Reputational enablers for supplier diversity: An exploratory approach on the inclusion of war veterans and disabled people

Abstract

This study investigates whether the inclusion of war veterans and disabled people in supplier diversity programs grants firms with reputational gains. With preliminary evidence collected in the content analysis of supplier diversity programs and diverse groups considered by S&P500's top 100 companies, we conducted a duo-factorial scenario-based experiment with a multi-stakeholder approach, exploring the reactions of the general public, customers, investors, and potential suppliers to these initiatives. In particular, we analyse whether their views on companies' benevolence and competence (trust) are affected. We also investigate the potential impacts on these stakeholders' overall attitude towards firms, as the construct represents a proxy of corporate reputation. The empirical results show that including these groups does not impact the way companies are perceived, suggesting that the communication of supplier diversity programs is not always efficient in creating positive images (e.g., greenwashing, social washing). We discuss these outcomes in the context of stakeholder theory and in the debate contrasting the strategic and moral incentives for adopting supplier diversity programs.