We are living in a historic era of diversity and representation. The 2018 midterm elections saw the most diverse group of citizens sent to public office in the United States since our country was founded.

In 2018, the #MeToo movement made it clear that women continue to face unequal treatment and challenges in the workplace. Although there’s still considerable progress to be made, the history of women in business proves that change is more than possible—it’s also profitable.

In the past, businesses viewed corporate diversity initiatives as only a form of social responsibility and a means of complying with national standards. Today, it’s becoming clear that both workplace and supplier diversity have even more potential business payoffs. Among other benefits, supplier diversity has been shown to boost innovation, improve brand perception, drive expansion into new markets, create sustainable business growth, and increase profit margins. As you look to make supplier diversity a priority for your business, however, don’t overlook its equally important counterpart—employee diversity.

Although the history of supplier diversity legislation can be traced back to the United States during the civil rights movement, diverse procurement initiatives have since been adopted by a variety of Western nations. Building on the framework established by the U.S., European countries have made impressive strides with regard to diverse procurement practices. On its most recent list of the top 15 companies for supplier diversity, DiversityInc named two U.K.-based companies: Ernst & Young (EY) and PricewaterhouseCoopers (PwC). Below, we’ve outlined the brief history of supplier diversity in Europe and where these initiatives stand today.

As more companies grow savvy to the benefits of cultivating a diverse supplier base, supplier diversity programs have grown in popularity and in number. For a supplier diversity program to succeed long term, however, it needs to have a sustainable growth strategy—that’s where supplier development programs come into play.