Investing in diversityDiversity obviously isn't the only aspect that should be considered when looking to invest in a company, but it shouldn't be overlooked. It also found that DE&I often isnt an integrated part of companies business strategy. Headquarters: Bentonville, AR. For example, Comcast Corp. has been broadcasting to its entire staff talks with experts on racism, including Ibram X. Kendi, best-selling author of And with that can come diversity of thought, and it's shown that diversity of thought can really aid organizations." The number of Hispanic employees increased about 1% and the number of Indigenous employees decreased about .01%. We wanted to say, We understand that youre not OK, Butler-Morton says. In 2017, Cisco announced the launch of itsDiverse Representation Framework (DRF), a system that provides data to help hiring managers find talent in the markets where they do business. Each member of our executive team must also be actively involved with our ERGs [employee resource groups]. We want to hear from you. But for these companies, whose. June 18, 2021. And here at work we need to make room for people to share stories of injustice, microaggressions and inequity and for others to listen and act to change wherever and however we can. He adds that corporate America must prepare for difficult conversations if its truly serious about creating an equitable workplace. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Hobby Lobby. Featured speakers includeBlavity's Morgan DeBaun, IBM's Ginni Rometty, Carnival's Arnold Donald, Uber's Bo Young Lee, Kearney's Alex Liu, Washington Football Teams's Jason Wright and more. Citigroup and Merck get top ratings for their records on including women, minorities and people with diverse sexual orientation, while Berkshire Hathaway and Ebay score at the bottom of a new ranking of diversity among companies in the S&P 100. Ellis is a fan of unconscious-bias training, though detractors say it can make white employees feel uncomfortable. At the best-rated companies at least, Calvert awarded top marks on the 10 factors it used to measure progress on diversity. Rusty Hill/Getty Images. Access your favorite topics in a personalized feed while you're on the go. PR Specialist _taboola.push({ To request permission for specific items, click on the reuse permissions button on the page where you find the item. One woman on board of 10. Some of the largest asset managers in the world have this year become much more active in engaging in shareholder voting on the issue of improving diversity and even the worlds oldest private banks have taken to the industry stage to discuss their investment strategies around ESG.. No women or minorities in the C-suite, two women on the board of 12. Typically, however, DE&I leaders lack influence. But tech companies are still lagging when it comes to diversity and inclusion. Inclusion programs may violate civil rights law, if done incorrectly. According to 2018 research by Russell Reynolds Associates, 69 percent of chief diversity officers track 3 slot, with 90 points. } We notice that you have used an expired link to try and complete registration. The social unrest has been a powerful incentive for companies to bolster their diversity efforts, though theres another powerful force sweeping the U.S. that could undermine those intentions: the recession brought on by the COVID-19 pandemic. Please log in as a SHRM member before saving bookmarks. May 12, 2020. Summary. Tatiana Berardinelli was shocked when she heard Black colleagues describe being gripped by fear after being pulled over by police while driving, and others explain how they worried about their childrens safety when the kids left the house. Do you think having more people working remotely will affect diversity programs? She advises them to lead with vulnerability and concede that unease. According to the company website, Accentureadded more than 1,800 employees of diverse backgrounds in 2017up from approximately 1,000 in 2016. While there have been many points in history where society reflects on expectations of diversity and inclusion, the summer of 2020 has presented a real opportunity for change. Despite this, Berkshire just added a third woman to its board of directors a few days ago, and just last week Buffett wrote a Fortune article entitled, "Warren Buffet Is Bullish on Women." And we offer 50 actions that people can take at every level to start building inclusion right away. Less than half47 percentof companies in the S&P 500 had a chief diversity officer or similar post at the end of 2018, according to a study by Russell Reynolds. + Follow. You [], Do you want to get a degree in business while you work and earn? Thats why SHRM has introduced To summarize, leaders need to be more ambitious for inclusion. It has also instituted more training on inclusion for its managers, and now both a woman and a minority must be considered for any open position. More than 1,600 CEOs have signed onto the CEO Action for Diversity & Inclusion Pledge, and 40% of companies discussed diversity and inclusion in their Q2 2020 earnings calls versus only 4% the . All Shimadzu Group companies had time together to think about diversity and inclusion (D&I). Refinitiv provides innovative indices and index-related services to the global financial community to help investors make better decisions. Marcus:Do you think senior leadership understands the business case for a more diverse and inclusive workplace? Calvert gathered publicly available information from company websites, SEC filings, the Human Rights Campaign Corporate Equality Index and other sources. Five best practices. Were saying, This is what your partnership class is going to look like.. To truly invest in great companies, long-term investors should consider the benefits of a diversified company workforce, and make it part of their investing equation. Supplier diversity is an essential aspect of responsible business practices and inclusive economic growth for large companies. Top editors give you the stories you want delivered right to your inbox each weekday. There's little push back today on the importance of diversity and inclusion for business. placement: 'Below Article Thumbnails', Or they replicate so-called best practices, such as implicit bias awareness training, even when these practices have been shown to have limited impact. 2. Alison Maitland: They are missing a huge opportunity: to harness the collective superpower of diversity by creating genuinely inclusive work environments. Alexis.weakley@refinitiv.com. Levi Strauss announced several ways in which it plans to bolster its diversity, including conducting anti-racism and racial equity training and launching a career path program next year for retail/distribution center employees who aspire to join the corporate team. Theyre designed for groups of colleagues with similar backgrounds to cometogether, share experiences and support one another. Together Forward @Work, a call to action to bring racial equity to the workplacethe place we know best and have served the longest. Inclusion is essential. Three of those had to do with executive and board representation. The Motley Fool owns shares of Berkshire Hathaway and National Oilwell Varco. The global pandemic has certainly brought to light a renewed focus on diversity and inclusion, reinforcing the reality that we are all in this together. The formerly verboten topic is starting to be more openly and broadly discussed at companies all over the U.S. Why must your senior management team join an ERG? Major businesses including Google, Amazon, McDonald's, Pinterest, and Johnson & Johnson faced new legal battles this year over allegations of racism and sexism. Recently, many have made D&I pledges in the face of the Covid-19 crisis and the #BlackLivesMatter movement. You have to change hearts and minds.. The employee was promoted. Citigroup and Merck have the best records on diversity in hiring. Why did you decide to become chief diversity officer? A Stanford and Harvard professor convened a symposium on . Refinitiv We never talked about this before.. Regionally the largest increases have been seen in Oceania with a 40% increase. White men hold 68 percent of C-suite positions, with white women accounting for 18 percent. An outstanding 1,271 companies actively participated in the CEI 2022 Survey. Two minorities in the C-suite including Kenneth Frazier, an African-American, and Executive Vice President Peter S. Kim. He maintains that executives tendency to put short-term gains in front of long-term strategy blocks them from prioritizing diversity. For the companies at the bottom of the ranking, says De Groot, diversity is so lacking in so many areas, there needs to be a complete overhaul of their corporate diversity programs and disclosures. Though there is a faint silver lining. However, the assumption that longer hours equated to greater commitment and productivity was wrong. At Refinitiv, we are committed to using our data to further our own goals and to provide those insights to the broader market.. The study said that Simon Property's diversity policy is treated as a human resources matter and the company isn't as public with its diversity programs or data as others are. According to a report completed by Calvert Investments just a few months ago, most companies in the S&P 100 are improving their diversity initiatives and reporting, while a handful are falling far behind the pack. The inequity increases with power: White people account for 81 percent of vice president posts, compared with 19 percent for people of color. More than that, the company moved from relying on individual awareness and actions for inclusion to refining its people processes. Steele: In contrast with these piecemeal efforts, we provide a comprehensive, step-by-step approach that aligns inclusion to business goals, integrates it into business strategy and makes it indivisible from the way the organization operates. Clash creates pressure for employers pushing equality. More than ever, companies mired in culturally myopic ideas are finding it more difficult to get ahead in a society that has embraced different backgrounds and lifestyles. The companyincreased the number of women in itsworkforce to 37%, a 1% increase on the prior year anda step towardthe companysgoal of at least 40%women by 2020. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. In addition, diversity is such a hot-button issue that, in 2018,IBM was in the process of suingMicrosoft to stop its chief diversity officer from moving to Microsoft. $('.container-footer').first().hide(); Since 2018, companies like Google, Uber, Fox News, Riot Games, UPS, Coca-Cola, and Target have paid out multimillion-dollar settlements, and this year brought an even larger wave of high-profile cases. One consequence of a lack of diversity is that top management often doesn't have a clear understanding of the obstacles and, therefore, deploys ineffective solutions. The United States is leading with 20 companies out of the top 100. In 2019, the Equal Employment Opportunity Commission received more than 7,500 sexual harassment complaints, and 72,000 complaints about racial, sex, age, religious and other types of discrimination. D&I strategy and only 35 percent measure Beyond the slow advance for women and minorities, there is a smattering of good news in this report. While 38 percent of the San Francisco-based clothing companys total U.S. workforce is non-white, there are no Black individuals on its corporate board or among its executive leadership team. Home Markets The Best (and Worst) Companies For Workplace Diversity, The Best (and Worst) Companies For Workplace Diversity 10/30/2018 Markets A culture of workplace diversity ensures that performance and qualifications, rather than membership in a preferred demographic, dictate ascension up the corporate ladder, but also that a broad array of ideas and backgrounds are used to move acompany forward. All associates must show their D&I contributions in the annual performance review. Theresa Agovino is the workplace editor for SHRM. For more information, go https://www.refinitiv.com/en/financial-data/indices. To make the world smarter, happier, and richer. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. We will send you email confirmation within 24 hours with further instructions on how to proceed with access to Refinitiv. And there is even greater opportunity for positive impact in what we describe as an IN Corps of organizations working collaboratively to influence education, public policy and other external dynamics affecting inclusion. Having DE&I leaders isnt enough unless theyre empowered by the C-suite to bring real organizational change. This was based on a bias for presenteeism. Using its definition and looking at public data, as well as reaching out to companies to clarify their diversity data, Calvert found the following companies were the least diverse out of all the companies in the S&P 100: 1. According to Tarika Barrett of Girls Who Code, technical jobs pay twice the average salary. Top 25 Index ranking and their corresponding overall D&I percentage score (%): For more information about the D&I Index (Methodology) please visit: https://www.refinitiv.com/content/dam/marketing/en_us/documents/methodology/diversity-inclusion-rating-methodology.pdf, For a complete list of the Top 100 Most Diverse & Inclusive Organizations Globally, please visit: https://www.refinitiv.com/en/sustainable-finance/diversity-and-inclusion-top-100, To learn what top-ranked institutions are saying about the D&I index, please visit: https://www.refinitiv.com/content/dam/marketing/en_us/documents/reports/diversity-and-inclusion-quotes.pdf. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { On a board of 12, two women and two minorities. In 2011, at a conference on women in Laguna Niguel, Calif., he talked about how, in the early years of corporate America, we wasted half our talent. Yet according to De Groot, we were not able to find any evidence that they value diversity throughout their corporation.. The D&I index continues to receive recognition from industry analysts across the globe: Sang Lee, Managing Partner at Aite Group, commented: The continued industry interest in the D&I index reflects the increased investor appetite to invest in environmental, social, and governance related areas and the changes that are happening across all sectors of the capital markets. Key mistakes to avoid to promote diversity equity and inclusion in the workplace amid a changing climate. And they arent measuring business-relevant impacts. Here are the companies at the top of the list, and the bottom, with a few statistics. Please try again orcontact usfor further assistance. Making the world smarter, happier, and richer. With that in mind, here are some examples of companies to avoid, as well as few we should patronize: 1. Some industries are particularly lacking in diversity at the top: Black executives hold only 3% of senior management positions in finance and insurance and 2% in the IT industry. }); if($('.container-footer').length > 1){ This collection examines the barriers that prevent companies from addressing gender and racial equality and identifies solutions for building a stronger, more inclusive workforce. White people make up 65 percent of entry-level jobs in corporate America, while people of color represent 32 percent of those posts, according to a study by McKinsey and nonprofit LeanIn.org. A 2018 McKinsey & Co. report found that organizations with diverse boards and executive teams were up to 35 percent more likely to financially outperform their less-diverse competitors. The percentage of Black employees increased less than 3% during the same period. By sharing, I wanted them to see that its all Black people who have fear, not just those Black people, says Butler-Morton, who is a member of the African American POD, or power of diversity, community at the Palo Alto, Calif.-based software company. Only 2 percent of the banks senior executives are Black. But Berardinelli says these conversations are different from PPGs other DE&I endeavors. Backed by the content, data, independence and global information network of Refinitiv, our indices and index services are designed to suit any need. The Calvert study designated Berkshire Hathaway as the second to worst company in the S&P 100 for workplace diversity. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Tech companies are notoriously white and male, a homogeneity that stems from the white and male venture capital firms that finance them. The Motley Fool recommends Berkshire Hathaway and National Oilwell Varco. Its also important thatwere tracking the progress were making, so in 2019 weadded an inclusion index in our annual employee engagement survey. It was more about listening.. Companies are supplementing these dialogues with expert guest speakers, book clubs and websites with tools to help employees learn more about racism. Simon treats diversity issues as a compliance matterand does the minimum to avoid running afoul of EEO laws. The chief diversity officer is usually a woman or a person of color. 1 slot, getting a perfect 100 score in Calverts ranking, JP Morgan Chase and CocaCola tied for second place, with a score of 95. 3. Programs dont change unless theres accountability.. Congratulations to the 2020 D&I Index Top 100 most diverse & inclusive organizations globally. Why did Berkshire Hathaway come in last, when CEO Warren Buffett has spoken out about the importance of promoting women at work? Simon treats diversity issues as a compliance matterand does the minimum to avoid running afoul of EEO laws. mode: 'alternating-thumbnails-a', Fostering productive conversations wont be easy. The bigger obstacle to achieving more diversity in the workplace is that companies are overthinking their approaches, says Pamela Newkirk, author ofDiversity, Inc.: The Failed Promise of a Billion-Dollar Business(Bold Type Books, 2019). Calvert Investments, a mutual fund firm that invests in companies that engage in sustainable and responsible practices, put together the survey, released today. The companys lack of commitment to diversity is especially troubling given its influence in an industry where practices such as redlining and predatory lending have put minorities at a disadvantage in the real estate market for decades. Calvert last did a corporate diversity survey in 2010, and the strides since then have been small. Berkshire Hathaway (BRK.B -0.18%) -- Diversity score of 5: One of the reasons Warren Buffett's company, favored by many investors, received the lowest diversity score out of all the S&P 100 companies was because it was the only company that specifically stated it does not consider diversity in selecting its board of directors, according to the report. Invest better with The Motley Fool. Coding sessionsand hackathons have given them a glimpse of what STEM and a career in technology can offer. Industry: Retail. But tech companies are still lagging when it comes to. Many companies are struggling to stay afloat and may not have the financial or management bandwidth to dedicate to diversity programs. An in-depth discussion among diversity experts on realizing the benefits of diversity. SPG is opaque with its EEO-1 stats and its hiring practices withregard to race, gender and sexual orientation, and the company features a glaring lack of diversity in leadership positions. Moreover, as the war for talent returns, companies demonstrating success in this realm could be in the strongest position to hire.. According to a report from the Boston Consulting Group, companies with more diverse leadership teams report higher innovation revenues. Thirty-three companies on the list support the legislation, which has stalled in Congress. $("span.current-site").html("SHRM China "); This organization eradicated rewards based on presenteeism and developed a strategy for a flexible working environment focused on rewarding results. Only 2 percent of its top 250 executives are Black, while 16 percent are Asian and 6 percent are Latino. Senior leaders must first ask how elevating inclusion can help them achieve that goal, such as by ensuring that no one holds back creative ideas. What company wouldnt want to see improvement in these areas? Firms must prioritize diversity and inclusion or face tangible pressure from activists and consumers as well as investors, particularly as stakeholder capitalism challenges the primacy of the shareholder in corporate decision-making. Multicultural women make up 17% of the workforce. De Groot says that more companies are offering broader policies to welcome LGBT employees, and a growing number of companies support a proposed law, the Employment Non-Discrimination Act, which would prohibit discrimination based on sexual orientation and gender identity. Only 35 percent of chief diversity officers say they have employee demographic data, leaving the majority without necessary information to support their work, according to the Russell Reynolds report. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Progress remains elusive, as evidenced by persistent trends such as the exclusion of a broad range of talent from leadership, continuing pay gaps, and research showing that a majority of people hide or downplay part of who they are at work to try to fit in, all of which can have a detrimental impact on performance. In the 2022 CEI, 842 employers achieved a top score of 100 and earning the coveted title of "Best Place to Work for LGBTQ+ Equality.". When it comes to diversity, oil and gas companies typically tend to fall behind other industries. Maitland:Inclusion is sometimes confused with diversity but they are not the same. A May 2020 report from McKinsey & Co. found that while overall employee sentiment on corporate diversity was 52 percent positive and 31 percent negative, sentiment on inclusion was markedly worse . You can mandate diversity, but you cant mandate inclusion, Minta-Jacobs says. by. At a country level, Germany is the only country that has maintained a positive increase in the percentage of culturally diverse board members. Leaders were about to rule out a high-potential employee for promotion on the grounds that the individual lacked commitment because they left work daily at 5pm. Maitland: A key obstacle for organizations is reliance on isolated initiatives. Regionally, Africa is leading the way with on average 34% of female managers. var temp_style = document.createElement('style'); What advice would you give other CEOs who are considering becoming their companys chief diversity officer? We had to plead with him, says Butler-Morton, VMwares director of product lifecycle operations management. The top 100 ranked companies with the best overall D&I scores are selected for the Index. Companies often talk about progress on inclusion by referring to numbers, such as the ratio of marginalized racial populations to white people in their workforce. Data-based insights and transparency are a fundamental element of a successful movement to achieve more diverse and inclusive workplaces. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. For executive leadership, were now tying incentives to each leaders team diversity goals. Its director selection criteria say it seeks women and minorities. Its also important thatwere tracking the progress were making, so in 2019 weadded an Index! Summarize, leaders need to be more ambitious for inclusion to worst company in s. 1,800 employees of diverse backgrounds in 2017up from approximately 1,000 in 2016 that youre not OK Butler-Morton! Research by Russell Reynolds Associates, 69 percent of the workforce Russell Reynolds Associates, 69 percent C-suite... 100 for workplace diversity each member of our executive team must also actively. Our own goals and to provide those insights to the broader market backgrounds cometogether! 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