MBN USA

October 25, 2021

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Bank of America joined BDR in 2014

“We’re proud to hire diverse companies because, when they succeed, the diverse communities we serve also experience tangible and sustained economic benefits that fuel dreams.” — Vonshe M. Jenkins, senior vice president, global supplier diversity & responsible sourcing executive

Q: When did your company begin its supplier diversity program?

A: 1990.

Q: Can you tell us a bit about your supplier diversity program history?

A: More than 30 years ago, we officially began our journey to very intentionally include minority businesses in our overall corporate purchasing strategy. We joined the National Minority Supplier Development Council [Inc.] in 1989.

In 1990, under our then-chairman and CEO Hugh McColl’s leadership, we formally established the Minority Business Development initiative with defined supplier diversity spending goals. In 1999, Bank of America made a commitment to increase our overall spend with diverse vendors. We drafted contract language for majority-owned prime suppliers to include a percent spending goal to ensure the expansion of opportunities to Tier II diverse suppliers. We were honored to be the first financial institution to be inducted into the Billion Dollar Roundtable.

Each year, Bank of America spends nearly $2 billion with minority-, women-, disabled person-, disabled veteran or [lesbian, gay, bisexual and transgender- or] LGBT+-owned [businesses, along with] historically underutilized business zone or HUBZone enterprises. We supplement that spend by providing mentoring and development opportunities for diverse businesses.

Recognizing the need to positively impact environmental and social change, in 2018, Bank of America created a Responsible Sourcing program to leverage the power of our global supply chain. And every year, we look for ways to enhance the program because diverse suppliers are a big part of the economic engine that drives the communities where we live, work and serve. We’re proud to hire diverse companies because, when they succeed, the diverse communities we serve also experience tangible and sustained economic benefits that fuel dreams.

Q: Why did your company decide to become a BDR member?

A: BDR is the premier organization and an outstanding benchmark for corporations who spend $1 billion or more with diverse vendors every year. We knew that we shared the same commitment to diverse business inclusion with BDR members and have been thrilled to join them in being a catalyst to effect positive change. Together, we share best practices, learn, grow and influence others to expand their efforts.

Q: Besides having a $1 billion annual spend with diverse suppliers, what does it take to be a BDR company?

A: Spend is just one outcome of a corporation’s commitment to supplier diversity. To be a BDR company, how you drive this work must be a part of the DNA of your supply chain and your company. You must be vested in your approach to inclusion and continue to set stretch goals — being stagnant is not part of the equation. You must also commit to the education and capacity-building of diverse businesses; their success is your success.

Q: How has your company benefited from BDR membership?

A: It’s a pleasure to be part of a cohort of companies that are striving to push the boundaries in the supplier diversity space. We work together to develop strategies and many activities that we believe will continue to move the mark forward for what is considered “success.” We go out of our way to collaborate, share best practices and challenge the current state.

Q: What are some best practices or lessons learned you can share with companies striving to reach the $1 billion diverse spend mark?

A:

• Have clear supply-chain inclusion  policies and an infrastructure to monitor and manage those policies to drive stakeholder accountability.

• Use data to inform your strategy.

• Have consistent and robust metrics that track the health of your program, provide insight into blind spots and help manage risks.

• Revisit your strategy often to make necessary adjustments.

• Measure and communicate the performance and results of your program to key stakeholders at every level.

Q: What advice would you give to corporations that would like to become BDR members?

A: This isn’t just a “supply-chain” journey. This is a corporate journey and commitment. Engage the broader company to help you reach the goal of becoming a member of BDR.

Q: What’s your vision for the future of minority business development and supply chain diversity?

A: Minority business development is extremely important, but it is not a one-size-fits-all activity. Development must have a purpose and clear outcomes for the intended audience. Corporations must lean into understanding the most beneficial resources and information they can offer to minority businesses and offer it with intention.

To learn more about Bank of America’s supplier diversity program, visit about.bankofamerica.com/en/our-company/vendor-management.