Our Review

Microsoft’s supplier diversity program has grown from just a few hundred million in the early 2000s to $4 billion in 2019, affording Microsoft a seat among the biggest supplier diversity spenders. This growth has been realized due to the company’s supplier diversity team which has put programs and plans in place to benefit previously disadvantaged small business groups.

Microsoft encourages all small businesses who identify as diverse, including minority, disabled, veteran, LGBT, and woman-owned businesses, looking to do business with them to register and get certified by the right organizations. These third party organizations help them get the necessary information and contacts needed to gain access to a pool of Microsoft contracts. Microsoft accepts most large national certifying agencies. Suppliers can also submit state, city and county certifications for evaluation.

The company offers small and diverse suppliers educational and networking tools. These give access and the necessary information for smaller firms to compete in the bidding process to provide services to Microsoft across the United States and internationally. 

Like many corporations, Microsoft made a commitment to advancing racial justice in 2020. Among its commitments, Microsoft shared that it will “use our balance sheet and engagement with suppliers and partners to extend the vision for societal change throughout our ecosystem, creating new opportunities for them and the communities they serve”. Microsoft pledged to “double the number of Black- and African American-owned approved suppliers over the next three years and spend an incremental $500M with those existing and new suppliers.”

What seems to be a bit of a flaw on Microsoft’s part is a lack of detailed external reporting of their diversity plans and metrics, despite internal tracking. Information is difficult to find on their website and often appears incomplete. With ambitious goals over the next three years, added reporting would be meaningful.

Microsoft Says

Fernando Hernandez, Director of Supplier Diversity, had the following to say about Microsoft’s supplier diversity program: “Microsoft serves diverse markets globally, and we are convinced that our supplier diversity initiatives are a key competitive advantage, helping us win new business, retain customers, and reinforce the Microsoft brand”

Recognized Diverse Suppliers Groups Include

Suppliers must be 51% owned by:

• Woman who is a US citizen or permanent legal resident of the United States
• Minority who is a US citizen or permanent legal resident of the United States
• Veteran who is a US citizen or permanent legal resident of the United States
• Disabled person who is a US citizen or permanent legal resident of the United States
• Disadvantaged business (business owner must be a US citizen or permanent legal resident of the United States)
• LGBT business owner who is a US citizen or permanent legal resident of the United States

Or if the business is:

• Located in a HUBZone: operates and employs individuals residing in a Historically Underutilized Business Zone (HUBZone), as defined by the US Small Business Administration (SBA)

Accepted Certification Agencies Include

• Women’s Business Enterprise National Council
• National Minority Supplier Development Council
• National Veteran Business Development Council
• Disability:IN
• National LGBT Chamber of Commerce