missing translation: fa.article-intro.reading-time – 08/06/2022
Everyone is talking about diversity and inclusion (D&I). But what does that mean for the business relationships that Audi maintains, and how can D&I be integrated here? The general understanding of diversity is that people with different skills and stories come together to work. Not all people are represented equally in (economic) life, and they do not have the same opportunities of participation from the outset. The aim is to contribute to making its professional environment more diverse overall.
Audi has already taken a number of measures that help act. The company has been implementing holistic diversity management since 2017, the international production sites of the Audi Group have been gradually following suit since 2019, and the worldwide sales locations will follow in the future. Audi is focusing increasingly on creating a common understanding and raising the awareness among the employees in its own organization. This includes training courses on unconscious bias, toolboxes for inclusive leadership and equal-opportunity processes, as well as cooperations with external initiatives to promote diversity.
Audi is now expanding this commitment to its business relationships. The company wants to work together more closely with diverse suppliers in the day-to-day work, for example with social businesses and minority-owned businesses (MOBs). Together with the suppliers, Audi aims to demonstrate that diversity and inclusion are important aspects that can be leveraged on the journey toward successful and more sustainable cooperation.
Social businesses are businesses whose purpose is to solve social and environmental problems. Their profits are usually reinvested in sustainable and social causes, scaling the impact effect of their total operations.
Audi defines Minority-owned businesses (MOBs) as (small) companies that are run or owned by at least 51% members of underrepresented groups such as women, people with disabilities, BIPoC*, members of the LGBT*IQ community*, or others.
Procurement with Purpose is a response to various changes in the network that Audi cannot influence directly. These include disruptions of the supply chain, such as bottlenecks or supply shortages, but also political regulations such as the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG). This law obligates Audi to fulfill the human rights and environment-related due diligence and promote equal opportunities. The goal of Procurement with Purpose is to live up the corporate responsibility toward Audi's long-standing partners as well as future cooperations and campaign for more fairness. At the same time, the automotive industry is under high pressure to produce innovations. Ecological and social challenges require new ideas and approaches. Innovative and inclusive solutions that address and consider the various needs are important aspects that can be leveraged here. By working together with diverse suppliers, Audi wants to increase its innovation potential and take an innovative and fair approach to addressing the challenges of the time. For example, diverse teams achieve an average of 19 percent higher sales through innovative products and services.
“The basic idea behind our efforts is to consider and use as many perspectives as possible. After all, more diversity means more competitors and, in the end, more economic opportunities for everyone: for us as a company, for our partner companies and for society.
Michael Faust, Head of Sustainability Supply Chain
D&I are becoming ever more important drivers both socially and economically. Diverse companies verifiably generate more profit. Diversity promotes innovation as well as employee and customer satisfaction. At the same time, numerous studies show that many groups of people are not yet treated equally in all areas of life. For example, although one third of private sector suppliers worldwide are owned by women, corporate and government spending on these companies amounts to only 1%. Audi aims to identify and promote the success factors of diversity in its partnerships. With Procurement with Purpose, Audi is therefore also pursuing the aim of strenthening the supply chain. This can be achieved through the participation of diverse companies.
Do you recognize yourself in the definition of a diverse partner company and are interested in contributing this strength as part of your service portfolio?
