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Responsible Business Practices
Responsible Supply Base

Supplier Diversity

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Maintaining a diverse and inclusive supplier base reflects the way we think about our business, our people, our innovation, our markets and our communities. We believe our differences are our strength, and our inclusive culture unleashes our potential. Our Global Supplier Diversity & Inclusion Program provides a platform for proactive outreach to diverse and small suppliers, collaboration with partners advancing supplier diversity and guiding suppliers on how to engage with Johnson & Johnson. We exceeded our Health for Humanity 2020 Goals, which were to achieve benchmark spending for Tier 1 and Small Business in the United States, and we increased our global footprint from six countries in 2016 to 17 countries in 2020.

Our global supplier diversity and inclusion goal sets a new ambitious target that will galvanize our organization to achieve an even more inclusive supplier network.

2025 Goals

For full details of this Goal and KPI, see our Health for Humanity 2025 Goals.
Global Supplier Diversity and Inclusion
By 2025, achieve $4.5 billion Global Impact Spend with small and diverse suppliers, representing a 20% increase from 2020.
For full details of this Goal and KPI, see our Health for Humanity 2025 Goals.
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For full details of this Goal and KPI, see our Health for Humanity 2025 Goals.

In 2020, the COVID-19 pandemic placed great strain on our entire supply chain. We worked closely across our supplier network where needed to help manage the issues suppliers faced in maintaining operations. For more information, see the United in Defeating COVID-19 section.

Guided by Our Credo, we have a responsibility to the communities in which we live and work. Increasing our diverse supplier base—and engaging all suppliers on the importance of diversity, equity and inclusion—helps us drive social and economic inclusion, and reflects the diversity of our patients and consumers around the world.
Kathy Wengel
Executive Vice President & Chief Global Supply Chain Officer, Johnson & Johnson
For the 10th 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 disability-owned businesses.

Promoting diverse businesses: In 2020, we evolved our procurement processes and strategy through which we aim to identify, engage with and contract with diverse enterprises, and we strengthened our collaborative relationships with key advocacy organizations that support diverse businesses.

Part of this supplier diversity evolution included the launch of strategies focused on growing spend and footprint across the Johnson & Johnson Enterprise. They included education campaigns, engagement of senior level sponsorship both in and outside of procurement, and dedicated teams to develop and execute strategies. Highlights include:

  • We augmented our longstanding support for Black-owned and African America enterprises:
    • In response to the heightened focus on racial justice by Johnson & Johnson, we launched a Black-owned business strategy to grow spend with this key demographic group. We sponsored the “In This Together” campaign of the National Minority Supplier Development Council (NMSDC) to support their Rebuilding Fund, helping minority businesses recover from the economic downturn caused by the pandemic. We also earned senior leader representation on the national Board of the NMSDC in addition to our Board membership at the regional level in New York/New Jersey.
  • We expanded our alliance with the African American Chamber of Commerce of New Jersey, and as a New Jersey-based company, we supported its annual awards program recognizing accomplished African Americans. We also supported the State of Black New Jersey 2020 Economic Virtual Summit and an educational program for African American- and Black-owned businesses.
  • We continued our focused strategy to grow spend with LGBT suppliers by strengthening our relationship with the National Gay and Lesbian Chamber of Commerce (NGLCC). We supported their “Mentorship Protégé” program and the first NGLCC Communities of Color Virtual Matchmaking event to help create opportunities for suppliers owned by LGBT people of color. In addition, we became a founding member of the European LGBTIQ Chamber of Commerce.
  • As part of our Veteran-owned business focus, we continued our relationship with key advocacy organizations, such at the National Veterans Business Development Council, for which we were honored to receive the Corporation of the Year Award in 2020. We also provided sponsorship of the New Jersey State Veterans Chamber of Commerce in support of their initiative to provide support for small businesses impacted by the pandemic.
  • We expanded our partnership with MSDUK and sponsored the Global Supplier Diversity Alliance (GSDA) Conference. In addition, during 2020, we partnered with GSDA members in six markets (Australia, Brazil, Canada, China, South Africa and the UK) to advance minority business enterprises in markets around the world.
  • We continued to serve as a major sponsor and corporate member of the Diverse Manufacturing Supply Chain Alliance, where we sponsor diverse firms to participate in their Supplier Development System.
Johnson & Johnson was recognized as the winner of the Supplier Diversity & Inclusion Category at the 2020 World Procurement Awards for value expressed by the business, partnership with peer companies through peer ideation events, advocacy partnerships, and our positive impact on the economy and job creation.

In addition to sponsorships and engagements to drive awareness, capabilities and connections for diverse businesses, we also maintained and expanded other supplier diversity programs, including:

Mentoring women-owned businesses: In 2020, we launched the third year of our global Women Mentoring Women program with 28 program participants comprising 14 certified Women-Owned Business Enterprise owners and 14 Johnson & Johnson leaders from a range of business functions. For the first time since the program's inception in 2017, 50% of participating Women-Owned Business Enterprises are based outside of the United States, covering all regions of the world. Due to COVID-19 restrictions, the program ran virtually in 2020.

In 2020, minority-owned suppliers provided over $1.2 billion in goods and services to Johnson & Johnson.

Expanding our Buy Diverse eMarketplace platform: The goal of Buy Diverse, which was piloted on a limited basis in the United States during 2018, is to drive increased visibility for diverse suppliers in the buying platform. In 2020, we expanded the scope of the platform to include South Africa and the UK.

Boosting social enterprises: As one of seven founding partners of the Buy Social Corporate Challenge (BSCC) in the UK, the flagship program of Social Enterprise UK that seeks to promote the use of social enterprises in corporate supply chains, we continued taking a lead role in advancing this program. Through the efforts of partners, in 2020 BSCC achieved the highest level of collective spend since its inception among the 24 participating social enterprise companies. We also partnered with Social Supermarket, an online, social enterprise marketplace that sells products that have a demonstrable social or environmental impact. Our work with the Social Supermarket not only provided our employees access to unique social impact products but also allowed suppliers to demonstrate their capabilities and access seed funding to enable them to scale their enterprises.

Driving supplier diversity in our R&D supply chain: Despite the challenges of COVID-19 and its impact on our business and our critical suppliers, we were able to leverage our existing R&D diverse supplier strategies and strong relationships built over decades to support our COVID-19 vaccine development, not only maintaining critical supplies and services, but simultaneously growing R&D’s diverse supplier spend.

Our engagement with R&D suppliers will also play a significant role as we roll out Our Race to Health Equity platform that includes partnerships that will advance diverse enrollment in clinical trials.

Spotlight on PRA Health Sciences
In 2020, one of our primary Contract Research Organizations, PRA Health Sciences, expanded its own diversity, equality and inclusion program, focusing on people, patients, partners, and community with initiatives that are important for Johnson & Johnson and also critical for our industry which employs and engages many frontline workers. Elements of PRA’s progress include:

  • Greater focus on hiring diversity, including engagement with Historically Black Colleges and Universities (HBCUs), with military veterans and those with differing learning abilities;
  • Increased participation in women’s mentoring and leadership programs;
  • Global conscious and unconscious bias training for all employees; and
  • Expansion of their Employee Resource Groups, including one for nurses, to help them connect with one another, support local communities and engage in innovation initiatives.

Supplier Diversity Spend

Supplier Diversity Spend

2020 2019 2018
Diverse supplier spend in the U.S. (billions) $1.7 $1.6 $1.4
Diverse supplier spend in countries outside the U.S. (billions) $0.29 Not Reported Not Reported
Small business spend in the U.S. (billions) $2.7 $2.6 $2.8
Lesbian, gay, bisexual, transgender supplier spend in the U.S. (millions) $4.5 $3.7 $2.0
Veteran- and disabled veteran-owned supplier spend in the U.S. (millions) $193.2 $169.6 $139.0
Women-owned supplier spend, global (millions) $826.0 Not Reported Not Reported
Minority-owned supplier spend, global (millions) $1,223.4 Not Reported Not Reported
Tier 2 diverse supplier spend, global (millions) $372.1 Not Reported Not Reported
* Except Tier 2 diverse spend, all indicators represent spend Johnson & Johnson's has control over/addressable spend, defined as products and services procurement teams can negotiate with suppliers to meet business goals.

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