Professional Documents
Culture Documents
Defining Diversity 16
How to Eliminate Bias 2
Risky Business 24
The Who, What and
Why of Governance 28
The Next Big Things 32
Profile 36
Beyond Numbers
20
Special Section 38
Exploring the Bounds
of Diversity
Business Intelligence 42
Breaking Through the
Leadership 10
Robert Rodriguez
‘Bamboo Ceiling’ ERGs as a Talent Pipeline
Case Study 44 Connections 12
Caring for the Melting Pot Tamara J. Erickson
The Possibility of Failure
Guest Editorial 14
Cyrus Mehri and Janelle M. Carter
Change on Madison Avenue
Editor’s Letter 4
Advertisers’ Index 49 Strategies 50
R. Roosevelt Thomas Jr.
Editorial Resources 49 The Ism Is Not the Issue
Change on The Possibility The Ism Is
Madison Avenue of Failure Not the Issue
Risky Business
The Next Big Things
How to Eliminate Bias
Defining Diversity
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• The latest business intelligence Edward E. Hubbard, President and CEO, Hubbard & Hubbard, Inc.
research on how diversity and Denise Lynn, Vice President, Diversity and Leadership, American Airlines
Robert Rodriguez, Assistant Dean, Kaplan University
inclusion strategies impact business. Andres Tapia, Chief Diversity Officer, Emerging Workforce Solutions Leader, Hewitt Associates
R. Roosevelt Thomas Jr., CEO, Roosevelt Thomas Consulting & Training
Cedric Thurman, Senior Vice President, Chief Diversity Officer, Jones Lang LaSalle Americas
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16 24 32
Observing distinctions Diversity can help From demographics,
and creating a workable mitigate the financial, collaboration and
diversity definition can legal and talent-related technology to realizing
help people judge with purpose, not risks that threaten sustainable the potential of employee resource
with prejudice. growth in the world market. groups, diversity leaders are focused
By Michelle T. Johnson By James Walsh on the next trends shaping the field.
By Jim Norman, Wanda Brackins,
How to Eliminate Bias The Who, What and Why David Casey, Marilyn Nagel and
of Governance
20
With the right change Peggy M. Walton
28
management strategy, The right governance
organizations can structure ensures
overcome stereotypes and build an initiatives align with
inclusive culture. business goals and the future
By Christina Ioannidis direction of the organization.
By Bill Wells and Stacy Rider
38 Special Section
Exploring the Bounds of Diversity
»D
iversity executives can play an important role in
advancing diversity strategy in complementary fields
that lie slightly outside the workplace periphery.
42 Business Intelligence
Breaking Through the ‘Bamboo Ceiling’
©2010 Jay Premack
14 Guest Editorial
Cyrus Mehri and Janelle M. Carter
Change on Madison Avenue
50 Strategies
R. Roosevelt Thomas Jr. Are you a part of the Diversity Executive Network?
The Ism Is Not the Issue
Join at network.diversity-executive.com
In fact, it appeared that these executive sponsors were be- Lastly, there is a shift to more formalized leadership de-
ing asked to create ways to allow their ERGs to serve as a velopment within ERGs themselves. Increasingly, ERG
means to identify, assess and develop future leaders. Some leaders are being asked to identify the skills needed to get
executive sponsors were even charged with creating devel- the ERG to the next level and to begin preparing those
opment plans. This focus was not as prevalent in past years. capabilities.
Second, there was a clear trend to increase collaboration For example, one organization identified a need to gain more
between Latino ERGs and their organizations’ learning de- insight on the overall strategy of the organization. Therefore,
partments. I saw many examples where these partnerships many of its activities for the year involved bringing in senior
culminated in sophisticated workshops and leadership de- executives from various business units. These discussions en-
velopment curricula for ERG leaders. sured that the future leadership of the ERG would have a
deeper knowledge of all aspects of the organization.
I also saw several examples of action learning projects de-
signed specifically for ERGs. Many provided behavioral Part of our role as diversity executives is to help ensure
assessments, such as the Myers-Briggs Type Indicator or that our senior-level executives come from a diverse back-
the Herrmann Brain Dominance Instrument, to the ERG ground. We are often charged with helping to shape the
leadership teams and then helped them to create develop- strategies that will prepare the diverse executive teams of
ment plans based on the results. tomorrow. What I learned from reviewing these best-in-
class ERG submissions is that when leveraged properly,
Third, the learning function appeared to play a bigger role ERGs can indeed help us groom future leaders. «
in shaping ERG mentoring programs that were more for-
malized and powerful than they have been in the past. Robert Rodriguez is the director of the Kaplan
Center for Corporate Learning at Kaplan
The selection of ERG leaders is also more deliberate than it University and author of Latino Talent: Effective
has been. Before, leaders were selected via popularity con- Strategies to Recruit, Retain & Develop Hispanic
test, or the leader who had the most time to run the ERG Professionals. He can be reached at editor@
was selected. Companies appear to realize that these are diversity-executive.com.
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GUEST EDITORIAL | Cyrus Mehri and Janelle M. Carter
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Reserve your room today at The
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Defining Diversity
Diversity, like the many dimensions that comprise
the subject, can mean different things to different
people. Rallying around one definition, what it
means to the workforce and its impact on the
workplace can facilitate success in efforts to promote
an inclusive environment. By Michelle T. Johnson
Diversity can be confusing, but it’s not just about being politi-
cally correct.
Talking about diversity can be circular, making it hard to determine
which should come first — caring about diversity and then working
to figure it out, or working to figure it out so that people will care.
It’s like the chicken and the egg — which comes first? Further, does
it matter which comes first?
It can be confusing to know what is current and correct for every
group of individuals who bond over an identity and to keep up with
every issue that attracts a group of individuals. Is someone black or
African-American? Disabled or handicapped? Is someone Hispanic
if he or she is Mexican-American? What’s the difference between
gay, lesbian, bisexual and transgender? And why can one call a rug
Oriental but not a person?
Seeing differences means noting the obvious — differences object and deciding that it’s an apple. A picky person could
in race, color, gender, national origin and physical ability argue that the man is “judging” the apple if he expresses
— and seeing distinctions means observing the distinctions irritation that the bowl holds apples instead of kiwis. But
between our differences. For example, an East Coast lesbian if the point for the man is to decide whether he wants to
who is black with a Jewish mother may have a different life eat what’s in the bowl, then making that judgment has a
experience than a married black woman who is Southern legitimate purpose.
born and raised. To the naked eye, one might simply see
two black women, but by seeing the distinctions, it becomes Judging With Purpose
clear that they could very well be worlds apart in how they When it comes to people, rather than apples, as a society
look at the world and how they operate in the workplace. we increasingly rely on judgments to make decisions about
Dividing lines refer to the choices that define how people others. This is because as we encourage and encounter differ-
live their lives — the dividing lines where people decide on ences in society, many of us have to make ourselves feel safe
political parties, their leanings within the parties, their posi- by judging what we think others are about. So, while seeing
tions on religion and family upbringing, and even whether with a soft gaze but with clear vision is easier to do with a
one swears by bottled water versus tap. bowl of fruit, it’s far more important to do with the people
Saying that one should see with a soft gaze but a clear vision one works with and manages.
is a fancy way of saying that people should see others with- At its heart, diversity is not about what a person says or does.
out judgment. Essentially, people should be aware that they It is about how a person thinks, because thoughts determine
may be judging, and they should question whether or not speech and actions. By offering mental tools or initiatives to
that judgment in a particular situation is relevant, let alone change employees’ thinking about diversity, leaders can offer
fair. Everyone judges to some degree, whether they admit their organizations a better chance to create, work in and
it or not. When considering workplace diversity, however, manage a successful, inclusive workplace. In other words,
the most important thing to determine is whether judging a workplace where people are not constantly engaging in
serves any legitimate purpose. battles of perspective, viewpoint and ego, which can turn
Consider this illustrative example that has nothing to do into complaints and lawsuits and promote unproductive en-
with work directly. A man sees an apple in a fruit bowl. If vironments where there is more frustration and resentment
he is hungry, depending on the location of the fruit and than cooperation.
the bowl, he must first decide if the apple is real or one of People often hate to think about diversity because they feel
those tricky, incredibly realistic plastic decorations. The man the topic is forced upon them. In fact, many times people
decides that it is a real apple, not a fake one. Further, he hate thinking about diversity even when diversity isn’t the
determines that it is, in fact, an apple and not an orange, issue. If that’s hard to believe, read the comments section of
banana, potato or tomato, and, assuming he’s an average, any online news story that even remotely involves someone
well-balanced person, he doesn’t have any angry attachments not viewed as mainstream.
or sad feelings about deciding that the fruit is an apple. Or, when it comes to workplace diversity, put out a memo
Now, if the man is hungry and doesn’t like apples, he might announcing a mandatory diversity seminar, workshop or
be irritated that the bowl holds apples instead of fruit with training session and listen to how loud the groans get.
more appeal, but that thought comes after looking at the Sure, there are a few people who look forward to a diver-
sity get-together because they think it’s an easy way to get of what the norm is, or should be, can get people into real
out of work for a few hours, and there are those who genu- trouble because, theoretically, the doors of employment are
inely believe the meeting will get to the heart of whatever open to everyone.
diversity issues they have observed. These people are the The U.S. workplace is more of a busy intersection than
minority, though. a melting pot. If someone can’t stand gay people, guess
Groups with more power, for example, may express a feeling who that person will have to deal with as the next depart-
of being held hostage by the concerns of various minority ment head? If someone doesn’t trust anyone from an Arab
or special interest groups, as if they always will be held in country, he or she will have quite the dilemma when join-
the wrong no matter what because of their historic power or ing a new company and discovering that an Arab-looking
larger numbers. person is now his or her administrative assistant. Adding
Another reason that diversity can be a touchy if not down- more fuel to the fire, a savvy employer will make it clear
right divisive topic is because it’s all about one person’s per- that no change is allowed.
spective, and most people don’t see any other way of looking People can pick who to date, what neighborhood they will
at a situation other than through their own eyes. Therefore, live in, their friends, their place of worship and their social
when someone has a different perspective, the presumption clubs, but just like with family, employees often cannot
is that the other person is being deliberately contrary or will- choose who will compose the landscape of their workday.
fully insensitive. At least with family, a person can avoid certain people until
Modern-day philosopher and filmmaker Woody Allen once they have to attend funerals, weddings and reunions. But in
said, “The lion and the calf shall lie down together, but the the workplace, people simply have to learn to work it out for
calf won’t get much sleep.” That’s why diversity can get roughly 40 hours a week.
weedy — people are often surprised by who views them- Further, most people don’t come to work and put on their
selves as a lion and who views themselves as a calf. “working” hats, which exclude all their other reference points.
Instead, when individuals are at work, they come in wearing
The Eyes Have It their “people” hats, and they can never take those off.
Another way to define diversity is to look at it through its Employees also can’t take off the clothing of their upbring-
opposite impression. The opposite of diversity is not same- ing, their various group memberships, the individual experi-
ness, blandness or monotony. Instead, the opposite of di- ences they’ve lived through, and certainly not the last thing
versity is a norm or a base line. When people think about they may have heard on the radio or a podcast before they
whether a workplace is diverse, they often have in their heads entered their workspace. All of these experiences are influ-
a subtle, hazy thought of what they expect a place to look ential, and influences affect the impact of diversity in the
like. So anyone added into the mix who is different makes workplace. «
the environment diverse.
Michelle T. Johnson is the author of The Diversity Code:
Ironically, the more varied and different our society be- Unlock the Secrets to Making Differences Work in the Real
comes, the more people rely on their personal, mental World, from which this feature was adapted, the creator
norms to allow them to bounce gracefully from one situa- of the “Diversity Diva” newspaper column and a former
tion to the next. But in the workplace, having expectations employment attorney.
As pictures of the Gulf Coast’s tar-stained beaches reached occupy a sphere where effective policy implementation can
millions of television viewers, they carried with them a pub- mitigate the financial risks that pepper the divide between
lic and sobering reminder of the potentially crippling effect business directives and human capital.
of poor risk management. However, even as BP hemor- Since emerging markets represent lucrative new frontiers
rhaged billions of dollars attempting to diminish the fallout for forward-looking companies, customer diversification is
from one of the worst oil spills in history, the end of the a key focus for organizations looking to expand. Consider
recession had already presented a fresh set of challenges to the financial risk posed by competitors acquiring shares of
risk professionals looking to facilitate their companies’ re- the same market. A diverse workforce can help to ensure
emergence in the corporate landscape. The reality is that in that product development and marketing are aligned with
a hypersensitive and unstable business climate, operational targeted consumer segments’ wants and needs.
success demands a versatile, inclusive and far-reaching risk
“There are companies that have made fortunes by appealing
strategy that transcends the role of the CFO, for whom risk
to diverse interests,” Koletar said. “You can use your people,
is often a primary concern.
in the sense of diversity, to sense the greater marketplace and
“Risk is spread very broadly across an organization,” said get some ideas that you didn’t have before that could be po-
Joseph Koletar, risk consultant and author of Rethinking tential opportunities.”
Risk. “If you are a manager, supervisor or executive, you have In the United States, a thriving Latino population represents
some responsibility for risk management.” the country’s most dynamic emerging market. According
Indeed, as organizations adapt and work to thrive in the to the Selig Center for Economic Growth, Latino buying
post-recession environment, there needs to be greater focus power in the U.S. eclipses the entire economies of all but
on the diversity executive’s role in mitigating the risks that 12 countries in the world and, according to census data,
shadow corporate ambition. this population is projected to skyrocket from 48.4 million
people in 2009 to 132.8 million people by 2050.
The Diversity-Financial Risk Connection Diversity executives can act as the pre-eminent drivers to tap
“When it comes to the risk equation, the biggest role diver- into this multitrillion dollar consumer reserve. Indeed, by
sity can play is connecting risk with an organization’s talent,” shaping and developing a diverse workforce and engaging
said Robert Rodriguez, assistant dean and senior director employee resource groups in the product development and
of diversity initiatives at Kaplan University. “Diversity can testing phases of new business ventures, leaders can greatly
make sure there isn’t a mismatch between an organization’s limit the financial risk associated with investing in untried
skills and capabilities and its ability to execute on strategy.” enterprises or markets and customer diversification.
According to “The Ernst & Young Business Risk Report At toy manufacturer Mattel, diversity executives are already
2010,” human management and emerging markets ranked actively streamlining business goals and diversity initiatives
as fourth and fifth, respectively, in a list of the top 10 busi- to better reach their target markets.
ness risks facing organizations in 2010. Diversity executives “One of the key visions in creating these ERGs has always
‘Investor-Style’ Stakeholders
The board of directors and senior leadership invest in diversity initiatives to ensure
business success. The diversity-risk connection stimulates investment in these initiatives,
and diversity executives’ input helps to limit projected risk. For example, putting money
into an audit that gathers data to prove diverse representation will offset the legal risks
posed by adverse impact.
‘Integrator’ Stakeholders
Middle managers and HR leaders mandate diversity engagement in core business
operations, stimulated by senior management investment. They are known as “integrator”
stakeholders because they determine, on an operational level, how integrated diversity and
Middle inclusion values are in their companies’ programs. Their level of engagement will be Human
Managers reflected in how they pursue investment in company initiatives and in what capacity the Resources
diversity and inclusion function will act.
For example, if the middle managers and HR leaders are engaged by an organization’s
diversity and inclusion department, a workforce expansion strategy might use affinity
groups to exploit new, diverse talent streams. However, if these integrator stakeholders are
not convinced that diversity and inclusion practices will mitigate financial, legal or
talent-related risk, the diversity function is likely to be consigned to the periphery of HR and
excluded from meaningful participation in business operations.
Diversity Integration
The key to diversity strategy integration is to build a base of
organization-wide diversity advocates.
1. Use HR and middle-manager diversity councils to push the
business case for diversity as a risk mitigator.
2. Promote executive sponsorship of employee affinity groups.
An executive sponsor who acts as a middleman between a
resource group and senior corporate governance can highlight
the roles a diverse workforce plays in identifying investment
opportunities and managing associated risk.
3. Adopt a global outlook. The diversity executive’s focus needs
to align with broader organizational strategies. As corporations
expand into the global marketplace, the diversity and inclusion
function needs to remain relevant on domestic and global levels.
If diversity initiatives demonstrate business value, interdepart-
mental executive engagement will be greater.
4. Connect with consumers. The level of business a company
does is contingent on how well it connects with its target
consumers. By demonstrating how a diverse workforce can help
an organization better appeal to those consumers, the diversity
and inclusion department will lay a platform for greater
integration in business operations.
- Tonya Hampton,
Director of Human Resources,
Medtronic, Inc.
StThomas.edu/MCF
The Who, What and Why
of Governance
• General manager: In organizations with multiple locations, In any case, the best solution will tie to the organization’s
usually geographically dispersed, diversity initiatives may business needs, and the diversity executive, or whoever is in
be in the hands of the general manager, office or local HR charge of programming, should take care to employ a shared
manager and may be the furthest removed from the CEO, services model that reflects the chosen governance structure.
Metrics
directly relate to the business strategies individual pro-
grams are designed to support. If profitability is an objec-
tive, then employee engagement, satisfaction and retention
established to
metrics may be applicable. If community involvement and
improvement is the focus, then workforce representation
numbers based on ethnicity, gender, age and local versus
determine how
nonlocal acquisition and applicant data may be applicable.
Due to continued underrepresentation of women and peo-
ple of color, particularly at mid- to senior levels, these types
of metrics are necessary to determine an organization’s
progress in advancing workplace diversity. Organizations
continue to be challenged with their talent acquisition
successful an
efforts, as well as moving existing talent into their future
leader pipelines. Additional measures include monitoring organization’s
attrition rates for underrepresented employees, such as
women and people of color, throughout all levels.
The frequency for reporting the relevant metrics will vary
diversity and
inclusion
depending on the strategic needs of the organization. Some
metrics, such as representation and retention, are quanti-
tative, lend themselves easily to reporting and can be cost-
initiatives are
effectively obtained on a quarterly or more frequent basis.
Other metrics, such as employee engagement and satisfac-
tion, are more qualitative, rely on resource-intensive em-
ployee surveys and may be conducted annually or perhaps
on a less frequent basis.
Once the relevant key metrics have been identified, a
should directly
benchmark should be established to measure progress at
determined intervals. Then a scorecard can be created to relate to the
track organizational progress over multiple reporting peri-
ods. These comparisons are invaluable in determining the
overall effectiveness of a diversity and inclusion initiative or business strategies
strategy over time.
The preferred model for governance of diversity and in-
clusion initiatives to ensure continued relevance and
programs are
designed to
sustainability is a central diversity executive with direct
accountability to the CEO for organizational progress.
However, organizations vary in their business objectives,
customers, employees and locations, and their governance
models must vary as well. The key to sustainable diversity
and inclusion success is to align governance, strategy, tac-
support.
tics and metrics to support the organization’s overall busi-
ness objectives. «
Bill Wells is vice president of strategic inclusion solutions
and Stacy Rider is a director with InclusionINC. They can be
reached at editor@diversity-executive.com.
Big
Beyond Numbers
In nearly 10 years with the World Bank Group,
Chief Diversity Officer Juliana Oyegun has moved
the organization away from a focus on representation
and numbers to explore subnational diversity and
the economic power found in gender equality.
By Kellye Whitney
As chief diversity officer for the World Bank Group, Juliana beginning, because Oyegun said they too are given the ben-
Oyegun’s focus is distinctly global. This makes sense not just efit of the doubt, as is a part-one female, to a certain extent.
because of the bank’s purpose, to offer loans and advice to “You have to prove yourself, but I don’t think the barriers and
governments and developing countries, but because of her hurdles are quite as high as if you’re a part-two woman where
background. actually you carry the burden of proof,” she said. “From the
The self-described Nigerian Brit trained as a barrister in labor beginning, you’re at a disadvantage. Your experience is dia-
and corporate law, but said she meandered into human rights metrically opposite from that of the part-one male.
work, particularly women’s rights in Africa, and pursued one “We’re a little bit more sophisticated now. Certainly there
master’s degree in the topic and another in masculinities. are very powerful part-two women in this organization, but
“Generally, when you start talking about diversity, you look for the rank and file, there’s a perception amongst part-two
at it from the perspective of minorities,” Oyegun explained. women that it’s harder.”
“But when I started out in this work, I was looking at gen- The bank has a multipoint diversity and inclusion strategy
der. I started looking at women’s rights, but then it occurred that starts with leadership and accountability and breaks
to me that it’s equally important to understand how men see down into several chunks. The strategy includes HR poli-
their role in society, how they see themselves and how they cies and practices to enable the hiring of people, male and
relate to one another.” female, from all over the world, along with on-boarding,
Since she joined the organization in July 2001, Oyegun has succession planning, mentoring and coaching. It also entails
had ample opportunities to apply that knowledge because, learning to remove unconscious bias. “We’re not looking to
as she says, in any job, men are generally in charge. There- blame, but to explain that preferences are natural,” Oyegun
fore, it’s important to understand and to get them to reflect explained. “It only becomes problematic when you are un-
on what that means — not just for themselves, but for wom- aware that your preference is inimical to somebody else or
en. Further, it’s not just about being a man; it’s about being another group’s career prospects.” Additionally, the strategy
a man of a certain kind. involves metrics, for which the bank has four targets that it
follows and reports on regularly. They are: nationality, part
The bank segments countries into part one, countries that
one and part two, funding nation and borrowing nation;
fund it, and part two, countries that it funds. “Your approach
gender, entry and midcareer; women in management; and
to international development as a part-one man is somewhat
people of sub-Saharan and Caribbean origin.
different from what a part-two man might regard as develop-
ment, at least at the beginning of your career,” she said. The bank measures certain targets, but Oyegun said these
are not quotas. For example, she said the organization has
“When you’re coming from a funding country, you come decided that 48.5 percent of the workforce should consist of
with a certain set of assumptions,” Oyegun said. “They don’t people from borrowing or part-two countries. The bank also
necessarily have to prove themselves. From the get-go, there’s has set a target for 50 percent of women in management,
the assumption that they bring tremendous gravitas and which it hopes to realize by 2012, barring economy-related
competence and expertise. They’re almost the embodiment hiring factors. “Then we’ve got a 10 percent target for people
of all these things the rest of us scramble to prove.” of African origin,” she said. “We’re the only organization in
Being a part-two man is also a bit easier, at least from the the U.N. system that has set a racial equality target. I suppose
families and make a meaningful difference in their commu- nority vendors in an area that can provide needed services.
nities?” he said. “How can we transfer the technology, the It’s occasionally necessary to go looking, because annual op-
expertise we have around food science, to emerging entre- portunity fairs or other avenues by which organizations find
preneurs and to farmers in Africa so they can help create MWBEs may not elicit the right fits.
sustainable models and hopefully solve the challenges they
“I’m not saying that’s not a good practice, but sometimes
may have in their communities?”
that’s not enough,” she said. “You may attract a wide range
Ultimately, it’s incumbent upon diversity leaders to delve into of people who may not be able to supply to you. Then you’ve
these areas and discover the means to extract business value. gained nothing from that interaction, and they may become
“You can tell employees all day long how you’re committed disenfranchised that they’ve invested time finding out what
to them and to their families and communities. At the end they may be selling to you when at the end of the day there
of the day, they want to see it; it has to be visible and tan- may not be a lot of opportunity there.”
gible,” he said. “If they’re able to see General Mills caring for Bailey said support from a diversity executive is helpful, but
the environment, caring for their communities, partnering if the overall goal of more business with minorities is to initi-
with businesses from their communities, it reinforces all the ate or to strengthen MWBEs’ relationships with contracting
messages we have about our commitment to their commu- organizations, continual reinforcement with the people who
nities and elevates us as an employer of choice.” actually do the buying is even more critical. Further, estab-
– Deanna Hartley lishing goals or incentives for purchasers to get behind actual
point-of-purchase transactions can make them happen.
Supplier Diversity Stakeholders also should understand that when contract-
Minority- and women-owned business enterprises ing MWBEs there needn’t be a trade-off between quality,
(MWBEs) don’t get as many opportunities to bid for work. price and fulfilling part of an organization’s diversity strategy,
Organizations interested in contracting with these MWBEs which is a common misconception for those in the supplier
can find them by doing a bit of research. diversity space.
“First, everyone needs to understand the community that “The business need and case for diversity has to be com-
they’re in and what they’re buying,” said Denise Bailey, prin- municated to those with purchasing power, but that doesn’t
cipal at Milligan & Co., a minority-owned business offering mean at the expense of quality and price,” Bailey said. “In
consultants and certified public accountants. “For instance, fact, the minority business may be the better price and the
if you buy certain commodities and you buy most of those quicker delivery. Minority firms are [often] small firms that
commodities within a certain geographic area, understand are more agile and react quicker, carry lower overhead and
where there may be matches that you’re not aware of and un- offer more competitive prices.”
derstand where there could be gaps that you’re not filling.” Organizations should measure performance with diverse
Bailey said diversity executives facilitating these relationships suppliers, and setting realistic, meaningful and achievable
can use census data and vendor databases to uncover mi- goals is often the first step.
“Goals start to lose their effectiveness when they’re unachiev- the globe — an average citizen is asked how they define
able,” Bailey said. “Any time you make a goal, make sure you CSR, they define it as fair to good treatment of workers.
have systems in place to track your progress against it.” This is internal CSR, and inclusion is a significant part of
good worker treatment.”
Outreach; having high, or at least not low, expectations;
and meeting diverse suppliers where they work and gather McElhaney said companies must ensure their internal and
instead of expecting a good turnout when asking them to external CSR efforts match. “Companies strive, externally,
come in response to organizational requests all can promote for inclusion of all stakeholders — shareholders, communi-
MWBE relationships. ties, consumers, etc.,” she said. “Companies need to strive
for complementary internal employee inclusion.”
“A lot of minority businesses are small,” Bailey explained. “If
that’s the community you’re trying to attract, they probably This is where the diversity executive can facilitate CSR. “As
don’t have a large marketing staff and a lot of time for execu- companies have gained more and more power in our world,
tives to do a lot of networking on the ground. Understand- and as our world’s citizens have become more and more diverse,
ing better ways to meet them is really important.” so too have expectations of companies risen,” McElhaney said.
“The shift of population — even in the U.S., from U.S.-born
Face-to-face meetings are also important. Bailey said people
white [people] to second-generation immigrants to Hispanic
are more comfortable doing business with people they’ve
to Native American to Latino, etc. — means that the expecta-
met and have some personal knowledge of. “It’s hard to
tions of the population of company employees and consumers
make a decision about who to buy something with if you’re
that companies are trying to attract has also shifted.”
just looking at paper,” she said.
According to McElhaney, companies are focusing on two
And, if an organization finds a good diverse supplier, one capa-
areas when promoting CSR and sustainability:
ble of expanding the relationship, the company should consid-
er some mentoring to aid the diverse supplier’s development. 1. Better communications for their CSR efforts: Organiza-
tions tell more effective, consistent and compelling sustain-
“You may be a good partner in helping their growth,” Bailey
ability stories so they can be rewarded for their CSR efforts,
said. “Diversity’s important to a lot of people, including the
both internally in the form of better employee recruitment,
client base. Having a keen understanding of how diversity can
retention, satisfaction and productivity, and externally in the
be good and profitable for your business is a key place to start.”
marketplace as consumers make purchase decisions based
– Kellye Whitney on which companies have a compelling CSR presence.
2. Better integrating sustainability with the business —
Corporate Social Responsibility all brands and units: “It no longer works to have one
Kellie McElhaney, an Alexander Faculty Fellow in Corporate sustainability department separate from the rest of the
Responsibility at the Haas School of Business at the Univer- business units,” she said. “Opportunities exist through-
sity of California, Berkeley, views corporate social respon- out the business.”
sibility (CSR) and sustainability as interchangeable terms. McElhaney suggests that diversity executives follow this
The key to both, she said, is to break down the brick wall model and integrate their efforts with lines of CSR because
dividing companies’ internal and external CSR and sustain- diversity and sustainability are complementary concepts.
ability efforts. “It strikes me that diversity execs should be doing the same
“Companies typically start at the external side of things be- thing to better communicate their diversity efforts as a way
cause that’s where they feel the most pain,” McElhaney said. to attract and retain top talent and to better attract diverse
“[However,] every single time — no matter where [across] markets,” she said. “And they should be working to embed
their diversity stories into their CSR stories, to make them play in getting involved in education? We decided, and we
more compelling. Research indicates that diverse audiences convinced some of our community business leaders of the
— primarily women, LGBT [and] Latino — tend to care same thing, that it’s socially responsible. And, from a cor-
more about sustainability. So sustainability can actually be porate sustainability standpoint, it’s important that we have
used as a hook to attract diverse segments as employees and input on impacting the growth and development of people
consumers. And diversity can be used to attract a more sus- in the community so that we can have a ready supply of
tainability-focused audience, internally and externally.” educated people to come and work in our company.”
A diversity executive may encounter challenges when trying To that end, Steelcase has initiated several nonprofit orga-
to promote sustainability. McElhaney said a “typical territo- nizations near Grand Rapids, Mich., where it’s based. The
rialism” may occur, where a company’s sustainability leader is West Michigan Center for Arts and Technology offers an
unwilling to be collaborative in his or her efforts. “The diver- after-school program for urban kids in grades 9-12 who are
sity executive and the sustainability executive need to have a typically at risk. The program gets participants involved in
clear and open discussion of how they can combine, recognize the arts not so they become artists, but to stimulate their
scale and leverage one another’s areas, how their areas really are interests and curiosity and to help them stay in school.
complementary,” she said. “People need to understand that
companies are no longer doing diversity or sustainability be- The center also offers an adult program for unemployed or un-
cause it is simply the right thing to do; there are positive busi- deremployed employees and provides training in medical tech-
ness benefits to greater inclusion [and] sustainability.” nology. Local hospitals partnered with Steelcase to help develop
the program and facilitate job placement after completion.
– Daniel Margolis
Steelcase also has partnered with a local school district to
Community Relations start the Grand Rapids University Preparatory Academy,
a fifth- to 12th-grade school focused specifically on urban
At Steelcase, a global provider of workplace products, fur-
youth. Cloyd said the idea there is to put at-risk kids in the
nishings and services, community relations has far-reaching
implications for talent acquisition, not just to meet an or- right environment and change the teaching pedagogy to-
ganization’s immediate labor needs, but to ensure a future ward broader community involvement. The school includes
pipeline of diverse talent for society at large. job shadowing and internships and other college prep ele-
ments to promote higher-than-average graduation rates for
“One thing that’s important to us is where in the commu- urban youth and ensure they attend college.
nity do we want to spend our time, resources and energy?
Our priorities are diversity, education, economic develop- Cloyd said these efforts to continually support the local com-
ment and the environment. Those are the top four, and then munity should and do have a strong diversity connection.
we can say arts and culture as a sub-priority area,” said Brian “At Steelcase, we’re trying to change the discussion about di-
Cloyd, vice president of global corporate relations and chief versity,” Cloyd said. “Diversity in a lot of respects right now
diversity officer for Steelcase. in the U.S. is a code word for affirmative action, race, ethnic-
Cloyd said changing workplace demographics are one rea- ity and gender. That’s true, but that’s not the limit. There’s
son diversity executives should promote community rela- also diversity of thought. We put a lot of emphasis on that
tions as part of a strategic diversity and inclusion strategy. because we’ve learned the more diverse the thinking is, the
more innovation you get, and as we’re getting back to the
“Most organizations reside in urban areas where there are
community, diversity of thought is a key piece.” «
large groups of people that are potential employees,” he said.
“One question that we ask is what role should businesses – Kellye Whitney
Breaking Through
the ‘Bamboo Ceiling’
To be truly inclusive, companies must be proactive in their
efforts to reach out to Asian-Pacific Americans.
By Philip A. Berry and David Whitelaw Reid
While much is written about the participation of African- To address this issue, the Asia Society’s Corporate Diver-
Americans, Hispanics, women and other diverse segments sity Council decided to embark on a benchmark study to
in the workforce, there is a need to highlight more facts survey issues and recommendations for forward action.
that identify the distinguishing elements of Asian-Pacific The council is made up of 25 to 30 chief diversity officers
Americans’ (APAs) participation and strengthen efforts (CDOs) from some of the largest Fortune 500 compa-
that increase the inclusiveness of this segment in corpora- nies in the U.S. The survey queried APA employees and
tions. The Asia Society, an institution that works to foster CDOs from these companies. The Asia Society gathered
understanding between Asians and Americans, saw this as quantitative and qualitative data to substantiate the sur-
an opportunity to develop its 2010 Asian Pacific Ameri- vey’s findings.
cans Corporate Survey, which would highlight the facts
The survey discovered several issues. Eighty-eight percent
regarding the status of APAs in corporations.
of APA employees feel generally positive about their com-
What follows are some of the Asia Society’s findings on panies and feel good about the mission of their companies.
distinct issues facing APAs in corporations. Why is this Also, 85 percent of respondents feel that their workplaces
important? APAs are the second fastest-growing minority are free of disrespectful and offensive behaviors. However,
group in the U.S. behind Hispanics. According to the lat- a majority of respondents reported feeling there is a “bam-
est U.S. Census Bureau statistics, their population is ex- boo ceiling” for APAs.
pected to grow by 213 percent over the next 50 years. This
compares to a 49 per- A recent report published by the U.S. Equal Employment
cent increase for the Opportunity Commission (EEOC) brought attention
Data Point total population dur- to this workplace phenomenon. The report describes the
According to the latest U.S. Census Bureau ing this same period. bamboo ceiling as an “underrepresentation of Asian-Amer-
statistics, the Asian-Pacific American APA youth are the icans in leadership and decision-making positions within
population is expected to grow by 213 federal agencies.” According to the EEOC report, APAs
percent over the next 50 years.
single fastest-growing
demographic in the often encounter career roadblocks rooted in ethnic stereo-
U.S., growing at a types. These stereotypes or generalizations include notions
rate of 38 percent. As seen in Figure 1, APAs include some that APAs are “quiet, hardworking, family-oriented, tech-
of the most educated employees, with 50 percent holding nically oriented, good at math and science, but are also
bachelor’s degrees compared with 38 percent of the general passive, nonconfrontational and antisocial.” The report
U.S. population. Twenty percent of single APAs over 25 goes on to explain, “While some of these stereotypes have
years old possess graduate degrees compared to 10 percent positive characteristics, they have become the framework
of all Americans in that same age category. of barriers establishing glass or bamboo ceilings.”
Given these demographics, one would expect that there The statistical data collected by the survey reveal that
would be few issues with the inclusiveness of APAs in the the percentage of APA representation indeed diminishes
workforce. Unfortunately, the representation of APAs in as one enters the senior levels. As seen in Figure 2, in the
the corporate suite and their ability to reach their full ca- companies surveyed, the Asia Society found that about 60
reer potential has not been realized. Furthermore, despite percent of APA employees are concentrated in IT, finance,
their significant numbers in the workforce and conspicu- accounting, engineering and research. These are not the
ous absence in top leadership roles, diversity and inclu- functions that generally lead to senior management posi-
sion programs often overlook this important segment of tions in the companies surveyed.
the workforce. This is compounded by another phenomenon the survey
Bachelor’s Graduate/
Degree Professional
Degree discovered: the presence of a “double ceiling” effect. APA
50% women participating in the study were less likely than APA
men to report that APA employees have a clear presence in
senior leadership positions. This difference calls attention
38% to additional inherent roadblocks in mainstream Ameri-
can culture that impede the career advancement of women
within the corporate hierarchy.
20%
This double-ceiling effect may lead to a number of nega-
tive outcomes for corporations employing talented female
APAs. Many organizations are missing opportunities to
10% leverage the unique perspectives APA women bring to de-
cisions. Women in the Asia Society’s study were much less
likely than men to report that their work groups capitalize
■ APAs ■ General Population
on the diverse perspectives and talents of APA employees in
Source: The Asia Society
accomplishing goals. Women were also less likely to agree
with the statement, “I would remain
with this company even if offered a
Figure 2: Asian-Pacific Americans’ Primary Work Area comparable job in another compa-
ny.” This certainly has implications
regarding the retention and engage-
Production (2%) Legal (1%) ment of female APAs.
Human Resources
(3%) Risk/Quality (1%) The survey did find that some com-
panies are addressing these, and a
Marketing (4%) number of other issues, more effec-
tively than others. The Asia Society
Engineering (4%)
identified that these companies have
Finance/
Customer Service Accounting Data in
certain things Point
common. For ex-
(6%) (26%) ample, such companies foster high
employee engagement. Research has
Operations clearly demonstrated that engaged
(8%) employees drive superior business
results when compared with their
Sales less engaged counterparts. It is this
(8%) IT (21%)
unique combination of employee and
R&D work environment characteristics fos-
(8%) Other tering employee engagement that has
(8%) the most evident implications for key
human resources, specifically as it relates to recruitment tection Act, a financial reform bill signed into law in July,
and retention,” said Janice Bowman, president and practice mandated, among other things, that organizations create an
leader for the Association of Diversity Councils. “Employee Office of Minority and Women Inclusion and called for or-
resource groups can share copies of job descriptions in their ganizations in the financial sector to generate a greater num-
communities, which helps attract talent to organizations ber of female and minority workers.
that they were missing.” “Over the past three years, we saw in the financial markets
Establishing new, diverse talent pipelines presents a versa- there was a group of similarly minded people from simi-
tile recruitment strategy that plants viable seeds for future lar backgrounds who, in their worldview, had assumed a
growth. Emerging markets constitute key investment op- probability of things happening that didn’t match real-
portunities, and diversity-centered recruitment practices will ity,” Niles said. “Bringing greater diversity into a com-
help organizations better navigate any disconnects between pany and into the economy really helps to mitigate ‘long
unfamiliar business ventures and consumers. tail’ risk, because you are going to have more input and a
“Companies understand that you need to make proac- broader perspective.”
Though diversity executives can per-
form key functions in macro-level re-
threaten sustainable growth won’t run into legal issues like sexual
harassment, discrimination and adverse
impact.”
in the world market. Data provided by the U.S. Equal Em-
ployment Opportunity Commission
showed that between 1966 and 2008,
tive efforts today to make sure that you have the right the rate of minority employment in the private sector rose
composition of workers and employees going forward,” from 11 percent to 34 percent. While this dramatic increase
said David Niles, president of SSA & Co., an operations signals a welcome diversification of America’s workforce, it
consulting firm. “These things take time, and you need also necessitates a close scrutiny of the legal implications that
to establish the right environment for different kinds of arise when promoting a diverse work environment.
people to thrive.” “You have to be very aware of how the legal courts interpret
Diversity executives are playing increasingly prominent roles diversity recruitment and talent management,” Freeman
in organizational growth strategy by helping to ensure that said. “[Diversity executives] have to make sure that they
a business’ development capacity is equipped to mirror its align with the directives of the Supreme Court.”
global ambitions. Connecting with newly identified pools of With compliance regulations actively promoting more di-
diverse talent provides a framework for long-term success as verse workforces, the importance of flexibility and evenhand-
companies respond to more favorable conditions for inter- edness in an organization’s diversity and inclusion strategy,
national business. and implementation of that strategy, cannot be understated.
The Diversity-Legal Risk Connection “You should ensure that you are driving an agenda of di-
versity and inclusion and you are proving representation,
Although the aforementioned Ernst & Young report identi- but that you are doing so in a way that is not exclusive and
fies talent management and emerging markets as two of the doesn’t give the appearance of any reverse discrimination,”
core risks facing businesses in the coming year, executives Freeman said.
ranked regulation and compliance as the top business risk
facing their companies. As companies emerge from the uncertainty of the economic
downturn, at least one thing is clear: Risk is real, and the
To navigate the regulatory waves that fleck the recession’s consequences can be disastrous. As organizations negotiate
slipstream, an organization-wide focus on a governing com- the tightrope back to profitability, diversity executives can
pliance framework is essential. That includes, in no small play a key role in formulating a balanced strategy that miti-
part, the diversity and inclusion function. gates the financial, legal and talent-related risks that threaten
The Dodd-Frank Wall Street Reform and Consumer Pro- sustainable growth in the world market. «
Advertisers’ Index
Advertisers/URLs Page Advertisers/URLs Page Advertisers/URLs Page
Abercrombie & Fitch Back Cover DE 2011 Strategies 13, 15 Global Novations 2nd Cover
www.abercrombie.com strategies2011.com www.globalnovations.com
American Public University 3rd Cover Diversity Executive Network 5 HR.com 11
www.studyatAPU.com/CLO diversity-executive.com www.steps2give.com
Asia Society 7
Diversity Executive Subscribe 6 University of St. Thomas 27
AsiaSociety.org/asianamericansurvey
diversity-executive.com StThomas.edu/MCF
CPP Inc. 3
www.cpp.com/Diversity
Editorial Resources
Company Page Company Page Company Page
3M 12 Institute for Diversity and Ethics in Sport, The 14 Roosevelt Thomas Consulting & Training 50
Asia Society 42, 43, 47 Kaplan University 10, 25 Scott Warrick Consulting and Employment Law
Services 4
Association of Diversity Councils 48 King Street Associates 35
Selig Center for Economic Growth 25
Beth Abraham Family Kraft Foods 33
of Health Services 44, 45, 46 Society for Human Resource Management 4
Mattel 25, 27
BP 25 SSA & Co. 48
Mehri & Skalet PLLC 14
Steelcase 41
Cisco Systems Inc. 34 Milligan & Co. 39
U.S. Census Bureau 42
Cook Ross Inc. 4 Mymilitarytransition.com 35
U.S. Equal Employment
Corporate Voices for Working Families 35 NAACP 14 Opportunity Commission 42, 48
CVS Caremark 34 Nike 12 U.S. Hispanic Chamber of Commerce 10
Department of Defense 35 Omnicom Group 14 University of California Haas School of Business 40
Ernst & Young 25, 48 PricewaterhouseCoopers 22 Virtcom Consulting 27
General Mills 38 Publicis 14 West Michigan Center for Arts and Technology 41
Grand Rapids University Preparatory Academy 41 Raytheon 12 World Bank Group, The 36, 38, 39, 40, 41
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