Published: March 24 2007 02:00 | Last updated: March 24 2007 02:00
Microsoft has dropped one of its suppliers in the UK because it failed to meet the software giant's standards on employee diversity.
The UK arm of Microsoft is one of a small but growing number of British
companies to monitor suppliers to ensure they employ a representative mix of women and ethnic minorities. It declined to name the company concerned.
Many large companies in the US, including Microsoft, already insist on good diversity practices from suppliers. Microsoft UK said that it had made the decision as a result of a diversity audit at its 250 largest British suppliers.
Dave Gartenberg, UK director of human resources, said: "Microsoft is
committed to ensuring we have a diverse and inclusive workforce, and we want to work with companies that share these principles. Consequently, we are beginning to look at how we can take a leadership position in driving positive change, while respecting local legislation. As a first step, the company is moving towards a review of its biggest suppliers. We aim to ensure they are providing a positive place of employment that is free of discrimination and barriers and enables that all employees can realise their potential."
Steve Ballmer, Microsoft's global chief executive, speaking at a recent
supplier management training summit, said: "For us to succeed as a company, our research and development has got to serve all the peoples of the world and in order to do that we and our supplier base has to represent all the peoples of the world: male, female, different ethnicities, different cultures, different backgrounds, race, tcetera."
Employment lawyers at the legal firm DLA Piper said: "Private-sector
companies increasingly want to be seen to be acting ethically, whether or not it is over green issues or employment diversity equality".
Darrell Gay, US employment partner at the lawyers, said: "Initially US
companies demanded that their vendors supply statistical data on their
diversity headcount. However, it has been clearly evident in the US now that companies are following up that demand with decisions to reduce or terminate the utilisation of vendors who fail to heed the request to make an effort to diversify their workforce."
British-based companies that had put in place "supplier diversity policies, "according to DLA Piper, included Morgan Stanley bankers, BAA airports authority, and the car rental group Avis Budget.
An equalities review, commissioned by the prime minister, last month
recommended private-sector companies be excluded from bidding for
public-sector contracts, worth over £100bn a year, unless they published progress in tackling inequality. Trevor Phillips, chair of the Commission for Equalities and Human Rights, who headed the review, decided against imposing similar restrictions on suppliers to private-sector companies buying goods and services.