As part of Johnson & Johnson’s ambition to change the course of human health now and for future generations, the company’s Health for Humanity 2025 Goals included a commitment to achieve $4.5B Global Impact Spend with small and diverse suppliers and with social enterprises, representing a 20% increase from 2020. Having exceeded that goal in 2021, we continue to expand our reach to deliver even greater impact in our communities across the globe—a strategy that includes increasing support of social enterprises.
Social enterprises are businesses that put the interests of people and the planet ahead of shareholder gain. These mission-driven organizations reinvest their profits into addressing a social or environmental need—from creating job opportunities and fostering economic inclusion within underserved populations to tackling climate change. As part of our Global Supplier Diversity & Inclusion (GSDI) program, Johnson & Johnson endeavors to support social enterprises and their commitment to delivering products or services while serving the common good.
“This is not charity”
In November 2022, Johnson & Johnson launched a Global Social Enterprise Strategy to drive societal and economic impact through its supply base. The multi-year program supports the company’s Health for Humanity 2025 spend goals and builds on a strong track record of partnering with small and diverse businesses.
“This is not charity or philanthropy,” said Shashi Mandapaty, Chief Procurement Officer at Johnson & Johnson, where he guides the company’s strategy for delivering value, quality and innovation through responsible sourcing. “This is about working with the very best suppliers to drive the best outcomes for both our business and society at large. Partnering with companies committed to doing good in the community aligns with Our Credo—and accelerates our commitment to supplier diversity and inclusion.”
Supporting social enterprises expands the reach of the company’s Global Supplier Diversity & Inclusion program. In many cases, social enterprises are diverse-owned operations serving diverse communities.
This is not charity or philanthropy. This is about working with the very best suppliers to drive the best outcomes for both our business and society at large.
“It’s not an either/or situation,” Mandapaty said. “It’s an opportunity to extend positive social impact through a supply base that reflects our customer base.”
Johnson & Johnson is primarily focused on social enterprises that support economic inclusion and job creation for underserved populations, such as people with diverse abilities, mental health conditions or long-term disease challenges. Many of these companies leverage the unique capabilities of neurodiverse employees who excel at logical, detailed tasks that require significant concentration, such as software testing. At the same time, recognizing the remarkable talents of these employees helps break down biases toward people on the autism spectrum.
Rise of the social enterprise
The social enterprise concept originated in Europe and has since gained momentum throughout the world. Mandapaty said Johnson & Johnson has both an opportunity and a profound responsibility to leverage its robust global spending power to help advance the emerging social enterprise movement around the world.
To help build demand for social enterprises—and, ultimately, cultivate and grow the supply base—the company is engaging peer companies and NGO partners through advocacy organizations and campaigns like the Buy Social Corporate Challenge, the flagship program of Social Enterprise UK that seeks to promote the use of social enterprises in corporate supply chains. In October 2023, Johnson & Johnson will sponsor SEWF23, the Social Enterprise World Forum’s annual summit, in Amsterdam.
“Building a networked community of like-minded corporations through industry bodies and advocacy groups—which help verify social enterprises and pair them with companies—is critical,” Mandapaty concluded. “We’re honored to take a leadership role in this space.”
