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How Procurement and Sourcing Can Help Close the Gender Gap

By: Sydney Lazarus Procurement functions can play a big role in supporting women-owned businesses, argues a new report produced by UN Women. The report points out that corporations are in a powerful position to help close the gender gap through their procurement and sourcing departments. Even though corporate spend accounts for trillions of dollars every year, only 1% of that sum goes to women-owned businesses. (In comparison, for U.S. federal contracts, the figure is 4.7%) The benefits of sourcing from more women-owned businesses go beyond the women themselves. The World Economic Forum has found that gender equality is positively correlated with the country’s gross domestic product and level of competitiveness. Similarly, the World Bank has reported that “underused or misallocated” female labor leads to economic losses. But what do corporations themselves stand to gain? First, and perhaps most important to the c-suite, there are benefits to the…