A supplier diversity certificate is a document that provides information about supplier’s supplier diversity program. It includes supplier scorecard, supplier listing and supplier rating, supplier inclusion plan, supplier certification statement and evidence of supplier performance.

In the past few years, many businesses have started their own programs to support women-owned, minority-owned and veteran-owned companies. In signing contracts with recipients of these benefits, a business can prove its status as an affirmative action company by presenting supplier diversity certificates.

These documents are similar to purchasing reports but present data on achieving supplier diversity goals instead of showing how much business you’re doing with existing suppliers. The trend toward reducing reliance on large corporations for all products has created opportunities for small businesses that sell through government channels or supplier diversity programs.

To get supplier certificates, you will need to submit a supplier scorecard, supplier listing and supplier rating, supplier inclusion plan and supplier certification statement.

Each of these components should be prepared with the guidance of an attorney or someone in your legal department. In order to prove compliance with government regulations that mandate supplier diversity efforts, you must present evidence that includes supplier performance measures such as subcontracting plans, goals for awarding business to specific suppliers and details on how you are implementing small-business contracting goals.

Other information you’ll want included is data on purchases from women-owned businesses (including sole proprietorships), minorities or veteran-owned companies; customer ratings; contract awards by type or geography; employee demographics; supplier improvement recommendations made by your supplier diversity program; supplier listings and supplier scores from the supplier scorecard.

When presenting supplier diversity certificates, make sure that they clearly state the supplier’s name and address, supplier diversity program contact information and supplier rating. You should also include a statement about your supplier being compliant with federal rules for government contracting and minority inclusion programs.

Owning supplier diversity certificates will help you use subcontracting plans to promote supplier diversity initiatives (depending on your industry) without risking penalties from government regulators.

Supplier quality ratings are essential when negotiating contracts with federal agencies or other organizations that require them for awarding business. Your scorecard should provide an overall quality grade based on information provided by client-company employees who deal directly with suppliers.

The small-business goal is tying supplier diversity efforts to increased profits through better relationships with suppliers. Proving supplier diversity program success is important for your company to succeed in the long term.

To create supplier diversity certificates that will serve as proof of your supplier diversity efforts, consider working with a supplier certification agency. This business or organization can walk you through the process of creating supplier scorecards and compiling supplier data into supplier quality ratings based on information from client-company employees who deal directly with suppliers. The results are supplier diversity certificates that help your company win government contracts without making it appear as though you are paying people for the award of such contracts (which is illegal).

A supplier certificate provides information about the supplier’s progress toward achievement of designated goals related to encouraging small businesses, women owned businesses, minorities and disabled veterans to do business with the supplier.

A supplier certificate also provides information about how supplier diversity goals are included as part of the supplier’s performance evaluation and how supplier awards are made to encourage supplier diversity objectives.

Supplier certificates do not include any information about whether a supplier is selected by a government agency to perform work on its contract, or if so, which contracts.

Listing a company as an approved supplier does not mean that it has been awarded any work under government contracts. The fact that a supplier does business with you doesn’t necessarily mean it meets your diversity goals, only that it has met your pre-qualification process requirements for doing business with you and/or being listed as an approved supplier on file at your facility.