The number of Hispanic employees increased about 1% and the number of Indigenous employees decreased about .01%. Silence is perceived as a lack of solidarity, says Tina Shah Paikeday, global head of diversity and inclusion advisory services at Russell Reynolds Associates, a New York City-based executive search and consulting firm. Will Jan, Vice President & Lead Analyst at Outsell, commented: Social investing and D&I initiatives have become front-and-center on many executives agendas. Microsoftsboard of directors is among the most diverse of any tech company with women and ethnic minorities insix of 14 positions. Its time for equality for all, across every area of society. Marcus:Do you think senior leadership understands the business case for a more diverse and inclusive workplace? We can widen the diverse slate of candidates regardless of location, opening up opportunities to the best talent wherever they reside. Industries leading this years index: 18 banking, investment services & insurance; 9 pharmaceuticals; 7 telecommunications services, specialty retailers and personal & household products & services. Calvert gave 10 points to companies that had two or more women and/or minorities among its five highest-paid executives, and 10 more points to those that had three or more women and/or minorities on their boards. 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. On a board of 12, two women and two minorities. To address the complex challenges facing organizations and society, everyone has to be on board, contributing to breakthrough solutions and playing their part in them. While Citi and Merck shared the No. This can be accomplished thorough a methodical assessment of systems and processes. December 2019 marked the end of the first phase for California's Senate Bill 826, and the results as shown below indicate that 47% of the companies did not disclose their diversity data as per the law. You have to know your success is riding on it.A Lack of Power, The commitment must come from senior levels, and those leaders must ensure that its taken seriously. At Refinitiv, we are committed to using our data to further our own goals and to provide those insights to the broader market.. Cisco plans to scale DRF with its leaders worldwide. Im encouraged by the numbers of people protesting and demanding change. For executive leadership, were now tying incentives to each leaders team diversity goals. Mobile + 1 610-390-4394 BlackRock, Inc., ranked first on the D&I index for 2020. An in-depth discussion among diversity experts on realizing the benefits of diversity. 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 . According to 2018 research by Russell Reynolds Associates, 69 percent of chief diversity officers track Join CNBC's Inclusion in Action Forumon Thursday, September 10. The panel, which was held at the New York City Bar Association and led by Jeremiah DeBerry, also . But Shah Paikeday says companies have been more proactive about reaching out to telecommuting employees and keeping them engaged. It was more about listening.. The number of companies with an official flexible working policy has increased by 54% over the last five years. 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. Why? 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. All S&P 500 companies now have at least one woman on the board, and executive search firm Spencer Stuart found that last year, of the 432 new independent directors added to S&P 500 boards, 59%. Bronwen Evans, Chief Talent Officer with MedCan, a leading health management company in Canada, says, "With the vast majority of our talent working remotely through the pandemic, we've had to. Offering insight and recommendations on investing in sustainable companies must not only be on information providers to-do list to support the social movement but become part of their responsibility in promoting an ESG-driven business culture and metrics that lead to more diverse and inclusive workplaces. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Even though there are laws against pay discrimination, US companies on average still pay women just $0.82 for every dollar they pay men, and pay women of color even less and executives have made virtually no progress in closing wage gaps across the country since the early 2000s. For more information visit: www.refinitiv.com, Lemuel Brewster The executive explained how he learned about the subject from his Black father, who protested segregation in the 1960s, and how he would lead theunitin conversations about recent events. Inclusion is about behavior, relationships. But Berardinelli says these conversations are different from PPGs other DE&I endeavors. 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. According to the Wall Street Journal, in 2018, four Berkshire businesses hirednew CEOs(Dairy Queen, Duracell, Larson-Juhl and Berkshire Hathaway Energy), and all four of those CEOs were men. Overall, companies are better at hiring people of color than they are at promoting them, but hiring is still poor. Why did you decide to become chief diversity officer? The inequity increases with power: White people account for 81 percent of vice president posts, compared with 19 percent for people of color. Five best practices. What do you say to those who think that a white man doesnt have the right experience or authority for the role? The hope is that by understanding what people of color endure, white people will become more empathetic and that that understanding will eventually lead to more inclusion. In it he says, "The closer that America comes to fully employing the talents of all its citizens, the greater its output of goods and services will be." Theres little push back today on the importance of diversity and inclusion for business. The company did not return a call seeking comment but I know from past stories that it has a policy of not participating in surveys. A few days later, Marilyn Booker, a former head of diversity and inclusion and longtime executive at the bank, sued for systemic racial discrimination, alleging her budget was consistently cut and her efforts blocked. Citi provides a publicly available diversity report, available on its website. Retail powerhouse Walmart employs a massive workforce, and as a result, is one of the most diverse companies in the country. Please confirm that you want to proceed with deleting bookmark. It requires establishing procedures to ensure continuous questioning of how things are done here. How Women Over 50 Regain Their Confidence and Claim Their Workplace Power, will be published March 2021. + Follow. A survey of more than 19,000 HBR readers found that . We continue to see many organizations seeking to address individual bias, but fewer are addressing the bias that hides in organizational structures and processes. D&I isnt something you do in your spare time. For forward-thinking job seekers looking for somewhere to launch a career, workplace diversity is as important a consideration as many of the typical criteria used to compare career opportunitiessuch as pay, benefits, flexibility and upward mobility. We treat diversity like were trying to hire diverse people from another planet, she says. 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. This was based on a bias for presenteeism. Companies spend $8 billion a year on diversity training, according to consulting company McKinsey & Co. According to Fran Katsoudas, Chief People Officer at Cisco, This framework is a game changer for us in identifying and attracting the best talent.The Best: Microsoft CorporationThe analysis by Calvert Investments also gave Microsoft Corporation a perfect score for its diversity practices. Rusty Hill/Getty Images. For more information, go https://www.refinitiv.com/en/financial-data/indices. 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.Source: Read Full Article window._taboola = window._taboola || []; Rebekah Steele: Many organizations recognize they must do better but are not sure how, which is why we wrote INdivisible. Fool contributorChris Neiger has no position in any stocks mentioned. $("span.current-site").html("SHRM China "); She adds that the company is committed to learning more about racism and will move to make more changes as it progresses. He also believes that unconscious bias plays a role in excluding people of color from the workplace. In 2014,a year after the acquittal of George Zimmerman in the shooting death ofTrayvon Martin and the subsequent founding of the Black Lives Matter movement,some Big Tech companies started reporting their workplace demographics and promised to increase diversity. Theres just a lot of people who are unaware [about racism].. No women or minorities in the C-suite, two women on the board of 12. Inclusion is essential. Many companies have what are commonly called employee resource groups as part of their DE&I efforts. According to Fran Katsoudas, Chief People Officer at Cisco, This framework is a game changer for us in identifying and attracting the best talent.. A total of 25% more companies have a career development policy in place than five years ago. Previously, only one or the other had to be included. I have an even greater responsibility to be an ally to individuals and advocate to change the system that has allowed racism to continue. While more than 80 percent of organizations have released or will release a statement to employees about racial injustice and the protests against it, more than two-thirds (67 percent) have not gathered the thoughts of their workforce on those issues, according to SHRM research. Major businesses including Google, Amazon, McDonald's, Pinterest, and Johnson & Johnson faced new legal battles this year over allegations of racism and sexism. Now they cant unsee it.. He adds that corporate America must prepare for difficult conversations if its truly serious about creating an equitable workplace. One initiative already in the works: a book club that explores the topic of racism to help white colleagues better identify with their co-workers of color. We want to hear from you. No women or minorities on the board or in the C-suite, but the company addresses sexual orientation in its equal employment policy. Organizations will continue to miss out on well-researched benefits of inclusion, such as enhanced team performance, consistent innovation, smarter decision-making, greater productivity, and improved customer relations. The list includes 24 countries. The company explicitly states it does not consider diversity when directors and board members are selected. 00:44. Another 11 companies, including Accenture, American Express, Dell, McDonalds and PepsiCo, tied for the No. It showed that five years after training became required. This year that has edged up to 85 points. Two years ago, the most frequently awarded score was 70 points. } Quanloop managed to [], It is quite possible that you may have come across your friends talking about Escape Hour and also other terms such as quest game. Its also important thatwere tracking the progress were making, so in 2019 weadded an inclusion index in our annual employee engagement survey. placement: 'Below Article Thumbnails', Hobby Lobby. There are only three Black CEOs in theFortune500. For the second annual report, Refinitiv analyzed trends in diversity and inclusion data, covering the following areas: trends in diversity and inclusion data reported by public companies over the last five years; long/short portfolio analysis using the Portfolio Analytics app in Refinitiv Eikon; and the constituents of the Refinitiv 2020 Diversity and Inclusion Index (based on the second quarter 2020 index rebalance). Here are the companies at the top of the list, and the bottom, with a few statistics. William Trout, Head of Wealth Management at Celent, commented: ESG today has reached a tipping point, and issues related to employee welfare, gender equality, supplier diversity and other social concerns today vie with governance and environmental considerations for attention. Your session has expired. NPR's Audie Cornish speaks with DEI consultant Lily Zheng about how the diversity, equity and inclusion industry has changed after 2020's racial injustice protests and how companies are responding. I believed I could not do the best job possible as CEO unless I was also the chief diversity and inclusion [D&I] officer. Diversity and Inclusion in the workforce are core environmental, social and governance (ESG) themes, which financial professionals are more frequently incorporating into their investment strategies and capital allocation decisions. 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. var currentUrl = window.location.href.toLowerCase(); For the second annual report, Refinitiv analyzed trends in diversity and inclusion data, covering the following areas: trends in diversity and inclusion data reported by public companies over the last five years; long/short portfolio analysis using the Portfolio Analytics app in Refinitiv Eikon; and the constituents of the Refinitiv 2020 . With that in mind, here are some examples of companies to avoid, as well as few we should patronize: 1. But theres something different going on now. Its not enough to measure diversity in your total associate population. To summarize, leaders need to be more ambitious for inclusion. Refinitiv Shah Paikeday acknowledges that some executives may find it difficult to broach such a sensitive topic. The D&I Index, launched in 2016, ranks the top 100 publicly traded companies globally with the most diverse and inclusive workplaces, as measured by 24 metrics across four key categories: Diversity, Inclusion, People Development and News Controversies. Diversity-Fueled 'Reverse' Bias Claims Put Employers in Quandary. Only 41% responded. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); 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. 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. What changes have you made since you took over the role? The company increased the number of women in its workforce to 37%, a 1% increase on the prior year and a step toward the company's . Its crucial for leaders to discuss what happened to Floyd and others because their deaths remain on employees minds. Here are some of the major workplace discrimination, harassment, and retaliation lawsuits that workers filed against America's largest companies in 2020, as well as cases where new plaintiffs joined. Every decision we make to develop great products, develop the organization and represent the company externally requires D&I to be at the center of everything we do. In recent years, however, empowered in part by the #BlackLivesMatter and #MeToo movements, American workers are increasingly turning to the courts to hold their employers accountable for breaking civil rights laws and demand companies fix racist, sexist, ageist, ableist, and other biased pay practices and work environments. As of 2018, the following are the companies best known for embracing workplace diversity, as well as a few that still have work to do. Its unclear whether recent corporate efforts to shine a light on injustice are having any positive impact. The 2020 report found that companies with greater gender diversity were . Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Hes a white man, and such posts are typically reserved for women or people of color. According to Diversity Inc., which compiles a list of the top 50 most diverse companies each year, no oil company has made it on its list since 2004. PPG already has a variety of diversity, equity and inclusion (DE&I) initiatives, though it doesnt break out statistics on people of color. According to a report from the Boston Consulting Group, companies with more diverse leadership teams report higher innovation revenues. To make real progress, they must directly challenge assumptions underlying the written and unwritten rules at work. The percentage of Black employees increased less than 3% during the same period. And a place where we, our members, and our business community can bring our unique professional talents to stand together against all forms of social injustice. You have successfully saved this page as a bookmark. You cant solve it if you cant admit it, Ellis says. 1. The C-suite in corporate America is largely white and male despite the billions of dollars spent on D&I. Notably, this is not a once and done effort. They know the value, but are less certain about what to do. We had to plead with him, says Butler-Morton, VMwares director of product lifecycle operations management. An energy crisis can lead . We notice that you have used an expired link to try and complete registration. Irick agrees and will be instituting unconscious-bias training in his division. mode: 'alternating-thumbnails-a', by. Here are the 11 companies that earned 90 points, including PepsiCo, the only company in the S&P 100 with a minority woman, Indra Nooyi, as its CEO: Abbott Laboratories, Accenture, American Express, Bristol-Myers Squibb, Comcast, Dell, Kraft Foods, McDonalds, Nike, PepsiCo, Pfizer. 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. Finally, here are some depressing statistics that underline the slow advance of women and minorities: - Though women are hired as frequently as men, 56% of S&P 100 companies have no women or minorities in senior executive positions. J. Yo-Jud Cheng. 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. These include respect, transparency, fairness, participation and shared power. Sustainable and resilient workforce is the fuel for businesses especially during volatile times. Article Simon Property's website does list one woman on its board of directors, who's been a director for the company since 2004. This collection examines the barriers that prevent companies from addressing gender and racial equality and identifies solutions for building a stronger, more inclusive workforce. Her husband, who has experienced police violence firsthand, only acquiesced when white family friends vowed to protect them if anything happened. And with that can come diversity of thought, and it's shown that diversity of thought can really aid organizations." This encapsulates the challenge that even diverse companies face in tackling inclusion. Each member of our executive team must also be actively involved with our ERGs [employee resource groups]. Companies are built on good ideas and hard work, which find their source in different perspectives and viewpoints. Sign up for free newsletters and get more CNBC delivered to your inbox. We want to make sure they know theyre on the road to partnership, says Shannon Schuyler, chief purpose and inclusion officer at PwC US. Mobile +1 917-805-1089 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. The rebound in hiring for diversity-and-inclusion-related jobs is a meaningful signal of a deeper and more sustained investment, given how expensive and challenging it is to find, hire and retain . In addition, approximately 2,300 of employees had a disability, which is4.5%of theworkforce. As companies look to adapt to a new way of conducting business post-COVID-19, diversity and inclusion factors need to be on the agenda alongside financial resilience, environmental risks and workforce health. Or they replicate so-called best practices, such as implicit bias awareness training, even when these practices have been shown to have limited impact. Steele: Although some brush aside the business case, many are talking about how important D&I are, particularly for talent attraction, customer connections, and innovation. His company, Berkshire Hathaway Inc. (BRK.A), however, ranks far from progressive in its commitment to workplace diversity. Why must your senior management team join an ERG? We never talked about this before.. Distance also makes it more challenging to forge meaningful mentoring and sponsorship bonds. Only 2 percent of the banks senior executives are Black. Now for the bottom of the list: Berkshire-Hathaway - 5 points. Maitland: We illustrate this in one of the books 14 case studies. The D&I Index utilizes innovative analytics to rate and score companies across 4 main pillars: Diversity, Inclusion, People Development and Controversies. I wanted to support my son.. Industry: Retail. The index ratings are informed by Refinitivs Environmental, Social, and Governance (ESG) data, designed to transparently and objectively measure the relative performance of close to 10,000 companies representing 80%+ of global market cap across 450+ ESG data points, and provide clients with critical and differentiated insight. This concerns the CEO of investment managing company HIP Investor, Paul Herman, who said in aRigzone article last year that the lack of diversity in oil and gas companies can destroy shareholder value. Two minority executives as of August 2012 and two minority women on 17-member board plus two minority men. Regionally the largest increases have been seen in Oceania with a 40% increase. Refinitiv remains fully committed to using our data assets, expertise and influence to champion the importance of diversity and inclusion in the workplace including our own.. 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. Since 2000, 99% of Fortune 500 companies have paid settlements in at least one discrimination or sexual harassment lawsuit, according to a report from Good Jobs First, and that's not including the cases without a public record or incidents victims didn't report. When it comes to diversity, oil and gas companies typically tend to fall behind other industries. Meanwhile, JPMorgan Chases chief executive, Jamie Dimon, was photographed with several staffers taking a knee in front of a bank vault, prompting ridicule on social media that pointed out that the bank paid $24 million in 2018 to settle a racial-bias suit brought by current and former Black employees. Only 4.4 percent of the banks executives are Black, the firm reports. Can you explain? 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. Please log in as a SHRM member before saving bookmarks. Some suggest delicate conversations about race lose their impact in a virtual setting. And such posts are typically reserved for women or minorities on the &. Tying incentives to each leaders team diversity goals about what to do must prepare for difficult if. 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