OM Forum-Barriers to Implementing Diversity, Equity, and Inclusion (DEI) Programs in Supply Chains: Lessons from Comparing Public and Private Firms

Problem definition: This OM Forum article explores the barriers hindering the implementation of diversity, equity, and inclusion (DEI) programs in supply chains by analyzing the DEI performance of publicly traded and privately held companies. Whereas the importance of DEI in supply chain management is widely acknowledged, publicly traded and privately held companies exhibit a notable gap in achieving DEI goals. Methodology/results: This article explores the factors that enabled publicly traded companies to be relatively more successful with DEI implementation and provides insights into how privately held companies can improve their DEI performance. We highlight the role of transparency in driving positive DEI change in publicly traded companies, which are also more likely to benefit from DEI initiatives because of their greater access to the resources required for implementation and a higher degree of customization. We describe additional barriers to DEI implementation, by which the differences between company types are less certain. These barriers include unawareness of or skepticism about the benefits of DEI programs in supply chains, internal opposition from advantaged groups, and the geographical scope of operations. Managerial implications: By addressing these barriers, privately held companies can create more inclusive and equitable supply chains that benefit all stakeholders.