Supplier Diversity Contract Language
It is the Policy of The Coca‑Cola Company to seek out and provide contracting opportunities to, and document the use of diverse 2nd Tier Suppliers (as defined below) by following the contractual standards set forth below. During the Term of this Agreement, Supplier/Contractor will:
- Set a target to spend a minimum of ten percent (10%) of the monies billed by 1st Tier Supplier pursuant to this Agreement (including the cost of subcontracting work to other vendors, suppliers and contractors) with diverse 2nd Tier suppliers for products and services which are directly related to the services under this Agreement.
- Submit an action or sub-contracting plan, to Company’s satisfaction, detailing the scope(s) of work to be performed by diverse 2nd Tier Suppliers, including the ethnicity, gender, names and contact information of such Suppliers and provide regular reports, on a schedule to be agreed with Company, to Company’s Office of Supplier Diversity at https://www.cocacolacompany.us/better-shared-future/people-values/supplier-diversity to update Company regarding progress against the plan. Supplier’s reports should include cumulative employment data of its workforce by ethnicity and gender.
Demonstration of Compliance
Company reserves the right to audit compliance with these requirements on reasonable advanced notice at the expense of Company.
Supplier Diversity Certifications and Definitions
Minority-Owned Business (MBE) - a minority-owned business is a for-profit enterprise, regardless of size, physically located in the United States or its trust territories, which is owned, operated and controlled by minority group members. “Minority group members” are United States citizens who are Asian, Black, Hispanic and Native American. Ownership by minority individuals means the business is at least 51% owned by such individuals or, in the case of a publicly owned business, at least 51% of the stock is owned by one or more such individuals. Further, the management and daily operations are controlled by those minority group members.
- National Minority Supplier Development Council (NMSDC)
- Small Business Administration 8(a) or Small Disadvantaged Business (SDB) Programs (SBA)
- US Pan Asian Chamber of Commerce (USPAACC)
Ethnic minority and native people outside of the United States or its trust territories are defined on a regional or country based on their respective laws/regulations. The business ownership must be 51% owned by such individuals or, in the case of a publicly owned business, at least 51% of the stock is owned by one or more such individuals. Further, that Ethnic Minority individual(s) control the management and daily business operations. Certification is provided by the following organizations:
- Canadian Aboriginal Minority Supplier Council (CAMSC)
- South Africa Supplier Development Council (SASDC)
- Minority Supplier Development United Kingdom (MSDUK)
- Minority Supplier Development China (MSD China)
- Supply Nation Australia
Woman-Owned Business (WBE) - a company that is at least 51% owned, controlled and operated by a woman or women. Certification is provided by the following organizations:
- Women’s Business Enterprise National Council (WBENC)
- National Women’s Business Owners Corporation (NWBOC)
The same definition applies to women businesses outside of the US/Puerto Rico. Certification, however, is provided by:
- WEConnect International and is available in the following countries: Australia, Canada, Chile, China, Costa Rica, India, Mexico, New Zealand, Peru, Turkey and the United Kingdom.
Lesbian, Gay, Bi-Sexual and Transgender (LGBT) Owned Business - a company that is at least 51% owned, operated and controlled by a LGBT business owner. Certification is provided by the following organization:
Veteran Owned Business (VOB) & Service-Disabled Veteran Owned Business (SDVOB) - a for-profit enterprise presently located in the United States or its trust territories, and is at least 51% owned by an individual(s) who have performed active service in one of the United States armed services, and were honorably discharged. The term “service-disabled” means that such disability was incurred or aggravated in line of duty in the active military, naval or air-service. Individual(s) must be involved in the day-to-day management of the business. Verification is provided by the following organization:
8(a) Program - a company that has received 8(a) certification from the Small Business Administration.
Small Disadvantaged Business Program (SDB) - a company that is certified as disadvantaged by the Small Business Administration.
Historically Underutilized Zone (HUBZone) Business - a company that is certified as HUBZone by the Small Business Administration.
Diverse Suppliers - includes all certified MBEs, WBEs, LGBTs, SBA 8(a), SDVOBs and veteran-owned companies collectively.
1st Tier Suppliers - suppliers and contractors directly engaged in a contractual arrangement with The Coca‑Cola Company to provide goods and/or services.
2nd Tier Suppliers - suppliers and subcontractors directly engaged in a contractual arrangement with the 1st Tier Suppliers (Prime Suppliers) as defined above, in order to realize a partnership between The Coca‑Cola Company and Prime Suppliers under which Prime Suppliers subcontract a portion of their contractual arrangements with The Coca‑Cola Company directly with diverse suppliers and contractors.
1st Tier Supplier Acknowledgement of Supplier Diversity Requirements
The above Supplier Diversity Requirements are applicable to all purchase orders and contracts issued by The Coca‑Cola Company and all wholly owned subsidiaries of The Coca‑Cola Company as of November 5, 2013.
Upon acceptance of, or complete or partial performance under, this Agreement, Supplier represents and covenants that it has read, understands and will remain in compliance with the above requirements, including the "Supplier Diversity Requirements" of The Coca‑Cola Company, a copy of which can be provided to the Supplier again upon Supplier's request and is also set forth on the website address https://www.cocacolacompany.us/better-shared-future/people-values/supplier-diversity.
Sustainability - Company is committed to creating meaningful benefits for society as it manages and grows its business now and in the future. In this regard, Company is interested in establishing contractual agreements with suppliers that share its vision and are dedicated to making sustainability a key part of how they work with Company and all of their customers. Company expects its suppliers to demonstrate a high level of commitment to sustainability in their business practices. Over and above that commitment, all contractual agreements and other actions that include a direct, positive impact on sustainability will provide added value and will enhance Company’s evaluation of contract performance. Company’s sustainability vision, strategy and programs are detailed at https://www.cocacolacompany.us/sustainable-business. At a minimum, Supplier is expected to have a formal documented program that addresses sustainability related to marketplace, diversity, environment, workplace and community. That program, and progress reports produced no less frequently than annually, shall be made available upon request to Company’s Director of Supplier Sustainability.
Supplier Requirements Overview
Please direct inquiries to supplierdiversity@coca-cola.com.