The campaigning for supplier diversity, equity, and inclusion are into hyperactive drive blatantly insisting that black entrepreneurs interested in promoting and marketing products to corporate buyers must first obtain a document of certification, in order to do business.
Upheld across the country large business takes the certification processing as the platinum standard in contract engagement for black-owned and operated business enterprises. Procurement management professionals throughout public and private institutions present that proof of ethnic ownership is beneficial to financial performance.
The practice of certification upholds that once verified a valid certification provides full authorization to speak with corporate purchasing agents. Certification places the approved firm into a choice supplier database, whereby making the firm eligible for supplier development and educational programs, and invites to minority business networking events.
It is policy that minority supplier certification extends access to published request for proposals, and alerts to procurement opportunities. Major buyers will seek certified firm to provide goods and services providing that the firm is a qualified bidder and able to competitively offer a low or best bid price, and whose business and financial capabilities, past performance, and reputation meet the required standards.
Although certification is a routine practice embedded in American supply chain management, there is no such requirement for white male entrepreneurs. White male-owned enterprises have a comparative advantage over black-owned businesses under free trade in America. White male entrepreneurs are exempt to the assessment of certification and can thereby offer products and services faster and expend less introductory time, and as such effectively operate with a comparative advantage.
Having a comparative advantage over others in marketing goods and services is essentially an opportunity cost resulting in work gains from trade. Black-owned firms directed to certify and maintain a valid certification over years has limited alternatives and removed from enjoying the benefit associated with the direct choice to market their goods and services freely as their colleagues and competitors. Simply put, there is a loss benefit from being unable to select the next best option.
The practice of minority owned business enterprise certification ties opportunity to oppression. Taking a firm through mandatory certification processes in order to conduct business gives rise to an illegal practice since there is no direct correlation between marketing and proof of ethnic heritage. Where is the United States Department of Justice?