Across the nation, companies large and small are cutting payrolls -- and one of the first groups getting the ax are employees in supplier diversity positions.
Over the last two decades, most large U.S. corporations created departments to nurture relationships with minority and women-owned businesses.
But many CEOs now see this commitment as a luxury they can no longer afford. However, some proponents of minority enterprises believe the consequences of these cuts could last far beyond the inevitable recovery.
Ironically, shortly after the U.S. elected its first African-American president, the gains made by minority and women-owned companies are now in jeopardy. Small companies that have relied solely on their protected status will need to rethink their business models.
Not every minority-owned business employs minority workers. In the spirit of the law, any business that employs large numbers of minority and female workers would be a better candidate for preferential treatment, regardless of who owns it. But there certainly are exceptions.
Take the media, for example. When owned by minorities and women, radio and TV stations along with print and online publications bring a decidedly different approach to the industry. But if you are supplying concrete blocks, how does minority/female ownership change the nature of the business?
The current recession may force us to reassess our approach to the preferential treatment given to minority and women-owned businesses. At the same time, this downturn could also create new opportunities. One thing is certain: business as usual will no longer prevail. This could be a huge break for small, agile firms to step in and provide better solutions.
Every crisis contains opportunities. I have faith minority and women-owned firms can truly deliver superior value -- and not only survive these difficult times but actually thrive.
Raul Ramos y Sanchez is a marketing executive, editor of MyImmigrationStory.com, and author of the award-winning novel, America Libre. You can visit his website at www.RaulRamos.com.
