Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Oct 2011. You can mandate diversity, but you cant mandate inclusion, Minta-Jacobs says. Industries leading this years index: 18 banking, investment services & insurance; 9 pharmaceuticals; 7 telecommunications services, specialty retailers and personal & household products & services. Workplace diversity may not be one of the first things you think of when considering investing in a company, but for a company to be truly great it needs the perspective of many individuals. But theres something different going on now. 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. No women or minority top executives, two women on board of 12. The company must clearly communicate that dedication to diversity and inclusion is not just a passing trend that frontline leaders can wait out or avoid implementing. Middle managers can do the same by asking direct reports: What can I do to make it easy for each of you to freely share your ideas and dissenting opinions? They can use what they learn to adjust how they interact with colleagues. Having DE&I leaders isnt enough unless theyre empowered by the C-suite to bring real organizational change. Yet organizations struggle to find the best approach to meet their D&I goals. The global pandemic and social unrest this year has reinforced the focus on diversity and inclusion in the workplace coming from different business stakeholder groups, said Elena Philipova, global head of ESG at Refinitiv. Accountability is key to moving that needle, alongside investments in D&I programs that attract and create a pipeline of diverse talent. 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. What do you say to those who think that a white man doesnt have the right experience or authority for the role? 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. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Inclusion programs may violate civil rights law, if done incorrectly. Companies are supplementing these dialogues with expert guest speakers, book clubs and websites with tools to help employees learn more about racism. Diversity and Inclusion Efforts That Really Work. Theres another potentially complicating factor: Vast amounts of employees are now working from home because of the pandemic, and its unclear whether that will impact the reinvigorated diversity efforts. The Motley Fool owns shares of Berkshire Hathaway and National Oilwell Varco. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; Companies spend $8 billion a year on diversity training, according to consulting company McKinsey & Co. Hobby Lobby took its fight against women's health care all the . 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. The analysis gave Accenture PLC a 95% rating for diversity practices. Once we uncovered the hidden bias about what commitment and leadership looked like, it was swiftly addressed. And they arent measuring business-relevant impacts. Please try again orcontact usfor further assistance. as well as other partner offers and accept our, Jeremy Moeller, Chesnot, and Justin Sullivan/Getty Images, Ian Tuttle/Getty Images for Breakthrough Prize, Hakan Nural/Anadolu Agency via Getty Images, Visit Business Insider's homepage for more stories. 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. Illustration by Ty Dale. When it comes to diversity, oil and gas companies typically tend to fall behind other industries. Rebekah Steele: Many organizations recognize they must do better but are not sure how, which is why we wrote INdivisible. D&I strategy and only 35 percent measure The company offers domestic partner benefits to LGBT employees. I needed to make sure that our company is diverse and that our diverse associates were included in every decision and everyone here is advancing. 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. Four companies tied for next-worse: Philip Morris International, Halliburton, Gilead Sciences and Emerson Electric. Retail powerhouse Walmart employs a massive workforce, and as a result, is one of the most diverse companies in the country. CNBC's Jon Fortt described it like this: "Women, people of color, often have different experiences. 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. 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. 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 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. 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. Simon Property's website does list one woman on its board of directors, who's been a director for the company since 2004. Maitland: We illustrate this in one of the books 14 case studies. According to a report from the Boston Consulting Group, companies with more diverse leadership teams report higher innovation revenues. Now for the bottom of the list: Berkshire-Hathaway - 5 points. That number rose only one point, to 19%, in two years. Got a confidential news tip? 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. I believed I could not do the best job possible as CEO unless I was also the chief diversity and inclusion [D&I] officer. We will send you email confirmation within 24 hours with further instructions on how to proceed with access to Refinitiv. In an open letter, Chip Bergh, president and chief executive of Levi Strauss & Co., wrote, We pride ourselves on being a progressive company that takes bold stances to promote equity, justice and inclusivity all around the worldbut the hard truth is that we have not always lived up to these principles internally. 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. Mobile +1 917-805-1089 How to Be an Antiracist (One World, 2019). 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. It's a story that's been told time and time again: Tech companies are just not diverse enough. 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. A Stanford and Harvard professor convened a symposium on . Thank you for registering. 1. Diversity-Fueled 'Reverse' Bias Claims Put Employers in Quandary. National Oilwell Varco ( NOV -0.78%) -- Diversity score of 15: This oil and gas component and equipment company received the third-lowest rating in the report, partly because it was one of. Were calling out where we want our diversity to be. 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. 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. A Division of NBCUniversal. This requires building a comprehensive inclusion strategy with clear links to organization goals, shared understanding and robust metrics. At a country level, Germany is the only country that has maintained a positive increase in the percentage of culturally diverse board members. The 2020 report found that companies with greater gender diversity were . This can be accomplished thorough a methodical assessment of systems and processes. People just dont believe it, Ellis says. Specific actions depend on the organizations priorities. 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. 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. Without these investments, progress will be difficult. 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. White men hold 68 percent of C-suite positions, with white women accounting for 18 percent. Hobby Lobby. 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 . SINGAPORE - Singapore is the second-worst performing country in terms of workplace diversity and inclusion (D&I) practices, based on a poll of employees in 14 developed countries by Kantar, a. One woman on board of 10. Kenny explains why he made the decision and what hes done since. Register here. She says she thinks that her white colleagues view the Black individuals who have died violently in racist incidents as being somehow different from their Black co-workers. 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. What we havent done before is have these open discussions and understanding of our colleagues experiences, she says. 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. Companies also are using more technology in their diversity efforts. 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. Its director selection criteria say it seeks women and minorities. The formerly verboten topic is starting to be more openly and broadly discussed at companies all over the U.S. 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.The Best: Accenture PLCThe analysis gave Accenture PLC a 95% rating for diversity practices. 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. But experts say the brutal and public nature of Floyds death has caused a reckoning that can lead to advances in diversity if companies build on the moment with frank conversations about race. One point, to 19 %, in two years Employers in Quandary positive in. The U.S done since to find the best approach to meet their D I! 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