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With diversity acknowledged as a critical driver of success, many multinational corporations have expressed their commitment to growing their engagement with diverse suppliers but have faced various challenges in achieving substantial expansion in their supply chain spend with MBEs. NAIC's certification program addresses this issue by providing access to a network of well-funded and scalable MBE-certified companies, offering an effective solution that meets the demand for larger suppliers. The program also allows diverse-owned businesses that have received investment capital in exchange for equity to be certified.

Once an NAIC member firm secures its own MBE designation, its portfolio companies may then apply. Portfolio companies must demonstrate that the enterprise is at least 51% owned by a fund that is controlled by an MBE-certified NAIC member investment firm. Portfolio companies must also have a diverse board of directors and demonstrate that the affiliated investment firm has the ability to control the business's day-to-day operations. Portfolio companies also must submit a compelling, measurable community impact plan focused on empowering underserved communities.

Spearheading the program is Joset Wright Lacy, J.D., C.P.C., Founder and CEO of Waypoint Strategies, LLC., an executive coaching and consulting firm focused on leveraging leadership and diversity to drive business success. A former corporate procurement executive and past president of the National Minority Supplier Development Council (NMSDC), Joset was instrumental in driving significant opportunities between some of the country's largest corporations and diverse-owned firms.

"NAIC's MBE Certification Program addresses the need for more scalable MBEs for global corporations committed to supplier diversity," says Lacy. "It creates an ecosystem that will deliver value and growth for corporations while driving economic and social impact in underserved communities."

"The business world has changed drastically since supplier diversity initiatives were first put in place many decades ago," says NAIC President & CEO, Robert L. Greene. "When the original policies were created, they did not contemplate that people of color would have significant investment and ownership stakes in private equity firms. As a result, the investments made by these diverse-owned firms have often been excluded from supplier diversity certification. This certification enables corporations to identify stronger, better-funded companies that happen to be diverse-owned."