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Supplier Diversity Terms and Definitions
Find a list of common terms used in the field of Suplier Diversity.
Process in which major suppliers are encouraged to share in supplier diversity goals of a customer corporation. Most 2nd Tier efforts specify a target percentage of a supplier’s discretionary procurement to be provided by MWBE’s, along with strong reporting responsibilities for those major suppliers to the customer corporation. Expenditures awarded by a major supplier to MWBE’s and reported to customer companies are referred to as 2nd Tier spend.
Business Consortium Fund (BCF)
A funding body established by the NMSDC (see definition below) to provide qualifying MBEs with working capital funds to enhance their business position. The BCF is administered through participating local banks in each geographical area.
A commitment and coordinated process to support the development of sustainable skills and capabilities of select suppliers, to enhance the sourcing process in sustainable value to our corporations and communities.
Provides assurance and accuracy that a MWDBE is truly 51% owned and operated by a member or members of the specified demographic group. The issue of qualification (ability to perform) is to be determined by company/department/business unit wishing to utilize supplier.
The recognition of competitive advantage for a corporation in valuing differences and a variety of ideas from employees and business partners and implementing strategies that provide for an inclusive work environment.
Economic Development Council
A team lead by corporate Supplier Diversity and comprised of leaders in Contracting and Procurement, other Functions and Business Units who:
- Act as champions and advocates for supplier diversity
- Assist in the development of corporate vision, strategies, and goals
- Drive processes and accountability for delivering supplier diversity results
- Provide leadership, personal involvement and sponsorship for supplier diversity implementation
Five Behavioral Imperatives
Shell’s targeted ways of working, including External Focus, Commercial Mindset, Delivery, Speed and Simplicity. These behaviors are underpinned by our Values (Honesty, Integrity and Respect for People.)
Historically Underutilized Businesses (HUB)
Designation used by some federal and state agencies as well as some corporations in referring to MBEs and WBEs. A HUBzone small business concern is specifically defined by the Small Business Administration in the Small Business Act of 2006 in section 3(p)(3).
Minority Business Enterprise – 51% owned and operated by a US citizen from any of the following minority groups: Hispanic, Black, Native American, Asian-Pacific Islander. In identifying and reporting, most corporations represent ethnic women as MBEs.
Minority/Women Business Enterprise - A broad term referring to under-represented minority-owned and/or women-owned enterprises. This would include businesses at least 51% owned and operated by American citizens of Hispanic, Black, Native American, or Asian-Pacific Islander descent, and/or women of all ethnicities.
A broad term referring to under-represented minority-owned, women-owned and disadvantaged business enterprises. This would include businesses owned and operated by American citizens of Hispanic, Black, Native American, Asian-Pacific Islander descent; by women; by armed forces veterans, disabled persons, GBLT persons, and HUBzone or Small Business Concerns as defined by the Small Business Administration and Small Business Act of 2006, sections 3 and 8 (a).
National Minority Supplier Development Council – a national support organization for minority business owners with 42 regional councils nationwide. Shell is a member of the NMSDC and active in many regional councils. All councils provide certification and identification services.
Partnering, Alliance, Teaming
Cooperative approaches to business relationships between a corporation and supplier or between two or more suppliers to maximize benefits to both including market positioning and increased capacity.
A range of services which are provided by business firms i.e., engineering, legal, travel, advertising, programming, consulting, etc.
A corporate initiative that recognizes the competitive advantage in developing business relationships with MWDBE’s and through access to opportunity include them in the supplier base.
Vendor Setup Form
Internal form Shell utilizes to enter new suppliers in various payment systems. The form should also be utilized by end-users to solicit identification data on suppliers classifying as MWDBE’s.
Women Business Enterprise – 51% owned and operated by a US citizen of the female gender.
Women’s Business Enterprise National Council – a national support organization for women owned businesses with approximately 14 affiliates nation wide. WBENC affiliates provide identification and certification of women business owners. Shell is a member of WBENCE as well as several affiliates and serves actively on boards and committees.