we support a small or diverse business, especially in an area of the world where opportunities are limited, we are proving that diversity and inclusion can make a difference and have a considerable economic impact.
The Johnson & Johnson Supplier Diversity Program was established to meet the following objectives:
- To support the communities in which we live and work through the creation of jobs and economic empowerment;
- To reflect the diversity of the consumers and patients who benefit from our products;
- To respond to the requirements of our customers who expect Johnson & Johnson companies to share their values; and
- To partner with superior, small and diverse firms and advocacy groups that can provide value to our businesses, and throughout our supply chain.
At Johnson & Johnson we know we cannot do it alone and need diversity of thought, culture, perspective and experience to help us unlock a world of innovative solutions to solve pressing global health issues.
Our track record in advancing supplier diversity within our business spans more than 20 years. Global Supplier Diversity and Inclusion (GSDI) oversees our Supplier Diversity Initiative, and is an integral part of the Citizenship Center of Excellence, within our Global Procurement organization. Through GSDI, we provide small and diverse businesses with a path for consideration, when opportunities arise, and to become a supplier for our Company. Supplier Diversity and size classifications include: Certified Minority-Owned Businesses and Certified Woman-Owned Businesses; Small Businesses and Small Disadvantaged Businesses; Small Veteran-Owned and Service Disabled Veteran-Owned Businesses; Small Woman-Owned Businesses, Small HUB-Zone businesses, and LGBT-Owned Businesses. For more information on our GSDI Program and supplier diversity certification requirements, please visit the Supplier Diversity page on our website.
We launched our Women Mentoring Women Program in 2017, which connects the strengths of woman-owned businesses with those of Johnson & Johnson Procurement women leaders in a reciprocal mentoring relationship. For the seventh consecutive year, Johnson & Johnson maintained membership in the Billion Dollar Roundtable, an exclusive group of companies that advance corporate best practices for supplier diversity, and that spend at least $1 billion (Tier 1) annually with certified minority and woman-owned businesses.
The importance of supplier diversity as one of our Company’s fundamental values is underscored by our public commitment, as part of Health for Humanity 2020 Goals, to expand our program both in the United States and globally. As we develop our supplier diversity programs globally, we are leveraging our experience and expertise from the work in the United States to establish processes and systems that will deliver positive impact, while also being suited to country-specific supplier diversity and inclusion definitions and requirements.
2020 Goal UpdateCollaborate with our suppliers to accelerate environmental and social improvements across the value chain.TargetConsistently achieve benchmark spending with U.S. diverse suppliers and small suppliers, and double the number of countries with established supplier diversity and inclusion programs.*Progress• Exceeded benchmark diverse supplier spending at 10.3% and benchmark small supplier spending at 19.4% of total U.S. spend.
• Expanded our supplier diversity and inclusion programs to two additional two countries (China and Germany) for a total of 12 countries against the baseline of six.StatusOn track
* Total spend represents addressable spend, i.e. products and services that procurement teams can negotiate with suppliers to meet business goals.
* Total spend represents addressable spend, i.e. products and services that procurement teams can negotiate with suppliers to meet business goals; total spend in 2017 excludes Actelion and Abbott Medical Optics.