Certification in Supplier Diversity Practice Exam

What records must be kept according to Section 19.704 - 11?

1. Financial statements of all vendors

2. List of potential suppliers and outreach efforts

3. Annual performance evaluations of contractors

4. Compliance reports from external auditors

The correct answer is: List of potential suppliers and outreach efforts

The requirement to keep a list of potential suppliers and document outreach efforts is crucial in promoting supplier diversity. This records-keeping practice helps organizations track their efforts to engage diverse suppliers and ensures that they are making a concerted effort to include a wide range of vendors in their supply chain. It allows for transparency and accountability in supplier selection processes, demonstrating a commitment to diversity and inclusion. Maintaining a list of potential suppliers also aids organizations in identifying gaps in diversity within their supplier base and refining their outreach strategies. By preserving this information, organizations can assess their progress, align their procurement practices with diversity goals, and report effectively on their supplier diversity initiatives. This aligns with the overall objectives of promoting equity and diversity in business practices. In contrast, financial statements, annual performance evaluations, and compliance reports primarily serve different functions more related to financial management, assessment of contractor performance, and adherence to regulations, rather than directly facilitating supplier diversity efforts.