Does it really matter if you partner with a diverse-certified business?
Now that we know what it means to be a diverse-certified business, (link to other blog), why is it so important to partner with one? Please do not say “economic factors” and “tax deductions!” Albeit true, these incentives are meant to drive the bigger picture: breaking the cycle.
What does “breaking the cycle” look like?
Historically, companies select partners based on relationships and comfortability, and are less likely to divert from their “norm.” This means, they choose partnerships because their leaders look like themthey are of their same ethnicity, race or have the same values. It is time for companies to stop conforming and break down these historical patterns. Partnering with certified-diverse businesses will help your company grow and expand its network. We are currently the most diverse generation in American history, so we need the next iteration of big companies to step up.
BONUS REASON #1 – Innovation
As if helping the world be a better place is not enough, you get to benefit from the innovation these certified-diverse partnerships bring to the table. As globalization and the demands of the next generation are pushing companies to re-examine their diversity and inclusion efforts, businesses are taking advantage of the unique experiences that these diverse partners provide. The perspectives that these groups add to strategic thinking, creative work and the company culture are invaluable.
Here is something that will put things in perspective for you: according to the 2019 Annual Business Survey, approximately 1 million of all US businesses are minority-owned. These minority-owned businesses have faced challenges others have not had to deal with; and have been forced to adapt in order to succeed. These leaders had to get creative. So, imagine a partnership with a company that can give you an edge up. Your company will be a step ahead by using their knowledge to drive innovation.
BONUS REASON #2 - Better Performance
How do we judge whether or not a company is thriving? It all boils down to the customerdetermining the best way to serve them and how to gain new ones. By partnering with a diverse business, you are enabling your company to achieve better performance and reach even more potential customers. How? By working with leaders who understand and reflect the needs of a broader customer base.
Certified-diverse businesses offer a wealth of knowledge when it comes to better understanding varied demographic. They are typically well-connected in their communities, and this allows you to reach potential customers on a more personal level. You will gain the ability to:
Better empathize
Use appropriate language
Tailor your current products to their needs
Create new products and find better ways to meet their needs
BONUS REASON #3 - Improve Brand Loyalty
A thriving diverse business that is supported by its industry is able to give back to its community and in turn, support a younger generation of entrepreneurs who will continue to invest in its community. With your brand as a driving component in this cycle, it will garner positive sentiment among consumers who care about giving back.
This fact underscores it all: companies with the greatest racial diversity brought in 15x higher sales than the least diverse. If this is what happens with an internally diverse company, then these stats are likely to be mirrored when your company partners with a certified-diverse business. And if you have both, it is a win-win. Customers are increasingly investigating the brands they support; and will be much more likely to continue buying from ones that have diversity among their internal employees as well as their external partnerships.
YES, It Matters!
When diversity is at the core of your company’s morals and ethics, it strengthens your company culture, improves your brand recognition, impacts your bottom line and ultimately “breaks the cycle.” An important step in driving your business forward in a more diverse, equitable, and inclusive way is to make conscious decisions in the partners you choose.
Are you inspired to make a change? You do not have to do it alone. We at Titanium Worldwide are proud of our diverse-certifications so that we can help fix a broken system, and we are here for you if you need us.