Why is it important to partner with certified-diverse companies? But first, what does it mean to be this?
This is your wake-up call. The next generation of consumers is demanding change. They support businesses which share their values... and they value diversity. This means diversity needs to be a fundamental value and practice of your brand and how it operates. It starts at the top with your leadership team, it runs throughout the organization, AND it needs to be a priority when choosing partnerships.
Let us pause there for a minute before we dive deeper into the importance of diverse partnerships. First, we need to know how we can trust if a company we want to partner with is truly diverse. Any company can say they are diverse, but are they really?
This is where the certification comes in.
A diverse-certified business is one that is 51% owned by an underrepresented member of the population. But this means more than statistics. You cannot state, “this business is owned by a veteran” or “this one is run by a woman.” It involves a thorough certification process by an accredited organization.
To become diverse-certified, an authorization must be issued by either federal, state, or local government agencies or by diversity-focused third parties. The vetting process for certification includes meeting a myriad of criteria, interviews, on-site visits, and a thorough review of documentation and financial structure.
Here are some of the main certifications available*:
Minority-Owned Business Enterprise (MBE)
To be certified by the NMSDC, a business must be at least 51% minority–owned, managed, and controlled. For the purposes of NMSDC’s program, a minority group member is an individual who is at least 25% Asian-Indian, Asian-Pacific, Black, Hispanic or Native American.
LGBT Business Enterprise (LGBTBE)
A certification from the NGLCC gives an LGBT-owned business a competitive edge and is known to help it stay in business longer than the average small business in America. This certification also involves a review by the NGLCC’s National Certification Committee.
Disability-Owned Business Enterprise (DOBE)
Disability:In is the third-party nonprofit behind the certification of disability-owned businesses. In order to qualify, the business must be at least 51% owned, managed, or controlled by a person with a disability regardless of whether that business employs anyone with disabilities.
Women-Owned Business Enterprise (WBE)
The WBENC is the gold standard and most widely recognized when it comes to nationally certifying a women-owned business. It validates that a business is at least 51% owned, operated, controlled and managed by a woman.
Veteran-Owned Business Enterprise (VBE)
The certification organization in charge of recognizing a small business that is 51% operated or owned by one or more U.S. military veterans is the NaVOBA. Its mission is to create corporate contracting opportunities for veterans through its certification process. The NVBDC is the third-party authority for the certification of veteran-owned businesses of any size, not just small businesses.
Others include:
Diverse Business Enterprise (DBE)
Historically Underutilized Business (HUB)
Small Business Enterprise (SBE)
Small Disadvantaged Business (SDB)
Service-Disabled Veteran-Owned Businesses (SDVOBs)
*This list is representative and does not include all the diversity certifications available.
The Value of Diverse-Certification
Some companies may tell you it is not worth going through all of the trouble to get certified only to have a framed certificate on the wall. It is an extensive process after all. We say, YES IT IS! This is proof to both you and your diversity-seeking audiences that these potential partners are accredited and are a recognized authority in this space. With credentials in place, you can be secure in partnering with companies that will be a valuable resource for business growth through unique and strategic perspectives. (Read more about this in the next blog post!)
We at Titanium hold these diversity certifications in the highest regard as every one of our member agencies are diverse-certified. It is a top requirement to be part of Titanium. Feel free to email us at ti@titaniumww.com if you have any questions on our certifications or what it means to be diverse-certified.