Abbott 2004 Global Citizenship Report - Abbott Laboratories

We Value Our DiversitySupplier DiversityAbbott has a long-standing commitment to diversity in ourpurchasing practices. In the United States, we actively workto identify opportunities for women-, veteran- and minorityownedbusinesses, as well as businesses that are locatedin economic development zones. We work with governmentagencies, minority business groups and supplier diversityorganizations to identify sourcing opportunities withdisadvantaged businesses and other small businesses,and to provide guidance to these suppliers through ourplanning and outreach efforts. We are active members ofsupplier advocacy groups, including the National MinoritySupplier Diversity Council and the Chicago Minority BusinessDevelopment Council Inc.; and we are participants in supplierdiversity fairs and conferences across the United States,including Puerto Rico.In 2004, we integrated our supplier diversity data into ourpurchasing database, which helps us track the growth of thenumber of our diverse suppliers by classification and setspending goals for each manufacturing location. Through ourdatabase, we can focus our spending where we can have ameaningful impact in a surrounding community. We arecurrently expanding the purchasing database to our facilitiesin Europe and Latin America, with plans to track globalspending at more of our international sites in 2005.Supplier Category 2001* 2002* 2003* 2004* ¥Minority-owned $121,000 $135,000 $150,000 $138,000Women-owned $107,000 $113,000 $138,000 $139,000Small business $792,000 $780,700 $761,000 $820,000* Dollars in thousands¥ The spinoff of most of Abbott’s hospital products business resulted in lower spend volumes, creating new baselines for these spendcategories.Supporting Supplier Diversity:OfficeZone in Puerto RicoAbbott’s commitment to supplier diversity is reflected in how we work with localentrepreneurs to support their businesses. At our Barceloneta, Puerto Rico, site, amajor manufacturing location with six plants, we established a relationship with AidaSilva, the owner of OfficeZone, our primary supplier of office supplies on the island.Aida Silva, OfficeZone CEO (first left front row), andmembers of her staff.Silva was introduced to Abbott in 1996 as a sales representative for a supplier. In2002, when the supplier informed Abbott that it could no longer service ourcompany, Silva secured financing to launch her own office supply business,founded OfficeZone and offered her services to Abbott. Silva was awarded theAbbott account once she successfully completed the Abbott supplier assessmentprocess, including confirmation of her financial and operational capabilities. Silvaapplied to the U.S. Small Business Administration (SBA) to be certified as adisadvantaged supplier. This certification makes OfficeZone a more attractivesupplier to major U.S. companies operating in Puerto Rico. OfficeZone wasofficially certified as a small, women-owned supplier by the SBA in November2004 and is now set for a new phase of growth.20