As part of our holistic diversity, equity and inclusion strategy, The Pathways Project, supplier diversity is key to delivering our Pathways to Join pillar and driving a wider range of perspectives.
Published 07-05-22
Submitted by The Hershey Company
Bethany Fitzgerald, Director, Responsible Sourcing & Katie Morison, Manager, Responsible Sourcing
Key Takeaways:
At Hershey, we believe that when our team and our external partners reflect the makeup of our consumers, everybody benefits. This is more than a business imperative. It’s a mandate from President and CEO Michele Buck, and it’s shaping the work across the entire Hershey organization, including our Supplier Diversity Program.
In Hershey’s newly launched 2021 ESG Report, we’ve made a formal commitment to quadruple our current spend with diverse suppliers by 2030. In 2021, we spent $92 million with 139 diverse suppliers, including businesses owned by people of color, women, veterans, LGBTQ+ and people living with a disability. We are committed to spending $400 million with diverse supplier partners by 2030.
Supplier diversity is a critical component of our holistic diversity, equity and inclusion (DEI) strategy, The Pathways Project, which launched in 2020 after we set ambitious goals to create a more diverse and inclusive business. By publishing this supplier diversity goal for the first time, we’re committing to transparency and to holding ourselves accountable to make a greater impact.
Here are the steps we’re taking to accomplish this goal:
Improving supplier diversity has been a goal for Hershey since the early 2000s, when the company first established a formal supplier diversity program. We’ve set ambitious goals throughout the years, and in 2020, we achieved our best supplier diversity performance to date.
Still, we know we can do better. Based on our own benchmarking, our 2020 performance was about average when compared with other similar businesses. Still, it lagged behind the CPG industry at large, if you include restaurants and retailers. If we can reach our 2030 goal of $400 million in diverse supplier spending, we hope to measure at the center or even at the front of the industry at large.
These kinds of initiatives aren’t easy at any time — it takes times to identify, evaluate and onboard new vendors. But right now, with ongoing supply chain disruptions amid high demand for our products, there’s an added risk in switching to new vendors. We understand that a push for supplier diversity, like other ESG initiatives, can easily fall to the back burner at times like these. However, we are fully committed to continuous improvement and achieving all of our ESG goals.
By increasing the representation of diverse suppliers, we have the opportunity to empower businesses and lift up families and even communities that have too often been left out of the conversations and contracts. We believe that when we can support a more inclusive economy, we’re building a stronger business that truly delivers for all of our stakeholders. And there’s never been a better time for that.
The Hershey Company is headquartered in Hershey, Pennsylvania and is an industry-leading snacks company known for making more moments of goodness through its iconic brands, remarkable people and enduring commitment to doing the right thing for its people, planet and communities. Hershey has nearly 20,000 employees in the U.S. and around the world who work every day to deliver delicious, high-quality products. The company has more than 100 brand names in approximately 80 countries worldwide that drive more than $10.4 billion in annual revenues, including Hershey's, Reese's, Kit Kat®, Jolly Rancher and Ice Breakers, and fast-growing salty snacks including SkinnyPop, Pirate's Booty and Dot's Homestyle Pretzels.
For more than 125 years, Hershey has been committed to operating fairly, ethically and sustainably. The candy and snack maker’s founder, Milton Hershey, created Milton Hershey School in 1909 and since then the company has focused on helping children succeed through equitable access to education.
To learn more visit www.thehersheycompany.com.
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