In 2023, we celebrated 25 years of our supplier diversity program. Our quarter of a century journey is marked by major milestones, including induction into the Billion Dollar Roundtable in 2011, expanding our program outside of the U.S. in 2011 and achieving $2 billion in Tier 1 diverse spend in 2021.
Our Global Supplier Diversity & Inclusion program provides a platform for to work with supplier partners to meet the diverse needs of our customers and patients who benefit from our products and services. This includes businesses that are owned by people across all groups, including women, minorities, veterans, members of the LGBTQIA+ and disabled communities, social enterprises and small businesses. We continue to realize the value that an inclusive supply base brings to our business, our people and our communities. We have expanded our global footprint driving social and economic impact in 20 markets, including the U.S.
J&J has spent more than $20 billion with Tier 1 diverse suppliers since our induction in the Billion Dollar Roundtable. For the 13th consecutive year, J&J maintained membership in the Billion Dollar Roundtable, a group of companies that advance best practices for supplier diversity and spend at least $1 billion annually with diverse-owned suppliers.
Impact metrics
A key measure of our progress in supplier diversity is our Global Impact Spend, representing addressable spend with small and diverse suppliers globally and small businesses in the U.S.
This year, we evolved our supplier diversity metrics to measure the impact on communities through our supplier spend with metrics that include economic and social impact outcomes. We partnered with a supplier to conduct a study on J&J’s diverse supplier base covering the following sets of metrics:
Economic impact
This includes jobs supported, impact on wages and overall contribution to the economy, enabling us to understand how doing business with diverse and small suppliers impacts the economy.
Social determinants of health
This includes social, economic and environmental variables that impact physical and mental health. These metrics help us understand the potential impact of J&J’s spend in the communities in which our suppliers are located and the impact our spend has on health outcomes.
Global supplier diversity spend and impact in 2023
total Global Impact Spend
U.S. supplier spend and impact
total U.S. spend with Tier 1 diverse and small businesses
jobs supported through spend with small and diverse suppliers in the U.S.
Cumulative economic impact
total U.S. spend with Tier 1 diverse and small suppliers
Supplier diversity partnerships
Women Mentoring Women (WMW): By pairing senior J&J business leaders with women-owned business owners who are current suppliers to J&J, we strive to promote collaboration, knowledge sharing and personal development. We executed our fifth cohort of the WMW program with more than 66% of mentees in 2023 from outside of the U.S.
National Minority Supplier Development Council (NMSDC): J&J sponsored the NMSDC Centers of Excellence program, designed to broaden the capabilities of Minority Business Enterprises (MBEs) to compete in a global environment. Nearly 60 select NMSDC-certified Women Business Enterprises (WBEs) and MBEs benefited from coaching with corporate leaders and mentors, as well as seminars delivered by business schools, J&J experts and industry partners. The graduates reported an increase of $4.6 million in revenue and 27% in profitability.
Social enterprises: We continued to support procurement from social enterprises around the world and sponsored the Social Enterprise World Forum’s annual summit, SEWF23, in Amsterdam.
