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Responsible Supply Base

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Supplier Diversity

Our Global Supplier Diversity & Inclusion program provides a platform for proactive outreach to diverse and small suppliers, collaboration with partners advancing supplier diversity, and guidance to suppliers on how to engage with Johnson & Johnson. Now in the third decade of this program, we continue to realize the value that an inclusive supply base brings to our business, our people, our innovation, our markets and our communities. We have expanded our global footprint to 19 markets, with the addition of India and Turkey.

For the 11th consecutive year, Johnson & Johnson maintained membership in the Billion Dollar Roundtable, a group of companies that advance best practices for supplier diversity, and that spend at least $1 billion (Tier 1) annually with certified minority-, women-, veteran-, LGBT- and disabled-owned businesses. We also became a founding member of the European Gay and Lesbian Chamber of Commerce, the umbrella organization of the European LGBTIQ Chambers of Commerce, to grow spend with suppliers from this important community.

31% increase in spend with U.S. Tier 1 Black- and Hispanic-owned businesses

Tier 1 Diverse Supplier Spend in the U.S. (Millions)

Tier 1 Diverse Supplier Spend in the U.S. (Millions) placeholder placeholder 2021
Diverse
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$2,214
Minority-owned
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$1,464
Women-owned
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$873
Disabled-owned
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$159
Veteran-owned and disabled veteran-owned
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$119
LGBT-owned
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$9

Health for Humanity 2025 Goals | Accountability & Innovation

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Progress: Achieved $5.22B Global Impact Spend with small and diverse suppliers, representing a 40% increase from 2020.
In 2021, Johnson & Johnson exceeded $2 billion procurement spend with Tier 1 diverse suppliers globally for the first time. In the U.S., we achieved $2.2 billion; and outside the U.S., spend totaled $670 million, the result of targeted efforts in our international markets.

Several notable advances were made in 2021 as we exceeded our ambitious goal of $4.5 billion in Global Impact Spend by 2025. Examples include:

  • Expanding the coverage of our Buy Diverse, a digital capability initiative that increases the visibility of diverse suppliers in our purchasing technology platform, eMarketplace. In 2021, we significantly increased the number of diverse suppliers in the U.S. and South Africa and expanded the program to Brazil and China. We now have more than half of our diverse suppliers included and a footprint in all regions.
  • Hosting an inaugural Johnson & Johnson dedicated global virtual matchmaking event in partnership with six advocacy organizations that are part of the National Business Inclusion Consortium (NBIC). We partnered with the National LGBT Chamber of Commerce (NGLCC), a key advocacy partner that is also part of the consortium, to co-host the event. The advocacy organizations recommended diverse businesses for Johnson & Johnson to evaluate based on business requirements we provided them. As a result, we held discussions with 100 certified diverse businesses and moved more than half of them forward in our procurement process. This was not only an effective approach for supplier discovery, but also established a best practice for the industry.
With over 100 meetings conducted between diverse suppliers and Johnson & Johnson category leads, we were able to yet again increase opportunity for the diverse business community and showcase the commitment we at NGLCC and our partners at Johnson & Johnson have to supplier diversity.
Justin Nelson
Co-Founder and President, National LGBT Chamber of Commerce (NGLCC)
  • Focusing on social enterprises, which are businesses that make a social impact while delivering products or services. As an example, Auticon is a social enterprise in Europe that employs people on the autism spectrum, a population that has an 85% unemployment rate. Auticon supports our Global Strategic Insights category using neurodiverse consultants in the data and analytics field to drive outstanding business results. The unique talents of their consultants include strong attention to detail and accuracy. At the same time, their consultants help break down biases towards people with this condition.
  • Building new advocacy partnerships with 14 NGO partners outside the U.S., including supporting research in 2021 to build advocacy infrastructure in Europe for minority business enterprises and social enterprises. In addition, Johnson & Johnson is a member of the NJ CEO Council and of the Billion Dollar Roundtable Black-Owned Business Healthcare Collaborative.
  • Driving diverse spend transparency by expanding our reporting of our detailed diverse supplier spend to our major customers. Such reporting allows our customers to recognize the impact of their spend on diverse and small businesses through their value chain and helps them achieve their own supplier diversity objectives. In addition, working with our supplier partners, we increased their Tier 2 diverse spend reporting to us.

Recognition for our supplier diversity efforts in 2021

WeConnect
Global Champions for Supplier Diversity & Inclusion (Ranked in Top Ten)
National LGBT Chamber of Commerce (NGLCC)
Corporation of the Year Winner
Women’s Business Enterprise National Council
America’s Top Corporations Sixth Time Platinum Level
National Minority Supplier Development Council (NMSDC)
Corporation of the Year (2021 Finalist)
U.S. Hispanic Chamber of Commerce
Million Dollar Club Recognition
National Business Inclusion Consortium (NBIC)
Best of the Best Corporations for Inclusion
Women’s Enterprise and Minority Business News USA Magazines
Corporate Buyers of the Year
Previous Supplier Engagement Next Responsible Sourcing
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