A key measure of our progress to advance supplier diversity is our Global Impact Spend, representing addressable spend with small and diverse suppliers globally and small businesses in the U.S.
We have evolved our supplier diversity metrics to measure the impact on the diverse communities we serve. We partnered with a supplier to conduct a study on J&J’s spend with diverse and small suppliers in the U.S., focusing on economic and social impact. In the U.S., we spent $3.9 billion with Tier 1 diverse and small business suppliers, resulting in a meaningful economic impact for the U.S. economy.
Social Determinants of Health (SDOH) includes a broad range of social, economic and environmental variables that impact a person’s physical and mental health. These metrics help us understand the potential impact of J&J’s spend on SDOH-related variables in the communities in which our suppliers are located and the impact we have on health outcomes. Our study found that spending with some minority-owned businesses contributed to a reduction in child mortality rates and an increase in median household income. Spending with women-owned businesses also correlated to an increase in median household income and contributed to a reduction in child poverty rates. Overall, spending with small and diverse communities correlated to better health outcomes.
U.S. supplier spend and impact
Cumulative economic impact
2x-3x
total U.S. spend with diverse and small businesses
$3.9 billion
total U.S. spend with diverse and small businesses
45,000+
jobs supported through spend with diverse and small businesses in the U.S.
