Certification in Supplier Diversity Practice Exam

What type of businesses are specifically tracked under internal driven metrics?

1. All revenue-generating businesses

2. Diverse suppliers

3. Government contractors

4. Local businesses only

The correct answer is: Diverse suppliers

The correct choice focuses on diverse suppliers as the type of businesses specifically tracked under internal driven metrics. Internal driven metrics are often used by organizations to measure and evaluate their performance in promoting inclusivity and procurement from diverse suppliers. This can include businesses owned by minorities, women, veterans, LGBTQ+ individuals, and other underrepresented groups. Tracking metrics related to diverse suppliers allows organizations to assess their progress in meeting diversity goals, ensuring that there is a commitment to equitable business practices. This data is critical for understanding the effectiveness of supplier diversity programs and identifying areas for improvement, which ultimately supports broader diversity and inclusion initiatives within the organization. The other options, while they may involve elements of supplier diversity, do not specifically align with the focus on diverse suppliers. All revenue-generating businesses encompass a broader category that includes diverse suppliers but does not focus on them specifically. Government contractors may have their own metrics, generally tailored to compliance and regulatory standards, rather than solely on supplier diversity. Local businesses, while important, could also be a subset of any business category and do not specifically capture the essence of tracking diverse suppliers.