Certification in Supplier Diversity Practice Exam

What defines a Diverse Supplier?

1. Owned by a single individual regardless of background

2. Small businesses and small disadvantaged businesses based on social or economic factors

3. Companies that are publicly traded on stock exchanges

4. Businesses with over 500 employees

The correct answer is: Small businesses and small disadvantaged businesses based on social or economic factors

A Diverse Supplier is typically defined as a business that is at least 51% owned, operated, and controlled by individuals from specific minority groups, women, or other disadvantaged backgrounds. This definition encompasses small businesses and small disadvantaged businesses that are recognized based on social or economic factors, as mentioned in the correct choice. This characterization is essential in supplier diversity initiatives because it aims to promote inclusivity and equal opportunities for various demographics that have been historically underrepresented in the business community. By focusing on ownership and control by these identified groups, initiatives can effectively support economic empowerment and community development. The other options do not meet the criteria for defining a Diverse Supplier. For example, ownership by a single individual does not factor in background or demonstrated disadvantage. Similarly, publicly traded companies do not necessarily reflect a diverse ownership structure, as they often have diverse shareholders rather than being owned and controlled by individuals from specific underrepresented communities. Lastly, the size of a business, such as having over 500 employees, does not inherently reflect diversity in ownership or economic disadvantage.