JCI Minority Buy to Increase by $50M

No matter what happens with affirmative action programs in the U.S, interiors and battery supplier Johnson Controls Inc. will continue to accelerate its purchases from minority and women-owned businesses, says CEO John M. Barth. JCI expects to increase such purchases by $50 million this year.

Two lawsuits challenging the University of Michigan's use of race as part of an admissions policy aimed at increasing the diversity of its student body stirred concerns among some minority suppliers that diversity programs within the auto industry could be in jeopardy. However, in late June the U.S. Supreme Court ruled in favor of most of U of M's affirmitive action policies‥

In an interview near its corporate headquarters in Milwaukee, Barth tells Ward's that JCI's diversity program has little to do with affirmative action, because the company does not lower its standards for minority suppliers. Last month JCI held an event celebrating the purchase of more than $1 billion worth of goods from minority and women-owned businesses — one of only 12 companies in the U.S. to do so.

“Our customers serve increasingly diverse markets, and we are convinced that our supplier diversity initiatives are a key competitive advantage, helping us win new business, retain customers and reinforce the Johnson Controls brand,” adds Larry Alles, JCI vice president — corporate global procurement.