Self-declaration in supplier diversity refers to a process where a supplier voluntarily claims diverse ownership without any external verification. In contrast, third-party certification involves an independent assessment conducted by external organizations, such as CLGCC, and fellow Canadian certifying organizations specializing in the review of Canadian for profit entities that are diversely owned. These organizations thoroughly evaluate the supplier’s ownership, control, and operational practices to ensure compliance with globally recognized supplier diversity criteria.
When it comes to ensuring accountability in supplier diversity business and procurement strategies, third-party certification through vetted organizations is considered more reliable than self-declaration for several reasons:
Credibility and trust: Third-party certification provides unbiased verification of a supplier’s diversity. Certification is typically conducted by independent organizations that have established credibility and expertise in assessing and verifying the businesses ownership, operation and control. This verification process helps build trust among stakeholders, including customers, partners, and government agencies.
Rigorous evaluation: Third-party certification involves a thorough evaluation of a business’s ownership, control, and operational practices to ensure compliance with specific criteria. This evaluation often includes an in-depth review of financial documents, legal structure, and other relevant information. The rigorous nature of the certification process ensures that only eligible diverse suppliers receive certification.
Compliance with regulations and requirements: Many corporate supplier diversity programs require third-party certification as a prerequisite for participation. By obtaining third-party certification, suppliers  demonstrate their compliance with these requirements, making them eligible for contracts, grants, incentives, and/or other benefits associated with supplier diversity programs.
Avoidance of conflicts of interest: Self-declaration can be susceptible to conflicts of interest or biases. Suppliers may have an incentive to overstate or misrepresent their diversity status to gain a competitive advantage. Third-party certification eliminates such conflicts by providing an independent assessment that is not influenced by personal or organizational interests.
Consistency and standardization: Third-party certification establishes a consistent and standardized approach to assessing supplier diversity. Certification organizations follow internationally recognized guidelines and criteria, ensuring that suppliers are evaluated against the same set of standards. This consistency helps maintain the integrity and comparability of supplier diversity programs across different industries in the national and global business markets.
Enhanced program integrity: Third-party certification adds an extra layer of integrity to supplier diversity programs. It helps prevent fraud, misrepresentation, or abuse of the system by ensuring that only diverse suppliers receive certification. This, in turn, strengthens the overall effectiveness and legitimacy of supplier diversity initiatives.
While self-declaration may be more convenient and cost-effective for suppliers, corporations, and government bodies initially, third-party certification offers greater credibility, objectivity, and accountability within supplier diversity programs. It promotes a fair and transparent supplier diversity ecosystem that benefits both diverse suppliers and the organizations that seek to engage with them. Through certification, CGLCC ensures that the benefits that come with supplier diversity are truly being realized by those for whom they are intended: underrepresented diverse suppliers.