Photo: LOTE Agency
Diversity, equity and inclusion (DEI) has become a hot topic across organisations of all sizes. At its core, DEI represents a shared value that supports individuals across race, ethnicity, abilities, genders, and sexual orientation. According to Harvard Business Review, DEI stands for:
Diversity: The representation of minority groups in a workplace
Equity: Equal access to opportunities and fair or impartial treatment
Inclusion: A feeling of belonging and respect
DEI initiatives traditionally focus on internal human resource practices to foster an inclusive workplace culture. This is expanding into supply chains as organisations realise, they can have an even bigger social impact.
According to Diversity Council Australia, ‘supplier diversity’ is a business practice that encourages diversity in the supply marketplace by encouraging the purchase of goods and services from businesses owned by, or that assist, underrepresented groups.
This is where social enterprises come in.
They provide employment and support for marginalised groups; serve a social or economic need in the community; or reinvest their profits in a community initiative.
Each social enterprise is defined by the beneficiary group it looks to serve, whether that be people with disabilities, refugees and asylum seekers, long term unemployed people, neurodivergent adults, marginalised youth, women or Indigenous communities.
As of January 2025, our data shows 48% of certified social enterprises create employment and/or training opportunities for marginalised groups. They are certainly leading the way on DEI in Australia’s workforce. And there are currently 150+ Social Traders business and government members partnering with certified social enterprises as part of their supplier diversity or responsible sourcing program.
In Australia, only 6% of refugees find work within six months of arriving in the country, according to the Australian Institute of Family Studies. That number rises to nearly 25% after two years.
There is potential for Australian organisations to hire refugees among the labour shortages, but many do not act. For certified social enterprise CommUnity Construction, they’re stepping up to support refugees and asylum seekers by offering training, employment and mentoring program.
“When refugees come to Australia, their qualifications are often not recognised, so they have to start from scratch.
“This is a safe space where they can flourish, where they feel they belong, and so they can contribute to society and also support their families,” says Hedayat Osyan, Founder of CommUnity Construction. Since being founded in 2018, Community Construction has given a fresh start to 35 new Australians and their families – and counting. Hedayat was also presented the 2024 Australia for UNHCR-SBS Les Murray Award for Refugee Recognition.
According to the Survey of Disability, Ageing and Carers (SDAC) released in July 2024, there are 5.5 million Australians with disability, representing 21.4 per cent of the population, an increase from 17.7 per cent in 2018. The report also notes that in 2022, there were 2.7 million people with disability living in households aged between 15 – 64 years and are twice as likely to be underemployed as those without disability.
OC Connections Enterprises (OCCE), a Melbourne-based certified social enterprise, provides employment opportunities for over one hundred people living with disabilities. By creating sustainable OC Eco T-Top Bollards from recycled materials, OCCE has provided 3,000+ hours of meaningful work and sold nearly 30,000 bollards. In 2024, it won Best Not-for-Profit and Overall Business of the Year at the Monash Business Awards.
By partnering with certified social enterprises, organisations can create social impact by providing opportunities for marginalised groups to participate in the supply chain and there are benefits to be realised.
According to the 2024 State of Supplier Diversity Report, corporate culture (76%), supply chain competitiveness (65%), and brand image (48%) continue a 7-year streak as top motivators for businesses driving supplier diversity programs. However, new motivations are gaining traction – 48% of respondents now leverage supplier diversity programs to win new business. Diversity, equity and inclusion in supply chains make good business sense.
It’s time for organisations to do things differently – to use your purchasing power to create better, thriving communities.
Get in touch and let us help you embed certified social enterprises into your supply chain to unlock value and impact.