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THE MAGAZINE OF DIVERSITY MANAGEMENT

A DIVERSITYINC SPECIAL INVESTIGATIVE REPORT

THE PRISON INDUSTRIAL COMPLEX


BIASED, PREDATORY AND GROWING

PLUS

Employee-Resource
Groups
Raise Participation,
Increase Their Value
Get Employees to See
‘What’s In It for Me?’

Generations in the
Workplace
How We Talk to Each Other
Helping Employees
Help Their Parents

Hispanic Heritage
Month Achievements
SPECIAL REPORT
Supplier-
Diversity Trends

WWW.DIVERSITYINCBESTPRACTICES.COM SEPTEMBER/OCTOBER 2010


EDIT CALENDAR
ONLINE MAGAZINE EVENTS

Monthly Diversity Management Theme for


DiversityIncBestPractices.com and DiversityInc Magazine Magazine: Special Editorial Report

TALENT DEVELOPMENT BUILD THE ECONOMY, BID TO MINORITY-OWNED BUSINESSES


We look at the proven best practices to identify, retain and nurture In this first of a two-part supplier-diversity series, we will focus on innovative corporate procure-
people with leadership potential, especially those from traditionally ment initiatives that help build Black, Latino, Asian and American Indian communities through
underrepresented groups. We show how you can use your employee- minority-owned business enterprise (MBE) development. How are corporations helping their
business growth? What are the best practices in reaching MBEs?
JAN/FEB

resource groups to find “hidden gems” and on-board new managers.


We demonstrate how you include diversity in succession planning
GROWING EMPHASIS ON DIVERSITY: TEXAS
and how you ensure that people marked for leadership posts get the
Texas, a “minority-majority” state, is home to many progressive companies that increasingly
right assignments.
seek a diverse workforce. Find out how the state’s corporate leaders are collaborating with local
DIVERSITY MANAGEMENT organizations and institutions to recruit, retain and promote employees and how they are using
3 Case Studies: Why Did Diversity Programs Die at their employee-resource groups to reach an increasingly diverse workforce and customer base.
These Companies?
MONTHLY EDUCATION BLACK HISTORY MONTH
WEBINARS TALENT DEVELOPMENT JAN. 25 THEME FOR
RETENTION FEB. 22 DIVERSITYINC.COM

MENTORING/RECRUITMENT WOMEN’S HISTORY MUSEUMS DIVERSITYINC EVENTS


Find out how formal, cross-cultural mentoring programs benefit ALL Thanks to the support of corporate donations, women’s museums
Corporate
MAR/APR/MAY

your managers. We give you examples of the most effective mentoring celebrate the accomplishments of female leaders and inspire the next
Global

2011
programs, the metrics that demonstrate their value, and the success generation of women. In this report, readers will take a visual tour of
Values and
stories of mentors and mentees. We also this month give you the several museums and learn how companies are using them to raise Human
best ways to find talented people of all races, ethnicities, genders, gender awareness and build business. Rights
ages, religions, orientations and abilities.
WHO ARE TODAY’S SUSTAINABILITY LEADERS? Employee-Resource
DIVERSITY MANAGEMENT From training suppliers looking to become more energy efficient to Groups/Generational
Chief Diversity Officer Cul-de-Sac: exploring “green” business opportunities, we will feature cutting-edge Communications
How Not to Get Boxed In corporate-sustainability initiatives. March 2-3, 2011
Washington, D.C.
WEBINARS WORK/LIFE MARCH 22 MONTHLY EDUCATION WOMEN’S HISTORY MONTH
RECRUITMENT APRIL 26 THEMES FOR ASIAN PACIFIC ISLANDER
MENTORING MAY 17 DIVERSITYINC.COM AMERICAN HERITAGE MONTH

THE 2011 DIVERSITYINC TOP 50 GAY RIGHTS: THEN & NOW


COMPANIES FOR DIVERSITY® Who were the early leaders of the gay-rights movement? What landmark decisions
2011

How was the list determined and what factors changed paved the way for equality? And how is corporate America leading the charge for LGBT
this year? What lessons can you learn from the most pro- equality today? This special report will highlight innovative corporate LGBT initiatives
gressive companies? We also look at CEO commitment as they intersect with the gay-rights movement.
JUNE

in these companies and how it energizes and escalates


their diversity-management efforts. And this month, we also publish MONTHLY EDUCATION LGBT PRIDE MONTH
DiversityInc’s Top Federal Agencies for Diversity. THEME FOR
DIVERSITYINC.COM
DIVERSITY MANAGEMENT
What Three Data Points Indicate a Declining Diversity
Program?
WEBINAR DIVERSITYINC TOP 50 BEST PRACTICES JUNE 21

EMPLOYEE-RESOURCE GROUPS PARTNERING WITH WOMEN-OWNED BUSINESSES


JULY/AUG/SEPT

We tell you how to start employee-resource groups and how they will In this second part to our supplier-diversity series, DiversityInc will show how corporate
benefit your recruitment, retention and talent-development efforts. supplier-diversity programs are opening opportunities to women-owned businesses to build
We show you what types of groups work best for different kinds of mutually successful companies.
companies, how these groups help relate to clients and customers,
and what the most innovative new groups are. BUILDING A STEM PIPELINE
What are companies that employ finance and technology professionals and engineers doing
DIVERSITY MANAGEMENT to recruit and create a pipeline of more Blacks, Latinos and women? What programs/part-
Lack of Employee Engagement=Lack of nerships are they involved in? How are they filling critical jobs with people who have various
ERG Utilization backgrounds and perspectives?
WEBINARS GENERATIONS IN THE WORKPLACE JULY 26 MONTHLY EDUCATION HISPANIC HERITAGE
GLOBAL DIVERSITY AUG. 23 THEME FOR MONTH
EMPLOYEE-RESOURCE GROUPS SEPT. 20 DIVERSITYINC.COM

LESSONS LEARNED FROM THE DIVERSITYINC TOP CLOSING THE HEALTHCARE-DISPARITIES GAP DIVERSITYINC EVENTS
50: DIVERSITY COUNCILS From educating vulnerable patient populations to including more
We demonstrate how DiversityInc Top 50 companies are using their Blacks and Latinos in clinical trials, we will focus on how some DiversityInc
OCT/NOV/DEC

2011

diversity councils to set and reach corporate diversity goals tied to organizations provide culturally competent care for all. Special
the revenue stream, to communicate and train employees, and to Awards
measure their success. We show you how senior executives are being CORPORATE PHILANTHROPY
held accountable for reaching their goals and objectives. Corporations increasingly are donating money, employee time and Nov. 6-8, 2011
innovative ideas to helping multicultural communities grow and Washington, D.C.
DIVERSITY MANAGEMENT flourish. We focus on best practices and how companies are making
Diversity Misalignment: The Cost of Data & a difference.
Programs Not Matching Up
MONTHLY EDUCATION DISABILITY EMPLOYMENT AWARENESS MONTH
WEBINARS DIVERSITY COUNCILS OCT. 18
THEMES FOR AMERICAN INDIAN HERITAGE MONTH
LESSONS LEARNED FROM
DIVERSITYINC.COM
THE DIVERSITYINC TOP 50 NOV. 15
SUPPLIER DIVERSITY DEC. 13
NOV. 8–9, 2010 | THE RITZ-CARLTON, WASHINGTON, D.C.
DAY ONE
How Diversity Management Drives
Employee Engagement
DiversityInc will hold a one-day interactive learning session where we will have subject-
matter experts discussing a range of employee-engagement topics, focusing specifically on
how organizational behavior affects different groups and personality types.
EVENTS
The 2010 DiversityInc Special Awards 2010–2011
At a gala dinner, we will recognize eight leading companies as the top companies for
Working Families, Generational Communications, Global Cultural Competence, Community
Development, Talent Pipeline, Executive Development and Employee-Resource Groups.
Appearances include CEOs from Aetna, Deloitte, JCPenney, Ernst & Young, Procter &
Gamble and Rockwell Collins. Chely
DAY TWO Wright
THE PUBLIC SECTOR:
Implementing Effective Diversity Management GALA INNER
In a primer session aimed at federal agencies and companies doing business with the NOVEMBER 9
federal government, we will offer “how-to’s”—practical advice on implementing and Presentation and special
getting to the next steps in effective diversity management. performance by
award-winning country
singer/songwriter
TITLE SPONSORS

DINNER SPONSORS

MARCH 2–3 AND NOV. 6–8, 2011 | WASHINGTON MARRIOTT WARDMAN PARK, WASHINGTON, D.C.

Visit www.DiversityInc.com/events for the full 2011 event schedule


V
Contact Carolynn Johnson for sponsorship and registration details at (973) 494-0539 or cjohnson@DiversityInc.com

2011EditCalendar.Event.Ad.indd 2 10/19/10 10:05:00 AM


EMPLOYEE-RESOURCE GROUPS GENERATIONS IN THE WORKPLACE

EMPLOYEE-RESOURCE GROUPS
CONTENTS 20 Reach Your Business
SEPTEMBER 2010 Goals Through
Increased Participation
What can you learn from companies that most effectively
use these groups to reach their business goals? Get a
roadmap of the best practices for engaging ERG members
and furthering talent development and customer outreach.

30 Career Advice for Young Professionals


How to use ERGs to further your career.

34 ERG Members Have


Higher Engagement Rates
Exclusive data from Aetna’s employee survey finds
ERG members have a more favorable outlook overall
than non-members.

GENERATIONS AT WORK
Help Employees
36 Care for Parents
COVER STORY Unresolved eldercare issues can translate into lost

The Prison
productivity and health problems for employees and
increased costs for employers. What best practices can
help your company?

Industrial 42 How to Start a Generational ERG


Five steps to forming groups geared specifically for

Complex:
younger—and older—employees.

44 Why No One Under 30 Answers


Your Voicemail
Biased, How to minimize communication conflicts so you can
reach younger employees and family members.

Predatory 48 Ushering In the ‘Re-Generation’


Exclusive generational research from retired Deloitte
human-resources principal W. Stanton Smith sheds new

and Growing light on the future workforce.

54 Generations at Work Facts & Figures

56 A DIVERSITYINC INVESTIGATIVE REPORT


74 BP Executives’ Human-
In this first of a two-part exposé
Rights Miscalculation: Have
of America’s prison system,
DiversityInc examines the rapid
They Bet the Company?
How did BP leadership fail to grasp the human-rights
growth of privately run prison implications of drilling in the Gulf? Attorney and activist
Raymond Brown has some thought-provoking explanations.
operators and what is fast becoming
the next dark chapter in the ever- SPECIAL REPORT
expanding prison industrial complex: Taking Supplier Diversity
78
immigrant detention. What are the to the Next Level
racial implications? Why has anti- Despite shrinking budgets and more stringent regulations,
corporate supplier-diversity programs are thriving.
immigration sentiment helped private Here’s how several companies are making a significant
prisons make a fortune? economic impact.

IN EVERY ISSUE 6 READER COMMENTS | 10 CEO’S LETTER | 14 EDITOR’S LETTER | 139 COMPANY INDEX

2 DiversityInc
heartofcommerce.com
© 2009 MasterCard

It’s just a piece of plastic that lives in your


wallet that understands diverse perspectives
lead to unique innovations and limitless possibilities.
One look at our DNA and you’ll see it’s made
up of s, s and s. Not to
mention a few s.

As a global network that connects people of all backgrounds, MasterCard Worldwide understands that when s, s, s
and s work together, it creates the fresh thinking that leads to groundbreaking ideas. That’s why supporting diversity lies at
the foundation of our company. Because diversity is at the heart of innovation and innovation puts MasterCard® squarely at
The Heart of Commerce.™
NEXT ISSUE EMPLOYEE ENGAGEMENT: LESSONS LEARNED FROM THE DIVERSITYINC TOP 50

SEPTEMBER 2010
The 2010 DiversityInc
Departments

2010
TOP
50
16 Facts & Figures
DIVERSITY TOP 50 LIST
Hispanic Heritage Month No. 1 Sodexo
No. 2 Johnson & Johnson
18 DiversityInc Special
No. 3 AT&T
Award Winners
No. 4 Kaiser Permanente
1102 Legal Update No. 5 Ernst & Young
‘Abusive’ Workers May Be an No. 6 PricewaterhouseCoopers
Employer’s Liability No. 7 Marriott International
PAGE 16
1106 The Inside View No. 8 IBM Corp.
Diversity Programs: Debunking No. 9 Bank of America
3 Myths No. 10 Abbott
110 Building a Pipeline No. 11 Verizon Communications
Is There a Black or Latino No. 12 American Express Co.
Doctor in the House? No. 13 Merck & Co.
No. 14 Colgate-Palmolive
112 Corporate Responsibility
No. 15 KPMG
AT&T Empowers Women in
Afghanistan, Rwanda No. 16 Novartis Pharmaceuticals Corp.
No. 17 The Coca-Cola Co.
118 Employee Engagement No. 18 Procter & Gamble
Reaping the Value of
No. 19 Starwood Hotels & Resorts Worldwide
‘Differences’
PAGE 18 No. 20 Health Care Service Corp.
122 Military Memorial No. 21 Cox Communications
What Can Your Company Do to No. 22 Accenture
Honor WWII Vets? No. 23 Time Warner Cable
1130 Leadership Profiles No. 24 MGM MIRAGE
CVS Caremark’s David Casey No. 25 Deloitte
PAGE 102
No. 26 Cummins
Women’s Forum for the
Economy and Society’s No. 27 HSBC - North America
Aude Zieseniss de Thuin No. 28 Monsanto Co.
Deloitte’s Jim Wall No. 29 General Mills
No. 30 Aetna
Walt Disney’s Christine Cadena
No. 31 Capital One
Marriott International’s
No. 32 Prudential Financial
Stéphane Masson
No. 33 The Walt Disney Co.
U.S. Internal Revenue Service’s
No. 34 JPMorgan Chase
Elaine Ho
No. 35 Kraft Foods
Procter & Gamble’s
No. 36 Toyota Motor North America
Beverly Grant
No. 37 Cisco Systems
ITT’s Angela Buonocore
No. 38 Blue Cross and Blue Shield of Florida
Pfizer’s Dan Buriak No. 39 Time Warner
Wyndham Worldwide’s No. 40 Target Corp.
Patricia Lee No. 41 SC Johnson
Rutgers University’s No. 42 MetLife
Dr. Kamal Khan No. 43 Wells Fargo & Co.
Belk’s Nicole Dean No. 44 Ford Motor Co.
1140 People and Events No. 45 Comerica
No. 46 JCPenney
1142 People on the Move No. 47 Northrop Grumman Corp.
PAGE 112 1144 Ask the White Guy No. 48 Xerox Corp.
Is It OK to Alter Your Standards No. 49 Automatic Data Processing
to Conform to Another Culture? No. 50 WellPoint

DiversityInc Magazine Online


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magazine as soon as it becomes available?
Read every issue at www.DiversityInc.com/magazine

4 DiversityInc
Why Is ‘Illegal
READERCOMMENTS

Immigrant’ a
Dehumanizing Term?
Thank you for pointing out the responsibility we have as citizens, busi-
ness owners, managers, etc. Our desire [was] to have cheap labor to stock
the shelves of our stores, to have household help at less than a living wage,
to hold on to our money while taking advantage of the services of people
who cannot survive on the wages they make unless 20 people share a dwell-
ing designed for three or four people. We looked the other way so long as
we could have our cheap labor. Now that there are predictions that there
will be more Spanish-speaking people in this nation than English-speaking,
we’re worried about learning a new language. Now that jobs are scarce, we
worry about high unemployment—even for jobs that few people want, and
still at wages well below the level of subsistence. We asked these people
to come here, begged and enticed them to come here, and now we want to
blame and punish them for showing up. Shame on all of us.
Celia (no last name given)

Illegal immigration is a problem that we have brought upon ourselves


through decades of encouragement. We are accountable first and fore-
most. It feels like growing up in the deep South when friends and their
parents painted anyone who was Black with the brush of laziness, justifying
their stereotype with the demographics of welfare and household income in
the ’80s. They were in denial that the decades of segregation and Jim Crow
and slavery and general inequality across the nation that they and/or those
before them had practiced (or condoned) CREATED the very demographics
that they now took issue with. It’s not “their” problem when “we” are the
enablers. “Illegal” is dehumanizing. When you refer to any person or group
of people in a way that strips them of their humanity, strips them of their
contributions, strips them of their culture, you’re dehumanizing them. To
those who say it’s just a term of convenience and there’s no harm intended,
I’ll tell you that those who long defended the use of words like [the N-word]
Read the original article on
this topic at www.DiversityInc.com/ did so with your same argument. That’s the company that you keep in mak-
immigrant-language ing this argument. Once we become aware that our language is hurtful, if not
dangerous, and we defend or continue its use anyway, that speaks more of
our own lack of humanity than anything else. DiversityInc.com comment

It has seemed obvious to me for some time now that border “issues”
are mostly on our southern border. It is equally clear that it has something
to do with standard of living—very similar between the United States and
Canada to our north, but greatly disparate between the United States and
Mexico to our south. In talking with my brother about this issue, he sug-
gested the term “economic refugee,” which seems just right to me. Perhaps
use of this term would allow for more nuanced discussion and give another
perspective to this conversation. Keeping the focus on immigration status,
which is either legal or illegal, doesn’t easily lead to talk about all the many
gray areas. Some might think that this is a semantic argument or (worse)
“politically correct,” but I think our words are very powerful. What picture
does the term “economic refugee” call to your mind? Now contrast that with
your mental image of “illegal alien.” Different, right? The discussion of and
solution set for issues involving economic refugees are different, too. Linda
(no last name given)

6 DiversityInc
every voice matters

Every new idea. Every spark of genius.


For each of our 150,000 associates,
there’s a unique voice dedicated to bringing
JCPenney’s style and quality to our customers.
Every day.
No Black Jurors?
READERCOMMENTS

Study Finds Racial


Bias in South
To read the original article and the study referenced in
this letter, visit www.DiversityInc.com/jurors

I
t’s no surprise that a study, as the title declares, “... Finds Racial
Prejudice in the South.” It’s similar to finding sand on a beach or water
in the ocean and even more apparent in the age of the Tea Party, the Muslim Holy
Birthers, the Glenn Becks, the Rush Limbaughs and, ironically, the first
openly Black president of the United States. The results and the existence of
Month of
these prejudicial practices in the 19th–21st centuries speak to the institution-
alization of racism in America. What is disturbing is how “unsurprising” the
Ramadan
study’s findings are. There is the American mythology: of a group of “United Read the original article at
States”; of a democratic republic where “all men are created equal, that they www.DiversityInc.com/ramadan
are endowed by their Creator with certain unalienable rights, that among
these are life, liberty and the pursuit of happiness”; of Section One of the Good article. What does this
Fourteenth Amendment of the U.S. Constitution guaranteeing “equal protec- mean for us at the local and
tion” under the law. The mythology carries over to the present day with con- global workplace?
servative so-called “strict constructionists” demanding that the Constitution … When organizing cross-time
be applied as written, while fully cognizant that, on the front line of our meetings, do check with col-
democratic system—the judiciary—it is not. They are quite content that we leagues if the timing affects the
continue to be a nation of warring factions … Red State vs. Blue State; white Iftar (breaking of the fast).
vs. Black, red and brown; rich vs. poor; straight vs. gay; able vs. disabled, etc. † Planning of global meetings/
It would appear that the Equal Justice Initiative found racial prejudice in the events: Avoid three days before
South primarily because it’s the only place they looked. Jonscott Williams Ramadan ends and three days
after Ramadan ends. At the end
KKK Robes: of Ramadan, Muslims celebrate
Eid ul-Fitr.
Why Were They Allowed ‡ If global events are held in the
month of Ramadan, ensure
in the Classroom? Muslim colleagues are given
time for Iftar. Also, arrange with
See DiversityInc’s article on this topic at hotels to provide for their early-
www.DiversityInc.com/kkk-robes-in-class morning meal instead of the
typical breakfast.

I
t is undeniable that the KKK garb is offensive. I am troubled, however, ˆ If organizing lunch meetings
by what I perceive as a tendency to jump to righteous judgment and and you have Muslim colleagues,
condemnation of what seems to be a well-intentioned teacher who was avoid bringing in the lunch to the
employing a somewhat unorthodox approach to engage students in meeting room; have lunch before
learning about and discussing racism and U.S. history. I worry that the unin- the meeting as courtesy (Muslim
tended consequence of this kind of reaction is to continue to stifle attempts, colleagues have no objections if
imperfect and messy as they may be, to grapple honestly with our shared his- you have your coffee/tea in the
tory. Instead of constructive and capacity-building discussions about intent meeting room; the rule is always
versus impact and how different perspectives can arise from different histor- ask if it’s OK).
ical contexts, I am concerned that the message we reinforce is that race and The above suggestions are in the
racism are simply too loaded and fraught with danger to be discussed openly. spirit of inclusion and respect.
Once again, we end up talking past each other. DiversityInc.com comment Hamidah Marican

CONTACT US
We welcome your comments. Letters must include your name and, if applicable, company affiliation and
title. E-mail letters to editor@DiversityInc.com. We reserve the right to edit all submissions.

8 DiversityInc
We judge our people on their
contributions, not gender, skin color,
sexual orientation, or background.
And that’s what fuels our growth
At Deloitte, the strength we gain from the diversity of our talent gives us the ability
to create teams that are more effective in delivering value and innovative business
solutions to our clients.

That’s why we:


ō Are one of DiversityInc’s Top 50 Companies for Diversity
ō Earned a Top 10 spot on Working Mother magazine’s 2009 100 Best Companies list
and were inducted into their Hall of Fame in 2008
ō Earned a Top 5 spot on Working Mother magazine’s Best Companies for
Multicultural Women in 2010, and have been on this list for 5 consecutive years
ō Received a 100% rating in the Human Rights Campaign’s Corporate Equality Index

To find out more about Deloitte, please visit us at: www.deloitte.com

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about
for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
Copyright © 2010 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu
CORGANIZED HATEC
CEO’SLETTER

Who’s Working
Against Diversity—
And Why
Many of you expressed your opinions on my CNN
appearance in August (www.DiversityInc.com/CNN).
Setting aside the question of whether the
Tea Party is racist, I want you to know about what
happened after my appearance.
I had my first death threat—and first call of congrat- beyond commenting on the website to e-mails and
ulations—before I even left the CNN building. What’s phone calls to our advertisers. Did we lose business?
more interesting is that we were bombarded with a Hard to say, but my hunch is that we all gain more
stream of extremely hostile comments on our website business by sticking to principles of equity and justice
about the appearance. The comments were clearly than we lose by not bending to bigotry and oppression.
NOT from regular readers of DiversityInc. This isn’t Supporting “diversity” does not mean there’s
the first time this has happened; for example, my inter- an implied necessity to embrace opinions equally.
view with Vice Admiral Jeffrey Fowler drew several “Diversity,” as this publication defines it, requires a
dozen hostile comments from Naval Academy gradu- deep, introspective, thoughtful analysis of motiva-
ates from the 1950s and 1960s, a period of history when tions and behavior. It demands a clear-eyed view of
Black sailors were mainly relegated to serve food, outcome. It demands going beyond the “self-evident”
regardless of capability or intelligence. These men correlations presented as facts in the weak-minded
(women were not allowed in the Naval Academy in that “Freakonomics” manner—where abortions are linked
era) were obviously not readers of DiversityInc—and to crime without a discussion of poverty and race.
since that article had no exposure on CNN, how did This thoughtfulness is demanded because “diversity”
they know to look at the article and post comments? is a pragmatic business subject. There are many “busi-
What’s even more telling is that, in every case that ness cases for diversity,” but the workplace environ-
this organized response happened, immediately ment one is the most direct: A workplace environment
after I wiped the hateful responses off the website, that enables people to feel equally engaged is far more
they stopped coming in. In other words, as soon as productive than one where certain groups are less
I stopped playing ball, the organizers directed their engaged. Productivity equals money. Since the work-
people to find another game. force in this country will be 70 percent women and/
This organized response is new; it started happening or Black and Latino by 2016, the competitor that gets
three years ago with my response to anti-LGBT-rights this right will beat the one that doesn’t. It would be
leader Peter LaBarbera’s column in our magazine in nice, of course, if you could just love your neighbor, but
2007 (www.DiversityInc.com/homophobe). There’s you don’t have to love Black people to see that equally
a consistent trend: Whenever we have a particularly engaged Black people are good for your bottom line.
effective piece, we get the most virulent response from Sensitivities are more heightened today than in any
non-readers. period since we started publishing DiversityInc (as a
What changed with the CNN appearance was that website) in 1997. I think that’s because the organization
the organization of the response improved. It moved of the people leveraging hate to accrete power is better

“In every case that this organized response happened,


after I wiped the hateful responses off the site, they stopped coming in.

For more on diversity-management trends, go to www.DiversityIncBestPractices.com.

10 DiversityInc
scientists love rainbows
So do marketers, controllers, shift supervisors … At BASF,
we believe that when you invest in the talents of unique and
creative individuals, great ideas can blossom. That’s how we’ve
built the world’s most successful and responsible chemical
company – one person and one colorful personality at a time.
At BASF, we create chemistry. www.basf.com/careers
CEO’SLETTER

than ever. They are using web-based technology well Be enlightened about motivations. Understand why
and drafting off the fear created by the worst economic innocuous web discussions often seem to degenerate
disaster since 1932. In a previous CEO letter, I predicted into racist rants. Know that there are moneyed special
that the largest group of people hurt by this recession interests driving this division of Americans—and don’t
would be lower “middle-class” white people—and that’s allow your corporation to passively be damaged by
exactly what’s happening. On a percentage basis, Black-, hate-leveraging profiteers.
Latino- and women-headed households are certainly P.S. I encourage you to read up on how propa-
being hurt worse, but mathematically, more white peo- ganda works. Calvin College has an amazing collec-
ple have been financially affected than any other group. tion of Joseph Goebbels’s essays. If you go to www.
When the majority is hurt economically, the psycho- DiversityInc.com/calvin, the link will take you to the
logical damage is greater. Freshly damaged people can best part of the collection. Read it and tell me we’re not
be led to do things in a fear-based reaction. And the seeing our society manipulated the same way.
cynical people behind the scenes can leverage that fear
to make money. We’ve done a series of investigative
articles. Our articles on Goldman Sachs and the sub-
prime crisis, the food industry and obesity—and in this
Luke Visconti, CEO
issue, the prison industrial complex—show you exactly CEO@DiversityInc.com
how and why racism is leveraged to make money. www.twitter.com/LukeVisconti

VOLUME 9 NUMBER 4 | WWW.DIVERSITYINC.COM

Luke Visconti
Chief Executive Officer

EDITORIAL/DIVERSITYINCBESTPRACTICES.COM BUSINESS DEVELOPMENT & OPERATIONS


Barbara Frankel Carolynn L. Johnson
Senior Vice President, Executive Editor Vice President, Business Development
(973) 494-0515 | bfrankel@DiversityInc.com (973) 494-0539 | cjohnson@DiversityInc.com
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12 DiversityInc
EDITOR’SLETTER

CEMPLOYEE-RESOURCE GROUPSC

Your Greatest
Business-
Growth Asset
C
ompanies maximizing diversity management’s ability to bolster demographics,
engagement and community connections increasingly rely on their employee-
resource groups (ERGs). Yet even among companies with longstanding ERGs and all
the established best practices, there’s a persistent challenge in getting employees to join and
assume leadership roles, especially across business units and geographic locations.
As we visit companies at all stages of diversity devel- ERG members’ presence on sales calls and reaping the
opment as part of our benchmarking practice, the benefits, of talent development, retention and recruit-
same issues arise. Overall, membership in ERGs at ment at unprecedented levels because of ERG involve-
DiversityInc Top 50 companies is rising rapidly, increas- ment. At KPMG, which was named DiversityInc’s Top
ing on average from just 5 percent of all employees five Company for Employee-Resource Groups in November
years ago to 19 percent this year. But is that 19 percent 2009, employee participation rose by 17 percent in one
primarily at corporate headquarters? And why aren’t far year through the use of innovative ERG communica-
more of the company’s greatest assets fully engaged in tion methods, such as virtual ERGs. At Aetna, a recent
driving representation, talent development and sales to survey found that ERG members were 10 percent more
the increasingly multicultural marketplace? And how engaged than non-ERG members.
do you encourage involvement of hourly and/or union Here’s some simple advice: If you don’t have ERGs,
workers, especially in different locations? get them in place as quickly as you can, using estab-
Through more than 10 years of assessing ERGs lished best practices to ensure their purpose and goals
as part of the DiversityInc Top 50, we’ve learned the are aligned with your company’s. If you already have
answers and keep on top of the best solutions. We’ve them, make sure you are using them fully—and that
been meeting frequently with ERG leaders at bench- means getting as many of your employees as possible
marking clients around the country to help them really involved, having strong senior-leadership partici-
bolster, retain and fully utilize their ERG membership. pation, and putting these groups into play internally and
We’ve also started helping them with global ERGs and externally to grow your business.
have recently done cutting-edge research on types and
best practices of these global groups.
The examples of companies using their ERGs to Barbara Frankel
grow their business in every way multiply constantly.
We find story after story of innovative ideas for sales SENIOR VICE PRESIDENT, EXECUTIVE EDITOR
to specific communities, of companies mandating editor@DiversityInc.com

“ We’ve been meeting with ERG leaders at benchmarking clients


to help them bolster, retain and fully utilize their ERG membership.

To better understand the stages of corporate diversity, contact Barbara Frankel at bfrankel@DiversityInc.com

14 DiversityInc
®

DAILY REQUIR
EMENTS
AT KELLOGG

Strengthened by Diversity, Advanced by Inclusion


At Kellogg’s, we count on our people to contribute their unique ideas, drawn from their
diverse perspectives. It’s what makes a strong company with strong opportunities.

To explore your opportunities, visit


®, TM, © 2010 Kellogg NA Co. www.kelloggcareers.com
1492 Christopher Columbus’ ship lands in San Salvador and Cuba
1690 First permanent Spanish settlement is established in Texas
FACTS&FIGURES

1790 Latino colonists settle California


1820 Mexico gains independence from Spain. Includes settlements in
California, Arizona, Texas, Colorado and New Mexico. American settlers
begin moving into the Mexican territories

Sources: U.S. Department of State, Cengage Learning, National Archives, Library of Congress, U.S. Department of Health & Human Services, The Pulitzer Prizes, National Baseball Hall of Fame, U.S. Citizenship and Immigration Services,
1821 Spain cedes Florida to United States for $5 million
1845 Texas is annexed by U.S.
1846 Mexican American War begins
1848 Treaty of Guadalupe Hidalgo cedes Texas, California, Arizona, New
Dennis Chávez Mexico, parts of Colorado, Utah and Nevada to U.S.
1898 Spain signs Treaty of Paris; transfers Cuba, Puerto Rico and
the Philippines to U.S.
1917 Jones Act extends U.S. citizenship to all Puerto Ricans
1917 During World War I, “temporary” Mexican farm workers, railroad laborers
and miners enter U.S. to work
1925 Border patrol is created by Congress
1936 Dennis Chávez becomes first Latino elected to U.S. Senate
1943 During World War II, Mexico supplies temporary farm workers, known as
Braceros, to U.S. to help ease labor shortage
1950 Puerto Rico becomes U.S. commonwealth
1954 Hernandez v. Texas: U.S. Supreme Court decision deems “Hispanic” a
separate class of people suffering discrimination
1959 Fidel Castro takes power

United States Trade Representative, The White House, The New York Times, National Immigration Law Center, U.S. Department of Justice
Henry Cisneros 1965 Mexico and U.S. allow corporations to operate assembly plants on the
border to provide jobs for Mexicans displaced when Bracero Program
ends
1974 The Equal Educational Opportunity Act for public schools introduces
bilingual education
1975 The Voting Rights Act Amendments of 1975 make bilingual ballots a
requirement in certain areas
1986 The Immigration Reform and Control Act (IRCA) enables undocumented
immigrants, under certain conditions, to gain legal status. The law also
makes it illegal for employers to knowingly hire or recruit undocumented
immigrants
1988 Lauro Cavazos becomes first Latino secretary of education
1990 Antonia Novello becomes first woman and first Latino
U.S. surgeon general
1993 President Bill Clinton appoints Federico Peña secretary of Department of
Antonia Novello Transportation and Henry Cisneros secretary of Department of Housing
and Urban Development
1994 The North American Free Trade Agreement (NAFTA) goes into effect,
eliminating all tariffs between trading partners Canada, Mexico and U.S.
2003 At 37.1 million, Latinos officially become the nation’s largest
“minority” group
2005 Alberto Gonzales confirmed as U.S. attorney general
2009 Sonia Sotomayor sworn in as 111th and first Latino justice of the
U.S. Supreme Court
2010
April A controversial new law in Arizona, SB 1070, orders immigrants to carry
their registration documents at all times and police to question anyone
Left to right: Sonia they suspect is in the U.S. without documentation
Sotomayor with Vice
President Biden and July Justice Department files lawsuit against Arizona, charging the state’s
President Obama new immigration law as unconstitutional

For more facts and figures, visit


www.DiversityInc.com/facts

16 DiversityInc
DiversityInc Celebrates
Hispanic Heritage Month
Latino Population Latinos, 25 and older…
DEMOGRAPHICS

EDUCATION
as a % of the nation’s population
with a high-school education
(current U.S. population: 86.6%)
15%
2008

(46.9 million) with a bachelor’s degree


(current U.S. population: 29.4%)
30% 62%
2050

(132.8 million) 57%


People of Latino origin 51%
in the United States 44%

2006

1 in
7 2013
BETWEEN 2005 AND 2016
College enrollment for U.S. Latinos
is expected to increase by

6
13%
1 in
11%
45%
compared with 16.8%
for the total population
1980 1990 2000 2008

Increase in the Latino Buying Growth in Buying Power


BUYING POWER

Latino population Power $1.4 (1990–2008)


(1990–2008) TRILLION

107%
Latino 3
349%
$951
BILLION
Asian American 3
337%

$490 %
American Indian 213%
BILLION
compared with 14% for the non-Latino population
$212 Black 8
187%
BILLION

3 Largest White 1
151%
Latino Groups Mexican 1990 2000 2008 2013
in the U.S. by Countries 65.7%
of Origin (2008) (30.7
MILLION) 10 States With the Largest Latino
Share of Buying Power
As of 2008, only
Sources: U.S. Census Bureau, Selig Center for Economic Growth

Mexico had a larger


Latino population
than the United States NEVADA NEW YORK
110 million 14.8% 9.4%
(MEXICO)
vs. COLORADO
46.9 million 11.3% ILLINOIS
NEW JERSEY
9.3%
(U.S.) 8.7%
Puerto
Rican CALIFORNIA
8.9% 18.1%
Cuban (4.2 MILLION) ARIZONA
3.5% 15.8% NEW
(1.6 MILLION) MEXICO TEXAS FLORIDA
30.2% 20.1% 15.4%

September/October 2010 17
SPECIALAWARDS

LORD MICHAEL HASTINGS


OF KPMG

DiversityInc Special-Award Winners


Value ERGs
The seven companies honored by DiversityInc in November 2009 for diversity achievements have
strong ERGs and use them to advance their businesses. Here’s a look at special things they do:
TOP COMPANY FOR EMPLOYEE-RESOURCE GROUPS TOP COMPANY FOR TALENT PIPELINE
KPMG Cox Communications
• INNOVATIVE APPROACH • INNOVATIVE APPROACH
Senior champions of ERGs remain in their roles for Cox has 11 local councils that support their regions with
several years, creating continuity with employees, office action plans linked to the corporate diversity and inclu-
leadership and community and business relationships. sion strategy.
However, they are encouraged to succession plan to • WHAT THEY DID
identify the next group ERG champion. The Florida council planned a unique program to bring
• WHAT THEY DID “living history” and a greater awareness of diversity to
The executive sponsor of an African-American local the community of Gainesville. A secondary goal was
chapter, who is not Black, said working with the chapter to generate interest in baseball for young people. They
gave him “a significant opportunity” to leverage his invited nine former Negro Baseball League players
relationship with the Urban League and other Black to address students from an area high school, four
civic organizations to create collaborative events that elementary schools and a local Boys & Girls Club. They
attracted clients and positioned the chapter as a leader spoke to 250 community leaders during a luncheon.
in the firm’s strategic market efforts. They also participated in an employee event, which all
employees were able to attend. Cox believes this event

On Nov. 8, 2010, in Washington, D.C., eight companies will be honored by DiversityInc, with their CEOs
present to accept the awards. For details on the Nov. 8 dinner, go to www.DiversityInc.com/events

18 DiversityInc
contributed to the two-point increase to a 93 percent development opportunities for its members. These
favorable rating on diversity and inclusion in the events support Aetna’s business goals while highlighting
employee-engagement survey. the contributions of its military-trained employees.
•WHAT THEY DID
AetVets also participates in annual community events
TOP COMPANY FOR EXECUTIVE DEVELOPMENT such as the Hartford Veterans Day Parade, USO
Sodexo Fleet Week in New York City, and Rolling Thunder
• INNOVATIVE APPROACH Motorcycle Rally in Washington, D.C. In 2009,
Sodexo decided to quantify the value of its eight Connecticut Employer Support for the Guard and
Employee Network Groups, with total employee mem- Reserve (ESGR) recognized Aetna’s efforts by awarding
bership of 3,500. it the Five Star Employer for its support of employees
• WHAT THEY DID who serve in the Guard and Reserves. AetVets is cur-
The company designed and conducted an ROI sur- rently working on a formal on-boarding and re-entry
vey to measure engagement and correlation between program for newly hired citizen-soldiers and veterans,
group involvement and career advancement, as well as and for recently deployed Aetna citizen-soldiers.
perceived value of groups to the organization and actual
ROI. Sixty-five percent of respondents cited enhanced
professional and personal development as a key moti- TOP COMPANY FOR WORKING FAMILIES
vating factor. PricewaterhouseCoopers
• INNOVATIVE ERG
PricewaterhouseCoopers’ Emerging Women’s
TOP COMPANY FOR GLOBAL CULTURAL COMPETENCE Networking Circle (eWNC) facilitates personal and
Novartis career development of associate- and senior-associate-
Pharmaceuticals Corp. level women through the mutual exchange of experi-
• INNOVATIVE ERG ences, opportunities and understanding of the firm.
The Novartis Indian Cultural Exchange (NICE), formed • WHAT THEY DID
three years ago, fosters professional growth for its 230 The eWNC began in 2002 as an informal group of women
members, brings cultural insight to the company about staff from PwC’s Advisory Healthcare Practice in the
Asian Indians, serves as a resource and educates global Washington, D.C., office. The Washington Metro eWNC
associates working in emerging growth markets about has grown to more than 300 members from all lines of
the business and political environment in India. service and specialties at the firm. Specifically designed
• WHAT THEY DID for the more junior professional women, the eWNC
NICE participated in “ride alongs” with sales represen- encourages participants to develop strong relationships
tatives in areas with high populations of South Asian and networking skills early in their careers and provides
physicians, providing advice and best practices to help a forum for learning skills and behaviors critical to career
colleagues better answer questions and interact with advancement at PwC. The eWNC’s mission and activities
doctors. NICE has worked closely with the Novartis team have become a model for operations by other resource
members responsible for its osteoporosis treatment to groups, which PwC calls “circles.”
build a culturally competent awareness campaign target-
ing at-risk South Asians. This ERG also regularly pro-
vides cultural context on how best to establish ties with TOP COMPANY FOR GENERATIONAL COMMUNICATIONS
domestic organizations, such as the American Association Accenture
of Physicians of Indian Origin, and how to approach new • INNOVATIVE ERG
partners and employees in India. Accenture’s Experienced Hire Interest Group started
in 2006 in Dallas as a pilot and became an official group
in 2007. In 2009, it spread across 17 U.S. locations. The
TOP COMPANY FOR COMMUNITY DEVELOPMENT group is aimed at mature new hires and helps them
Aetna learn about the company methodologies, processes and
• INNOVATIVE ERG project-management principles, share success stories,
Aetna Veterans Employee Resource Group (AetVets) work together to overcome common issues, and facili-
has more than 100 members from Aetna locations tate group initiatives and collaboration.
across the country and is comprised of citizen-soldiers • WHAT THEY DID
and veterans from all U.S. military services, as well as The Experienced Hire Interest Group has created a
relatives, friends and supporters of the military. AetVets “Start-Up Kit” to assist new sites in quickly and easily
coordinates a variety of activities and professional- forming an experienced-hire group. DI

September/October 2010 19
The Value of ERGs

JIM NORMAN, JOHN ZAMORA,


KRAFT DELOITTE

KATHY HANNAN, LUKE VISCONTI,


KPMG DIVERSITYINC

ED GADSDEN, BARBARA FRANKEL,


PFIZER DIVERSITYINC

20 DiversityInc
ERSIT Y I NC ROU N DTA BLE
A DI V

EMPLOYEE-RESOURCE GROUPS
There’s a reason they’re called “resource” groups: They are key to finding and
developing company leaders and reaching increasingly diverse customers.

Reach

Business
YOUR

GoalsThrough Increased
Participation
All of The 2010 DiversityInc Top 50 Companies for Diversity® and an increasing
number of companies nationally—and globally—now have employee-resource groups (ERGs).
Find out why they’re so important from the recent chief diversity officer
roundtable at our Newark, N.J., headquarters.
PLUS INTERVIEWS WITH 6 OTHER CHIEF DIVERSITY OFFICERS ON THEIR ERGs

BY BA R
BA R A FR A N K EL

September/October 2010 21
The Value of ERGs

We interviewed 10 companies on the DiversityInc Top 50 and DiversityInc 25 Noteworthy Companies lists
with the highest scores on employee-resource groups, in areas such as percentage of employees in groups,
percentage of employees in more than one group, having an executive sponsor of the group (especially one who
is cross-cultural), having the groups meet regularly with the CEO, and using the groups specifically for recruit-
ment, talent development and community outreach. We find a definitive correlation between the utilization of the
groups and their racial/ethnic/gender diversity, engagement and retention, as well as anecdotal evidence of their
penetration of new markets through the use of their groups.
We also recently held a roundtable at DiversityInc headquarters with chief diversity officers at four of these com-
panies—KPMG, Deloitte and Kraft (Nos. 15, 25 and 35 on The 2010 DiversityInc Top 50 Companies for Diversity
list), and Pfizer, one of DiversityInc’s 25 Noteworthy Companies—and their comments are incorporated here.
In this article, we will examine three key benefits of employee-resource groups: leadership development,
customer outreach and improving corporate culture. In each of these areas, we will demonstrate best practices for
success. You’ll note that the groups are called different things by different companies—business-resource groups,
associate-resource groups and, sometimes, employee networks or affinity groups. We strongly recommend the
word “resource” be used to differentiate the business value of these groups from the social-networking connota-
tion many had in their early days. And the term “affinity” implies the groups are only for those of a certain demo-
graphic, which is not the case in any successful group.

Benefit
1 Leadership Development
E mployee-resource groups are the most vital step at companies to identify and
nurture talent—and to retain valued employees. Often, they are used to help
those who might not otherwise be identified as leadership material to develop those
skills through leadership positions within the ERG and to expose them to senior man-
agers, including the CEO.
At Kraft, employee-resource councils are major HR and organizational-development
players and lead the formal mentoring program. Jim Norman, vice president of diver-
sity, tells us they are essential to “engaging our leaders, their members, themselves, and
reaching out inclusively across the organization, whether it be one-on-one mentoring or If you pay
mentoring pods.” attention to
The employee-resource groups at KPMG are key in the mentoring process as well.
“We strongly encourage diversity in mentoring relationships, both upstream and down- the canary
stream, because you need those different perspectives,” says Kathy Hannan, national as the miner
managing partner, diversity and corporate social responsibility. She adds that the firm
encourages their ERGs to cross-pollinate in setting up mentoring relationships “so you does, it saves
will have a female African-American mentoring a male in the GLBT network.” lives. The
Kraft also has an employee-council leadership academy, where leaders of the groups get
the same type of business training for two days that business leaders receive, except their
ERGs are
focus is the alignment to diversity and inclusion strategies. Five of the 10 councils already the miner’s
have had this training, which also includes a half day of implementation training.
Pfizer’s Chief Diversity Officer Ed Gadsden cites the value of using the groups
canaries.
to validate HR processes for talent development and retention already in place. “It Jim Norman, Kraft
sometimes puts an organization on the spot around how committed they are because
sometimes you get the feedback,” he says. “Resource groups will let you know when
you’re not listening and help you to understand what you should be doing differently if
you want a much more engaged employee.”

Benefit 1 Kraft uses its employee councils to help with its peer coaching, which impacts three critical points
CASE STUDY where employees can slip in leadership development—movement from the field office to a corporate
headquarters; succession planning over the next two to three years; and managers who need to be
more effective in dealing with traditionally underrepresented groups. Peer coaches are nominated and
receive two full days of customized training. They meet quarterly to share skills and observations.

22 DiversityInc
i see giant bubble

thought bubble

bubblegum bubble

soap bubble

At Johnson & Johnson, we know that everyone has a unique perspective on the world.
And the more perspectives you have, the better your view will be.
We know that what makes you unique makes us a better company.
That’s why we’re committed to promoting diversity in the community and within our company.

Diversity is inventive.
Diversity is
© 2010 Johnson & Johnson Services Inc.,
The Value of ERGs

Benefit
2 Customer Outreach
I ncreasingly, companies are relying on their employee-resource groups as criti-
cal to developing and field-testing products and services aimed at traditionally
underrepresented groups. They also are used with increasing frequency on major
client calls and in establishing client relationships. Here are a few examples:
• At Ernst & Young, No. 5 in the DiversityInc Top 50, the executive sponsor of the
LGBTA group had a discussion with a client. As they talked, the sponsor, a heterosexual We’re selling
man, wondered whether he should “come out” as the executive sponsor or whether it
might hurt the business relationship. When he did, the client complimented him and our intellectual
said he identified as a gay man and now felt much more connected to the firm. capital. The
• At American Express, No. 12 in the DiversityInc Top 50, the employee-resource
groups are used for product development, customer-service enhancements and mar-
minds and voices
keting campaigns geared toward traditionally underrepresented groups. For example, of our people are
the company’s AHORA network (Association of Hispanics Organized to Raise incredible and
Awareness) was involved in the creation of the Felicidades gift card aimed at Latinos
and in the implementation of Spanish-speaking call centers. to get this from
• Pfizer has a business-maximization team that came out of its colleague-resource a very diverse
groups, and the team’s emerging market group examined “What are the things we
need to be doing to be able to market not only our products but the research efforts to
perspective is
reach global communities we’re not in right now? What’s it going to take for us to be just essential to
successful in China? To continue in India? Latin America? Who will be the principal
purchasers?”
our continued
• Kraft has had employee councils for the last 25 years, and they started as educational success in the
and then HR groups. But the members of these groups (there are 10 now) actually market.
showed the organization the value of multicultural marketing, says Norman. For
example, snacks are tested on Kraft employee-council members to ascertain cultural- Kathy Hannan,
ly competent ingredients, domestically and globally. About eight years ago, the Asian- KPMG
American employee council invited internal senior marketing leaders and external
chefs and food experts to explore the profile and tastes of Asian consumers globally.
• Ford Motor Co., No. 44 in the DiversityInc Top 50, uses its employee-resource groups to sell cars by giving its
Friends & Families discount. The groups also are key liaisons to community organizations.

Benefit 2 Pfizer ran a clinical trial at a hospital in South Africa. A few resource-group employees recognized
CASE STUDY that the trial group was almost entirely white. Pfizer realized that by identifying primarily white
physicians to select patients, the company was not getting a true representation of the population
of patients. Pfizer changed its protocol on physician selection and the patient base became much more diverse.
Gadsden states: “If we don’t have the breadth of participation in those trials, we may miss an opportunity to provide
a level from a medical perspective to a patient—and that’s huge.”

Benefit
3 Corporate Culture
A s companies merge and expand their reach glob-
ally, keeping the core values intact becomes a
challenge. That’s where employee-resource groups
“We as an organization are getting bigger and people
are geographically dispersed. Business-resource groups
create a sense of community and connectivity,” says
come in. Of the DiversityInc Top 50, 60 percent now John Zamora, chief diversity officer of Deloitte.
have global resource groups, and those are increas- “When you’re a company as large as we are—we have
ing constantly. Most of the global groups are aimed at 110,000 global employees—having a one-Pfizer cul-
women, but a few companies are adding groups based ture is a bit of a challenge,” notes Gadsden. “What our
on orientation and disability. colleague-resource groups have done is help to continue

24 DiversityInc
The Value of ERGs

to define what that one-Pfizer culture needs to look like.”


At Ford, the current ERGs are extending beyond their original country scope and
attracting global members or setting up global chapters. “As we become more global,
ERGs can help us support more collaboration and build cultural awareness and com-
petence. We also anticipate the possibility of new groups or subgroups emerging, as the
marketplace and workplace change. These may help us better understand new issues
and opportunities and provide a framework for further engagement,” says Allison
Trawick, Ford’s global manager of the Office of Diversity & Inclusion.
“These groups are a frank reminder of what’s happening—and what may not be
happening,” notes Matt Keys, cultural competence and diversity consultant at Blue
Cross and Blue Shield of Florida, No. 38 in the DiversityInc Top 50. “They’ve helped
us to better define and understand our corporate culture with their honesty about the We as an
populations they represent.”
The real issue across the globe with underserved communities, Gadsden says, is not organization are
about using employee-resource groups to help create trust, “but they actually help us getting bigger
understand what trust looks like in their various communities. They actually keep us
on our toes as a company in terms of what our reputation looks like in the community
and people are
they represent, and that is huge in our business. Would you purchase medicine from an geographically
organization you didn’t trust or like?” dispersed.
Benefit 3 At KPMG, which received a special award—DiversityInc’s Top Company Business-
CASE STUDY for Employee-Resource Groups—at our November event, employee
participation in these groups in one year went from 23 percent to
resource groups
more than 40 percent. The company uses virtual ERGs and a hub-and-spoke model to create a sense of
encourage participation and collaboration. “These groups are helping us drive our culture
change within the organization … the input they provide to the overall strategy of the firm
community and
is not just limited to our people strategy, so they really have a voice in the organization,” connectivity.
says Hannan. “We’re selling our intellectual capital. The minds and voices of our people
John Zamora,
are incredible and to get this from a very diverse perspective is just essential to our Deloitte
continued success in the market.”

Future of ERGs ERG Trends


2009 to 2010

W hat’s next for employee-resource groups? Gadsden predicts they will focus on initiatives
more from a business perspective and narrow how they help the organization. Norman
adds: “They will be more clear on what problems they are solving, what innovation they are bring- GLOBAL
ERGs
ing, what opportunity they are offering.”
They also will work more collaboratively across groups, according to several of the companies +650%
interviewed. And the groups are increasingly being viewed for their distinct abilities, rather than
being put in a cookie-cutter mold.
As Billie Williamson, Americas inclusiveness officer at Ernst & Young, notes: “Our people
resource networks have each contributed in very different ways based on the needs and inter- VETERANS
ests of the participants. Our Professional Women’s Network was our first formal network and a ERGs
trailblazer in addressing skill and mentoring needs. The Black Professional Network has made
huge strides in recruiting diverse candidates and working with HBCUs. The Latino Professional
+108%
Network emphasized professional development and working with professional associations, such
as ALPFA. The Pan-Asian Professional Network brought much more insight into learning about
different cultures and building awareness of different styles. Beyond, our LGBTA network, was
the first to connect virtually and improves our policies, benefits and understanding of invisible GENERATIONAL
diversity. AccessAbilities has strengthened our ability to provide awareness around accommoda- ERGs
tions, facilitating tools and practices into our processes. Working Mother and Parents Network
have tackled challenges around supporting returning mothers from maternity leave along with
+175%
general parenting support.”

26 DiversityInc
At Key, being a responsible
corporate citizen comes first.

We know that the decisions we make affect real people in profound ways. That’s why being a
socially responsible corporation is an integral part of our culture.

Our spending with women- and minority-owned suppliers in 2008 was five times that of the
national average. Key employees serve on the boards of more than 1,400 not-for-profit
organizations. Last year the KeyBank Foundation gave over $18 million in grants to promote
financial education, workforce development, and diversity.

We’re proud to be recognized for our efforts in diversity, community involvement, and
concern for the environment.

©2009 KeyCorp KeyBank is Member FDIC


CS93969

New Size Ad Template.indd 1 10/15/09 10:49:02 AM


The Value of ERGs

The groups also are becoming increasingly engaged with clients or other companies
with less developed diversity-management strategies.
“Our LGBT, Generation Y and people-with-disabilities groups recently helped other
companies establish ERGs and have presented on strategies and scorecard development
at the national level,” says Keys.
“Our ERGs will become increasingly more engaged and collaborative with client
ERGs. That will deepen new or existing relationships, facilitating more opportunities
for KPMG’s ERGs to partner with client networks in support of corporate-responsibility
initiatives such as workforce readiness,” says Hannan.
American Express’s Chief Diversity Officer Kerrie Peraino believes the employee-
resource groups will further leverage social media to increase collaboration with each If we don’t have
other and external organizations. She says, “Membership will increase and affinity groups
will attract and include members who aren’t necessarily identified as ‘one of the tribe.’”
the breadth of
The demonstrable value the groups bring is being measured differently and more participation in
effectively. While Aetna, No. 30 in the DiversityInc Top 50, measures employee those [clinical]
engagement of ERG members versus non-members (see page 34), Sodexo, No. 1 in the
DiversityInc Top 50, has surveyed its ERG members on the benefits to them and to the
trials, we
company. At Pfizer, for example, they are studying the ROE (return on effort). “The effort may miss an
that you all put into it translates into dollars—that’s not free time,” says Gadsden. “What opportunity to
benefit is the company getting? What benefit is the organization getting? What benefit is
the individual getting?” provide a level
At Deloitte, the measurement often involved retention since turnover of companies at from a medical
intellectual-capital firms can cost five times the cost of the employee salary.
As Norman puts it: “Lani Guinier [Harvard law professor and civil-rights activist] said
perspective to
there’s this notion of the miner’s canary. If you pay attention to the canary as the miner a patient—and
does, it saves lives. The ERGs are the miner’s canaries. I can’t think of an example where that’s huge.
they said to pay attention to something that did not end up benefiting every employee in
the organization. If they found a broken process, policy or procedure, it was impacting all Ed Gadsden, Pfizer
employees.” DI

3 WAYS TO
Increase Employee Participation in ERGs DiversityInc Top 50 24
% of Employees in ERGs
If you have employee-resource groups with good best practices but have participa-
2005–2010
tion lower than the current 24 percent rate of the DiversityInc Top 50—or have
inconsistent participation across the units of your organization—follow these tips
from leading organizations.
19
• MARKET YOUR ERGs AS IF THEY WERE A CRITICAL NEW PRODUCT.
At American Express, Peraino tells us, “We work hard to promote network awareness
events to educate employees on the role of ERG networks within the company. We
consistently market ERG events and showcase key ERG highlights to drive member-
16
ship … Individual network groups also launch advertising and communication cam-
paigns to raise their profile within the company.”
14
• CLEARLY COMMUNICATE “WHAT’S IN IT FOR ME?” on your intranet through use 12
of personal stories and videos with ERG members discussing how they’ve benefited
professionally from the experience. Avoid platitudes or general statements and be as
11
specific and individual as possible. At Ernst & Young, internal social-networking media
is being used to build informal communities that connect virtually, most notably its
LGBTA and disabilities groups, which produced videos and vignettes as part of their
outreach to their often invisible and anonymous constituencies.
• MAKE SURE THERE’S FREQUENT EXPOSURE TO SENIOR LEADERSHIP.
At Ernst & Young, Williamson says, “Many younger leaders and participants have
gained visibility, guidance and longer-term relationships from interactions with their
local leadership, Americas leadership and even global vice chairs as they coordinate
local strategy or panels and events featuring those individuals.”
’05 ’06 ’07 ’08 ’09 ’10

28 DiversityInc
“I’ve become a Mentor”

Inform.
Educate. - DR. RAMON RODR IG UE
Assistant Professor of Acc
Southern Illinois Universit
Ph.D.: University of Tex
y
ounting
Z

Encourage.
as, El Paso

Thank you to our Sponsors:


You could influence the next generation of leaders.
KPMG Foundation
As Dr. Rodriguez learned, as a PhD, there is a balance between research and
Graduate Management Admission Council
teaching. “When I was a CPA, I discovered I was too meticulous. In a doctoral
Citi Foundation
program, I found that I loved the research and had a curious mind, so research AACSB International
was a perfect fit for me. Connecting to students has been wonderful, too. I’ve 217 Participating Universities
become a mentor.” AICPA Foundation
JPMorgan Chase Foundation
Imagine what it’s like to devote your life, and your career to changing the face of
The Goldman Sachs Group
corporate America. If you are of African-American, Hispanic American, or Native
DiversityInc
American descent and interested in pursuing a career as a business school profes-
The Merck Company Foundation
sor, The PhD Project can guide you towards your new future—mentoring the next
Dow Chemical Company
generation.
Dixon Hughes PLLC
We are an alliance of foundations, corporations, universities, and professional and John Deere Foundation
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cago, you’ll network with professors, doctoral program directors and doctoral stu- California State University System
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dents and gain program insights in 2 days that normally take months to acquire.
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We invite you to share this “life altering” experience. Visit www.phdproject.org
Microsoft Corporation
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CIGNA
To learn how our achievements have transformed lives and the business world, American Marketing Association
visit www.PhDProject.org/celebrate The Federal Reserve Bank of New York
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American Express
Follow us on Facebook at: http://Facebook.PhDProject.org
* Founding Sponsors
and on Twitter: http://Twitter.com/thephdproject

To join the sponsors who seek a solution


to minority underrepresentation, contact
the PhD project
SM
Bernard J. Milano at 201.307.7662, or
email bmilano@kpmg.com.
The Value of ERGs

What are the


special benefits
of employee-
resource groups
for young people
just starting on
their careers?
Find out how
four people early
in their careers
are taking
advantage of this
opportunity.

Become an
CAREER ADVICE FOR YOUNG PROFESSIONALS:

ERG LEADER
W
endy Lewis, 35, is a prime example. Before Lewis, a senior audit manager, came to
KPMG, No. 15 on The 2010 DiversityInc Top 50 Companies for Diversity® list, she
admittedly had difficulty with public speaking, much less presenting solutions to
clients. But her involvement with KPMG’s African American Network gave her expe-
rience and confidence.
“Through the different sessions we have for our network members and staff, I’ve led several
sessions and participated in employee panel discussions. It’s really given me a lot of confidence
to be able to stand in front of a large group, to be articulate, and be able to present in front of a
large group,” she says.
Breanna Dedrickson, 29, a senior benefits analyst for Target, No. 40 in the DiversityInc Top
50, has also discovered unexpected talents through her involvement in one of the company’s four
diversity business councils—its Gay, Lesbian, Bisexual and Transgender (GLBT) Business Council.
“In my current position, I rely heavily on my analytical and problem-solving skills, which
I absolutely love doing. With our ERG, I’ve discovered and grown my skills in event planning,
execution and organization as well as managing talent,” she says. “I don’t currently manage
any team members in my regular position, but I am able to get leadership experience through
by Lizz Carroll our ERG by leading a team of seven highly talented and motivated team members from all over

30 DiversityInc
Robin Brooks, African American
BURGER KING ® Supplier

I DELIVER
SUCCESS DAILY
So does Burger King Corporation. By partnering with diverse
suppliers, BURGER KING ® is committed to helping all of us
achieve our dreams.
Working with BURGER KING® has helped my enterprise grow into a king-sized
business. Today, my company is one of the largest African American-owned
suppliers for the global franchise.

HAVE IT YOUR WAY®


www.bk.com
TM
& © 2010 Burger King Corporation, Inc. All Rights Reserved.
The Value of ERGs

the company. I currently lead the team that I’ve helped someone along their journey of
focuses on engagement and support of our awareness, acceptance and advocacy.”
GLBT community.”
Culture Impacts
Beyond an Employee’s Mentoring Experiences
Job Description Jenni Justiz-Quiñones, 28, was first exposed
Charles May, 25, was hired as a logistics ana- to Kraft Foods’ Latino Council when she was
lyst at Kraft Foods, No. 35 in the DiversityInc a college intern. So the moment she was hired
Top 50. His background in web design got full time as a research and development engi-
him involved with Kraft Foods’ African neer for the corporation, Justiz-Quiñones
American Council. “When I came on, they Charles May knew she would be part of the council.
KRAFT FOODS
knew I had a little bit of experience with a As a Cuban American from Miami, she
team site, but we call it a share-point website. discovered that the cultural connections she
They wanted me to help build it up and get created through the council built a strong
the word out to the greater Kraft community foundation for her professional development.
about what the African American Council is Exposure to leaders from her cultural back-
doing,” he says. ground led to influential relationships with
Being part of developing the ERG’s informal mentors.
website helped May with his goal-setting “We’ve had several advisers and senior
and planning skills. “It developed my skills leaders on our Latino Council, folks who
about not just how to get to one goal but probably have a very similar story about how
[seeing] how far we can take it—you can they grew up, whether they were immigrants
develop something, but looking ahead and or if their parents were—similar stories that
seeing what the goal is and what’s the next I could identify with,” she says. “Seeing those
level,” he says. Jenni folks in those top positions, it gives you some-
Justiz-Quiñones
KRAFT FOODS thing to aspire to. It lets you know, ‘All right, I
Bringing Your Whole Self to Work, could be there a few years from now.’”
Increasing Awareness Justiz-Quiñones sees how sharing a cul-
Diversity and inclusion efforts at each ture, and even a language, with her mentors
corporation are designed to help employees helps to increase the level of guidance. She
see the company as a place where they can says, “Whether we come from similar back-
be themselves and where they feel they can ground, it makes the mentoring conversations
grow. Employee-resource groups can connect a lot more candid. You can be a lot more open.”
likeminded people and allies, helping to take
those efforts to a new level. Expanding a Sense of Community
Dedrickson, 29, has found that her involve- Dedrickson is empowered by the internal
ment with Target’s GLBT Business Council connections her ERG provides. “Being
has increased her ability to be open and involved with our ERG has grown my
communicative with her coworkers. “I have Wendy Lewis network of professional contacts within the
KPMG
become completely comfortable being myself company and the community,” she says. “I
at work and discussing GLBT workplace feel like I have a connection in every area of
issues with coworkers and leaders,” she says. our large organization. Whenever I need to
“I have the ability to be truly authentic at work. know something about a different depart-
Being involved with our ERG has allowed me ment, there is someone I can call or e-mail
to share my story and discuss GLBT issues to point me in the right direction or give me
with my coworkers, leaders, department and, advice on where to start.”
really, anyone who will listen.” May’s involvement in the ERG has
While she appreciates the connection engaged him by giving him a sense of belong-
with coworkers who may share a similar ing. “The biggest difference for me is the
identity, Dedrickson finds work with allies sense of community,” he says. “Before, I felt
equally rewarding. “This helps to break like I was working at Kraft, but now I feel like
down walls and build authentic connec- I’m really a part of Kraft. You’re here to work,
tions with my coworkers, both leaders and Breanna but you’re here to develop and really grow.
Dedrickson
peers,” she says. “It is very rewarding to know The council facilitates that.” DI
TARGET

32 DiversityInc
© 2010 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered
trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 22165NSS

Building careers as
diverse as our workforce.
KPMG LLP's (KPMG) commitment to diversity helps us
attract the best people. Our vast number of career
opportunities helps keep them here.

KPMG is proud to rank among DiversityInc’s Top 50


Companies for Diversity, as well as its Top 10
Companies for LGBT Employees, Top 10 Companies
for People with Disabilities, and Top 10 Companies
for Global Diversity.

kpmgcareers.com

KPMG.
A great place to build a career.
The Value of ERGs

AETNA SURVEY FINDS

ERG MEMBERS
Have Higher Engagement Rates by Gail Zoppo

mployees involved in ERGs are significantly engaged than those who

“E are not,” says Raymond Arroyo, chief diversity officer at Aetna (No. 30
on The DiversityInc Top 50 Companies for Diversity® list).

For the past two years, the Hartford, Conn.–based ERGs: A Talent-Retention Tool
health insurer has been asking its 34,000 employees to As the job market slowly begins to pick up and
fill out an Employee Engagement Survey to determine, employee turnover gains greater importance, Aetna’s
among other things, the business impact of Aetna’s 15 findings come as welcome news.
employee-resource groups, ranging from gender and The survey: Aetna collected data in 2009 on
racial/ethnic to generational and veterans. What the 33,246 employees, which were divided into ERG
research confirmed: Members of Aetna’s ERGs have a member/non-member categories and then further
more favorable outlook overall than non-members— segmented into more than 24 demographic groups
their engagement scores last year were 8 percent higher and internal business units, such as underwriting
than those who are not ERG members. and claims.
“Our ERG members are more satisfied, have more The survey posed a series of questions that asked
pride in the company, rate managers higher and are less employees to rate the company in 13 key areas: engage-
likely to leave,” says Arroyo. ment, collaboration, customer focus, diversity, ethics,

34 DiversityInc
innovation, job, manager effectiveness, pay/benefits, ERG MEMBERS NON-MEMBERS
respect/openness, strategy/future, work balance and •Employee engagement 86% 78%
work effectiveness/productivity. Survey questions •Respect 82% 74%
include: •Strategy 88% 81%
• “I rarely think about looking for a new job with •Customer focus 85% 78%
another company” (engagement)
• “The culture at Aetna encourages diversity perspec- Even in the area of diversity, which scored the
tives and ideas” (diversity) highest of Aetna’s survey questions, 90 percent of ERG
• “When discussions are made or actions are taken in members scored favorable, compared with 87 percent
my department, the ethical implications are ade- of non-members.
quately considered” (ethics)
• “Sufficient effort is made to get the opinions and Year-to-Year Results
thinking of people who work here” (innovation) When comparing 2009 responses to those from 2008,
• “How satisfied are you with your opportunity to get a Aetna found:
better job at Aetna?” ( job)
EMPLOYEE ENGAGEMENT
• “The behavior of our leadership team is consistent
with Aetna’s values” (manager effectiveness) 2009 2008
• “The leadership of Aetna has communicated a vision
YOY Difference YOY Difference YOY Difference
of the future that motivates me” (strategy) 5% Pts. 15% Pts. 7% Pts.
• “Decisions in my department are made in a timely
fashion” (work effectiveness) 86
78 80
2009 Results 73 73
Among respondents to the 2009 survey, ERG members 71
consistently scored higher than those who did not join
NON-ERG ERG AETNA OVERALL
ERGs. Looking at the aggregate data, areas with the
greatest difference between member/non-member Aetna is currently analyzing the results of its 2010
employee responses were: Employee Engagement Survey. DI

ERGs and The DiversityInc Top 50


Growth of Hot ERGs % of DiversityInc Top 50
(BASED ON DIVERSITYINC TOP 50 AVERAGES) THAT HAVE THESE PRACTICES

In the past 5 years: In the past 5 years


ERGs for LGBT workers and allies
2x have more than doubled % of CEOs Meet With ERGs Doubled
3x Disability-based ERGs have tripled
% Senior Execs Sponsor ERGs Up by more than 20%
4x Generational ERGs have quadrupled
% Fund ERGs Up by more than 20%
6x Global ERGs have increased sixfold
ERGs Meet During Workday Up by more than 25%
10x Veterans ERGs have increased tenfold

See examples of ERG charters, budgeting and collateral materials on FOR OUR BENCHMARKING
www.DiversityIncBestPractices.com/employee-resource-groups. CUSTOMERS
Also, five other ERG articles, including: A special ERG report
• Starting an Employee-Resource Group? Have a Business Plan was sent to you recently.
• 3 Ways to Increase Employee Participation in ERGs Employee participation
percentages in ERGs are
• How Employee-Resource Groups Improve Sales
anticipated to increase
• Need More Black, Latino, Asian or Women Execs? dramatically in the 2011
Go to Your Employee-Resource Groups DiversityInc Top 50 survey.

September/October 2010 35
GENERATIONS IN THE
WORKPLACE

Unresolved
eldercare issues
can translate
into lost
productivity
and increased
health problems
for employees
and increased
healthcare costs
for companies.

What best practices can


help your company?

Find out how to improve


productivity and
engagement by helping
employees care for
elderly parents.

36 DiversityInc
Helping
Employees
Help

Their
Parents
•THE ELDERCARE GAP•

BY SAM ALI
September/October 2010 37
A
s the number of employees juggling the care of elderly
parents and relatives continues to rise, working caregivers
are increasingly torn between the needs of their families
and obligations to their employers. How companies meet
this challenge could be the prime workplace question
in the coming decades. Studies show that unresolved
eldercare issues culminate in lost productivity and
increased health problems for employees and
increased healthcare costs for companies.

The cost to U.S. businesses from the lost productivity of working caregivers is
more than $33 billion per year, according to the MetLife Caregiving Cost Study
“Productivity Losses to U.S. Business.” The average caregiver costs an employer
$2,110 per year. Companies that will thrive in the future will adapt to this reality
by implementing or strengthening policies and practices that improve both
the bottom line and the lives of employee caregivers. MetLife is No. 42 in The
DiversityInc Top 50 Companies for Diversity®.

Caregivers Have
More Health Problems
Another study from the MetLife Mature Market Institute sheds
light on the physical and mental toll that caring for an older
parent, relative or friend can take on employees and the subse-
quent toll it takes on an employer’s bottom line.
Employees in the United States who are caring for older relatives
are more likely to report health problems such as depression, diabe-
tes, hypertension or heart disease, according to the “MetLife Study of
Working Caregivers and Employer Health Care Costs.”
Employed elder caregivers in the United States cost employers an
estimated additional healthcare cost of 8 percent per year, or $13.4 bil-
lion annually, according to the MetLife study.
The report, produced by the MetLife Mature Market Institute with
the National Alliance for Caregiving and the University of Pittsburgh
Institute of Aging, also found:
É Younger caregivers (ages 18–39) cost their employers 11% more
for healthcare than non-caregivers
É Men caregivers cost their employers an additional 18%
It also found that eldercare may be closely associated with high-risk
behaviors such as smoking and alcohol consumption. Exacerbating the
potential impact to employers is the possibility that these medical condi-
tions may also lead to disability-related absences.

38 DiversityInc
GENERATIONS IN THE
WORKPLACE

Just H
How Critical Is the
Need
ee for Eldercare?
America is growing older. According to the Centers for Medicaid
and Medicare Services, the federal agency that administers Medicare
and Medicaid:
OLDER POPULATION WHO NEEDS CARE? WHO GIVES CARE?
TODAY

35 70 33.9
BY 2030 TODAY

million
The segment of the
older population most
likely to need care—
those older than 85—
80%
of all the care received by
million million+ caregivers provide help to older adults is provided by
is the fastest-growing
people ages 50 and older family and friends
segment of elders today

To complicate the situation further, many children don’t live near their par-
ents. According to the National Council on Aging, some 7 million Americans are
already providing care to someone who lives at least one hour away.
“A smart organization educates employees about its business needs so they
understand the best way to contribute over time,” says Maureen Corcoran, vice
president of diversity at Prudential Financial, No. 32 in the DiversityInc Top 50.
“Likewise, it educates itself about its employees’ life needs so it can support and
retain them over time. If an employee is forced to choose between caring for a
loved one and devoting themselves to work, the company will lose.”

What Is the
Cost to American Business?
Managing the responsibilities of home and eldercare isn’t easy for
workers. One survey reveals how the stresses of eldercare affected
employee productivity:

56%
of respondents said they were
51%
said they had to take time off
30%
reported being absent for a full day
less productive at work during the workday for eldercare to deal with eldercare matters

The Challenges of Eldercare:


A Global Issue
Dr. Sylvia Ann Hewlett of the Center for Work-Life Policy says
multinational corporations need to understand how eldercare issues
are impacting women in the global workplace who are trying to balance
work and family life.
She says women in countries such as India and China tend to be less encum-
bered by childcare because they have more shoulders to lean on. However, huge
numbers of women in emerging markets, where the concept of “filial piety” or
duty toward elders remains powerful, have elders living with them or are largely
responsible for their care.
Hewlett addressed global gender inequities at DiversityInc’s March 9, 2010,
global diversity event. Her videos are available at www.DiversityInc.com/
hewlett.
Hewlett says that in India, 40 percent of professional women have parents or
in-laws living in their homes. In the United States, that figure is about 3 percent.
“There are enormous cultural pressures in looking after elders for daughters-
in-law of good standing,” she says.

September/October 2010 39

Sept_GenerationalElderCare.indd 39 10/6/10 7:52:33 PM


“Daughterly guilt” is most pronounced in India, China and the United Arab Emirates, s,
Hewlett says. Unlike childcare, eldercare demands go on for much longer, and in many ccoun-
oun-
ouun-
n-
tries, people in the professional workforce devote 20 percent of their income to the needs off
dss o
their elders.
Hewlett says employers can help by offering psychological support and employee-network
work
wo rk
rk
and support groups to help their women employees break through this combination of daugh-
augh
au gh
h-
terly guilt toward elders and maternal guilt toward children.

Millions
M nss of Americans
Havee This Concern
H
A study
t d examining caregiving in the United States, released by the National
Alliance for Caregiving and AARP, finds that more than 44 million Americans,, o orr
an estimated 21 percent of all U.S. households, provide care for an adult family
y
member or friend ages 18 and older.
Key findings of the study included the following:
WORKFORCE GENDER AGE FINANCE COMMUTE

60%
those caring for an
of 40% 47
of caregivers Average age of the
$0
Most caregivers
15%
of the caregivers
ers
r
adult older than 50 are are men caregiver for a person provide unpaid provide care too
working; the majority of older than 50 care to a parent or someone whoo
those work full time grandparent lives more than
ann ann
hour away

nggeer,
“Given that the baby-boomer generation is getting older and their parents are living longer,r [[el
e de
eld r-
r
[elder-
n A
nd
care] is something that will affect corporate America for a long, long time,” says Raymond rroy
rroyyo,
Arroyo,o
chief diversity officer at Aetna, No. 30 in the DiversityInc Top 50.

Meeting
M in Employee Employee
Em
m yee Support,
Eldercare
E r Needs Community
Co
ommu u Groups
According
A
and
nd
dM
din to the Centers for Medicaid
Medicare Services, companies
&C re
Caregiver
that implement policies that are Organizations
“eldercare friendly” will: Some of the local groups you can ccon-
on
n-
tact for information include:
É Find it easier to attract and retain the
É Area agencies on aging
best workers
É Hospitals
É Increase productivity by reducing stress
on employees É Senior centers
É Reduce disruptions in the work schedule É Faith-based organizations (such as
Catholic Charities and United Jewish
i h
is
É Enhance their community image, which
Appeal)
can attract new customers
É Disease-specific organizations (e.g.,.,
Alzheimer’s Association)
É Local universities and community co
col-
ol-
l-
leges or cooperative extension programs
gram
gram
ams
ms

To read more on this topic, visit www.DiversityIncBestPractices.com/generations

40 DiversityInc
GENERATIONS IN THE
WORKPLACE
Re m
Recommended
B t Practices
Best
É COMPRESSED WORK SCHEDULES É FLEX-PLACE POLICIES
Allows an employee to work more hours during Allows telecommuting
the workday and fewer days in the week 96% of the DiversityInc Top 50 companies have this
98% of the DiversityInc Top 50 companies
offer flexible hours É LEAVE-WITHOUT-PAY OPTIONS
É PAID SICK LEAVE É TEMPORARY REDUCTION OF HOURS
Can be used to care for relatives or friends who
are ill and/or paid family leave that can be É JOB-SHARING
used to care for ill relatives or friends 92% of the DiversityInc Top 50 companies do this
62% of the DiversityInc Top 50 companies
offer alternative career tracks for employees É EMPLOYEE LEAVE-SHARING
Employees donate a portion of their leave time to
with long-term family-care issues others who have eldercare responsibilities

Arroyo says Aetna recently formed a Caregivers Employee Resource Group, which enables
eemployees caring for elderly loved ones to share articles, resources and encouragement. “I
em
think
thi
th i one of the biggest values to our group is in connecting people who otherwise feel very
aalone,”
al o says one Aetna employee.
At IBM Corp., No. 8 in the DiversityInc Top 50, employees can use pre-tax dollars to pay
fforr eligible dependent-care expenses, according to IBM spokesperson Laurie Friedman. The
fo
IBM
IB M Dependent Care Spending Account lets people save money on daycare for children or
adults
addu by paying for eligible expenses on a pre-tax basis. People can save anywhere from $20
per
pe er month to $5,000 per year. Contributions are deducted from pay before federal income,
state
ta income and Social Security taxes are deducted, so taxable income is lowered. When
sst
employees
em
m incur eligible expenses, they can submit claims to get reimbursed and the reim-
bursement
b
buurr is paid back tax-free.

Pa e With
Partner
C mm
Community Organizations
““C
Ca
“Caregiver
Caareg fairs are an excellent way to allow employees access to a wide range
of information in one day,” according to the Centers for Medicaid and Medicare
Se
Services. “Agencies typically come to the fair with brochures and other information
t help employees make eldercare decisions. All you have to do is provide the space
to
an perhaps some tables. Your Area Agency on Aging can help you get started.”
an
and
IBM has been offering its employees corporate eldercare programs and assistance since
11987.
19 8 Among the interventions it offers caregivers are a free consultation and referral service.
According to Friedman, this service helps employees and their families locate eldercare
services,
seer including medical services, in-home services (such as home-delivered meals), hous-
ing
inng arrangements, nursing homes, community education and enrichment programs such as
senior-citizen
sen
se n centers, transportation services and case-management services.
“IBM employees or a family member have access to up to six free hours of elder- or
adult-care
addu management services annually, which is especially helpful for those who live at a
distance
diis from family members or older relatives,” Friedman says.
IBM employees can speak via phone with a trained geriatric-care professional regarding:

É In-person assessment of an É Help to manage the different É Professional assistance to


a
adult or older relative’s envi- services your relative may help you better understand
ronment, functioning, options be using or to arrange for new bills and insurance, provide
f services or a change in
for services support with family meetings,
residence if needed and attend visits at nurs-
É Onsite evaluations of nursing ing homes, hospitals or with
É Check-in
C services, by tele- homes and assisted-living doctors
phone or in person, to monitor facilities to help you compare
y relative’s condition and
your and choose facilities É Respite care in your rela-
care
c and let you know of any tive’s home to provide time off
c
changes or concerns for family members who care for
an adult or older relative DI

September/October 2010 41
GENERATIONS IN THE
WORKPLACE

HOWWhy are
generational TO

START
ERGs becoming
so popular?
How do you sell it
at your company?
Should it be just
for younger
workers? A Generational
Boomers? Employee-Resource Group
Five years ago, none of The
DiversityInc Top 50 Companies BY BARBARA FRANKEL
for Diversity® had generational
employee-resource groups, and
the concept of generational
communications/issues was
1 MAKING THE CASE FOR A GENERATIONAL ERG
Let’s assume your company already has employee-resource groups, since
just beginning to surface in generational groups are rarely the first group a company has. In making the
corporate America. Today, 44 case for a generational group, it’s important to look at the workforce num-
percent of the DiversityInc Top bers of both your company and your customer/client base. When we look at
50 companies have employee age cohorts in the U.S. population, we find the racial diversity increases the
groups geared specifically younger you get. For example, baby boomers, born between 1946 and 1964, are
toward people of certain age 68 percent white, while millennials (Generation Y), born between 1981 and
groups. Their goals are to 2000, are 57 percent white.
maximize the retention and In addition, engaging and retaining younger workers—as well as boomers—
talent development of younger is critical to your company’s success. How they communicate with each other,
employees while keeping older how they perceive leadership opportunities and training, and how knowledge
employees productive. is transferred is vital to your company’s success.

For our webinar on generations in the workplace, featuring Accenture and Blue Cross and Blue Shield of Florida—Nos. 22 and 38,
respectively, in The DiversityInc Top 50 Companies for Diversity®—go to www.DiversityInc.com/webinars

42 DiversityInc
2 YOUNG OR OLD? OR BOTH?
About 85 percent of these groups are aimed at
Having an executive sponsor who is a senior person
within the company is critical, as that person can
help guide the younger employee to avoid manage-
younger employees, but some companies include ment pitfalls. Using generational-ERG-identified
older employees or have separate groups for them. leaders as both mentors and mentees is helpful—and
Combining them is not advised as it may inhibit that includes using them as reverse mentors for
frank discussion and convolute strategies. The com- older employees.
munications issues—text, phone or e-mail, how you
address people, motivating factors—impacting all
generations are valuable to everyone as are signifi-
cant discussions of work/life benefits. However, the
leadership-development factors and retention ques-
4 WORK /LIFE BALANCE
Work/life issues are important to retention, espe-
tions are different. That said, the educational forums cially of Gen Y’ers, Gen X’ers and boomers.
groups provide, as well as ideas for customer/client Generational employee-resource groups are
outreach and employee engagement, are valuable valuable in surveying employees (and holding focus
for all age groups. In considering groups for older groups) to discuss the need for such benefits as
employees, factors such as retirement transition, flextime, telecommuting, job sharing, and health
ability to consult or work part time, and engage- and fitness facilities/subsidies. Issues such as dress
ment/respect are important. codes (often a conflict between boomers and Gen
Y’ers) can be comfortably addressed by these groups.
The bottom line? Retention and engagement are

3 LEADERSHIP DEVELOPMENT
Aetna, No. 30 in the DiversityInc Top 50, started its
improved.

EnRgy group for Generation Y employees in June


2008 and found membership rising quickly. The
group works on recruitment, mentoring, engagement
5 COMMUNICATE
The reason Aetna’s EnRgy group and others like
and, importantly, leadership development. It often it have been successful is that the company fully
promotes stories via intranet of young employees communicates the benefits of group membership—
who have been successful and how they are making including career advancement, ability to change
a difference. culture, collaboration for innovation and business
These groups are particularly valuable at identify- solutions—through personal stories. Use your com-
ing younger employees with leadership potential or pany’s intranet and social-media sites to stress, to
leadership desires and giving them opportunities, all employees, the educational and personal values
within the group, to take on a more significant role. of your generational ERG. DI

September/October 2010 43
GENERATIONS IN THE
WORKPLACE

GENERATIONAL

With four different generations working side by side in today’s


modern-day workplace, effective communication is critical
to minimize communication conflicts so different age groups
can work together.

WHY NOUNDER
ONE30 { }

ANSWERS
YOUR
VOICEMAIL BY SAM ALI

44 DiversityInc
COMMUNICATIONS

o understand the generational


divide that exists between older
and younger workers in today’s
workplace, consider the simple case
of voicemail. Try leaving a Gen Y
employee or colleague a voicemail
message, and see what happens. They’re not
going to hear it. Gen Y members tune out
practically any communication effort they
perceive as unsolicited or spam.
“If you send a message on voicemail or send an e-mail,
they are likely to ignore it,” says Jeff Schwartz, U.S.
and global talent leader at Deloitte, No. 25 in The 2010
DiversityInc Top 50 Companies for Diversity®. “It’s very
frustrating to our leaders, most of whom are boomers [and]
some of whom are Gen X’ers. When they broadcast voice-
mail messages, big swaths of their organization are not hear-
ing it. They’re not even listening to it and they’re not even
sure it’s directed to them because they don’t think about
being communicated with in that way. CEOs or HR leaders
or business leaders think they’re sending a direct message,
but that is not the most effective way to communicate across
the generations.”
Deloitte’s solution: Instead of sending broadcast voice-
mail messages on the telephone system, leaders now send
employees a digital recording of the message embedded in
an e-mail.

September/October 2010 45
Sound complicated? It is. Welcome to the modern-day workplace 2.0.
This is the first time in American history that four different generations are working side by side in the workplace,
bringing their own values, goals and communication approaches to the office. What’s the biggest difference between
Generation Y/millennials (born between 1981 and 2000) and baby boomers (born between 1946 and 1964)? And how
do those in Generation X (born between 1965 and 1980) fit in?
“Millennials grew up with computers and cell phones the way baby boomers and Gen X’ers grew up with typewrit-
ers and corded telephones,” according to a recent Deloitte report, “Decoding Generational Differences: Fact, fiction ...
or should we just get back to work?”
“The implications of this technological disparity are profound: Baby boomers see technology as a tool, or even a
toy, while younger workers see it as an extension of themselves,” the report says. “These millennials see themselves as
‘technology natives,’ moderate multitaskers who get a lot done. Most of them mix entertainment and work.”

WHO ARE THESE EMPLOYEES &


HOW DO THEY COMMUNICATE?
Depending upon where you look, the generations are often represented as:

VETERANS
BORN 1927–1945

BORN 1946–1964
BABY BOOMERS
Also known as traditionalists, the silent generation or radio babies
“They are used to having lots of people around,” say
“Radio Babies grew up with the least amount of tech- Gravett and Throckmorton. “Their preferred mode of
nology, which makes it no surprise that they reported communication is to have meetings—lots of meetings—
that they prefer to communicate face-to-face about to tackle problems and concerns … Consensus build-
problems, concerns and suggestions,” say authors Linda ing is important for many boomers, and face-to-face
Gravett and Robin Throckmorton in their book “Bridging discussion is their preferred way to make this happen.
the Generation Gap.” “Their second option for commu- A conference phone call is a second option, as long as
nication might be a phone call; however, they get very everyone has an opportunity to participate.”
frustrated when they call someone and continually get a
recording—or worse yet, no return phone call.”

GENERATION X GENERATION Y, ALSO KNOWN AS MILLENNIALS


BORN 1965–1980

BORN 1981–2000

The upper limit of Generation X in some cases has been as Some sources place the lower limit as 1978 or the higher limit as 2002
high as 1982
This generation has always been surrounded by technol-
They tend to value time and have grown up with more ogy. “Games, music, mail and data have almost always
technology than the previous two generations. They pre- been digital. They came of age in a world of interconnec-
fer to communicate via e-mail because it’s efficient and tions, even hyperconnections,” according to a new IBM
in-the-moment; they don’t like to waste time or energy. report, “Inheriting a Complex World.” “To find information
Meetings are for rare occasions when no other option is for school reports, they learned to follow links instead of
available, and you may find them checking their e-mail directions from librarians. They used Facebook instead
or sending e-mails to others while sitting in a meeting. of phone books to connect with friends—and friends of
friends.” IBM is No. 8 in the DiversityInc Top 50.

HOW CAN COMPANIES


MINIMIZE COMMUNICATION CONFLICTS?
… ACCOMMODATE EMPLOYEE DIFFERENCES

T
reat your employees as you do your customers. Learn all you can about them, work to meet their specific
needs and serve them according to their unique preferences.
“We can learn a lot from what we are doing on the customer side because on the customer side we have become
very sophisticated as organizations dealing with very complex differences among our customer groups,” says Deloitte’s
Schwartz. “In the same way that it’s extremely common for customer strategies to have multi-channels of communica-
tions and interactions, I think we as professionals need … to increase our sophistication in terms of how we use multi-
channels … in order to effectively communicate with generations and help them communicate with each other. On one
level, that may look like redundancy, but on another level, it’s recognizing that the same message delivered through four
or five or six types of media will reach different parts of your organization and different generations in different ways.”

46 DiversityInc
GENERATIONS IN THE
WORKPLACE
† COMMUNICATE THROUGH THEIR MEDIA

“O
ne of the things that we have started to do much more deliberately is figure out based on what it is
we’re trying to communicate and want to communicate: What’s the best medium to do it? Is it podcast?
Is it through the iPod? Is it through e-mail? Is it through the blog?” says LaMae Allen deJongh, U.S.
human capital and diversity leader at Accenture, No. 22 in the DiversityInc Top 50. Accenture received DiversityInc’s
Generational Communications award at our November 2009 event. “[This way,] it’s not just the
traditional styles of communication all of the time. Even on our project teams while we’re on client
sites, IM has become much more the norm in terms of communication than even e-mail.”
Gen Y’ers want to stay in complete control of the information that makes its way onto their
computer or handheld device. Instead of just blasting news about their new community to an
e-mail list, a fair number of large companies are creating platforms that look like Facebook
or MySpace within the firewall of the company. At Deloitte, for example, it’s called D-Street, LaMae
an internal version of Facebook. Allen
deJongh
“We built it to be similar to Facebook, but it’s a business system. Surprisingly, we saw
very seasoned partners who were very quick to log on and create their own communities,”
Schwartz says.
Healthcare giant Kaiser Permanente, No. 4 in the DiversityInc Top 50, is using social media
to help its 160,000+ employees connect and collaborate through blogs and online communi-
ties, says James E. Taylor, senior director of diversity strategy execution and workplace inclusion.
The company built an internal networking site called KP IdeaBook, an interactive site where employees can create
detailed professional profiles, find and connect with colleagues via search and browsing capabilities, establish groups
and provide status updates on work projects. Once they establish a profile and connections, users can initiate and par-
ticipate in discussions; create and share documents, blogs and announcements; and even create and conduct polls.

‡ IMPLEMENT INTER-GENERATIONAL MENTORING AND ERGS

I
n the modern-day workplace, mentoring across generations and knowledge transfer are critical to maximizing
individual and organizational talent, experts say. Five years ago, none of The DiversityInc Top 50 Companies for
Diversity had generational employee-resource groups. This year, 44 percent do.
“We have a Generation Y resource group and I use it for great data, especially about education and learning,” says
Cal Jackson, senior diversity practitioner at Blue Cross and Blue Shield of Florida, No. 38 in the DiversityInc Top 50.
“This group provides a great reverse-mentoring opportunity. You prep the baby boomers or veterans that they will be
receiving information about Gen Y, their job ethics and how they work.”
While researching their book, Gravett and Throckmorton asked 500 people in each of the generations what their
preferred communication method was in order to learn more about the different communication styles. They came up
with a few basic tips to help organizations bridge the generational divide:

A Utilize the experiences of everyone


“Engage everyone in the conversation,” they write. “Someone younger has a great deal to offer, including fresh
new perspectives that you may not have even thought about. And someone older has typically ‘been there’ and
‘done that’ and you can benefit from the expertise and experience they bring.”

B Focus on job-related common ground


“Keep your conversations focused so you don’t drift off and make a mistaken comment such as ‘You
probably don’t understand because you are too old/too young’ or ‘You may not know about this because it
is before your time’ or ‘I have grandkids older than you.’ These types of comments only create friction and don’t
foster cooperation.”

C Share opportunities to lead


“Don’t always assume that the most senior person should lead the discussion or project. If you are working
on a team, don’t hesitate to let a younger team member take the lead. The older team member may not want to be
the leader again; been there and done that. And, the younger team member may want the leadership experience
and [might] appreciate some mentoring.” DI

To read more on generations in the workplace, visit www.DiversityIncBestPractices.com/generations

September/October 2010 47
GENERATIONS IN THE
WORKPLACE

USHERING
IN THE

‘RE-GENERATION’
48 DiversityInc
O
Overheard while waiting for an elevator: An executive was invited to
talk to some ninth-graders. He spoke of the journey through vari-
ous jobs that built a successful business career. As he concluded his
remarks, he opened up for questions. The students seemed a bit reluc-
tant to speak. So he primed the discussion by saying, “Think about
the future and tell me what you see yourself doing once you get your
college degree.”
The ensuing silence was getting uncomfortable for the executive. In
due course, the silence was broken by a student who said, “It’s simple.
I’ll be doing what everyone else in this room will be doing … digging out
from the hole your generation has put us in.” Others in the class nodded
their heads in agreement.
The executive said, “How could they be so rude?” At this point his
narrative was interrupted by the arrival of the elevator. The conversa-
tion picked up as the executive and his colleagues left the elevator. I
heard no further details as they went in a different direction than I did.
The executive was clearly surprised and annoyed. But would he have
been had he known about the latest research on generational attitudes?
He still might not have appreciated the in-your-face attitude shown
by the student, but he might have understood what was going on a bit
better.
Valuing differing points of view is a part of the diversity discussion
that needs to receive more emphasis. The mindset that accepts learning
from differing viewpoints as a normal part of life is what is needed in
these tumultuous times.
I’ve been in conversations where businesspeople have expressed the
thought that views of young people are not to be taken all that seriously
as they are still maturing and will, ultimately, change their minds about
things many times. My response is that this may well be, but we in busi-
ness and society will pay a price for this dismissive attitude in terms of a
potentially disengaged, suspicious workforce that will not be as produc-
tive as it could be.

A New Generation Approaching


You may ask: “Aren’t these ninth-graders in the anecdote just
the youngest of Generation Y?” The answer is: not really. There
is now a successor generation to Gen Y, and they’ve had some
very different life experiences. Tamara Erickson in her book
“What’s Next Gen X?” has dubbed them the re-generation, and
this is the term that will be used here.
I like this nomenclature because this successor generation will likely
be about re-evaluating, re-thinking and re-generating what they will
Are these successors to be inheriting. They are aware of the economic crisis and how it affects
them. They have firsthand knowledge of foreclosures and losing jobs
Generation Y more of the and homes. They have lived most, if not all, of their lives under terrorist
alerts, financial concerns and now environmental disasters. As a con-
same—or not? sequence, re-gen will most likely be quite pragmatic, cautious and very
concerned with stewardship of resources. They will be seeking a better
Exclusive generational way in all aspects of life. However, there also may be another “re” in
store for us and that may be represented in the words “resentment of”
research sheds or resenting the position they perceive that they’ve been put in.
If there was a mantra for re-gen, it might be: “Work, work and work
new light on the some more. We don’t have much choice. It’s not as clear as it was for
previous generations in the United States that we’re going to have as
future workforce. good—much less better—a life than they did. We don’t appreciate the
hole that others have put us in. We’ve got to learn to cooperate, not just
BY W. STANTON SMITH compete, all the time. Adults, are you listening?”

September/October 2010 49
Selected Survey Results
T o begin tracking the attitudes of these re-gen young people, I teamed up with Node Research to ask
a series of questions about their thoughts on the future, who they view as valued sources of infor-
mation and their political views. The survey was conducted in April. Results are based on Internet surveys with
a nationally representative sample of 500 10- to 24-year-old males and females from different racial/ethnic groups
(Black, Latino, Asian and white). For ease of analysis, the group was subdivided into 10- to 17-year-olds (re-gen) and
18- to 24-year-olds (Gen Y). I will focus on re-gen unless there is a notable difference between re-gen and Gen Y.
We asked the young people to rate statements on a scale of strongly agree, agree, disagree, strongly disagree and
don’t know/need more information. Here are highlights:

THOUGHTS ABOUT THE FUTURE

“Because of the current financial


crisis, I believe that ultimately I
will not do as well financially as
41 AGREE
% 48% 11%
DISAGREE DON’T KNOW/
NEED MORE
my parents have done.” INFORMATION

The only gender difference worth noting is that re-gen boys There are some ethnic differences: Latinos had the highest
are slightly more optimistic than re-gen girls (52 percent of agreement percentages at 51 percent (i.e., least optimistic).
boys selected disagree versus 44 percent of girls). The others are clustered near the average of 41 percent.

Taking a very broad look, it appears that re-gen is more or less equally divided between pessimists and optimists.

To give balance to the questions about the future, we asked the following:

“Financial crises come and go.


I believe that ultimately I will do
as well as, if not better than, my
parents financially.”
Asked this way, the responses
are more positive 67 % 23 % 10%
DON’T KNOW/
NEED MORE
INFORMATION
AGREE DISAGREE

Surprisingly, the population’s Least optimistic Most optimistic


majority group appears
least positive about its future.
54 75 86 87 % % % %
WHITES BLACKS LATINOS ASIANS

What do these seemingly conflicting results tell us? Without further research and analysis, it is difficult to know what
is meant. It may show that where there is optimism, it is tentative. But we know for sure that, however we cut the
results, white re-gens are the least optimistic, and this is a concern.

Valued Sources of Advice


W e also wanted to
understand who these
young people depended
Parents/care providers
Other family members/adult friends
upon to ask questions about Teachers
the world around them. We Colleagues (classmates, coworkers, etc.)
asked respondents to rank- TV news people
order eight sources of advice
Internet (blogs, et. al.)
according to their value. Here
is the ranking, from most Print publications
valuable to least: Religious leaders

50 DiversityInc
GENERATIONS IN THE
WORKPLACE

How the Family Structure Is

Evolving
T
he family structure in the United States is
strikingly different from when baby boomers
were children during the 1950s and 1960s and
when most of them started careers in the 1970s. These
changes have had a significant impact on the attitudes
of workers, particularly those ages 40 and younger.

“NOBODY” IS AT HOME DUAL INCOMES CREATE


DURING THE DAY OPTIONS FOR SOME
Today, the majority of women work Over the past 30 years, women have gained
FACT

FACT

outside the home. access to a wider range of better-paying jobs. In


55 percent of U.S. families, women now earn more
In 1950, fewer than 12 percent of women with chil- than half the household income.
dren under age 6 were in the workforce. Two-thirds
In 2007, the median adjusted household income for
of households were “traditional,” meaning the man
married women was $74,600, while it was $73,800
went to work and the woman stayed home. Today,
for married men. The median was only $48,700
both partners work in nearly two-thirds of married-
for unmarried women, while the median for unmar-
couple households, and 60 percent of women with
ried men was about the same as for married men,
children under age 6 are employed.
according to the Pew Research Center. Note: This
Most employees have no stay-at-home partner to analysis covers U.S.-born men and women between
IMPLICATION

handle personal matters, so they must divide their the ages of 30 and 44—a stage of life when typical
CATION

energy and focus between work and home during adults have completed their education, have been
the work hours. working for some time and have married. Americans
in this age group are the first such cohort in U.S.
history to include more women than men with col-
lege degrees.
Employers no longer have as much leverage as
IMPLICATION

they previously had over workers. One partner in a


two-income family can feasibly quit an unsatisfying
job with manageable financial consequences for
the duration of a reasonable-length job search even
in these difficult times. However, these additional
options are not readily available to unmarried
women. This, of course, is the very group that needs
viable options since many are single mothers and/
or caregivers for elderly family members.

September/October 2010 51
GENERATIONS IN THE
WORKPLACE
Respondents cite parents and/or caregivers as No. 1 in value 58 percent of the time. All the other choices range between
5 percent and 8 percent in the percentage of times each was cited as No. 1 in value. In other words, despite the appear-
ances to the contrary, youth want parents to engage them in discussion, and they value it highly. And if you are an adult
friend, teacher, work colleague or religious leader, you are still valued as No. 1 about 24 percent of the time.
The media is well down the list of valued sources, but we didn’t know that at the time we developed the questions
for the survey. Curious to gather perceptions of youth on media, we did so by asking them to respond to a statement I
have heard from some young people:
“There is no real discussion of 43%
issues on TV, just people yelling 54%
at each other.” 45 %

The re-gen response is different 36%


from that of Gen Y. 12%
Re-gen Gen Y
10%

This response fits with a pattern in Further evidence supporting this Much more work needs to be done
some other research we’ve done that increasing skepticism is the fact that on media skepticism, but it is rea-
shows the closer youth get to gradu- 62 percent of Gen Y boys agree with sonable to conclude that about half
ating high school and getting out into the survey statement versus only 41 of our youth (between the ages of
the world, the more skeptical they percent of re-gen boys. Interestingly, 10 and 24) don’t see television as
appear to become. there is no real difference between promoting responsible discussion
the views of Gen Y and re-gen girls of important issues.
(47 percent versus 46 percent).

Incipient Political Views


Just as we sought to collect views on the media, we added a survey statement concerning
the Obama administration and how it is viewed by Gen Y and re-gen. On a four-point scale,
ranging from very optimistic, somewhat optimistic, not very optimistic and not at all optimistic,
this is the statement posed and the responses:
“How optimistic are you that President Obama and his administration will be able
to solve the current economic problems?”
61 percent of re-gen is very/somewhat optimistic, while 39 percent is not very/not at all
optimistic. The results for Gen Y are almost identical: 60 percent are very/somewhat optimis-
tic and 40 percent are not very/not at all optimistic.
Re-gen boys are slightly more optimistic (64 percent) than re-gen girls (56 percent). The
Gen Y results by gender are virtually the same: 63 percent of boys are slightly more optimistic
versus 57 percent of girls.
But there are major differences among the four racial/ethnic groups. Again, white youth are
far less optimistic than the other racial/ethnic groups: 51 percent of whites are very/some- W. STANTON
what optimistic and 49 percent are not very/not at all optimistic. By contrast, 81 percent of SMITH is an
Blacks, 74 percent of Latinos and 70 percent of Asians are very/somewhat optimistic. author, featured
speaker and

Where Does This Leave Us? recognized expert


in generational
I hope that some of these findings will be surprising enough that researchers will start issues in the
studying re-gens in earnest. The optimism-level gap between white and Asian, Black and workplace.
Latino youth is worth immediate attention. Adults need to actively communicate with young Smith has held
people. However, a condescending manner that doesn’t appear to value their opinions and senior HR posi-
concerns is not the ticket. tions in public
Young people want an adult they respect to explain what’s going on and help them make accounting,
executive search
sense of the world. In the absence of this kind of transparency, they are going to believe the
and the energy
worst. Let’s treat generational differences with respect and engage youth in discussions
business.
where they feel they are being heard. He retired from
Who knows? We might learn something too! DI Deloitte LLP
(No. 25 on The
Copyright 2010 W. Stanton Smith LLC
DiversityInc Top
50 Companies for
Diversity® list).
52 DiversityInc
NEW JERSEY CITY UNIVERSITY
NJCU has everything you need to succeed,
personally and professionally,
in the global economy.

WWW.NJCU.EDU 1-888-441-NJCU
2039 KENNEDY BOULEVARD, JERSEY CITY, NEW JERSEY 07305
AD SPACE DONATED BY DIVERSITYINC
GENERATIONS IN THE
WORKPLACE

Facts &Figures This is the first time in American history


that four different generations have worked
side by side in the workplace. BY SAM ALI

TRADITIONALISTS/
VETERANS BOOMERS GENERATION X GENERATION Y
’46 ’52 ’58 1964 1965 1980 1981 2000

% OF TOTAL
DEMOGRAPHIC PROFILE

U.S. POPULATION 13% 7% 10% 9% 16% 25%


2009
OLDER MIDDLE YOUNG
% OF TOTAL
U.S. POPULATION
2030 3% 6% 6% 13% 22%

WORK ETHIC Hard work, respect Workaholics, work efficiently, Self-reliance, wants structure Multitasking, tenacity, entrepre-
AND VALUES
authority, sacrifice, duty question authority and direction, skeptical neurial, tolerant, goal-oriented
before fun
LEADERSHIP Directive, command- Consensual, Everyone is the same, Not yet known
STYLE
and-control collegial challenge others, ask why
WORKPLACE CHARACTERISTICS

INTERACTIVE Individual Team player, loves to Entrepreneur Participative


STYLE
have meetings
COMMUNICATIONS Formal, memo In person Direct, immediate E-mail, voicemail
FEEDBACKS No news is good news, Don’t appreciate it, Sorry to interrupt, but Whenever I want it, at
AND
REWARDS satisfaction in a money, title recognition how am I doing? the push of a button,
job well done meaningful work
MESSAGES Your experience is You are valued, you are Do it your way, forget You will work with other
THAT
MOTIVATE respected needed the rules bright, creative people
WORK AND Ne’er the twain shall No balance, work Balance Balance
FAMILY LIFE
meet to live

Sources: Fairleigh Dickinson University, MetLife Mature Market Institute, Silberman College of Business Photo courtesy of www.BlendImages.com

54 DiversityInc
The 2010 DiversityInc Top 50 Companies for Diversity® Education 2008

MASTER’S DEGREE OR HIGHER


BACHELOR’S DEGREE
20%
of the population ages
65 and older had earned
a bachelor’s
degree or higher
OLDER BOOMERS (1946-1951) Source: American
Community Survey

MEN
15%
20%
WOMEN
12%
18%
DiversityInc Top 50 companies DiversityInc Top 50 DiversityInc Top 50 companies MIDDLE BOOMERS (1952-1958)
with dependent-care benefits, companies with with a generational
including childcare and eldercare retirement transition employee-resource group
MEN
12%
94% 64% 44% 18%
TODAY

WOMEN
11%
FIVE YEARS AGO

18%
42% 26% 0% YOUNGER BOOMERS (1959-1964)

MEN
10%
Age and Demographic Breakdown of the DiversityInc Top 50 18%
YOUNGER THAN 25
6.8% OF WORKFORCE
AGES 25–34
24% OF WORKFORCE
AGES 35–44
28.4% OF WORKFORCE WOMEN
10%
1% 1% 1%
20%
16% 13% 11%

11% GENERATION X
10% 12%
11%
57% 58% 15% 62% MEN
14% 15% 21%
WOMEN
12%
AGES 45–54
26.5% OF WORKFORCE
AGES 55–64
12.8% OF WORKFORCE
AGES 65 AND OLDER
1.5% OF WORKFORCE 22%
1% 1% 1%
GENERATION Y
9% 7% 7%
7%
6% 8%
MEN
4%
11% 8%
13% 14%
77%
71% 75%
WOMEN
6%
19%
Source: MetLife Mature Market Institute, 2010
White Black Asian Latino American Indian
Source: DiversityInc

For more facts and


figures, go to

September/October 2010 55
A DIVERSITYINC SPECIAL INVESTIGATIVE REPORT
FIRST OF A TWO-PART SERIES

Prison The
Industrial x
Comple BIASED, PREDATORY
GROWING
AND

BY SAM ALI, LUKE VISCONTI AND BARBARA FRANKEL

56 DiversityInc
September/October 2010 57
Prison
The
Industrial x
Comple

CANADA

n this first of a two-part exposé 1 IN 639


117 PRISONERS PER 100,000

of America’s prison system, UNITED STATES


DiversityInc examines the 1 IN 100
748 PRISONERS PER 100,000
rapid growth of privately run
prison operators and what is fast
MEXICO
becoming the next dark chapter 1 IN 366
204 PRISONERS
in the ever-expanding prison PER 100,000

industrial complex: immigrant COLOMBIA

detention. What are the racial 1176INPRISONERS


425
PER 100,000
implications? And why has anti- BRAZIL
immigration sentiment helped 1243IN 307
PRISONERS
PER 100,000
private prisons make a fortune?
The fastest growing form of incarceration America to punish and hold its detainees, we
in the United States is immigration detention. examine the racial and ethnic disparities pro-
And the biggest benefactor of this increased duced by the boom in the U.S. prison popula-
enforcement of border and immigration laws tion and the role the industry plays in exerting ARGENTINA
is the very profitable and politically connected political pressure on lawmakers to encourage 1132IN 566
private-prison industry. not only a shift to privatization but harsher and PRISONERS
PER 100,000
This story examines the dramatic growth longer sentencing guidelines.
of privately run prison operators and the next Between 2003 and 2010, Nashville, Tenn.–
dark chapter in America’s prison industrial based Corrections Corporation of America
complex: immigrant detention. As the federal (CCA), the giant of the industry that controls
government increasingly turns to corporate roughly half of all private-prison beds in the

THE INDUSTRY LEADERS Sources: Yahoo Finance, Kings College in London, DiversityInc research

CORRECTIONS CORPORATION GEO GROUP CORNELL COMPANIES


OF AMERICA HEADQUARTERS HEADQUARTERS
HEADQUARTERS Boca Raton, Fla. Houston, Texas
Nashville, Tenn. NO. OF FACILITIES NO. OF FACILITIES
NO. OF FACILITIES 62 in the U.S., Australia, 68 in 15 states including the
65 in 19 states, including the South Africa and the U.K. District of Columbia
District of Columbia NO. OF PRISON BEDS 60,000 NO. OF PRISON BEDS 21,300
NO. OF PRISON BEDS 86,916
NO. OF EMPLOYEES 13,026 NO. OF EMPLOYEES 440
NO. OF EMPLOYEES 17,425
2009 REVENUE $1.14 billion 2009 REVENUE $412 million
2009 REVENUE $1.68 billion

58 DiversityInc
A DIVERSITYINC SPECIAL INVESTIGATIVE REPORT

RUSSIA
FRANCE 1 IN 125
196IN 779
PRISONERS
595 PRISONERS PER 100,000

PER 100,000
AFGHANISTAN
1 IN 1,700 JAPAN
44 PRISONERS
PER 100,000
1 IN 1,206
62 PRISONERS
CHINA PER 100,000
SPAIN
1 IN 456 1 IN 623
120 PRISONERS PER 100,000
164 PRISONERS
PER 100,000
EGYPT
189IN 840
PRISONERS
PER 100,000
INDIA
1 32INPRISONERS
2,375 WE’RE #1
PRISON POPULATION RATES
PER 100,000 PER 100,000
SAUDI ARABIA OF NATIONAL POPULATION
NIGERIA IRAN
1 29INPRISONERS
2,579 1178IN 420
PRISONERS 1 IN 335 The land of the free? The U.S.
223 PRISONERS imprisons more people than any
PER 100,000 other country in the world.
PER 100,000 PER 100,000
MEDIAN IS 1 IN 566
MALAYSIA
1130IN 575
PRISONERS
PER 100,000

AUSTRALIA
1134IN 558
PRISONERS
SOUTH AFRICA PER 100,000
1 IN 230
324 PRISONERS PER 100,000

TOP QUARTILE SECOND QUARTILE THIRD QUARTILE BOTTOM QUARTILE

nation, spent $14.5 million lobbying the Department private-prison operators such as CCA and its chief com-
of Homeland Security, U.S. Immigration and Customs petitors GEO Group and Cornell Companies, which are
Enforcement (ICE), the Department of Justice, the merging. (See box on page 60.)
Office of Budget Management, the Federal Bureau of How did this come about? In 2001, Steve Logan,
Prisons, and both houses of Congress. then-CEO of Cornell, fielded a question from a Wall
Andrea Black, coordinator for Detention Watch Street analyst during an investor conference call won-
Network (DWN), which represents immigrant-advocacy dering what impact the Sept. 11, 2001, terrorist attacks
groups, says, “DWN has questions about the role of the would have on his company’s bottom line.
private-prison industry and its lobbyists in shaping cur- “I think it’s clear that with the events of Sept. 11,
rent immigration detention policies.” there’s a heightened focus on detention, both on the bor-
In less than a decade, the country’s punitive crack- ders and within the U.S. [and] more people get caught,”
down on undocumented immigrants and the unprec- Logan told the audience. “So that’s a positive for our
edented demand for bed space by federal immigration business. The federal business is the best business for us.
authorities has been nothing short of a bonanza for It’s the most consistent business for us, and the events of

September/October 2010 59
Prison
The
Industrial x
Comple
BEATING THE MARKET
Over the past five years, the stock prices of private-prison operators CCA and GEO have consistently beat the major indexes.

30% GEO AND CORNELL MERGER


CCA ANNOUNCED FINALIZED
GEO APRIL 19 AUGUST 12
20% Standard
& Poor’s
Dow Jones
Industrial
10% Average

0%

-10% 2005 2006 2007 2008 2009 2010


OCT. JAN. APR. JUL. OCT. JAN. APR. JUL. OCT. JAN. APR. JUL. OCT. JAN. APR. JUL. OCT. JAN. APR. JUL.

INCREASING MARKET PENETRATION


Overcrowded prisons, projected inmate growth and constraints on new public-prison construction have benefited the
private-prison industry. Since 2002, the industry has captured an increasingly larger share of inmate growth.

Private Total
Total Private- Incremental Incremental Private Capture
Inmate Prison Total Inmate Inmate of Incremental
Year Population Population Private % Population Population Growth

Sources: DiversityInc research, CCA


2002 1,480,963 97,832 6.6% 37,808 2,560 6.8%
2003 1,514,493 101,497 6.7% 33,530 3,665 10.9%
2004 1,546,229 106,596 6.9% 31,736 5,099 16.1%
2005 1,579,544 113,797 7.2% 33,315 7,201 21.6%
2006 1,627,264 125,944 7.7% 47,720 12,147 25.5%
2007 1,654,606 140,163 8.5% 27,342 14,219 52.0%
2008 1,666,761 148,963 8.9% 12,155 8,800 72.4%

Sept. 11 are increasing that level of business.” recessions are touted as “good for business”—this kind of
His response was prophetic. Strip away the emotions, news makes shareholders and investors very happy.
the questions of justice, the callous and racial political
wrangling, and Arizona’s tough new immigration law—
SB1070, which gives police broad authority to arrest and Booming Detainee Population
detain anyone they suspect of being undocumented— In 2009, ICE—a division within the
means one thing for private-prison operators: more Department of Homeland Security (DHS)
demand for immigration detention beds and a steady responsible for enforcing immigration law—
flow of inmates to fill them. had 387,790 immigrant detainees in custody
On July 6, 2010, the U.S. Department of Justice filed or supervised, more than twice the number
a lawsuit to block the state of Arizona—a border state in 2003 when ICE was created and the crackdown on
that’s a major gateway for undocumented immigrants immigrants began in earnest.
from Mexico—from using police-state tactics to crack All told, the number of immigrants in detention has
down on undocumented immigrants crossing the bor- climbed from around 5,000 in 1994 to more than 30,000
der. But the fractious debate is spreading: Oklahoma, last year.
Texas, Utah, Maryland and Colorado are now consider- A Detention Watch Network briefing to the U.N.
ing tough immigration laws of their own on the heels of Special Rapporteur on human rights notes that “at an
Arizona’s efforts. average cost of $95 per person/per day, immigration
And in the topsy-turvy world of the private-prison detention costs the U.S. government $1.2 billion per
industry—where societal ills, like recidivism, crime and year.”

60 DiversityInc
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Prison
The
Industrial x
Comple
ICE officials say it costs about $175 a day to detain
someone at Elizabeth Detention Facility in New Jersey.
Federal Government
They refused to say how much ICE pays CCA. to the Rescue
For private-prison corporations, which provide most In the late 1990s, the private-prison industry
of the prison beds that house this booming detainee was on the verge of bankruptcy. Speculative
population, all this new business since Sept. 11 has over-building had left many of these companies over-
translated into record revenue and stock prices. Since leveraged, debt-ridden and bloated with thousands
2000, the number of federal inmates held in privately of empty beds. A series of highly publicized scandals,
run prisons has climbed 114 percent, while the number lawsuits and fines over human-rights violations, includ-
of state inmates held in private facilities has increased ing the use of attack dogs, physical and sexual abuse
by 33 percent. and poor healthcare at a number of facilities, prompted
Six states house at least 25 percent of their prison many states to pull the plug on their private-prison
population in private facilities. They are New Mexico contracts. Investors on Wall Street sold their shares en
(46 percent), Montana (36 percent), Hawaii (35 percent), masse.
Vermont (34 percent), Alaska (29 percent) and Idaho (29 In its 10-Q annual filing in late 2000, CCA’s stock was
percent), according to CCA’s 2009 annual report. trading at a low of $1.15 and its accountants expressed
“Between 2007 and 2009, when earnings for the S&P “substantial doubt” about the company’s ability to
500 dropped by 28 percent, ours grew by 18 percent,” continue.
said Damon Hininger, the chief executive officer of CCA, But today, business is back on track, thanks largely
during an investor conference call in May. to immigrant detention: In the first quarter of 2010, it
earned $1.7 billion in revenues, 40 percent of it from

HIGH GROWTH RATES SPREAD ACROSS NATION/CCA PRISON LOCATIONS


Percent change in state prison populations, 2007, by quintile

Wash. N.H.
+3.2% +6.6%
N.D. Maine
Mont.
+5.6% Vt. +1.1%
-3.9% Minn.
Ore. -3.7% Mass.
+5.1%
+1.1% +3.0%
Idaho S.D. Wis. N.Y.
+2.7% -1.7% -3.2% -1.1%
Wy. Mich. R.I. +0.7%
-2.9% -2.4%
Iowa Pa. Conn.+1.1%
Neb. +6.1% +3.7%
Nev. Ind. Ohio N.J. -2.0%
+1.5%
+5.0% Ill. +0.6% +3.2%
Utah Colo. Del. -1.7%
Calif. +1.6% +1.6% +0.4% W.Va.
-2.3% +5.6% Va.
Kan. Mo. +5.1% Md. +1.7%
-0.7% +0.5%
Ky. +12.0%
Ariz. N.C.
N.M. Okla. -1.2% Tenn.+4.2% +2.6%
+5.3%
-1.5% Ark. Percent change
S.C.
+4.3% +2.5% in prison population
Texas Ga.+4.6% Highest fifth
Ala.
-0.2% +4.1% Second highest
Middle fifth
Alaska
+4.7% Second lowest
Miss.
La. +6.0% Lowest fifth
Fla.
+1.9% +4.8%
Hawaii CCA Prison
+1.2% Location

Sources: CCA, The Pew Center on the States

62 DiversityInc
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Prison
The
Industrial x
Comple
CORRECTIONAL POPULATIONS IN U.S.
Number of people under correctional supervision
TOTAL TOTAL
7,051,900 7,308,200
TOTAL 828,169
6,445,100
Parole
TOTAL
1,518,559
Prison
5,342,900
Jail
TOTAL
Probation 785,556
4,350,300
4,270,917
TOTAL
3,013,100
TOTAL
1,842,100

’80 ’81 ’82 ’83 ’84 ’85 ’86 ’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08
Source: Bureau of Justice Statistics Correctional Surveys

contracts with ICE, U.S. Marshals Service and Federal This is the case even though under U.S. law an
Bureau of Prisons. immigration violation is a civil offense—akin to a traffic
Today, almost 9 percent of inmates are housed in pri- violation.
vate facilities, and private-prison operators say they are The companies counter that they are living up to
capturing an increasingly larger share of the incremental their contractual obligations and continue to win new
prison-population growth every year. contracts because they run their prisons well and treat
During a recent investor conference call, Hininger prisoners fairly.
noted that in 2002, only 6.8 percent of the incremental Several weeks after DiversityInc submitted ques-
growth in the prison population was being funneled into tions in writing to CCA officials, the company responded
the private prison system. In 2008, they are capturing in writing. Steve Owen, a spokesperson for the cor-
72.4 percent. poration, wrote that CCA operates “safe and humane
detention facilities in a manner that respects the dignity
of the detainees and adheres to federal ICE detention
A Growing Backlash standards.”
As the industry grows, so too does a back- “In addition to strong oversight from government
lash—from critics who argue that private officials—who have full access to our prisons and deten-
prisons are morally wrong, mismanaged and tion centers—our facilities are also audited and inspect-
unsafe. Critics say that human-rights violations and ed regularly by independent teams of professional
physical and sexual abuse of inmates flourish in private- experts,” he wrote.
ly run prisons and detention centers because they are A similar request from DiversityInc to GEO Group
closed to outside scrutiny, allowing guards and officials was rejected. Because of its merger with Cornell, Pablo
to act with impunity. Immigration detainees are particu- Paez, GEO’s director of corporate relations, says neither
larly vulnerable because of language barriers and fear of firm could “comment beyond the information that is
deportation. available through our public filings and statements.”
“The condition and terms of immigration detention
in the U.S. are equivalent to prison where freedom of
movement is restricted, detainees wear prison uniforms America: Incarceration Nation
and are kept in a punitive setting,” according to the In raw numbers, the American prison popu-
Detention Watch Network briefing to the U.N. Special lation is so large it’s almost hard to grasp. In
Rapporteur. 1980, the prison population stood at 500,000. Today the

64 DiversityInc
A DIVERSITYINC SPECIAL INVESTIGATIVE REPORT

United States imprisons about During that time, the prison


2.3 million people—1 in every
100 adults. If you toss in the
number of people currently on
WHO’S BEHIND BARS industrial-complex boom
occurred largely on the state
level: Politicians campaigned
probation and parole, the num- MEN 1 IN… on law and order and made get-
ber of people living under some WHITE MEN AGES 18 OR OLDER 106 ting “tough on crime” a central
ALL MEN AGES 18 OR OLDER 54
form of correctional control in part of their political identities,
LATINO MEN AGES 18 OR OLDER 36
the United States climbs to a BLACK MEN AGES 18 OR OLDER 15 Perkinson says.
whopping 7.4 million—a num- BLACK MEN AGES 20–34 9 The spate of tougher sen-
ber equivalent to the population tencing guidelines that ensued
of Israel. WOMEN sent state-prison-population
Combining law enforcement, WHITE WOMEN AGES 35–39 355 growth into overdrive, but as
LATINAS AGES 35–39 297
courts and prisons, the U.S. the numbers exploded, so did
ALL WOMEN AGES 35–39 265
criminal-justice system “con- BLACK WOMEN AGES 35–39 100 the tax bill.
sumes $212 billion a year and As a result of the sheer
employs 2.4 million people, Source: The Pew Center on the States
volume of prisoners and the
more than Wal-Mart and prison population-growth rate,
McDonald’s combined,” says Robert Perkinson, an asso- incarceration is now one of the largest costs borne by
ciate professor of American studies at the University of taxpayers, consuming one out of every 15 discretionary
Hawai’i and author of the book “Texas Tough: The Rise dollars, according to The Pew Center on the States.
of America’s Prison Empire.” In 2007, total state spending on corrections—including
“The prison industrial complex clearly manifests all bonds and federal contributions—topped $49 billion, up
the inequities that still exist in the U.S.,” say Amanda from $12 billion in 1987. By 2011, continued prison growth
Petteruti and Nastassia Walsh of the Justice Policy is expected to cost states an additional $25 billion, the
Institute. “The current system magnifies all the ways in report said.
which the U.S. fails many of the people who live within By the time the U.S. economy slid into a recession
its borders.” in 2000, many states were bursting at the seams with
prisoners but lacked the funds and the political support
to keep building new prisons. As a result, cash-strapped
The New War, Same as the Old War states, grappling with overcrowding, turned to the pri-
Ironically, more than a century ago, “private vate sector for help.
prisons were a familiar feature of American This same dynamic is playing out on the federal level.
life, with disastrous consequences,” writes Ken Congress has nearly doubled annual spending on immi-
Silverstein, a former Los Angeles Times reporter and gration enforcement in the last five years to $5.7 billion
current Washington editor for Harper’s Magazine, in in 2010, with nearly $2.55 billion of that earmarked for
his report, “America’s Private Gulag”: “Prisoners were detention and removal operations. And with the country
farmed out as slave labor. They were routinely beaten once again in the throes of economic turmoil, and the
and abused, fed slop and kept in horribly overcrowded number of immigrant detainees shooting skyward, the
cells. Conditions were so wretched that by the end of private sector, which claims it can build prisons faster
the nineteenth century private prisons were outlawed in and more cheaply and save taxpayer dollars by cutting
most states.” operational costs, has stepped up to the plate.
But in the 1980s, private prisons like CCA made a In fact, when Hininger spoke to Wall Street analysts
comeback. in May, he shared the standard script CCA uses when
The crackdown on undocumented immigrants bears it lobbies legislators or governors on the pros of priva-
a disturbing resemblance to the political furor that took tization: “Why do you want to put $200 million in the
hold of the nation during the 1980s and 1990s when ground to build a prison? Your voters won’t give you any
America’s failed “war on drugs” first took center stage credit for building the prison. Yes, they want you to be
and ultimately herded so many of the country’s young tough on crime, but they’d rather have you build roads,
Black and Latino men into America’s ever-expanding bridges and schools and, in addition, to that we can offer
prison colossus. you significant operational cost savings.”

September/October 2010 65
Prison
The
Industrial x
Comple In large part because of these laws,
the country’s prison population has bal-
looned from 500,000 in 1980 to 2.3
million in 2009, greater than that of
any other nation in the world. Including
the number of people on probation and
parole in this country, more than 7 mil-
lion people—one out of every 31—lives
LOBBYING FOR MORE PRISONERS under the control of the U.S. criminal-
justice system, and 60 percent of them

Company Benefits are from traditionally underrepresented


groups, such as Blacks and Latinos.
This rapid rise in prisoners and parol-

By Drafting Laws ees has been a windfall for the private-


prison industry, which has been not only a
major player but also a major benefactor

That Increase of ALEC’s lobbying efforts over the years.


Private-prison companies deny that
they pursue and lobby for legislation
Prison Population that would keep their prison beds filled.
In its written response to DiversityInc,
CCA said it does not lobby lawmakers to
increase jail time or push for longer sen-
tences under any circumstance, noting
that it “educates officials on the benefits
For decades, the Corrections Corporation of America (CCA) and of public-private partnership but does not
other private-prison companies have been active members of the lobby on crime and sentencing policies.”
“ALEC has taken credit over the years
American Legislative Exchange Council (ALEC), a powerful lobby for many of the kinds of state [laws] that
based in Washington, D.C., responsible for numerous laws that have greatly expanded our prison popula-
tion … and caused so much racial dispar-
have put millions of people behind bars. ity,” says Judith Greene, a policy analyst
With more than 2,000 state legislators and nearly 250 corporate and private- with Justice Strategies, a nonprofit
foundation members, ALEC represents a formidable power broker in state capitols
across the country.
ALEC is comprised of nine task forces, each responsible for developing what
it describes as “model legislation”—essentially, a wish list of laws addressing
subjects they would like to see passed in states. Over the past several decades,
private-prison operators like CCA and GEO Group have worked with ALEC to ensure
Connecting
the passage of some of the nation’s toughest laws that have lined their pockets and
enriched their shareholders.
Today, a lot of information on ALEC’s website, including any detailed information
the Dots
An example of how CCA promotes its agenda
about the hundreds of pieces of model legislation it is developing, is only accessible and parlays its political connections can
to its paid members. But a general listing of model legislation it is working on or pro- be seen in states such as Arizona, which
moting in states across the country shows that immigration enforcement is high on the recently passed the nation’s toughest
to-do list, including a bill that mirrors Arizona’s SB1070 law called the No Sanctuary immigration-enforcement law.
Cities for Illegal Immigrants Act. PEARCE In January, the same month Arizona
Not surprisingly, CCA has very close political ties to the Arizona legislature and State Sen. Russell Pearce introduced
the office of Gov. Jan Brewer. (See graphic on right.) SB1070, CCA hired HighGround, a
While it is not unusual for private industry to work closely with government offi- powerful lobbying firm in Phoenix,
pow
cials or to lobby for laws to support their business interests, this relationship gets according ng to lobby disclosure forms
more critics because CCA is profiting off the arrest, incarceration and misery of human filed with the Arizonaa secretary
sec of state.
beings. HighGround’s owner, J. Charless BREWER
One of ALEC’s main task forces is the Public Safety and Elections Task Force (for- “Chuck” Coughlin, is Arizona’s Gov.
merly known as Criminal Justice and Homeland Security), which oversees the drafting Jan Brewer’s campaign manager and
of model bills that often serve as the basis for criminal-justice legislation. For years, the one of her closest advisers.
criminal-justice task force was co-chaired by high-ranking CCA executives.
Brewer’s current spokesperson,
spers Paul
In 1995, when ALEC was publishing the results of its annual scorecard (it’s now only Senseman, previously usly worked at Policy
visible to paid members), here’s how it described its criminal-justice task forces: “The Development
ment Group, another influen-
busiest Task Force is Criminal Justice which had 199 bills introduced. The anti-crime tial lo
lobbying firm in Phoenix, as a
SENSEMAN
legislation with the most enactments was the Truth in Sentencing Act (inmates lobbyist for CCA. His wife, Kathryn
serve at least 85 percent of their sentence) which became law in 25 states.” Senseman,
S e is still employed by Policy
ALEC’s “Habitual Offender/Three Strikes” bills (life imprisonment for a third vio- Development
opment G Group and counts
lent felony) passed in 11 states. CCA as one of her lo lobbying
obbying
clients. DECONCINI

Sources: PBS, USA Today, “Texas Tough: The Rise of America’s Prison Empire” by Robert Perkinson Former Arizona Democratic Sen.
Dennis DeConcini—who, during his
18-year tenure in Congress, served on
the judiciary and appropriations commit-
tees—is also a CCA board member.

66 DiversityInc
the revolving door A DIVERSITYINC SPECIAL INVESTIGATIVE REPORT

between the private-prison


industry and the government
ON GEO’S BOARD
ON CCA’S BOARD
GEO GROUP CEO GEORGE ZOLEY
THURGOOD MARSHALL JR.,
was a Bush Pioneer, meaning he
director of Cabinet Affairs under
raised at least $100,000
President Clinton, is son of the
for George W. Bush’s 2004
late Supreme Court justice
presidential campaign
Thurgood Marshall Sr.

LOBBYIST CCA’S LOBBYIST


ALBERTO CARDENAS, PHILIP J. PERRY,
former chair of the Florida former Vice President Cheney’s
Republican Party and a Bush son-in-law and the general counsel
Pioneer, was a lobbyist for GEO at the Department of Homeland
Security, worked as a CCA lobbyist

ON CCA’S STAFF ON CCA’S BOARD


J. MICHAEL QUINLAN, CCA BOARD MEMBER
senior vice president at CCA, is DONNA ALVARADO
a former director of the federal served in the U.S. Department of
Bureau of Prisons under presidents Defense under President Reagan
Reagan and Bush ON GEO’S BOARD
GEO BOARD MEMBER
NORMAN CARLSON
served as the director of the Federal
Bureau of Prisons for 17 years

criminal-justice policy research group. same tight connections between the pri- contributions, between 2002 and 2004,
In 2009, 826 of ALEC model legis- vate-prison industry, lawmakers and the Bender says.
lations were introduced in states and industry’s powerful and well-funded lobby. According to Bender, the private-
115 were enacted. Although CCA exec- “The basic capitalist business model prison money trail took a decided turn in
utives are currently not chairing ALEC’s is ‘Expand or die,’” Greene says. “You 2005, when the immigration crackdown
criminal-justice task force, one of its top can’t stand pat and be successful. So got under way in earnest and federal law-
executives, Laurie Shanblum, the senior once that comes into play, it becomes an makers were debating how to meet the
director of partnership development, is extremely perverse pressure for growth.” growing need for detention beds.
an active member. That year, CCA alone paid close to
Sitting alongside Shanblum on this The System Expands, $3.5 million for lobbying focused on
task force is Russell Pearce, the Arizona the Target Shifts immigration and national security.
senator who sponsored SB1070. When private prisons were actively court- “One of its key lobbyists was Philip
ing state lawmakers, companies such J. Perry, son-in-law of Vice President
Political Ties Run Deep as CCA and GEO as well as their lob- Dick Cheney, who was appointed gener-
The industry’s political connections and byists gave $3.3 million to state-level al counsel for DHS,” according to Stokely
the endless revolving door between the candidates in the 2002 and 2004 elec- Baksh and Renee Feltz, who authored
private-prison industry and the govern- tion cycles, favoring states with some of the award-winning Business of Detention
ment have raised eyebrows over the the toughest sentencing laws, accord- project, examining private detention cen-
years. (See graphic above.) ing to a 2006 report authored by Edwin ters for undocumented immigrants. “As
Viewed through this lens, it’s little Bender, director of the National Institute the immigration debate continued in
wonder anti-immigration laws like the on Money in State Politics, which tracks 2007, CCA spent $3.25 million lobbying
one recently passed in Arizona and being state campaign funding and lobbying. members of Congress to approve funding
weighed in so many other states have “Companies favored states that had that would ultimately lead to increased
so many civil-rights advocates worried. enacted legislation to lengthen the sen- spending on immigration detention,” they
Just as the U.S. war on drugs dispro- tence given to any offender convicted of write.
portionately impacted Blacks, this lat- a felony for the third time,” Bender says. All told, CCA spent $14.8 million
est war is being waged overwhelmingly “Private-prison interests gave almost lobbying the Department of Homeland
against undocumented immigrants, most $2.1 million in 22 states that had a so- Security, U.S. Immigrations and Customs
of them Latino. called ‘three-strikes law,’ compared with Enforcement (ICE), the Office of
Consider this statistic: Of the $1.2 million in 22 states that did not.” Management and Budget, the Bureau of
387,790 undocumented immigrants Florida, whose inmate popula- Prisons, both houses of Congress, and
removed by ICE in fiscal year 2009, 71 tion surged from 53,000 to 101,175 others between 2003 and 2010.
percent were from Mexico and 20 per- between 1993 and 2010, was the “Profits by no means created the
cent were from El Salvador, Guatemala biggest benefactor, with candidates machinery of mass incarceration,” says
and Honduras. And this latest windfall and political parties there receiving Greene. “But profits oil the machinery,
of prison beds is being facilitated by the $647,600, or almost 20 percent of the keep it humming and speed its growth.” Q

September/October 2010 67
Prison
The
Industrial x
Comple
TAKING A BIGGER CUT
In fiscal year 2007, an estimated 1 in every 15 state general Critics of private prisons argue that this perverse profit
fund dollars was spent on corrections. 1987–2007 motive—which often overrides basic human rights and
PERCENTAGE
CORRECTIONS AS A PERCENTAGE OF POINT needs—leads private prisons to cut corners on drug reha-
TOTAL GENERAL FUND EXPENDITURES, 2007 CHANGE bilitation, training, counseling and literacy programs.
OREGON 10.9 +4.6 “Profits by no means created the machinery of mass
FLORIDA 9.3 +3.6
incarceration, no more than defense contracts invented
VERMONT 9.3 +5.2
war, but the huge profits to be made by incarcerating
COLORADO 8.8 +5.1
an ever-growing segment of our population serves the
CALIFORNIA 8.6 +3.8
TEXAS 8.6 +4.2 system very well,” says Judith Greene, a policy analyst
ARIZONA 8.5 +0.8 with Justice Strategies, a nonprofit sentencing-reform
MONTANA 8.3 +2.4 advocacy group in New York. “Profits oil the machinery,
OKLAHOMA 7.8 +4.1 keep it humming and speed its growth.”
ARKANSAS 7.7 +5.1
MARYLAND 7.6 -1.5
LOUISIANA
MISSOURI
7.5
7.4
+1.7
+3.7
Low Wages, No Training
Over the years, there have been numerous
DELAWARE 7.1 +1.9
cases where private prisons have been cited,
OHIO 7.0 +2.5
SOUTH DAKOTA 7.0 +3.1
fined or shut down for stinting on food, cloth-
IDAHO 6.9 sawStates in red
+3.8 ing, education and medical treatment for
a decrease
UTAH 6.9 in the percent- +2.5 inmates, including juveniles in detention.
SOUTH CAROLINA 6.7 age of their
general fund
+0.8 “Money is the top motive and … there is an incentive
VIRGINIA 6.7 dedicated to -8.1 to cuts costs,” Black says. “You hear stories of maggots
WISCONSIN 6.7 corrections.
+4.0 in the food, people with really bad stomach conditions
NEW HAMPSHIRE 6.6 +2.5 because of the food. A lot of complaints about the food.”
NEVADA 6.4 -2.1
One big area where for-profit prison firms skimp is on
PENNSYLVANIA 6.2 +4.1
labor costs, according to Paul Wright, the founder and
IOWA 5.9 +2.6
WASHINGTON 5.9 +2.4
editor of “Prison Legal News,” a prison advocacy tabloid.
NORTH CAROLINA 5.7 +0.9 While employees at state-run prisons get union-scale
KANSAS 5.6 +1.3 salaries, private-prison guards typically earn a meager
TENNESSEE 5.6 -2.0 $7 to $10 per hour.
GEORGIA 5.4 -0.5 “They have low wages and high turnover and very
MISSISSIPPI 5.4 +1.5 little in the way of benefits or training,” says Wright,
ALASKA 5.3 +2.0 who was once a prisoner himself, serving 17 years of a
INDIANA 5.3 +0.3 25-year term for killing a cocaine dealer he was trying
NORTH DAKOTA 5.3 +3.7
to rob. Today, the 43-year-old father is an advocate for
ILLINOIS 5.2 +0.8
KENTUCKY 5.2 prisoner rights and over the years has filed numerous
+1.8
NEBRASKA 5.2 +1.1
legal challenges against the industry and won. “The
MASSACHUSETTS 5.1 +1.9 private-prison industry is marked by corruption,” he
NEW YORK 5.1 -2.0 says. “Their premise is they can run prisons cheaper
NEW JERSEY 4.9 +0.7 than the government, but taxpayers don’t realize any of
RHODE ISLAND 4.9 +1.4 those savings. Any savings the private-prison industry
WEST VIRGINIA 4.6 +3.3 obtains is basically profits for their shareholders.”
CONNECTICUT 4.4 +2.0 Advocates say there have been repeated instances
NEW MEXICO 4.2 -0.5
when detainees are shuffled around from state to state,
MAINE 4.1 +0.4
WYOMING 4 away from their families and communities and any legal
+0.1
HAWAII 3.8 +1.3
services that may be able to support them. Often, they
MINNESOTA 2.7 +1.0 don’t have access to working phones to call for legal
ALABAMA 2.6 -2.4 assistance.
NATIONAL AVERAGE 6.2 +1.7 “They are often very isolated,” says Black. “People
are moved on average two to three times. We’ve heard of
Source: National Association of State Budget Officers, “State Expenditure Report” series;
Percentage point increases are based on a reanalysis of data in this series. cases of people moved 11 times all over the country, and
Note: Michigan does not have a comparable figure because of the state’s general
fund definition.

68 DiversityInc
AD SPACE DONATED BY DIVERSITYINC
Prison
The
Industrial x Presidential
Comple Pressure
For about 50 years before 1972, the rate of imprisonment in the United States was steady.
But in the 1960s, rising crime rates, urban riots and social tensions triggered tough-on-crime
policies that would alter the size and racial composition of the prison system.
Here are major players in this movement and the role they played in satiating the
public and political hunger for law and order.

RICHARD NIXON NELSON ROCKEFELLER


First president to New York governor creates some of the
popularize the term “war harshest sentences for drug crimes.
on drugs.” Under Rockefeller drug laws, penalty
Under his presidency, for possessing four ounces of cocaine
majority of funding goes or heroin or for selling two ounces is a
toward treatment, rather mandatory prison term of 15 years to life.
than law enforcement. Today, nearly every state and the
federal government have some form of
mandatory sentencing.

RONALD REAGAN GEORGE H.W. BUSH


Prioritizes war on drugs, signing three massive drug Spends more money on drug
bills in 1984, 1986 and 1988. war than every president
Nancy Reagan’s “Just Say No” anti-drug campaign since Nixon combined.
becomes centerpiece of drug war. Federal inmate population
Drug laws in 1986 create mandatory minimum penalties nearly triples to 80,259,
for drug offenses; creates 100-to-1 sentencing disparity mostly for drug crimes. Roughly
between crack and powder cocaine. 60 percent are Black or Latino.
By early 1990s, nearly 90 percent of crack prosecutions In 1991, Blacks in prison
target non-whites. outnumber whites, even
though Blacks make up 12
In 1995, the average federal prison term for a crack percent of the population.
offense surpasses that for murder.

BILL CLINTON GEORGE W. BUSH


Oversees most intensive As governor of Texas, Bush oversees
incarceration boom in U.S. execution of a record 152 people.
history, with federal incarceration After 9/11, Bush targets immigration
rates during his term more policy in the name of national security;
than that of Bush and Reagan most of the legal infrastructure was put in
combined. place during Clinton era.
By 2001, 645,135 more U.S. Patriot Act of 2001 makes it easier
Americans are in jail than on for the government and law enforcement
Clinton’s inauguration day. Fifty- to access private information, detain
five percent are Black or Latino. immigrants and search homes and
businesses.

BARACK OBAMA
In August, Obama signs new
law reducing the crack/powder
cocaine disparity in sentences.
He has also pledged to push for
immigration reform.
Justice Department files lawsuit
to block Arizona’s tough new
immigration law.

70 DiversityInc
WINDS OF AVOID THE RUSH.
OPPORTUNITY REGISTER EARLY.
2010 More than 8,000 attendees and over 250 companies,
organizations and universities seeking Hispanic talent!
CHICAGO
Join the event geared for Hispanic
MBA students and professionals to:
» Connect with peers, employers and resources
» Attend cutting-edge professional development seminars
» Capitalize on tailored career management services
» Take advantage of volunteer opportunities

NATIONAL
SOCIETY OF
HISPANIC McCormick Place
MBAS
CONFERENCE
& CAREER EXPO
October 21−23
www.nshmba.org/conference
or call 877-467-4622

©2010 National Society of Hispanic MBAs.

AD SPACE DONATED BY DIVERSITYINC


Prison
The
Industrial x
Comple
MAKING DECISIONS WHERE TO SPEND
In fiscal year 2007, an estimated 1 in every 15 state general there are people who had attorneys and their attorneys
fund dollars was spent on corrections. could not get a change of venue to get their clients back.”
RATIO OF CORRECTIONS TO At CCA, however, the reason they give for moving
HIGHER-EDUCATION SPENDING, 2007 prisoners out of state is pretty straightforward: profits.
VERMONT 1.37 Hininger told investors that in states such as Hawaii
MICHIGAN Five states spent
as much or more
1.19 and California, the cost difference between housing
OREGON on corrections as 1.06 an inmate in state versus out of state can be huge—an
CONNECTICUT they did on higher
education 1.03 average $40 a day. In California, for example, housing an
DELAWARE 1.00
inmate in the state costs $125 a day. “We are providing
MASSACHUSETTS 0.98
RHODE ISLAND 0.83 beds on the mainland at almost half that,” he said.
CALIFORNIA 0.83
PENNSYLVANIA 0.81
MONTANA
COLORADO
0.81
0.78
Future Looks Good
ARIZONA 0.77
For every dollar
spent on higher for Private Prisons
ALASKA 0.77 education,
Alaska spent Understandably, GEO Group and CCA are
MARYLAND 0.74 77 cents on
optimistic about their industry’s future.
corrections
WISCONSIN 0.73
NEW YORK 0.73
During an investor call, GEO Group CEO
NEW HAMPSHIRE 0.73 George Zoley told the audience he believes
OHIO 0.69 there is “enough of a growing market share
NEW JERSEY 0.67 that we can all share in these awards.”
MISSOURI 0.67 “There is plenty for everybody,” he said.
FLORIDA 0.66 The recession means federal and state governments
VIRGINIA 0.60 have fewer dollars for prison construction, meaning
IDAHO 0.56
0 more incarceration has to be outsourced, he said. At the
WASHINGTON 0.55
0 same time, the federal prison system is operating at 137
OKLAHOMA 0.51
5
percent of capacity.
TEXAS 0.51
5 For every dollar
ILLINOIS 0.51
5 spent on higher
In fact, CCA bragged to investors that its “clients”—
GEORGIA 0.50
5 education, meaning federal and state governments—are “notori-
Georgia spent
MAINE 0.49
4 50 cents on ously poor planners” when it comes to building new
SOUTH CAROLINA 0.49
4 corrections prison beds. And this tends to work to their advantage—
LOUISIANA 0.46
6 especially during a recession when state and federal
ARKANSAS 0.46
6 coffers are tight.
NEVADA 0.43 “What we saw coming out of the last recession was a
SOUTH DAKOTA 0.41 significant reduction in the construction of new prison
UTAH 0.41
beds and then when [economic] growth accelerated,
TENNESSEE 0.41
INDIANA 0.40 they got caught flat-footed and they had to turn to
KANSAS 0.40 the private sector,” Hininger said during the investor
IOWA 0.38 conference. “Even though they may have had a desire
WEST VIRGINIA 0.36 to build and manage their own prison beds themselves,
KENTUCKY 0.35 50-state average: they found themselves in a situation where they didn’t
NORTH CAROLINA 0.33 60 cents spent have that luxury. And of course, we have the salespeople
NEW MEXICO 0.32 on corrections
for every dollar and lobbyists pitching the benefits of privatization to
HAWAII 0.31 spent on higher
the governors and legislators, so it’s kind of a unique
education
MISSISSIPPI 0.30
dynamic. In this environment, where they are not build-
NEBRASKA 0.28
NORTH DAKOTA 0.24 ing new beds and they’re being very short-term in their
WYOMING 0.23 thinking, it creates a situation where they wake up one
For every dollar
ALABAMA 0.23 spent on higher day and they don’t have beds and will have to turn to the
MINNESOTA 0.17 education,
Minnesota private sector.” DI
spent 17 cents
Source: Reanalysis of data presented in the National Association of State on corrections
Budget Officers, “State Expenditure Report” series

72 DiversityInc
WE HAD
TO STRUGGLE
WITH THE
OLD ENEMIES
OF PEACE--
business and financial
monopoly, speculation,
reckless banking,
class antagonism,
sectionalism,
war profiteering.

They had begun


to consider the
Government of the
United States as a mere
appendage to their
own affairs. We know
now that Government by
organized money is just
as dangerous
as Government by
organized mob.

Never before in all our


history have these forces
been so united against
one candidate as they stand
today. They are unanimous
in their hate for me--
and I welcome
their hatred.
PRESIDENT FRANKLIN D. ROOSEVELT
74 DiversityInc
BP EXECUTIVES’ HUMAN-RIGHTS MISCALCULATION:

HAVE THEY

THE

COMPANY?“A fisher[man] who can no longer eat the fish he catches


because the water has been polluted might immediately understand the
environmental impact but may not know that access to safe
and nutritious food is actually a human right to which he is entitled.”
Human Rights Impact Assessments for Foreign Investment Projects,
International Centre for Human Rights and Democratic Development

B
efore the recent disaster at BP’s have performed many human-rights impact assessments
Deepwater Horizon drilling plat- (HRIAs) in other parts of the world, typically in coun-
form, one could assume that no tries that are economically underdeveloped. BP has a
BP executive imagined that our “fisher- human-rights guide on its website supporting, but not
man” with the inedible catch might be an mandating, operational managers to respect those rights.
American, let alone a Gulf Coast resident. Its personnel have analyzed human-rights concerns
To the extent that BP’s leaders contem- affected by its business interests in Colombia, Georgia,
plated any environmental mishap in Turkey and Azerbaijan. BP’s HRIA of its Tangguh LNG
the Gulf, it’s likely that they didn’t think they were project in West Papua is referenced in U.N. reports as an
flirting with human-rights violations. It is fair to ask, early example of the HRIA genre.
“Why not?”
The suffering of the Gulf population results from
human-rights violations. Since the dawn of the human- MISCALCULATION OR MALEVOLENCE?

H
rights idea 60 years ago, international norms have estab- ow, then, did BP executives fail to grasp the
lished as fundamental human rights the opportunity for human-rights implications of drilling activi-
an adequate standard of living, to gainful employment, ties in the Gulf? Furthermore, had they evalu-
and to health. Our entitlement to a clean environment is ated the human-rights implications of their conduct,
a human right that is 30 years old and well established. might there have been a different outcome? It will
BP’s leadership is not unaware of these rights. They require lengthy investigations by the executive branch of

BY RAYMOND M. BROWN, ESQ.

September/October 2010 75
?
HUMAN RIGHTS

government, Congress, industry groups, private litigants


and BP itself to reach definitive conclusions.
In the meantime, the possible explanations include
two diametrically opposite theories. The first is that BP
executives deliberately risked disaster for profit. The sec-
ond is that BP inadvertently failed to perform a thorough
risk assessment.
The theory that BP executives deliberately assumed
unreasonable risks in order to cut costs and save time has
already been advanced in several quarters, including in a
preliminary report of the House Commerce Committee
by its chairman, Henry Waxman. The charge has been
echoed by the populist voice of Kindra Arnesen, a fisher-
man’s wife from Louisiana, whose criticism inspired BP
to bring her inside its councils and to observe its delib-
erations. She has publicly alleged that BP talked—during
its cleanup and emergency-response phase—of cutting
clean-up costs and of assembling clean-up workers tem-
porarily for “balloon and pony” shows when the media or
high-ranking political officials visited key sites.
If this theory is accurate, BP will face huge regulatory
fines and dramatic civil-law verdicts, and the company
and its executives may endure grand-jury investigations,
indictments and trial. However, such a scenario offers
earnest executives elsewhere few lessons they didn’t
imbibe with their mother’s milk.
The more benign theory is that BP executives failed
to do a comprehensive risk analysis and were encouraged In part, it appears that BP’s executives shared the
in this behavior by executive branch attitudes, including view of many in the western business world that human-
those of regulators at the Mineral Management Services rights issues are relevant to ventures in “third world,”
(MMS). MMS made the now-controversial decision to “frontier” or underdeveloped countries. This view is
exempt BP from the requirements of performing perhaps encouraged by horrific human-rights abuses in
a detailed environmental-impact assessment in connec- places like Nigeria’s Niger Delta, where an entire region
tion with the Deepwater Horizon lease. (A related has been environmentally, socially and developmen-
storm continues to rage over scores of comments from tally savaged by oil exploration and drilling. Indeed, the
leaders of both major parties claiming that leaks from contrast between the worldwide response to the Gulf
oil rigs are not a problem, even during hurricanes as disaster and the muted commentary on the Niger Delta
violent as Katrina.) has led some critics of the corporate and governmental
Even if BP executives convince observers that they misconduct in Nigeria to decry the double standard.
were lulled into flawed risk analysis by governmental and A factor underlying the focus on human-rights issues
industry consensus that the chance of a catastrophic Gulf elsewhere is the assumption that western democracies
spill was low, there is still no answer to the question of why have more benign governments and more active civil-
a human-rights impact assessment was not performed and society elements and therefore that human rights are
made public before explor- domestically protected. Surely the duty of the govern-
atory drilling began. ment to protect its citizens, a fundamental principle

Raymond M. Brown, a speaker at DiversityInc’s March 2010 event in Washington, D.C., is


the chair of the White Collar Defense and Corporate Compliance Practice Group at Greenbaum,
Rowe, Smith & Davis. He has practiced international criminal law (ICL), taught, written and lectured
on ICL, and served as an international legal journalist. Brown is a member of list counsel at the
International Criminal Court and is legal representative for victims in the case of OTP v. Bashir and in
the Darfur situation. He is a delegate from the International Criminal Bar to the Rome Treaty Review
Conference in Kampala, Uganda.

76 DiversityInc
Signs on the front lawn of a home
in Grand Isle, La. The BP oil spill
that began April 20, 2010, has
resulted in oil washing up on the
shores of Louisiana.

The limited environmental assessment failed to identify


the consequences of a disaster. An internal process that
resulted in an HRIA would have identified risks and put
in place real assets and processes to deal with those risks.
The primary differentiator between the two assessments
is that an HRIA incorporates interaction with “rights
holders,” the residents and workers of the Gulf coast,
through a collaborative assessment of human rights that
may be impacted during a project or while a company is
doing business. For BP’s scenario-building process around
human-rights impacts, those rights should necessarily
have been environmental and workplace safety, the right to
clean water, and a living wage, just to name some. Because
an HRIA is a public document based on public discourse, it
gives equal footing to business and public interests.
An HRIA necessarily makes explicit tensions between
parties like BP and inhabitants, but the process allows
coexistence based on the evaluation of worst-case
scenarios (e.g., What if the rig explodes?) and the rank
ordering of rights combined with substantive remedia-
tion plans and processes. An HRIA would have erased
the widening gap between BP’s business interests and the
destruction of industries, livelihoods and the environ-
ment. Finally, an HRIA would have been some protec-
tion in shielding investor speculation that the risks were
known and callously not managed, to the great loss of the
investment community.
of democracy, will be heavily debated. That said, the Why should executives consider HRIAs an obliga-
Deepwater Horizon experience suggests that Americans tory piece of corporate due diligence? John Ruggie, the
in general and Gulf residents in particular should have Special Representative of the Secretary-General (U.N.)
their human rights respected by executives of foreign on the issue of human rights and transnational corpora-
companies doing business there. tions, frames the issue succinctly: “[I have] maintained
If Arnesen is correct that recovery from this emer- that the widening gaps between the scope and impact of
gency is being hindered by an unholy collaboration of economic forces and actors, and the capacity of societies
“EPA, OSHA, NOHA, the federal government and BP” to to manage governance gaps … provide the permissive
cut costs at the expense of human lives, the loss of major environment for wrongful acts by companies of all kinds
industry sectors and the long-term corruption of the without adequate sanctioning or reparation.”
environment, then human-rights protections must be a What should the informed executive take away from
required element of corporate due diligence. Even a less the BP spill? Clearly, the massive debacle that BP now
conspiratorial view than Arnesen’s compels the conclu- faces on all flanks could have been avoided or minimized
sion that HRIAs should be the essential component of by institutionalizing HRIAs enterprise-wide in the
foreign business activities in the United States. due-diligence process, including projects in economi-
cally developed hosts. To be sure, it would have shone
light on disaster preparedness. The costs of an HRIA
ENVIRONMENTAL ASSESSMENT VS. in contrast to BP’s massive expenses from the harm it
HUMAN-RIGHTS IMPACT ASSESSMENT has done simply pale by comparison. In the process

BP
and other major oil companies did lim- of avoiding comparatively small costs, or perhaps just
ited environmental assessments prior to through miscalculation, BP has made itself inimical to all
launching deep-water drilling operations, stakeholders—investors, customers, employees, inhabit-
assessments that have been called deeply flawed: “All the ants, government and regulators. Have BP executives
companies operating in [the Gulf ] had, like BP, been risk- disregarded their responsibility to their company and the
ing a blowout that they had no technical means of dealing people surrounding it on the assumption that balloons
with, should it occur,” states The Economist. and ponies might compensate? DI

September/October 2010 77
A DIVERSITYINC SPECIAL REPORT : PART 1

TAKING Supplier
Diversity to the

Next
LEVEL Despite shrinking budgets and
more stringent regulations, corporate
supplier-diversity programs are thriving.
Here’s how several companies are making
a significant economic impact through
leadership commitment, more efficient
practices and innovative ideas.
BY GAIL ZOPPO
PHOTOS COURTESY OF BLENDIMAGES.COM

78 DiversityInc
September/October 2010 79
A DiversityInc Special Report
Taking Supplier Diversity
to the Next Level

It was the perfect match. Marriott International was in


the market for unique in-room products to offer guests trav-
eling with small children; entrepreneurs Allison Costa and
Amy Feldman were seeking clients for their newly patented
Coverplay, a stylish slipcover that fits over a child’s play
yard. But it wasn’t until last year, when several executives at
Marriott hotels brought Coverplay to the attention of lead- MARRIOTT
INTERNATIONAL’S
ership, that the business connection was made and a deal STÉPHANE MASSON
struck. Today, Costa and Feldman’s Coverplay products are
available at 2,500 Marriott-owned hotels, and the California-
based women-certified enterprise has grown more than 300 percent over the past year.
“It was a win-win-win,” says Feldman, “and every step of the way, Marriott was right there
helping us.”
Fostering business growth isn’t new to Marriott International and the other corporations
that earned a spot on The DiversityInc Top 10 Companies for Supplier Diversity. Started
83 years ago as a root-beer stand in Washington, D.C., Marriott has been transformed by its
leadership into a global hospitality giant that currently spends 15 percent of its annual pro-
curement budget with companies owned by veterans, LGBT people, women, Blacks, Latinos,
Asians and other businesses owned by traditionally underrepresented groups. Marriott is No.
7 on The DiversityInc Top 50 Companies for Diversity® list and No. 9 on The DiversityInc Top
10 Companies for Supplier Diversity.
“We really want to move our supplier-diversity program to the next level,” says Stéphane
Masson, Marriott’s recently named vice president of global procurement. Having spent $2.3
billion with diverse suppliers in the United States alone over the past five years, “we now want
to leverage our [North American and global supplier-diversity] efforts as one and show our
commitment to the vendor community,” he says.

BEST
PRACTICE
Have Top-Down
{1} Commitment

K
ey to supplier-diversity success is (MBEs) and 11 percent with women-owned
unwavering leadership commitment. business enterprises (WBEs).
Among The DiversityInc Top 10 The reason: MWBE procurement has
Companies for Supplier Diversity, all: a direct and positive economic impact on
• Have CEOs who personally sign off the communities where corporations do
on supplier-diversity goals and met- business, as diverse suppliers tend to hire
rics, compared with 86 percent of the more Black, Latino and other underrepre-
DiversityInc Top 50 companies sented employees than their white, male
• Audit their supplier-diversity numbers counterparts.
• Mandate that supplier-diversity For locally driven companies, such as
metrics be included in every request for service provider Cox Communications, “hav-
proposal (RFP) ing a diverse vendor base in the communities
These leaders spend an average of 13 per- we serve has tremendous value for us,” says
cent of their Tier I (direct contractor) spend George Richter, vice president of supply-
with minority-owned business enterprises chain management. Cox Communications

80 DiversityInc
“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2010 Pacific Gas and Electric Company. All rights reserved.
The heart of PG&E is a diverse workforce of more than 20,000
people representing a remarkable range of backgrounds and
life experiences. Our diversity allows us to anticipate, understand
and respond better to the needs of our 15 million customers.
We are proud to have been recognized nationally for our
diversity accomplishments.
RANKED NO. 2 ON THE 2010 DIVERSITYINC TOP REGIONAL UTILITIES

This commitment extends to how we do business. As a major


purchaser of goods and services, Pacific Gas and Electric
Company is committed to creating partnerships with businesses
owned by women, minorities and disabled veterans. The people
we work with should be as diverse as the people we serve—
the people of California.
RANKED NO. 3 ON THE 2010 DIVERSITYINC TOP 10 COMPANIES FOR LATINOS
RANKED NO. 10 ON THE 2010 DIVERSITYINC TOP 10 COMPANIES FOR
SUPPLIER DIVERSITY

Find out more about careers with PG&E and about our supplier
diversity efforts. Visit us on the Web at www.pge.com
A DiversityInc Special Report
Taking Supplier Diversity
to the Next Level

Top-Down Commitment
(continued)

is No. 21 in the DiversityInc Top 50 of white-owned businesses rose by just


and No. 8 in The DiversityInc Top 10 13.6 percent, to 22.6 million, with annual
Companies for Supplier Diversity. receipts of $9.4 trillion in 2007.
California-based utility PG&E In 2007, for the first time in history, the
concurs. “We very much see Census Bureau began collecting data on vet-
ourselves as part of the economic eran-owned businesses. A formidable force,
community,” says Supplier Diversity they accounted for 2.4 million companies
Director Joan Kerr. PG&E, No. 10 in and had receipts totaling $1.1 trillion in 2007,
The DiversityInc Top 10 Companies with the largest percentage of businesses in
for Supplier Diversity and No. 2 the professional, scientific, and technical-
in The DiversityInc Top 5 Utility services and construction sectors.
PG&E’S JOAN KERR
Companies, spends 25.6 percent of The number of women-owned business-
its total annual procurement dollars, es increased as well, up 20.1 percent since
or nearly $1 billion, with Tier I and 2002 to 7.8 million in 2007. Women-led
II MWBEs, up from 23.9 percent in companies “significantly contribute to our
2009. tax base and to employment,” explains Dr.
DiversityInc’s Top 10 Companies Marsha Firestone, president and founder
for Supplier Diversity also realize of the WBE-certification group Women
that business opportunity is a two- Presidents’ Educational Organization. In
way street, with MWBEs helping 2007, there were 911,285 women-owned
corporations build brand loyalty. employer firms, employing 7.6 million
With women making about 85 per- people with a total payroll of $218.1 billion.
cent of all household purchasing In the latest Women Presidents’
decisions (Adweek) and the buy- Organization survey of the 50 fastest-
ing power of Blacks alone expected growing women-led companies in North
COX COMMUNICATIONS’ to hit the trillion-dollar mark next America (those whose annual revenue grew
GEORGE RICHTER
year (Selig Center for Economic by $30 million between 2005 and 2009),
PFIZER’S PAMELA Growth), “it’s our responsibility researchers found women business owners
PRINCE-EASON to show that we value them,” says are innovative, nurturing and tend to:
Pamela Prince-Eason, vice president É RECRUIT TOP TALENT 78 percent say
of worldwide procurement at Pfizer “hiring the right people” contributed to
(one of DiversityInc’s 25 Noteworthy their company’s expansion
Companies) and board chair at É BE GROWTH DRIVEN 71 percent agree
the women-certification organiza- or strongly agree that their goal from the
tion Women’s Business Enterprise start has been to build a large company
National Council (WBENC). É INSPIRE OTHERS 64 percent report
As a result, the number of minor- that their “ability to motivate employ-
ity- and women-owned businesses— ees” is a key characteristic for success
and the number of people they É BE ADAPTABLE More than half
employ—is steadily rising. The U.S. (61 percent) say they weathered the
Census Bureau’s recently released economic downturn by shifting business
report found that minority-owned strategies
businesses jumped 45.6 percent to In addition, “it has been our experience
5.8 million between 2002 and 2007—more that diverse suppliers are very creative,”
than twice the national growth rate of all explains a company spokesperson for
businesses. Their annual receipts increased Eastman Kodak Co. “[They] have a differ-
55.6 percent over the same five-year period ent perspective of how to get things done.”
with receipts of $864.2 billion in 2007. And Given the current economic climate,
the 768,147 minority-owned companies how else can corporations open contract-
with paid workers in 2007 employed nearly bidding opportunities to vendors from all
6 million people. In contrast, the number backgrounds?

82 DiversityInc
SEEKING (adjective)

SUPPLIERS TO INCREASE
, PROVIDE (noun)

PRODUCTS (adjective)

AND SERVICES, AND


ON SOLUTIONS. (verb)

We’re looking for more than diversity from diverse suppliers.


We call on diverse suppliers to help us deliver distinctive, innovative solutions in food, agriculture
and risk management around the world and around the clock. At Cargill, we recognize that we are
a stronger company when we tap the power of diversity, which includes developing a supply base
that reflects the communities in which our employees and customers live and work. If your company
has something exceptional to offer and you qualify as a diverse supplier, there may be a place in our
supply chain you are best positioned to fill.

To learn more, visit www.cargillsupplierdiversity.com

www.cargill.com
©2010 Cargill, Incorporated .OURISHING)DEAS.OURISHING0EOPLE
A DiversityInc Special Report
Taking Supplier Diversity
to the Next Level

BEST
PRACTICE
Set Metrics to
{2} Ensure Accountability

A
mong The DiversityInc Top 10 Companies for
Supplier Diversity, all audit their supplier-diversity WOMEN
PRESIDENTS’
numbers and have the head of supplier diversity EDUCATIONAL
report to the chief of procurement to ensure accountabil- ORGANIZATION’S DR.
ity. At Marriott International, for example, targets are set MARSHA FIRESTONE
and measurements are reported quarterly to a board-level
committee.
To avoid the cookie-cutter approach, Cox Communications sets individual goals that differ
for each of its business systems based on size. “Then we incent [through performance bonus-
es] against those supplier-diversity targets, which are reported monthly and quarterly,” says
Richter, noting that the supplier-diversity department, which he oversees, shares the report
with the diversity council that President Pat Esser sits on. Beyond mandating that supplier
diversity be part of the competitive-bidding process, Cox has created a sophisticated scorecard
that “makes sure we’re putting the appropriate weighting as it relates to … diverse vendors …
to measure the benefits of selecting them,” he says.

BEST
PRACTICE
Integrate Supplier Diversity
{3} Throughout the Organization

T
WELLPOINT’S
WELLPOINT’S
his is standard operating procedure for all of The DiversityInc Top 10
SUPPLIER
BRENDA Companies for Supplier Diversity. Take PG&E’s “line-of-business champion”
DIVERSITY
BURKE
DIRECTOR
program: After each business-unit leader establishes realistic annual goals
BRENDA that are signed off by senior executive leaders, an internal champion for each unit
BURKE ensures that supplier diversity is integrated throughout the team. This way, “we
have an entire officer corps with supplier-diversity commitments,” says Kerr.
In addition to working hand in hand with the sourcing team, Indianapolis-based
WellPoint’s supplier-diversity department works closely with sales and marketing
throughout the RFP process. Also, WellPoint (No. 50 in the DiversityInc Top 50)
has begun identifying enterprise-wide commodity champions “who will serve as the
eyes and ears of supplier diversity,” says Supplier Diversity Director Brenda Burke.
“They will keep their finger on the pulse of opportunities, serve as liaisons between
[the supplier-diversity department] and their commodity stakeholders and assist
with diverse spend targets for those areas.”
To raise awareness and understanding, Eastman Kodak Co. provides internal
employee supplier-diversity training; all individuals who are involved in making pur-
chasing decisions go through the program. WellPoint—which has set annual supplier-

“Small businesses are the backbone of our economy.


They are central to our identity as a nation.
They are going to lead this recovery.”
PRESIDENT BARACK OBAMA

84 DiversityInc
Diversity &Inclusion
© Eastman Kodak Company, 2010

drives innovation and success


Kodak’s commitment to diversity and inclusion touches customers,
consumers, employees, suppliers, shareholders, and more. While our
vision is global, we focus upon the distinctive cultures and communities
in which we live and work.

We champion diversity as a business imperative to help drive


innovation. Working together, we create technologies and services
that unleash the power of pictures and printing. Become part of our
picture—and join us on our journey to enrich people’s lives.

www.kodak.com/go/diversity
A DiversityInc Special Report
PEPSICO’S
Taking Supplier Diversity
to the Next Level CHRIS
KNOX

Integrate Supplier Diversity


(continued)

diversity spending goals of 10 percent in 2010, 12 percent


in 2011 and 14 percent in 2012—plans to roll out a “supplier
diversity 101” program for all associates that will answer basic
questions such as “What is the value of supplier diversity?
What’s the business case? Why is it important to WellPoint?”
explains Burke.
Some companies are tapping employee-resource groups to
help integrate supplier diversity. To begin sourcing products/
services from LGBT-owned businesses, PepsiCo’s global procurement and supplier-diversity
teams partnered with EQUAL@PepsiCo to jointly sponsor a supplier-diversity roundtable in
Chicago produced by the LGBT-certifying organization National Gay & Lesbian Chamber of
Commerce.
“We want to make sure our supply base is as diverse as our internal talent,” says PepsiCo’s
Supplier Diversity Director Chris Knox. “And when supplier diversity is integrated into the stra-
tegic-sourcing process, it makes it much more sustainable.” In 2009, PepsiCo’s annual supplier-
diversity spend was $1.3 billion (Tier I and Tier II), up 4 percent from the previous year.

BEST
PRACTICE
Invest in MWBE
{4} Education/Training

P
G&E is strengthening its investment in its suppliers and helping them gain a competi-
tive edge by educating MWBEs about sustainability. The utility includes MWBEs in not
only new green-building project opportunities but also in sharing information about
green trade shows and providing online and in-person environmental courses to reduce their
carbon footprints. “These are the kinds of requirements that corporations are putting in their
RFPs and scorecards,” says Kerr. “PG&E has set an internal goal for 75 percent of RFPs to have
a green component.” PG&E sees this as an investment to make sure MWBEs “aren’t getting
left behind,” says Kerr. “Sustainability is a global trend … and it will very soon become a table
stake.”
Some companies sponsor select suppliers to attend executive-education programs, avail-
able at Dartmouth’s Tuck School of Business or Northwestern University’s Kellogg School of
Management, or Lean Six Sigma seminars. After PepsiCo invested $4,000 to send two suppliers
through Six Sigma, the companies have seen a benefit of $1.2 million in savings.

BEST
PRACTICE
Share In-House Expertise
{5} With MWBEs

K
odak’s suppliers have free access to the know-how of
its quality engineers, who will review vendors’ pro-
cesses and make money-saving recommendations.
Cox experts, working through the Georgia Minority Supplier
Development Council, offer member vendors workshops on,
say, the best ways to respond to RFPs or what to know about
legal contracts. Chicago-based Health Care Service Corp.
HEALTH CARE
(HCSC) began providing marketing and procurement soft- SERVICE CORP.’S
ware training to its suppliers, among other things. “One of the MALINDA BURDEN

86 DiversityInc
What If It Only
Came In Gray?
Motorcycles drenched in smokey gold.
Lava red sunglo. Flames. And Flecks. Our company
wouldn’t be the same without diversity.
Neither would our world.

On the road of life, we all ride together.

To learn more about our community involvement, visit us at www.harley-davidson.com

©2009 H-D
A DiversityInc Special Report
Taking Supplier Diversity
to the Next Level

Share In-House Expertise


(continued)

challenges … they were having was providing the right feedback when they were bidding for
a particular job,” says Director of Supplier Diversity Malinda Burden. Since initiating the pro-
gram, seven new MWBEs have been awarded contracts from HCSC (No. 20 in the DiversityInc
Top 50) in the past year.

BEST
PRACTICE
Protect Your Investment,
{6} Provide Financial Support

M
any companies nowadays are adjusting payment terms from 30 days
to 45, 60 or 90 days to keep suppliers in business. Until lawmak-
ers pass some version of the Small Business Bill, companies such as
Minneapolis-based Cargill are coordinating loans with MWBEs so they can
secure additional lines of credit.
“We’ve had some diverse suppliers that, unfortunately, didn’t make it through
the financial crisis,” admits North American Procurement Leader Roger Larsh.
“So one of the things we’ve had to do is put more rigor around … putting stronger
plans in place to successfully … support our suppliers and help them grow with
us.” Over the past year and a half, the agribusiness has worked closely with a new
WBE to develop a strategic plan that’s helped it expand to the point where it’s
now doing $2 million a month in business with Cargill and employing between
30 and 40 people.
Financial support can also come in the form of expertise. At Atlanta-based
CARGILL’S
ROGER LARSH
Cox Communications, as part of the one-year Georgia’s Mentor Protégé
Connection program, an MBE has been paired up with Cox’s finance and
accounting teams with the goals of improving the company’s financial infrastruc-
ture and sharing metrics.

BEST
PRACTICE
Tap Suppliers
{7} for Solutions

B
y listening to advice from one of its hardware suppliers, Cox was able to improve the
way in-store customers are directed to the next service representative when waiting in
line. Similarly, PepsiCo gets cultural feedback from MWBEs during taste tests to deter-
mine flavoring preferences among various racial/ethnic groups.
Many companies report that Tier I vendors will often make suggestions to use Tier II
diverse suppliers, and Cargill is heeding the call. This year, Cargill reached out to these suppli-
ers and brought a mix of new MWBEs into the fold, representing $8.5 million to $9 million in
new spend. “Hopefully, these second tier will turn into first tier,” says Larsh.

DiversityInc’s upcoming event in Washington, D.C., on Nov. 8–9 will offer more advice on evolving
diversity-management strategies. For information, go to www.DiversityInc.com/events

88 DiversityInc
Lifting communities by working together.
The mission of Blue.

At Blue Cross and Blue Shield, we respect a culture of diversity and value the different talents, perspectives, and
experience that contribute to our company.
In our communities we provide vital health and wellness services like our Care Vans that travel to underserved
areas, partnering with health care providers to offer immunizations and screenings. In addition, we support myriad
charities and organizations, educational programs and initiatives, while ensuring the use of minority suppliers.
If you are a diverse supplier interested in doing business with HCSC, visit our website at;
www.hcsc.com/commitments/supplier-diversity.html to learn more.

Expe e e e e Ee ee ™

A Division of Health Care Service Corporation, a Mutual Legal Reserve Company,


an Independent Licensee of the Blue Cross and Blue Shield Association.
A DiversityInc Special Report
Taking Supplier Diversity
to the Next Level

BEST
PRACTICE
Consider
{8} Consortiums
O
ften, MWBEs don’t individually have the clout to win large contracts, but when com-
bined with other MWBEs, they do. And supplier-diversity consortiums help them
build capability so they can take on larger contracts. Companies often host supplier-
diversity events to help vendors form collaborative contracting relationships, and purchasing
managers can tap contracting consortiums. Example: When 23 information-technology com-
panies wanted to bid for portions of the U.S. Air Force’s $24-billion NETCENTS 2 contract,
they joined forces under the Minority Information Technology Consortium (MITC), whose
members are classified as either an SBA 8(A), HUB zone, business owned by veterans with
service-acquired disabilities, WBE, small disadvantaged business or veteran-owned business.
Although the deal is still pending, the consortium has opened the doors of opportunity for
these businesses.
“A company would have great difficulty winning a contract even twice its annual revenues,
[but] a consortium translates into strength in numbers and is a way of formalizing how we
pool our collective capabilities,” says Dr. Randal Pinkett, chairman and CEO of MITC-member
company BCT Partners and the fourth-season winner of “The Apprentice.”

“A consortium translates into strength


in numbers and is a way of formalizing how we
pool our collective capabilities.”
DR. RANDAL PINKETT, CHAIRMAN AND CEO OF BCT PARTNERS

BEST
PRACTICE
Partner With Regional or
{9} Industry-Focused Groups

S
everal years ago, HCSC partnered with in the United States. FSR-SD is creating a
Chicago United in the Five Forward supplier-diversity spend accounting stan-
Initiative, a local MWBE-development dard to help better benchmark the financial
commitment to work with five companies industry, and it has hosted a capital summit
over a five-year period. As a result, the initia- to facilitate relationships with private equity
tive has helped HCSC bring aboard a new and venture capital firms, among other
law firm and staffing agency—and moved its initiatives.
supplier diversity to the next level. In addition, Cargill, which spent close to
Industry-focused groups such as the $300 million with North American MWBEs
Financial Services Roundtable Committee this past year (or 15 percent of total spend),
on Supplier Diversity (FSR-SD) also move regularly hosts the local supplier-diversity
the dial. This 10-year-old peer group of council events at its facilities while sharing
National Minority Supplier Development information about its sourcing initiatives.
Council (NMSDC) members consists of 43 “This is much more productive than saying
of the largest financial-services companies ‘Go look at our website,’” says Larsh. DI

For more on supplier diversity, go to www.DiversityInc.com/supplierdiversity

90 DiversityInc
Who makes our company tick?
Perhaps the better question is
who doesn’t?

Cox Communications believes the strength of our company lies in the


diversity of our people. It’s a philosophy that translates
into success. For ourselves, our customers and, more
importantly, our society. We’re all connected.
A DiversityInc Special Report
Taking Supplier Diversity
to the Next Level

Supplier Diversity % Spend


Facts and Figures The DiversityInc Top 10
Companies for Supplier Diversity
% SPENT WITH MWBEs (TIER I)

MINORITY-OWNED
Women/Minority-Owned Business Growth BUSINESS ENTERPRISES
(2002–2007)

2007

Number
1.9 2.3 1.6
7.8
13%WOMEN-OWNED
Percent
of firms
(millions)
60.5% 43.6% 40.7% 20.1% increase BUSINESS ENTERPRISES

2002
1.2
Black-
1.6

Latino-
1.1

Asian-
6.5

Women-
11%
owned
Source: U.S. Census Bureau
owned owned owned
Best
Practice
Minority Women-Led Businesses The DiversityInc Top 50
Companies for Diversity

1.9 million 1.2 million


employed by these firms
MANDATE SUPPLIER-DIVERSITY
METRICS IN RFPs

60%
companies headed by women from
traditionally underrepresented
groups (Black, Latina, Asian) $165 billion
revenues they generate annually
Source: Center for Women’s Business Research
in 2005
VS.

Minority-Owned Business Receipts Rising


Percentage increase 2002–2007
92% in 2010
Source: DiversityInc
All U.S. 33.5%
All minority-owned 55.6% Veteran-Owned
Native Hawaiian/Pacific Islander–owned 62.9%
Businesses
BY EMPLOYER STATUS: 2007
Asian-owned 57.3%
With paid
employees
Latino-owned 55.5% 20.1%
Black-owned 55.1%
American Indian/ TOTAL FIRMS
Alaska Native–owned 28.3% 2,449,477
Source: U.S. Census Bureau

With no paid
employees
79.9%

Source: U.S. Census Bureau

92 DiversityInc
A DIVERSITYINC SPECIAL REPORT : PART 2 DiversityInc recently convened a roundtable of heads
of supplier diversity at four companies that have made
supplier diversity a crucial part of their business growth.

Full best practices on supplier diversity are available at


www.DiversityIncBestPractices.com/supplier-diversity
and will be in the December issue of this magazine.

Here are the important answers to the


first crucial question that makes the actual
business case for supplier diversity.

THE
Business A DIVERSITYINC ROUNDTABLE

CASE
Supplier Diversity
FOR

BY BARBARA FRANKEL

THE PANELISTS

ADRIENE BRUCE ADRIENNE TRIMBLE TYRA PAYTES THERESA BARRERA LUKE VISCONTI BARBARA FRANKEL
Manager of supplier Manager of supplier Manager of Vice president of CEO, DiversityInc Senior vice president,
diversity, Ameren diversity, purchasing strategic sourcing supplier diversity and executive editor,
division, Toyota (No. and supplier diversity, associate resource DiversityInc
36 in the DiversityInc Cox Communications groups, Walmart
Top 50) (No. 21 in the
DiversityInc Top 50)

94 DiversityInc
Corporate Supplier Diversity
Let’s talk

Wells Fargo is proud to be a part of the DiversityInc Special Editorial Report:


Take Supplier Diversity to the Next Level.
By establishing relationships with minority-, women-, LGBT-, disabled-,
veteran-, and disabled veteran-owned enterprises and community
organizations, we support the inclusion and utilization of diverse businesses.
Together, we sustain a vibrant and responsive Wells Fargo supply chain
impacting our customers and our communities.
For more information, contact the Wells Fargo Corporate Supplier Diversity
team at corporatesupplierdiversity@wellsfargo.com.

wellsfargo.com
© 2010 Wells Fargo Bank, N.A. All rights reserved.
Member FDIC. ECG-337705
A DiversityInc Special Report
The Business Case for
Supplier Diversity

Why is supplier diversity


important to your company?
BRUCE: At Ameren, because we’re to do, the softer side of the revenue- important that we have suppliers
a regional firm [providing utility generation arm of the company. It’s that can bring innovation and cost
services in Missouri and Illinois], we really not; it is a business strategy in reduction to the table. They create
want our communities to be strong which you invest in your community their own competition within the
for our own long-term growth. We to invest in your own self eventually. supply chain that allows us to get the
see supplier diversity as a cyclical The jobs that are created through best product for the best price. They
process; we want our customer base these small and medium businesses also bring a diversity of ideas to the
to equal our supply base. We know will create more households that table that we might have overlooked
that the demographics of our com- will have more opportunities to buy if we had made a very deliberate
pany are changing drastically and products and services from us. effort to bring different suppliers to
our supply base is an increasingly the table. At Toyota, we don’t make
diverse supply base. TRIMBLE: We sell cars, and in order parts ourselves, so it’s important we
to do that with the general public, have a very competitive advantage
PAYTES: We recognized that small- they need jobs that create cash that with our supplier partners.
and medium-sized businesses are creates disposable income. That
the engine for the economic growth creates the need and ability to pur- VISCONTI: I think the success of
in our communities. Being a cable, chase a vehicle. There is a very clear Toyota is directly related to the
telecommunications, Internet and business case for us. The impact of relationship it has with the com-
business-services company, we the supply chain is also important. munities it’s in. If you understand
know that the better our communi- We don’t have an open bid process; that it’s your responsibility to make
ties do, the better we will do as well. we invite suppliers to bid on our equitable supply-chain employment
For many years, people thought of RFQs [requests for quotes] and and democratize it, you then become
supplier diversity as the right thing RFPs [requests for proposals]. So it’s more successful.

Tyra Paytes, Cox


Communications,
and DiversityInc’s
Luke Visconti

96 DiversityInc
Partners in the Promise

“The Coca-Cola Company exists to benefit and


refresh everyone who is touched by our business.”

The Coca-Cola Company always welcomes new partners.


For more information about becoming a qualified supplier,
please contact Office of Supplier Diversity.

www.coke.net/supplierdiversity

©2010 The Coca-Cola Company. “Coca-Cola,” the Dynamic Ribbon and the Contour Bottle design are registered trademarks of The Coca-Cola Company.
A DiversityInc Special Report
Taking Supplier Diversity
to the Next Level

TRIMBLE: Our headquarters are in


Japan but we have a very strong
presence and commitment to North
America, and our supply chain
offers us that ability to have deep
roots in the communities where we
build and sell our vehicles. You can
see it at many of our manufacturing
facilities, particularly where we have
built large facilities, and we have
created a supply base to support that
particular location. San Antonio is
a great example of that—we had 20
suppliers that were located on site
and seven of those were minority
joint ventures that created hundreds
of jobs for the community. It’s important that we have suppliers
BARRERA: At Walmart, since that can bring innovation and
2004/2005, we’ve really decided to
go after supplier diversity in a big
cost reduction to the table.
way. We changed our way of think- ADRIENNE TRIMBLE, TOYOTA
ing from just reporting our spend-
ing with diverse suppliers to really
going after them and advocating it were able to get the money were We went after them and educated
within the company. Internal educa- women- and minority-owned and them and they doubled the business
tion has been a huge part of what we’re excited about that. We started they did with diverse suppliers in
we’ve done … When you have over off with $25 million the first time, one year. More importantly, when
400 buyers and more decision mak- and we are researching different we sign a contract with any general
ers who are signing contracts every avenues and what to do next. contractor, there’s a clause requiring
day for our company, it’s very impor- them to report their diverse subcon-
tant. With external communications, FRANKEL: What kinds of constraints tractors, and we’re going to be track-
we are making sure the diverse do you face, either in your indus- ing and following that through.
suppliers understand what we’re try or because of the size of your We’ve also learned that unless
trying to accomplish within. The company, in maximizing supplier- you’re a really big company, like a
main thing is we want to be relevant diversity advantages? Procter & Gamble or a Kraft Foods,
to our customers and our members you can’t supply Walmart on a
at Walmart and Sam’s Club. BARRERA: Because of our size, national level, so we need to focus
our biggest constraint is keeping on regional suppliers. That means
VISCONTI: You actually started an everybody informed when we have buying dairy from the local dairy
investment fund to help companies turnover and making sure everybody or buying Georgia peaches from
grow. Can you talk about that? understands what we did. In 2009, Georgia. We have a locally grown
we did $9.2 billion with diverse sup- program that is good for the com-
BARRERA: We started it in 2000. In pliers—$6.9 billion was direct spend munities and it’s fresher produce for
2005, we started up the Pinnacle and it was a 16 percent increase from our customers and it’s sustainable
Fund and it was mainly for diverse the year before. so that we’re not moving product
companies to go out and get equity. One of the things that we want around the United States.
That fund has been 98 percent to make sure we’re doing is really
exhausted, and now we’re seeing having an impact. One of the areas TRIMBLE: For the automotive indus-
some benefits. The companies that we picked in 2009 was construction. try, it’s been quite a challenge in

98 DiversityInc
Thanks to You,
A beautiful day at the park feels
like a lifetime of sunshine.

It's just one more place we see the benefits


of improving the lives of the people we serve.
As one of DiversityInc's Top 50 Companies for Diversity in 2010, WellPoint is
proud of our dedication to diversity. Still, with all that we've achieved, we will
always strive to better attract, retain and develop top diverse talent. One way
is through our Associate Resource Groups (ARGs), where employees work to
develop and sustain our culture of inclusion, enhance and maximize customer
relationships, and create and leverage leadership opportunities for all of our
associates. Through these ARGs, we're able to better address our customers'
needs, and ensure that our workforce is as unique as our wide range of health
benefits products.

At WellPoint, diversity is more than just the 'right thing to do.' It's the way we
approach business, how we interact within our communities, how we mobilize
our employees and, more than anything, why we appreciate moments like this.
For more information, visit: www.wellpoint.com/diversity

® Registered Trademark, WellPoint, Inc.


® Registered Trademark, DiversityInc Media LLC
© 2010 WellPoint, Inc. All Rights Reserved. EOE
A DiversityInc Special Report
Taking Supplier Diversity
to the Next Level

Adriene Bruce,
Ameren (left), and
Theresa Barrera,
Walmart

When we sign a contract with any general contractor, there’s a


clause requiring them to report their diverse subcontractors, and
we’re going to be tracking and following that through.
THERESA BARRERA, WALMART

in the last several years. What’s Detroit automakers, so as they BRUCE: For Ameren, the spe-
been particularly difficult for us at went through a lot of challenges, cific challenges are related to our
Toyota is that for several years, we that impacted the rest of us and we reducing our supply base. We’ve
were in the growth mode and we lost quite a few of them. Our plan done a lot of restructuring. We
were adding plants and product to is to continue looking at how we went from 33,000 suppliers earlier
North America. That gave us lots of source strategically, making very this decade to roughly 9,000 sup-
opportunities to add new suppliers. deliberate decisions on where we pliers today, and we are trying to
Now our production is stable want to include new suppliers and shrink our supply base further.
in North America, so we don’t making sure that we have specific We want to do more business with
have as many opportunities. On targets and goals that will allow us our current supply base so they
top of that, we have a very strong to add new suppliers as we need are sustainable but the shrinking
supplier-relations philosophy to to. Right now our goal is 10 percent base is a constraint on many of
grow our current supply base. So for minority outsourcing, and we’re the smaller suppliers. That’s why
for instance, we have a plant in ensuring we have as much as that we launched in 2009 our second-
Mississippi that’s scheduled to captured on the Mississippi plant. tier program. We require all of
open in 2011. We’re looking to grow our prime contractors to create a
our suppliers and add procure- VISCONTI: What kind of strength do business plan when they’re in the
ment opportunities for them and you put on the setting of goals? middle of the bid process on what
we know we won’t have that many they’re going to do to help us get to
opportunities to add beyond 2011. TRIMBLE: In our company, what gets those goals. DI
We share our suppliers with the measured gets done.

For more best practices from other supplier-diversity experts, go to


www.DiversityIncBestPractices.com/supplier-diversity

100 DiversityInc
DIVERSITY INCLUSION
C EMPLOYMENT LAWC

‘Abusive’ Workers May Be an


LEGALUPDATE

Employer’s Liability Plus, can an employee be terminated


for planning to file for bankruptcy?
Can obesity be a perceived disability?
Find out how the courts have ruled in
these and other cases.
BY BOB GREGG

Image courtesy of www.BlendImages.com

For in-depth research on effective leadership, legal issues and more, visit
www.DiversityIncBestPractices.com

102 DiversityInc
Age Discrimination
Employees must work well with others.

A 51-year-old employee was not called back after a layoff; he then


applied for and was denied interviews for other open jobs with the
company. As a result, he sued for age discrimination. In Viergutz v. Lucent
Technologies Inc. (6th Cir., 2010), the company successfully defended
the case with tangible proof that it did not consider the plaintiff eligible
for reinstatement because he did not work well with others and needed
Uniformed Services
constant supervision. There was evidence that while he was employed, his Employment and
coworkers considered him “ready to snap” and they were always on guard Reemployment
to not set off his temper. The court ruled that “the inability to get along Rights Act (USERRA)
with coworkers is a sufficient basis” for non-recall, for refusal to hire an The USERRA protects service
ex-employee or to fire a current worker. Note: This case should be kept in members’ re-employment rights
mind in light of the proposed Wisconsin Abusive Workplace Act. Under when returning from a period of
service in the military, including
that anti-bullying law, an employer could also be liable to coworkers if it people called up from the reserves
rehired an abusive ex-employee. or National Guard. It also prohibits
employer discrimination based on
military service or obligation—to
Religious Discrimination the extent of the law.
Placement agency is not required to prove whether or
not its client company would have an undue hardship to No right to reinstatement
accommodate religious clothing. after company is sold.

K elly Services did not place a Muslim woman at a manufacturing plant


because its client’s safety rules prohibited loose clothing, including
head coverings. The woman was religiously required to wear a khimar head
During an employee’s tour of
active duty, a company sold the
facility where she had worked
covering. Kelly Services offered a series of other placements, including some at the time of being called up.
that paid more. But the woman refused, insisting she should be assigned to Upon return, the company
the manufacturing plant and that her khimar should be accommodated. In offered her another job, at a
EEOC v. Kelly Services Inc., the placement agency was sued but the manufac- different location. She rejected
turing plant was not. The court found in favor of Kelly Services; it ruled that the offer, however, believing
Kelly Services had no belief that the safe-clothing requirement was pretext that USERRA guaranteed her
and that the placement agency is not required to provide a defense on behalf return to the exact job, in the
of another, nonparty company (its client) for its policies. The plaintiff should same facility that she was in
have brought the manufacturing company into the case in order to challenge before. This was denied by the
its policies (8th Cir., 2010). new owners, and the employee
subsequently sued. In Reynolds
v. Rehab-Care Group East, the
Bankruptcy Protection court dismissed the case. It ruled
Planning to file for bankruptcy is a protected activity. that USERRA does not impose

T he Federal Bankruptcy Law prohibits employment discrimination


against those who “have filed” a bankruptcy (current or past). In
Robinette v. WESTconsin Credit Union (W.D. Wis., 2010), the employer
an obligation on a company that
was not the service member’s
prior employer, had no connec-
learned that an employee was contemplating filing a bankruptcy. The tion with the service member
employer fired her because the bankruptcy would reflect badly on the and had not taken on any of the
credit unit. The employer defended the discharge case by claiming that the previous owner’s employees. All
law only applied after a bankruptcy files—not for “contemplating.” But the USERRA rights were tied to the
court disagreed, prohibiting a preemptive strike by employers as long as the plaintiff’s prior employer, and
employee did follow through and actually file the bankruptcy. The judge also the new owner met its duty by
ruled that the bankruptcy law was the only remedy available. preserving and offering her an
alternative job when the old one
ceased to exist (8th Cir., 2010).

September/October 2010 103


Disability Discrimination
LEGALUPDATE

Court allows obesity as perceived disability.

In Frank v. Lawrence Union Free School District, the court has allowed an
Americans with Disabilities Act (ADA) case to proceed to trial on the “per-
ceived disability” of obesity. A probationary math teacher, weighing 350
pounds, received good evaluations and the recommendations for permanent
appointment from his direct supervisors and principals. An assistant super-
intendent overruled the recommendation, denying further employment.
Evidence showed the assistant superintendent had made remarks about the
teacher being “too big and sloppy” and that his size and weight would interfere
with his duties and were not conducive to learning. These comments about his
weight significantly impairing job duties led the court to believe there was a
perceived disability under the ADA. The assistant superintendent’s attempted
Family &
defense, that the teacher had poor performance and ineffective teaching meth- Medical
ods, was rejected as pure pretext in light of the uniformly good performance
evaluations and positive recommendations of several people who regularly
Leave Act
Federal FMLA grants eligible full-
observed him in the classroom (E.D. NY, 2010).
time employees (those who have
worked at least 1,250 hours during
a 12-month period) at organizations
Shift change may be a reasonable accommodation for with a workforce of 50 or more up
employees who cannot drive to work. to 12 weeks of unpaid leave for the
birth and care of a newborn; the
U nder the ADA, an accommodation usually focuses on on-the-job items to
assist a person in performing duties. In Colwell v. Rite Aid Corp. (3rd Cir.,
2010), however, the employee could perform all duties well. But when she
adoption of a child or foster child; the
care of an immediate family member
with a serious health condition; and
developed blindness in one eye, she could no longer drive to work at night. It personal medical leave because of a
was also shown that alternative transportation was unavailable. The company serious health condition.
informed the employee that getting to work was her responsibility and did
not explore a change to the day shift. She resigned and then sued, claiming Walt Disney World is
constructive discharge. The court agreed with the plaintiff, finding that the not the proper place
employer apparently failed to engage in the interactive process and consider for FMLA.
a scheduling accommodation. The ADA specifically states that “reasonable Just days after being counseled
accommodation can include a modified work schedule.” for poor performance, a sheriff’s
department investigator was
diagnosed with cytomegalovi-
Doctor could not safely treat patients. rus and then stayed off work for

A doctor, during his post-graduation internship, misdiagnosed patients,


prescribed wrong medications, prescribed 10 times the proper dosage of
the correct medication and once identified a living patient as being dead. He
several weeks. She spent two
of those weeks entertaining a
house guest and visiting Florida
ignored directions from senior physicians and was “extremely argumentative” tourist attractions. Although
when errors were discussed with him. After a diagnosis of “possible atten- the employee submitted several
tion deficit disorder,” the doctor asked for accommodations of a significantly doctors’ notes during the leave,
reduced number of patients and a “more compassionate environment.” But the none verified that the condition
hospital could not reasonably reduce the number of patients below the level was serious enough to render her
required for interns by the Accreditation Council for Graduate Education. A unable to perform duties. She
special team of doctors had been formed to provide coaching with his notes/ was subsequently terminated. In
charts and assist when he expressed having difficulties. The doctor’s perfor- Gunzburger v. Sheriff of Broward
mance, however, did not improve and he was discharged. He subsequently County (11th Cir., 2010), the court
sued under the ADA for “perceived disability” discrimination. In Shir v. U. of found in favor of the defendant.
Maryland Medical Systems Corp., the court dismissed the case, finding that the The plaintiff’s activities were
doctor was not a “qualified person with a disability”; he could not perform the inconsistent with a need for
work even with accommodation. “No reasonable jury could find that he provid- FMLA leave, and she did not pro-
ed safe and appropriate care for patients,” stated the court (4th Cir., 2010). DI vide adequate medical proof of a
serious condition.

Bob Gregg, partner in Boardman Law Firm, shares his roundup of diversity-
related legal issues. He can be reached at rgregg@boardmanlawfirm.com.
To read more legal articles from Gregg, visit www.DiversityInc.com/legal.

104 DiversityInc
THEINSIDEVIEW

C AFFIRMATIVE ACTION C

Are there real legal


risks of workplace
diversity programs?
DIVERSITY PROGRAMS:

Debunking
3 Myths BY WELDON LATHAM

WITH THE EXPONENTIAL GROWTH IN STORIES ABOUT MODERN


WORKPLACE DIVERSITY PROGRAMS, from blogs and articles to scholarly studies
and U.S. Supreme Court cases, several recurring legal myths have developed that reflect
some discomfort with the whole notion of diversity. True, the law of affirmative action,
equal opportunity and workplace diversity is oftentimes not very clear. But the vacuum
is often filled with speculation, uninformed opinion and bad advice, usually on the
conservative side—“If there’s any question about legality,” the naysayers advise, “just
don’t do it.” Here, three such myths are dispelled to help corporate America make
informed decisions about the true legal risks in aggressively pursuing diversity
objectives and practices.

To learn more about effective diversity-management practices, visit www.DiversityIncBestPractices.com

106 DiversityInc IMAGE COURTESY OF WWW.BLENDIMAGES.COM


MYTH 1 EEOC charges and lawsuits are still
Employment decisions based on race (or gender or a very small fraction of all discrimi-
other protected classes) are illegal. nation complaints and an even
smaller percentage of successful
Not true. Where an appropriate factual basis exists, employers may consider discrimination cases. While
race and other protected characteristics in making employment decisions, regrettable when they occur, they do
such as hiring, promotions and access to training. The Supreme Court not carry anywhere near the
declared in United Steelworkers v. Weber (1979) and Johnson v. Transportation reputational-damage risk of classic
Agency of Santa Clara County (1987) that race- and gender-conscious employ- discrimination claims, nor do they
ment decisions are valid when they are made pursuant to a written voluntary typically involve the financial risk,
affirmative-action program that is based on historic segregation in specific job multi-plaintiff classes or large sums
categories (later clarified to mean “significant underrepresentation”). In of damages or settlement dollars.
Weber, the court upheld a training program in which 50 percent of the Most major corporations are
positions were set aside for Blacks to redress past discrimination. In Johnson, familiar with the huge race/
the court upheld a gender-based promotion, also as a remedial measure. These gender–discrimination cases over
cases are still the “law of the land.” the past 20 years (Coca-Cola, $192
Of course, no corporation operating under a merit-based workplace policy million; Texaco, $176 million;
wants to, or should, randomly hire or promote people from racially or ethni- Novartis, $152.5 million). Who can
cally underrepresented groups or women regardless of qualifications, nor cite a singular significant reverse-
is that what Weber or Johnson suggest. Companies should continue to hire discrimination damage case?
and promote the most qualified applicants. In areas of demonstrated historic At least one CEO stated that
underrepresentation, companies should first and foremost use outreach tech- he would regard it as a “badge of
niques, diverse recruiters, mentoring and other tools to expand their appli- courage” to be the recipient of a
cant pools. But where underrepresentation persists despite the companies’ reverse-discrimination claim—it
best efforts, they can establish programs (like Weber’s training program) and would signal that his diversity
undertake ad hoc decisions (like Johnson’s promotion) to remediate the under- objectives were being aggressively
representation, so long as their voluntary affirmative-action plans provide the pursued. While he may have been
appropriate basis. These methods help identify highly qualified Black, Latino, speaking rhetorically, it makes the
women and other candidates who previously may have been overlooked. point that corporate America still
has too much classic discrimination
and underrepresentation to remedy
before it needs to invest major con-
MYTH 2 cern in avoiding minor risks associ-
Reverse-discrimination liability is as risky to ated with reverse-discrimination
corporate reputation as “classic discrimination” and claims.
thus requires strict limits on diversity practices in
the workplace.
MYTH 3
Not true. So-called “reverse discrimination” claims—typically a white male
complaint that he was not hired or promoted because of his race and gender—
Federal law is
do occasionally arise and do present a small risk of liability to corporate trending away from
America. But many companies over-emphasize the risk of reverse-discrimina- support of diversity in
tion claims: They should worry much more about “classic” discrimination the workplace.
claims from members of protected classes. Many companies receive, investi- Not true. Critics point to recent
gate and often remediate tens to hundreds of internal race-, gender- and Supreme Court case law, from the
age-discrimination complaints each year, at a cost of tens of thousands to Michigan cases (Gratz and Grutter v.
millions of dollars year in and year out. Yet those same companies are often Bollinger) to PICS v. Seattle School
reluctant to take aggressive measures to reduce or eliminate the causes of the District to Ricci v. DeStefano, in
complaints out of fear that they will cross the line and trade “classic” discrimi- arguing that the inexorable trend is
nation for one possible “reverse” discrimination. away from legal support for affirma-
The fact of the matter is that reverse-discrimination informal complaints, tive action, equal opportunity and

September/October 2010 107


THEINSIDEVIEW

Federal law has actually been expanding the rights of


Blacks, Latinos, Asians, women and other protected classes in
the workplace over the past two decades.
WELDON LATHAM

diversity in the workplace. But they treatment to protect the interests of programs to protect corporate
miss the point. Black, Latino and other underrepre- interests—in the workplace.
sented employees when it has a
… As noted above, Weber and “strong basis in evidence” that the ˆ The Obama administration is
Johnson are still as vibrant as they employer would otherwise be liable emphasizing aggressive enforce-
were 30 years ago and have not been for disparate-impact discrimination ment of corporate workplace
undercut by subsequent cases. They (in this case, as the result of work- fairness in staffing and funding its
expressly allow race- and gender- place testing). In Ricci, the facts did key agencies. The EEOC’s 2010
conscious employment decisions, not justify the otherwise permissible budget of $367 million increased 7
where the facts so justify. action in favor of the “minority” percent over 2009; the Office of
firefighters. Federal Contract Compliance
† The two Michigan cases not only Programs’ 2010 budget of $109
restated well-established law (Gratz, ‡ Federal law has actually been million increased 33 percent; and
no “quotas”), but actually expanded expanding the rights of Blacks, the Justice Department’s Civil-
affirmative action by announcing for Latinos, Asians, women and other Rights Division 2010 budget of $109
the first time that the demonstrated protected classes in the workplace million increased 12 percent. To
need for diversity in admissions (as over the past two decades—from quote Attorney General Eric Holder,
compared with historic discrimina- the Americans with Disabilities Act the DOJ will “fight discrimination
tion) is a compelling basis for (1990), Civil Rights Act of 1991 and and inequality as fiercely as the
race-conscious policies (Grutter). Family Medical Leave Act (1993) to Criminal Division fights crime.”
The Seattle Schools case was rightly the ADA Amendments Act (2008), To those who say the unavoid-
decided on the facts and law: the the Genetic Information able trend in the law is away from
school board’s policy clearly violated Nondiscrimination Act (2008) and diversity and inclusion in the
most of the fundamental require- the Lilly Ledbetter Fair Pay Act workplace, the evidence—case law
ments articulated in the Supreme (2009). Many of these statutes and statutory—is demonstrably to
Court precedent set forth in Grutter were passed expressly to reverse the contrary. DI
v. Bollinger, and thus was deserving the limiting interpretations of
of reversal. The Ricci white-fire- Supreme Court cases. These Special thanks to Jackson Lewis
fighters case, while often cited as a federal statutes and associated Corporate Diversity Counseling
blow to affirmative action, was not regulations have supported and Group Partner John M. Bryson II
for his assistance in this article.
even an affirmative-action case. expanded, not abridged, the rights
The Group is also preparing a substan-
Moreover, it held that an of protected classes—and thus, the tially more detailed scholarly treatment
employer may engage in differential importance of active diversity of this subject.

WELDON LATHAM
is a senior partn
partner in the Washington, D.C., regional office of Jackson Lewis LLP, chair of the firm’s
corporate diversity counseling group, and counsel to the PepsiCo Global Diversity and
Inclus
Inclusion Governance Council and the Omnicom Group Diversity Development Advisory
Com
Committee. He is also a professor teaching corporate diversity at the Georgetown
Un
University Law Center.

This is not and should not be relied upon as legal advice; as with any legal question, consult a qualified attorney.

108 DiversityInc
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C EDUCATION C
Is There
a Black
BUILDINGAPIPELINE

or Latino
Doctor
in the
House?
Rutgers University’s
ODASIS program is
helping to close the
racial/ethnic disparities
gap within healthcare
and other STEM
(science, technology,
engineering and
mathematics)
professions.
BY GAIL ZOPPO

I
n the fall of 2005, Alister Martin seemed the most Still, Black, Latino and American
Indian med students are rare.
unlikely candidate for Harvard Medical School. Laid Three years ago, more than 40,000
up in the hospital with “my face so swollen my mother people applied to medical school
didn’t recognize me,” he says, the high-school senior in the United States, with Blacks,
Latinos and American Indians
was recovering from a brutal gang attack. The situation had
making up only about 15 percent
escalated to a point that law enforcement advised Martin’s of the applicant pool, reports the
mother, a Haitian immigrant, to pull her son from Neptune Association of American Medical
(N.J.) High School to avoid further trouble. Colleges (AAMC), while com-
prising about one-third of the
So Martin’s mom secured a $15,000 loan and sent her son to Bollettieri population. That same year, only 8.7
Tennis Academy in Florida, where he completed his GED online. Martin’s percent of doctors were from these
drive and unwavering desire to become a physician pointed him to Rutgers underrepresented groups, accord-
University’s Office for Diversity and Academic Success in the Sciences ing to a study published in the
(ODASIS), whose Access-Med program prepares promising Black, Latino and “Journal of Academic Medicine.”
other undergrads from underrepresented groups for careers in medicine. The latest AAMC data shows
Four years later, Martin graduated from Rutgers with a 3.85 GPA and will only slight improvement: Among
begin Harvard Medical School this fall. “A miracle happened,” says Martin. the 42,269 med-school applicants
Each year, ODASIS serves roughly 500 at-risk undergrads, and more in 2009, only 16 percent were Black,
than 800 have graduated since the program’s founding in 1985. Among the Latino or American Indian. And
ODASIS class of 2009, 86 percent were accepted to medical school, up from this disparity extends beyond the
70 percent in 2007. physician pool—a mere 6.9 percent

For more on diversity in education, visit


www.DiversityInc.com/education

110 DiversityInc PHOTOS COURTESY OF WWW.BLENDIMAGES.COM


of people from these groups ended up as dentists in 2007, only 9.9 percent Academy, one of four college-prep
were pharmacists and just 6.2 percent were registered nurses. programs Khan oversees.
But it’s critical that all people be recruited into healthcare and other What motivates ODASIS
STEM fields because it will increase the quality of care and spur research students to succeed? Setting high
and development. Black, Latino and American Indian/Pacific Islander physi- standards and being held account-
cians are nearly three to four times more likely than whites to practice in able for their actions, explains
underserved communities, reports the AAMC. Khan. “If you walk into class late or
The dearth of diversity in STEM professions is what inspired the launch you miss a session and get three red
of ODASIS. In 1986, when the initiative began, only one Black student flags, you’re out of the program,”
from Rutgers was accepted to medical school, and he eventually became a he says. “Why so strict? If you want
radiologist. to be a doctor and you miss the
operation, someone dies. So we try
STEM-Enrichment Success to teach them to become mature at
ODASIS is a rigorous program that offers four years of step-by-step supple- a young age.”
mental instruction, academic enrichment and career advice designed to In addition to their regular
increase the pipeline of underrepresented talent in all STEM fields. The pro- coursework, ODASIS students are
gram is managed by Trinidad native Dr. Kamal Khan. required to attend
He ensures that a four-year academic plan is devel- roundtable-style
oped for each incoming freshman so he/she stays on WHERE ARE ODASIS academic support
track and pursues the appropriate opportunities. GRADS LANDING? sessions, study
As a result, these students, often the first in their halls (up to 9
families to attend college, gain self-confidence. Among the 859 graduates of the hours a week for
Before ODASIS, says Martin, “I never really believed Rutgers University ODASIS program freshmen), test-
in myself.” in 20 years, here’s a breakdown of the ing, motivational
Academic customization and an integrated learn- leading occupations: workshops and
ing approach have helped make ODASIS a success. Medicine (MD) 37% more. They also
As part of the Access-Med program, for example, Osteopathy (DO) 5.5% meet one-on-one
Khan formed collaborative relationships with local Biomedical Sciences (MBS) 2.9% with advisers
healthcare institutions to provide students with Dentistry (DMD/DDS) 2.1% twice a month
research training, professional learning and hands- Biomedical Research 1% to review their
on experience. Most unique to this pipeline program Physician Assistant (PA) 1% progress.
is the seven-month MCAT/DAT (Medical College Podiatry (DPM) 0.9% “If you’re not
Admission Test/Dental Admission Test) prep course. Nursing (RN/BSN/LPN/MSN) 0.9% doing well, they
Khan often starts working with students who have will call your
been identified as having an interest in the sciences family,” warns
the summer prior to their first semester at Rutgers. To Mekeme Utuk, an
facilitate the transition, Khan developed a five-week summer prep program ODASIS graduate who just com-
to expose students to basic math and chemistry. This summer, with financial pleted her first semester at Harvard
support from Merck & Co. (No. 13 on The DiversityInc Top 50 Companies for Medical School.
Diversity® list), Khan and his team are working with 25 students to help hone In exchange, the students appre-
their basic skills. ciate the opportunity. “All that I
“Students were coming in not prepared,” he says. “They didn’t have the could take tutoring for, I took,”
basic college math to take a college science course. So [we’d have] to sup- recalls Utuk, whose parents are
port them in the basics. Then by the time they finished the basics, they were Nigerian immigrants.
in their second year and would say, ‘I don’t want to take the sciences. I’m ODASIS also teaches undergrads
going to be here forever.’” how to study, critical for challeng-
Thanks to the support of local organizations, the Educational ing courses. “In high school, I’d just
Opportunity Fund Central Office and Johnson & Johnson (No. 2 in the cram for exams. But I didn’t know
DiversityInc Top 50), Khan is creating a feeder pool of potential students how to break down a chapter, take
by working with students as early as ninth grade. The goal: to provide labo- good notes … and learn through
ratory exposure, SAT prep, admissions counseling and career advice. This repetition,” says Utuk. “ODASIS
year, more than 300 12th-grade students attended the Saturday Scholars made me a better thinker.” DI

September/October 2010 111


CGLOBAL GENDER EQUALITYC
CORPORATE RESPONSIBILITY

This AT&T-sponsored program helps


women from Afghanistan and Rwanda
create jobs and economic expansion
in their war-torn countries. BY SAM ALI

PEACE THROUGH
BUSINESS:
AT&T
Empowers
Women in
Afghanistan,
Rwanda BY SAM ALI

For more on global diversity, visit


www.DiversityIncBestPractices.com/global-diversity

112 DiversityInc
G
rowing up on a farm in Oklahoma, planting and harvesting wheat
and cotton, entrepreneur Terry Neese learned early about the value
of taking risks. “You are dependent on things you can’t control, like
weather and insects,” she says.
“You plant the seeds and you never know what you are going to harvest community and to profoundly
because you don’t know what is going to happen. Being a farmer is true impact the economic prosperity
entrepreneurship.” and progress of women in develop-
So when she got a cold call from the State Department in 2006 asking ing countries.
if she would be interested in designing a program to help women business
owners in Afghanistan, the farmer in Neese kicked into high gear. Leadership
Neese, a successful small-business owner herself and the former national Development &
president of the National Association of Women Business Owners, had Mentoring
spent the bulk of her career advocating for and empowering women small- In June, 24 women business own-
business owners all over the country. As founder of the nonprofit Institute ers in Afghanistan and Rwanda
for Economic Empowerment of Women, she was a nationally recognized who successfully completed an
motivational speaker and published author on the topic of economic expan- eight-week training course in
sion and empowerment of women business owners. Kabul, Afghanistan, and Kigali,
Still, Neese admits the prospect of going to Afghanistan in a 50-pound Rwanda, came to the United States
flight jacket on a military plane flanked by body guards threw her for a loop. for three weeks of leadership
But after giving it some more thought, Neese had a change of heart. “My development and mentoring. This
motivation was to build peace and bridges in Afghanistan,” she says. involved high-level business lead-
Today, Neese’s Peace through Business program is entering its fourth ership and public-policy training
year, training women entrepreneurs in war-torn countries on basic business at Northwood University in Cedar
practices. Hill, Texas.
After leadership develop-
Promoting Gender Equality ment, the Afghani and Rwandan
Research shows that education is a key ingredient when it comes to pro- women spent about 10 days with
moting gender equality across the globe. The impact is felt not only American women busi-
in women’s lifetimes but also in the health, education, productiv- ness owners in matched
ity and economic well-being of future generations, Neese says. professions, living in
With generous donations from major corporate sponsors their homes and going
such as AT&T, No. 3 in The DiversityInc Top 50 Companies for Terry to work with them
Neese
Diversity®, and financier T. Boone Pickens (a personal friend each day. This year,
and “fellow Okie,” according to Neese), the program has grown for example, the pro-
to include not only Afghani women but Rwandan women as gram matched a dairy
well. Neese says they hope to add a third country next year. farmer from Rwanda
“It is so rewarding for us to have the opportunity to connect with a woman dairy
women on a global level,” says AT&T Senior Vice President of Talent farmer in North Carolina and
Development and Chief Diversity Officer Cindy Brinkley. “No matter who a bee keeper from Afghanistan with
we are—Afghan, Rwandan or American—we all have to start somewhere as a woman bee keeper with 600 hives
women in the business world. Our challenges—and opportunities—are more in upper Michigan.
similar than one might expect.”
The AT&T Foundation donated $100,000 in 2010 to help support Empowering &
the program. The company says it became involved because it provided Educating Women
an opportunity to shape AT&T’s reputation in the worldwide diversity Afghan student Sakina Ibrahimi,
35, a businesswoman and women’s-
OPPOSITE PAGE: Sarah Mukundutiye, a Rwandan dairy and fruit farmer, is expanding rights activist who attended this
her business, thanks to the educational assistance of Peace through Business. year’s program, says she hopes her
U.S. training will empower her to
expand her shoe factory into more

September/October 2010 113


CORPORATE RESPONSIBILITY

provinces and have a stronger voice


in the public-policy arena. Ibrahimi
has organized public demonstra-
tions against unjust laws toward
women.
“In the past, women haven’t
had any impact on public policy
or social activity,” Ibrahimi says.
“But after having this protest, I was
awed. I realized I can be indepen-
dent and can have everything men
have. Now, we must change the Sarah Frozan Raufi (right) owns and operates
minds of men.” a medical clinic with her husband in Kabul,
Neese founded her own small Afghanistan. Her business goals include
acquiring more equipment and having the
business, Terry Neese Personnel capacity to visit more rural areas.
Services, almost 35 years ago when
she was only 21. She was schooled
on the importance of politics and
public policy the hard way: “I need them is not the time to get to need only track the progress of some
purchased a building in 1976 in know them,” she says. of its alumni.
Oklahoma City for my personnel Neese now trains women busi- Taj Sirat, a 2007 graduate of
service, and I got a great deal on the ness owners, both here and abroad, the program, ran a business hand-
building,” she says. on the importance of getting to sewing soccer balls and volleyballs
What she didn’t realize was that know their local, state and federal in Afghanistan. When she first came
construction for a major interstate officials. to the United States as part of the
was about to get under way, block- Peace through Business program
ing access to her building for nearly Paying It Forward three years ago, she employed
three years. An important element of the Peace 40 women and earned $6,000
“I didn’t realize you could reach through Business program is the in annual revenues. Today, her
out to elected officials and ask for promise that these women from revenues have increased by 400
help. That learning experience really Afghanistan and Rwanda will “pay percent, she has hired an additional
made me focus on public policy. You forward” their education to other 160 women—“and she is running for
never know if you are going to need women in their countries. To under- parliament in Afghanistan,” Neese
an elected official, and when you stand the program’s impact, one says proudly. DI

The 2009 Peace through Business graduation class in Rwanda (left) and Afghanistan (right). The top 30 women graduates
were selected to travel to the United States in August for further training.

114 DiversityInc
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Please join us for a unique experience of education and networking in the arena of recruiting
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Connect with colleagues representing some of the following employers expected to attend:

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Bank of America
Blue Cross Blue Shield of Massachusetts
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EMPLOYEEENGAGEMENT

C TALENT MANAGEMENTC How can you make the most of your


workforce? How should you restore

Reap the economic success?


Walmart’s senior diversity director

Value of says the key to increasing


productivity and profitability has
always been to embrace the

‘Differences’ contributions of all. Here’s how.


BY DONALD FAN

How are the DiversityInc Top 50 companies effectively recruiting from traditionally underrepresented
groups? What best practices do they use? Find out at www.DiversityIncBestPractices.com/recruitment

118 DiversityInc
I
n today’s multicultural and multigenerational workplace, we experience
chasms and conflicts that result from disconnects. A recently published study
of more than 20,000 emerging-star employees over the past six years found
that 21 percent were “highly disengaged” at the end of 2009, up from 8
percent at the start of the recession in 2007.

How can you re-engage employees The cultural and societal address (street address, city, state,
and unleash the power of a diverse settings in which we grow up and country); the Chinese begin with
workforce? Can history offer live greatly impact our values, the largest (country, province, city,
new insight on valuing differences? thinking, perceptions, behaviors street address). Americans express
Yale law professor Amy Chua and even our approaches to time by hour, day, month and year;
examined the rise and fall of seven problem-solving. For example, a the Chinese view time by year,
hyperpowers that dominated world neuroscience study conducted at month, day and hour.
history in her book, “Day of Peking University indicates that By seeing problems differently
Empire: How Hyperpowers Rise to while the American perspective is (perspective) and looking for
Global Dominance—and Why They typically more “object” driven (e.g., solutions in different ways (heuris-
Fall.” Her conclusion: Embracing individual self ), the Chinese tics), we better understand the
difference and multiculturalism are perspective is more “context” merits of both approaches, opening
quintessential factors in reaching oriented (e.g., both the self and the door to the best solutions and
global economic success. Empires close others). innovative breakthroughs.
rose because of their acceptance of
“different” groups, openness to Other fundamental differences
foreign ideas and willingness to between western and Growth Through Bridge-
welcome and empower talented eastern cultures include: Building
immigrants who enabled them to • Values: American culture centers Subconsciously, many of us prefer
harness the world’s human capital. on individual initiative, while the people to think or behave as we do.
Conversely, empires declined when Chinese culture centers on the Difference can be disruptive and
their assimilative capacities group and collective goal. For uncomfortable. But we should
faltered and lapsed into intolerance example, Americans put their purposefully put ourselves in some
and exclusion. We can apply these personal name first and family uncomfortable situations to learn to
historic lessons to today’s challeng- name last; the Chinese place family navigate through difference and reap
ing business environment. name first and personal name last. its full value. When we challenge
• Thinking styles: American ourselves to be more comfortable
culture is more analytic, from close with the uncomfortable and less
Respecting Differences up to wide angle; Chinese is more comfortable with the too comfort-
Leads to Solutions holistic, from wide angle to able, we create room to grow.
To thrive in a tumultuous and close up. This growth can only occur in an
fiercely competitive economy, we • Communications: Americans inclusive environment where each
must welcome and respect differ- start with the smaller unit in an individual feels proud to celebrate
ent perspectives, ideas,
experiences, styles and back-
grounds. By understanding that
each individual possesses the seeds “Continuous dissatisfaction with the
of unique contributions and
solutions, we position ourselves to
status quo is the best way to keep growing
transform those differences into a as an individual and an organization.”
driving force for increased produc- AUTHOR JAMES KILTS
tivity and profitability.

September/October 2010 119


EMPLOYEEENGAGEMENT

his or her authentic self and feels Model Inclusive Behaviors


safe to share his or her unique To build a workplace where
point of view. By celebrating difference surfaces and is valued
differences, we acknowledge that and where employees are highly
we are all enriched by working engaged, we must walk the talk and
together. In leveraging difference, model inclusive behaviors daily.
we build bridges by facilitating Inclusive leadership is less about
connections among diverse styles power and position and more about
and ideas. the quality of interaction between Donald Fan
is senior
An inclusive culture doesn’t people—connecting, respecting and director in
happen overnight. It requires supporting them while appreciat- the Office of
Diversity at
profound changes around leader- ing the value they bring to the table Walmart.
ship, values and behavior. and growing them along the way.

Consider these leadership role-model behaviors

1 5
COMMUNICATE THE COMMON GOAL TO PRACTICE PERSPECTIVE “SHIFTING” TO
MOTIVATE OTHERS. Caring leaders motivate LEARN FROM OTHERS. Use first-person
people by building a sense of inclusiveness. They perspective to identify your own blind spots and
are not only thoughtful and decisive but also bias. Then, shift to second-person perspective to
humble. They shape a vision, helping people to see the scenario through the lens of others
make sense of the past, imagine the future and involved. Next, move to third-person perspective
forge their own path. to understand the situation from a distance—a
rational assessment.

2
CHAMPION COLLABORATION TO FOSTER

6
TRUST. Collaboration coaxes us out of silos into ADVOCATE CRITICAL THINKING TO STRETCH
working together to discover quality solutions. PEOPLE. Encourage discursive conversation
Inspire colleagues to bring their best to the table and ask probing questions to understand the
and invite them into the problem-solving and rationale behind difference. Also, sincerely
decision-making process. welcome critiques of managerial styles and
“best work.”

3
CONSCIOUSLY REACH OUT TO PEOPLE,
especially those who are different from you, to
solicit their perspective. Dig deep to ignite fresh
and creative ideas while calling for a quantity of
7 USE OPPOSITE-THINKING STYLES TO
MAXIMIZE POTENTIAL. Become a master of
both divergent thinking (generating creative ideas
ideas. Practice the Zen principle of “beginner’s by exploring many possible solutions) and
mind” to observe with a truly open mind. convergent thinking (following a particular set of
logical steps to arrive at one “correct” solution).

4 CHANNEL DIFFERENCE INTO A RAPPORT TO


CONNECT EMPLOYEES. Help people to align their
personal goal with the company’s objective and
Once a solution has been selected, re-examine it
using the opposite-thinking style to ensure
important aspects aren’t missed. This helps
guide them to bond around a common purpose. employees develop well-rounded thinking.

When people are valued for their contributions, inspired with purpose, trusted with meaningful work, equipped
with tools and developed through quality opportunities, an inclusive culture is created. Capitalizing on the power and
richness of differences, as global empires have done in the past, can put us back on the trajectory to success. DI

120 DiversityInc
AD SPACE DONATED BY DIVERSITYINC
CGIVING BACKC
VETERANS

What Can Your


Company Do to Honor
WWII Vets?
BY GAIL ZOPPO

“Let us honor the ideals they defended


and the dreams they fought and died for
… America’s World War II generation.”
F. Haydn Williams, WWII Navy veteran, responsible for the site design/approval of the National
World War II Memorial

For more on veterans, visit


www.DiversityInc.com/diversity-in-the-military

122 DiversityInc
H
elping to raise funds for the restoration of the
National World War II Memorial in Washington,
D.C., is just one way AT&T gives back to those who
fought for our freedom. Here’s how to get involved
and what else AT&T is doing to aid service members.
Situated between the Lincoln Memorial and the Washington
Monument in the center of the National Mall in Washington, D.C., is
one of the most significant symbols of the preservation of American
freedom—the National World War II Memorial. Opened in 2004,
the National World War II Memorial recognizes the 16 million who
served in the war, the more than 400,000 who died and the millions
who supported the effort from home.
The memorial “is all about diversity of representation … of indi-
vidual support for American beliefs … and of diversity of thinking,”
says Cathy Martine, a Friends of the National WWII Memorial
board member and the executive vice president of small-business
solutions/alternate channels at AT&T (No. 3 on The DiversityInc
Top 50 Companies for Diversity® list).
“Clearly, what people fought for in this campaign represented a
legacy that many generations continue to study,” she says. “And it
represented the beginning of the industrial revolution.”
In addition to the telecom’s $3-million donation to the memorial
over the years, AT&T’s Martine, whose father is a WWII veteran,
was selected to sit on the board. Their mission: to help raise a
sustainable revenue stream of at least $1 million each year through
corporate and individual sponsors for the much-needed restoration,
upkeep and events held at the memorial. To jumpstart the spirit of
giving back, AT&T has committed $25,000 over the next five years.
Besides fundraising, Martine would like to help establish educa-
tional opportunities that would supplement the teaching of the war
beyond the textbook, “so it comes alive for kids,” she says. Martine
also hopes to start using more social media and build online tools
for people doing research on WWII.
“The memorial has such significant representation across mul-
tiple cultures and generations,” she says.

What Else Is AT&T Doing for Vets?


In 1993, the company’s disabled veteran business enterprises
(DVBEs)’ supplier-diversity program was established, and last
spring AT&T expanded its effort with a year-long DVBE mentor-
ing initiative. By matching AT&T suppliers, industry experts and
community leaders with certified DVBEs in California, it hopes
to help these entrepreneurs gain the business skills and capac-
ity to increase contracting opportunities. AT&T spent more than
$74 million with companies owned by DVBEs in 2009, and it has
set an annual spending goal with DVBEs of 1.5 percent of total
procurement dollars.
The AT&T Veterans employee-resource group, which was
formed in 2006, has 3,000 members. It coordinates fundraising
opportunities and events and forms external partnerships to sup-
port service members and their families.
To make a tax-deductible donation to the National World War II
Memorial, go to www.wwiimemorialfriends.org/donate.php. DI

September/October 2010 123


ADVERTORIAL

The number of women in the workforce and in executive


positions continues to grow throughout the world. To help
our clients and ourselves attract, develop and retain women
who consistently deliver high performance, Accenture regularly
conducts research to understand changing perspectives
and needs.

What follows are the results of two of our recent surveys


on women in the workforce and a summary of our approach
to training and programs that benefit women.

Women in the Workforce:


ADVERTORIAL

The first survey focuses on millennial women believe they will have rewarding careers online survey of 1,000 millennial women
in the United States, a particularly important balanced with fulfilling personal lives. ranging in age from 22 to 35 who are
group, because women now comprise half of employed full-time in the United States.
the US workforce, and millennials—our future The research also generated the Accenture
leaders—currently represent one-third of the Millennial Women Workplace Success Index, Almost all of the respondents—94 percent—
working population. The second study, the which identified two primary qualities as key believe they can achieve a balance between
results of which we released in conjunction to workplace success—the ability to balance a satisfying professional life and a gratifying
with our observance of International Women’s personal and professional lives and a job in personal life. Similarly, when asked to list
Day 2010, examines the perspectives of 500+ which they can make a difference. Ultimately, typical qualities of a successful female
senior executives in 20 countries on resilience more than half of the respondents define business leader, seven in 10 (70 percent)
as a primary quality of leadership. We also success as doing meaningful work, while cited “maintains work/life balance,” followed
surveyed these leaders on the actions they are maintaining balance between their personal by “is flexible” and “is able to make an
taking, during a period of economic uncer- and professional lives (cited by 66 percent impact” (reported by 66 percent and 64
tainty, to prepare women for leadership roles. and 59 percent, respectively). Other factors percent, respectively).
of workplace success include stable employ-
Millennial women in the US are ment that provides financial security, a At the same time, almost six in 10 (59
overwhelmingly positive about positive work environment, open and honest percent) reported being at least somewhat
career prospects communication with supervisors and oppor- negatively affected by the current economic
Against a backdrop of economic volatility, tunities to grow professionally. downturn, and one-third (33 percent) are
Accenture research, conducted in late 2009, more concerned with keeping their jobs
found that the vast majority of young Accenture’s Millennial Women Workplace than achieving work/life balance.
professional women in the United States Success Index is based on the results of an

Accenture Research
The vast majority of young professional women
believe they will have rewarding careers and fulfilling
personal lives
Q: Do you think creating a
balanced work/life is achievable? No
6%

94%

Yes
ADVERTORIAL

Combining professional On average, women seeking more time have


and personal success somewhat higher incomes and are willing
Interestingly, for these respondents, quality of to forego 15 percent of their income, while
life is often more important than their career respondents willing to sacrifice time want
growth. Seven in 10 (70 percent) reported that a 32 percent increase in salary.
they believe they will be successful, and fully
one-third of these young female professionals Additionally, millennial women choose
said they believe they will reach the top of their quality of life over bottom-line perquisites.
professions. However, they cited medical benefits In considering factors that affect the decision
and flexible hours (reported by 63 percent and to accept a job, they cited secure employment
50 percent, respectively) as drivers of profes- and encourages work/personal life balance
sional success, compared to classes and training (reported by 65 percent and 49 percent,
for professional advancement (37 percent). respectively), compared to opportunities for
Similarly, when asked about what is important bonus and investment opportunities, such
to them, 66 percent cited family life, compared as a 401(K) match or profit-sharing (cited
to 29 percent who cited career success. by 33 percent and 29 percent, respectively).

“In pursuing a satisfying career and personal Some traditional gender barriers
life, millennial women will benefit from setting are falling
priorities and regularly monitoring their progress Perhaps fueling confidence in their future,
along the way,” said LaMae Allen deJongh, respondents reported that barriers to profes-
Managing Director, US Human Capital and sional success are changing. When asked to
Diversity, Accenture. “At the same time, to rank barriers to their careers, just 12 percent
LaMae Allen deJongh, attract, develop and retain high-performing cited marriage, and 19 percent mentioned
Managing Director, US Human employees, leading companies will strengthen maternity policies, compared to 30 percent
Capital and Diversity, Accenture their counseling and mentoring programs and who cited pay scale for women.
offer innovative training and flexible benefits
to help these individuals achieve their goals.” Respondents also reported that women
are increasingly joining the ranks of senior
executives. Fewer than one in 10 (7 percent)
Millennial women are divided on whether they would
reported that fewer women are being
give up personal time for more money or money for appointed to C-Suite positions and boards
more personal time of directors than five years ago. Almost half
(46 percent) said that more women are being
Q: Which is closer to your view? appointed than five years ago. Only one in
five (20 percent) reported a lack of women
in the C-Suite and on boards of directors.
If it meant spending more time on
my personal life, I would be willing 46% Additionally, role models do not appear to be
to give up some of my salary If it meant making more money, important to these respondents. In fact, when
54% I would be willing to sacrifice
time spent on my personal life asked to identify what is most helpful in driving
professional success, few cited “women in com-
pany leadership” (that is, C-Suite, boardroom)
and “having female role models at my company”
While almost half of respondents (46 percent) (reported by 16 percent and 18 percent, respec-
reported that they currently have an equal tively), compared to more than half who cited
balance of work and personal life, they were “a good work atmosphere” and “open and honest
divided on whether they would give up personal communications with supervisors” (59 percent
time for more money or money for more per- and 52 percent, respectively).
sonal time. Almost half (46 percent) said they
would be willing to give up some of their salary However, gender barriers have not disappeared
if it meant spending more time on personal completely. According to respondents, ongoing
life, while slightly more than half (54 percent) gender obstacles include a corporate culture that
said they would be willing to give up time favors men, general stereotypes/preconceptions
spent on their personal life for more income. and sexism (reported by 28 percent, 26 percent
ADVERTORIAL

Accenture’s programs and approaches


Accenture’s comprehensive commitment to Balancing work/life responsibilities • Hours that Help – A paid time-off
fostering diversity builds employees’ confi- Key to Accenture’s success in achieving donation program that allows employees
dence in their ability to take on new roles, high performance is providing its diverse to contribute time to other employees
contribute to the community and grow with workforce with the organizational who are faced with a personal crisis.
the company. This commitment is evident support needed to balance the demands • Future Leave – An unpaid, self-funded
in every phase of our approach to career of professional and personal lives. Like sabbatical through which an employee
development, from recruitment to training many organizations, Accenture offers may take up to three months away from
to work/life programs. Unmatched global a variety of flexible work arrangements, work with continuing benefits.
opportunities, extensive training and the including telecommuting and a modified • Backup Dependent Care – A program
support of coaches, mentors and networks work week. But Accenture also offers that provides US employees with backup
create a multiplier effect that attracts the flexible work options that enable employees dependent care when their usual arrange-
best people to join and encourages them to to balance work/life responsibilities, deal ments fail unexpectedly. The program
stay. We survey our people regularly to see with unexpected family problems or take also helps employees locate a qualified
what they need and want—and then design time off to pursue an interest. Among the care provider for their dependents, includ-
our programs based on that information. many work/life initiatives offered are the ing aging parents, children, spouses or
Following are examples of programs based, following three popular programs: domestic partners.
in part, on employee input.

and 22 percent, respectively). In addition, or women are more resilient (53 percent programs specific to women remain
approximately one-quarter of respondents reported women are very to extremely intact. Just under one-half (48 percent)
reported that several workplace issues are resilient; 51 percent reported men as very to of all respondents reported making no
major obstacles to success, notably a lack of extremely resilient), 60 percent are providing changes in the past year to leadership
motivation, being deceived by a co-worker women with career enhancing assignments, programs for women, and 48 percent did
and insufficient health care benefits, each and 40 percent are preparing women for not alter coaching and mentoring pro-
cited by 26 percent of respondents. senior management roles. grams specific to women.

C-Suite executives The survey of more than 500 senior execu- “Resilience—the combination of adaptability,
agree that resilience is key tives—including CEOs, COOs, CFOs and flexibility and strength of purpose—may be
to keeping your job CHROs—of mid- to large-size companies the new criterion for professional advance-
Corporate leaders around the world believe in 20 countries in Europe, Asia, North ment,” said Nellie Borrero, Global Human
that resilience—the ability to overcome America and Latin America also found Capital and Diversity Lead at Accenture. “In
challenges and turn them into opportuni- that, despite the economic downturn, the current world of economic uncertainty
ties—is vital to keeping your job. These many corporate professional development and intense competitiveness, organizations
leaders view women as slightly more
resilient than men, and they are providing
their female professionals with a variety Resilience, or adaptability, is an important factor
of programs aimed at developing resilience, 32% in determining which employees are retained
according to Accenture research conducted
at the end of 2009. Q: Using a scale of 1 to 5 where 1 is not at all important and 5 is
71%
extremely important, how important would you say adaptability/resilience
is in determining which employees to retain?
The research, “Women Leaders and 39%
Resilience: Perspectives from the C-Suite,”
found that more than two-thirds (71
percent) of corporate leaders report that 5 - Extremely important
resilience is very to extremely important 18% 4
3
in determining who to retain. While respon- 6% 2
dents are divided about whether men 5% 1 - Not at all important
ADVERTORIAL

Accenture’s programs and approaches


Expanding leadership skills skills critical to enhancing client relation- women at a critical point in their careers
Ensuring that women and minorities ships, and it provides guidance about and aims to help them develop strategies
have the tools necessary to reach the important steps women can take to be to better manage their career advance-
highest levels of the company is a more effective managers and achieve their ment. The two-and-a-half day course, led
priority for Accenture and the goal of career goals. The course, which is led by by Accenture senior executive women, offers
many of our diversity and inclusion Accenture female senior executives, was opportunities for participants to build
training courses. Such courses include launched in February 2010 in Sao Paulo, relationships with their peers from around
Appreciating Gender Differences, Brazil. Over the following five months, the world and network with Accenture
Understanding Cultural Dimensions, participants attended virtual training senior executives.
Enabling Diversity at Work, Managing sessions and concluded the course with
Diverse Teams, Leading a Diverse Workforce a meeting in Sao Paulo to address the Today, more than 60,000 women work
and Minority Leadership Development. challenges women face in negotiations for Accenture, and we have three women
and how to overcome them. on our Board of Directors. In the years
Two courses are specifically designed ahead, we will continue to raise the bar on
to develop skills, self-confidence and Developing High-Performing Women diversity, increasing the number of women
resilience to become effective leaders provides women with perspective and among our leadership and collaborating
of people and Accenture’s business: guidance on how they can build on their with our employees to create innovative
strengths to be effective leaders and how programs to ensure that Accenture remains
The newest course, Developing Client- their roles fit into Accenture’s broader an inclusive workplace.
Centric Women, equips attendees with corporate strategy. It is designed for

that instill resilience in their up-and-coming associate resilience and adaptability most • Level of confidence: Four in 10 respondents (44 percent)

leadership will have a clear advantage.” frequently with seniority; they said senior in North America reported that Baby Boomers have the most

managers are most resilient, followed by self-confidence. Their counterparts in Latin America, Europe and

Few executives reported eliminating middle managers and, last, by employees Asia Pacific, however, say the same of Generation X (reported

leadership curricula, mentoring activities or below manager (reported by 77 percent, by 46 percent, 43 percent and 35 percent, respectively).

minority leadership programs (cited by just 55 percent and 36 percent, respectively). • Level of productivity: Again, four in 10 respondents (46

3 percent each). At the same time, 18 per- percent) in North America rank Baby Boomers first in terms

cent said they made moderate to extensive “Like other critical skills, resilience can of productivity vs. executives in Latin America, Europe and

increases to leadership programs, 22 percent be learned,” commented Borrero. “Leading Asia Pacific, who rank Generation X first in this area (reported

said they had augmented their mentoring organizations will provide high-performing by 37 percent, 44 percent and 38 percent, respectively).

programs, and 17 percent noted they had women with a variety of experiences, includ- • Degree of flexibility: Respondents from all regions—North

enhanced their minority leadership programs. ing training, mentoring and ‘stretch’ roles, America, Latin America, Europe and Asia Pacific—reported

to increase their resilience and confidence that Generation Y is the most flexible (reported by 35 percent,

The survey also asked respondents what to prepare them to succeed in senior 55 percent, 43 percent and 41 percent, respectively).

actions their companies have taken to leadership positions.”


support women’s career development, and To learn more about our
almost five in 10 said they provide internal Regional findings women’s research, as well as our
mentors or work/life balance programs The survey found regional differences in commitment to women, please visit
(reported by 48 percent and 46 percent, how respondents rank female employees www.accenture.com/accenturewomen.
respectively). Additionally, only 24 percent who are Baby Boomers (born between For more information on pursuing
of respondents’ companies assign an advo- 1946 and 1964), Generation X (born between a career at Accenture, please visit
cate to women early in their careers, and 1965 and 1978) and Generation Y (born www.accenture.com/careers.
37 percent provide women with external after 1979) on certain attributes:
coaches. At the same time, respondents
Copyright © 2010 Accenture
All rights reserved.

Accenture, its logo, and


High Performance Delivered
are trademarks of Accenture.
ADVERTORIAL
David Casey
CVS Caremark
LEADERSHIPPROFILES

After more than a decade in diversity management, David Casey was


approached last year by CVS Caremark for its newly elevated position of
vice president and diversity officer. By January, the father of three had
made a major work/life decision: to move his family from his hometown of
Indianapolis to Providence, R.I.

Not only has CVS Now at CVS Caremark, Casey says he’s excited about
Caremark won a vet- “being able to come in and help a company not start
eran diversity leader, the from scratch but take diversity management to the next
210,000-employee drugstore level.” To accomplish this, he has been collaborating
and pharmacy-benefits-management company gained a with colleagues over the past several months to develop
veteran U.S. Marine Corps service member who served a strategic plan that includes improving workforce
in Operation Desert Storm. Like other military person- representation, creating a corporate-wide culture of
nel, Casey brings valuable resources, including time- inclusion and expanding outreach efforts to all constitu-
management skills, technical acumen, adaptability and ency groups, such as active-duty and veteran service
the ability to make level-headed decisions under crisis. members. For example, employees have begun collecting
“Having driven through a mine field not knowing DVDs and CDs to send to overseas troops, and Casey has
if I’d make it out alive,” he says, “some of the things a “personal stake” in helping to launch CVS Caremark’s
we tend to take as insurmountable challenges in our first veteran employee-resource group shortly, of which
lives don’t seem so problematic.” That experience he will serve as executive sponsor.
has served Casey well throughout his career, which “We’re also going to spend a lot of time this year com-
included serving as vice president of workplace culture municating and getting conceptual clarity of diversity
and chief diversity officer at WellPoint (No. 50 on The management,” says Casey.
DiversityInc Top 50 Companies for Diversity® list). BY GAIL ZOPPO

Aude Zieseniss de Thuin


Women’s Forum for the Economy and Society

When Aude Zieseniss de Thuin heard the saying “I have been blessed
“Women hold up half the sky,” she wondered with strength,” she says.
why women weren’t making half the contributions “Physically, I am tall and
to society. have red hair. My presence in a
“I am sure three years ago, if there were 50 percent meeting room has often been seen
women in the financial area, the crisis of the time would as unusual because I am a woman and
not have existed,” she says. people often think I am the president’s assistant. I turned
De Thuin, who is French, may be the woman who actu- my experiences and my look into success, reminding
ally changes all that. In 2004, she created the WEFCOS them I was the head of the company. I played the part—
company to manage the Women’s Forum for the Economy but always with a smile.”
and Society, which is a high-level international forum One of her first companies, the International Direct
(think Davos) that brings together leading corporate, Marketing Week, which ran the direct-marketing profes-
government, scientific, media and artistic leaders to debate sional forum, was a huge success in Europe and was
and create action plans for women’s visions to build a more sold in 1993. She created another company, the garden
balanced world. DiversityInc is a media sponsor of the show “L’Art du Jardin.” When she decided to launch the
October event in Deauville, France. Women’s Forum, she thought male bankers wouldn’t
She urges young women in particular to be confident agree to finance it, but they were impressed and thought
© 2010 DIVERSITYINC

in their ability to lead, as well as have a personal life. In the risk worth taking, so she sold the second business
her younger years, her experience was quite different. and invested in the forum.
Her mother, a widow, expected her to follow a traditional “In an ideal world, the women’s forum would not
role, but de Thuin, a psychologist by training, created her exist, but in this world, it’s necessary,” she says.
first company while still in her 20s. BY BARBARA FRANKEL

For more on diversity management and leadership best practices, go to


www.DiversityIncBestPractices.com

130 DiversityInc
Jim Wall
Deloitte
No. 25 in The DiversityInc Top 50 Companies for Diversity®

Jim Wall’s world has consistently become larger as fate—and an open mind—
have given him remarkable opportunities to make a difference.
Today, Wall is global managing director, talent, and chief diversity officer at
Deloitte Touche Tohmatsu. He’s also a member of the board of directors for Deloitte
Central Europe.
That’s a far cry from growing up as an Irish boy in Boston, which he says was then
“an isolated and predominately homogenous area.” Fortunately, his parents instilled
inclusive values in him, which came into play when he attended St. Michael’s College
in Colchester, Vt., where he worked with rural, poor people. Graduate work in educa-
tion at Michigan State University led to positions recruiting Black and Latino students
and administrative posts, culminating in his appointment as dean of students.
Wall thought he’d have a permanent career in higher education, but then his wife, Sue, got a “killer opportunity”
for a job in the Boston area. So they relocated and he saw an ad for a director of recruiting at Touche Ross & Co., one
of the predecessor firms of Deloitte. The rest, as they say, is history. After 12 years as the national managing director
of human resources for Deloitte & Touche USA, Wall assumed his current role in 2004. The global focus has changed
him as well as the firm. “If you looked at my bookcase before, and looked at it now, you’d see a huge difference. I look
more like an anthropologist now than an HR professional … You walk the streets of Soweto in Johannesburg and all of
a sudden ‘Long Walk to Freedom’ by Nelson Mandela has a lot more relevance to you,” he says.
Wall, who has two adopted children from Korea, says the greatest challenge is enhancing cultural awareness
among Deloitte professionals serving global clients. The organization has made a conscious choice to grow local tal-
ent, but there will always be a certain amount of mobility.
“You can’t get on the plane in Chicago and get off in Shanghai and just assume that things work the same way,” he
says. BY BARBARA FRANKEL

Christine Cadena
Walt Disney Studios
No. 33 in The DiversityInc Top 50 Companies for Diversity®

With the ink still wet on her bachelor’s degree in communications from UCLA,
Christine Cadena landed her first job at Nordstrom, where the relationship-
building, product-development, consumer-marketing and sourcing skills she
honed paved the way for a successful 20-year career at The Walt Disney Co.

“The commitment to guest service was also the ideal she says. Reporting a strong
training ground for my career at Disney,” she recalls. Her box-office opening weekend, “our
Disney career began at Disney Store and led to expanded Hispanic campaign definitely played a role.”
marketing, merchandising and creative responsibilities. Beyond her customer-driven talents, what makes
In January, Cadena was appointed to the newly cre- Cadena ideal for this diversity-management role is her
ated position of senior vice president of multicultural diversity of thought and experience. “I see myself as
initiatives at Walt Disney Studios, responsible for strat- more than a Japanese-American woman,” says Cadena.
egy, measurement and implementation of diversity and “I’m a working mom, raising biracial kids, the daugh-
inclusion initiatives across all of the studio’s functions. ter of immigrants and a product of inner-city public
This includes HR, creative development, marketing, schools.” This “adds value to our work and, ultimately,
theatrical productions, music, and home-entertainment our guest experience.”
products, as well as distribution “where we really touch In addition to serving on Disney’s multicultural-
© 2010 DIVERSITYINC

the customer,” she says. Although still in the strategic- marketing task force, Cadena mentors colleagues
planning stages, one of her first multicultural initiatives through formal and informal relationships. “As a
was an integrated Latino marketing campaign of “Toy woman of color, it’s key to helping them find their own
Story 3” that “not only spanned publicity, we looked at unique talents and then finding good matches for them
every aspect of the business to create unique messaging,” within the company,” she says. BY GAIL ZOPPO

September/October 2010 131


Stéphane Masson
Marriott International
LEADERSHIPPROFILES

No. 7 in The DiversityInc Top 50 Companies for Diversity®

Stéphane Masson is always on the lookout for new opportunities and


partnerships—a quality that will aid Marriott International in its recently
revamped global supplier-diversity program.
A French native with a food-and-beverage operations background, Masson
joined the Marriott team 13 years ago as part of the Renaissance hotels acquisition
and was appointed vice president of global procurement in June when his predeces-
sor retired. His new responsibilities include introducing environmentally responsible
procurement initiatives and leveraging the Bethesda, Md.–based company’s purchas-
ing power both domestically and globally. (Marriott is also No. 9 on The DiversityInc Top 10
Companies for Supplier Diversity list.)
“When you have two contracts with the same vendor, one for North America and one for the rest of the world, it
only makes sense to combine them to get more procurement power,” he says.
Prior to his new role at Marriott, Masson helped establish purchasing departments in Europe, Asia, the Middle
East and Africa and, since 2002, managed all non–North American procurement responsibilities, which span about 60
countries. Working with the company’s offices in the United Kingdom, Germany, Dubai, China and Australia and team
members of various backgrounds and nationalities “is what makes this job so exciting,” he says. “When you are in the
procurement world, you are a touch point of so many different departments … people … and aspects of the business,
it’s just great.”
Beyond expanding Marriott’s supply-chain footprint, Masson says he looks forward to “facilitating and educating”
diverse suppliers to better compete in a global economy. Marriott has set a worldwide supplier-diversity spending
goal this year of 15 percent, which includes businesses owned by veterans, LGBTs, women, people with disabilities,
and other traditionally underrepresented groups (MWBEs). Last year, Marriott spent 14.8 percent of its total procure-
ment dollars, or $374 million, with MWBEs in the United States alone. BY GAIL ZOPPO

Elaine Ho
U.S. Internal Revenue Service
One of The 2010 DiversityInc Top Federal Agencies for Diversity

Elaine Ho seems destined to serve her country. Following the footsteps of her
father, a Chinese immigrant who was a pharmacist for the U.S. Department
of Veterans Affairs (also on The 2010 DiversityInc Top Federal Agencies list),
she signed up for the U.S. Air Force Judge Advocate General’s (JAG) Corps after
earning her J.D. with honors from the University of Florida, Levin College of Law.
Serving for more than four years as a criminal prosecutor in Okinawa, Japan, and
Washington, D.C., Ho took a private-sector detour at a prestigious law firm where she gained
valuable corporate diversity-management expertise. But in 2007, Ho returned to the federal government as director of
the Office of Workplace Diversity & Inclusion for the U.S. Department of Agriculture, where she was responsible for
promoting diversity at the 100,000-employee agency.
Today, as the recently appointed permanent director of diversity and inclusion at the U.S. Internal Revenue
Service, Ho continues her critical work at a similarly sized agency “that does so much more than just taxes,” she says.
Ho is responsible for implementing the IRS’s diversity strategies, from leadership development and employee engage-
ment to succession planning.
“The IRS is very data-driven—and that translates well into the diversity realm where we’re all about numbers,” she
says, noting the U.S. Equal Employment Opportunity Commission’s goal: for all federal agencies to have at least a 2
percent representation of people with targeted disabilities by 2010. “Because it’s a tangible goal, that’s something the
© 2010 DIVERSITYINC

IRS is actively working toward.”


To retain top talent at the agency, the IRS is holding focus groups with managers to improve the workplace envi-
ronment and creating an intranet that streamlines the reasonable-accommodation process. “What I’ve come to love
about diversity is the cross-section of disciplines,” she says. Ho also continues to serve the country as an Air Force
Reservist, providing legal analysis and advice to the Office of the Secretary of the Air Force. BY GAIL ZOPPO

For more on diversity management and leadership best practices, go to


www.DiversityIncBestPractices.com

132 DiversityInc
Women’s Forum
Global Meeting
6th Edition
14-15-16 October 2010
Deauville, France
Change : Make it happen
• CHANGE IN POLITICS : HOW TO THINK AND ACT COLLECTIVELY
IN A WORLD OF MISTRUST ?
• CHANGE IN THE ECONOMY : WHAT DO WE NEED
NOW FOR TRUE INNOVATION ?
• CHANGE IN THE ENVIRONMENT : HOW TO MAKE
THE GREEN ECONOMY A KILLER APP FOR BUSINESS
AND A REALITY FOR ALL ?
• CHANGE IN GLOBAL HEALTH : HOW TO COMBAT
MALNUTRITION ?
• CHANGE THROUGH THE WOMAN FACTOR :
PUSHING THE BOUNDARIES, YET HOW FAR ?

Confirmed speakers of this 2010 Edition include :


Kate Albright Hanna, Producer Director of Video for New Media
on Candidate Barack Obama’s campaign, USA
• Cherie Blair, Founder, Cherie Blair Foundation for Women, UK
• Irina Bokova, Director General, UNESCO, Bulgaria
• Liesl Gerntholtz, Director of the Women’s Rights Division, Human
Rights Watch, South Africa • Christine Lagarde, Minister of Economic
Affairs, Industry and Employment, France • Wendy Luhabe, Women
Investment Fund, South Africa • Viviane Reding, Vice President, European
Commission, Luxemburg • Hans Rosling, Professor of International Health
at Karolinska Institutet and Director of the Gapminder Foundation, Sweden
• Randi Zuckerberg, Director of Market Development, Facebook, USA

Program and Speakers : www.womens-forum.com

For further information and to register,


please contact delegates@womens-forum.com

For partnership opportunities,


please contact partnership@womens-forum.com

In partnership with

AD SPACE DONATED BY DIVERSITYINC


Beverly Grant
Procter & Gamble
LEADERSHIPPROFILES

No. 18 in The DiversityInc Top 50 Companies for Diversity®

Growing up as one of 10 children in segregated Tennessee, just two


generations away from sharecroppers, Beverly Grant had little money and
no professional role models. How did she become one of the highest ranking
Black women executives at Procter & Gamble (P&G), overseeing a sales staff
of more than 700 and managing a $110-million annual budget?
Grant, vice president of customer business development for P&G’s North
America Food Channel, attributes her resilience and self-confidence to her first
mentor, her mother. “Every day for 15 years, from the time I was in preschool, my
mother would send me out of the house and say, ‘You know what? There’s nobody
in the world better than you, and you are not better than anybody else,’” she says.
After a brief stint at the IRS, Grant began a sales career at Standard Oil of
Ohio in 1979, when “they had no other African-American women managers,” she
recalls. But when BP bought Standard Oil and her opportunity for advancement
in Cleveland dwindled, Grant pursued a sales position at P&G while simultane-
ously completing her MBA in marketing from Webster University.
Twenty-four years and numerous broadening assignments later, Grant makes a point of helping others succeed.
She has led P&G’s Corporate African American Leadership Network, served on the Global CBD Diversity Leadership
Team and contributed to the Global Initiative for Women. Grant also created P&G’s first Corporate African American
Women’s Summit on Empowerment.
In addition, she’s a member of the Cincinnati Chamber of Commerce Women’s Leadership Foundation and Big
Brothers Big Sisters, where she mentors an eighth-grade girl. “It’s all about balance,” says Grant, who recently earned
the YWCA Career Women of Achievement Award. “When the wheels are coming off the bus of your personal life,
there’s no way you can keep calm in your professional life.” BY GAIL ZOPPO

Angela Buonocore
ITT Corp.

Angela Buonocore has always had a way with words, speaking fluent Italian
before English and writing short stories at age 5. Largely influenced by her
Italian-born mother, she says, “If you have a command of language and an
ability to use that to influence people, it’s a very powerful thing.”

Buonocore’s inherent skills helped propel her career corporate-responsibility proj-


in communications at numerous Fortune 200 com- ect, ITT Watermark. This $4-mil-
panies, from IBM (No. 8 on The DiversityInc Top 50 lion financial and employee-volunteer
Companies for Diversity® list) to the Pepsi Bottling commitment delivers life-saving water, sanitation,
Group before joining ITT Corp., a White Plains, hygiene and emergency aid to families worldwide, from
N.Y.–based high-tech engineering and manufacturing Honduras and Haiti to China and the Congo.
company, three years ago. “In India, many girls were dropping out of school
“Big corporate experience can translate into other because they didn’t have latrines,” explains Buonocore.
big corporate experience because there are a lot of skills “So we had the girls design their own bathrooms.”
that you develop in the structure,” she says. “The two Recently, Buonocore was recognized by the
biggest reasons people fail [are] they don’t fit in with the National Organization for Women’s New York City chap-
culture and they don’t know how to build alignment.” ter. She sits on the Public Relations Advisory Council
Today, as ITT’s senior vice president and chief com- at the University of Florida, her alma mater, and is a
munications officer, Buonocore has formed alliances to member of the Rome-based Accademia Europea per le
strengthen the defense contractor’s brand, engage its Relazioni Econimiche e Culturali, an organization of
40,000 employees in 60 countries and provide much- Italians and Italian Americans dedicated to developing
needed resources and aid to people in need. In 2008, economic, cultural and humanitarian projects globally.
Buonocore helped launch the company’s signature BY GAIL ZOPPO

For more on diversity management and leadership best practices, go to


www.DiversityIncBestPractices.com

134 DiversityInc
Women’s Forum
Global Meeting
6th Edition
14-15-16 October 2010
Deauville, France
Change : Make it happen
• CHANGE IN POLITICS : HOW TO THINK AND ACT COLLECTIVELY
IN A WORLD OF MISTRUST ?
• CHANGE IN THE ECONOMY : WHAT DO WE NEED
NOW FOR TRUE INNOVATION ?
• CHANGE IN THE ENVIRONMENT : HOW TO MAKE
THE GREEN ECONOMY A KILLER APP FOR BUSINESS
AND A REALITY FOR ALL ?
• CHANGE IN GLOBAL HEALTH : HOW TO COMBAT
MALNUTRITION ?
• CHANGE THROUGH THE WOMAN FACTOR :
PUSHING THE BOUNDARIES, YET HOW FAR ?

Confirmed speakers of this 2010 Edition include :


Kate Albright Hanna, Producer Director of Video for New Media
on Candidate Barack Obama’s campaign, USA
• Cherie Blair, Founder, Cherie Blair Foundation for Women, UK
• Irina Bokova, Director General, UNESCO, Bulgaria
• Liesl Gerntholtz, Director of the Women’s Rights Division, Human
Rights Watch, South Africa • Christine Lagarde, Minister of Economic
Affairs, Industry and Employment, France • Wendy Luhabe, Women
Investment Fund, South Africa • Viviane Reding, Vice President, European
Commission, Luxemburg • Hans Rosling, Professor of International Health
at Karolinska Institutet and Director of the Gapminder Foundation, Sweden
• Randi Zuckerberg, Director of Market Development, Facebook, USA

Program and Speakers : www.womens-forum.com

For further information and to register,


please contact delegates@womens-forum.com

For partnership opportunities,


please contact partnership@womens-forum.com

In partnership with
Dan Buriak
Pfizer
LEADERSHIPPROFILES

One of DiversityInc’s 25 Noteworthy Companies

Dan Buriak’s message is simple: Innovation often comes from the fringes, not
the center. To that end, he’s using diversity and inclusion to drive innovation
in Pfizer’s Global Manufacturing Group by capitalizing on the ideas of senior
managers as well as those from deeper in the organization.

Buriak, senior He started his career working for the U.S. Food and
director of diversity, Drug Administration and has been a member of Pfizer
inclusion and colleague Global Manufacturing’s supply-chain management lead-
engagement for Pfizer Global ership team as well as its human-resources leadership
Manufacturing, is leading the team. “I’m very focused on the practical … where is it
group’s diversity and inclusion council by creating rota- that managers are looking to manage their bottom line?
tional positions across the globe and from every level. For me, that means translating diversity and inclusion
The council’s mission is to create the framework for a directly to business values,” he says.
culture shift for the manufacturing group. Pfizer’s values encourage him to be open about who
He runs a “boot camp” where Pfizer trains diversity he is—a gay man—and to invest in his community. Buriak
and inclusion ambassadors around the globe. “This has been involved in his local New Jersey town as a
involves a local interpretation of what diversity is and councilman, planning-board member and government
what fuels innovation. There’s a common global vision, liaison to schools and the historic-preservation commis-
but there’s strong local differentiation,” he says. sion. “It’s very difficult to tear apart work and commu-
Buriak says his 13-year tenure at Pfizer reflects who nity,” he says. “Pfizer has invested a significant amount in
he is: “Pfizer enables me to promote curiosity and intel- my leadership development. To use that training at the
lectual ability at work, to connect diversity and inclu- community level benefits everyone.”
sion with education.” BY BARBARA FRANKEL

Patricia Lee
Wyndham Worldwide Corp.
One of DiversityInc’s 25 Noteworthy Companies

Patricia Lee is a quintessential Jersey girl. She was born, raised and schooled in
New Jersey and has spent her entire human-resources career working at com-
panies based in New Jersey, including KPMG, Unilever, Liberty Travel and now
Wyndham Worldwide Corp.
“If New Jersey wanted to make a commercial about New Jersey, they should come inter-
view me,” says Lee, who joined Wyndham Worldwide Corp. as senior vice president of human
resources four years ago.
The one time she ventured out of state: when she attended Lehigh University in Bethlehem, Pa.
“I studied archaeology and the classics. I didn’t know what I wanted to be when I grew up,” Lee says. “But once I got
into human resources, I went back to Rutgers University to get my master’s degree in human-resource management.”
During her more than 20 years as a human-resources professional, she has “never held a title solely
dedicated to diversity and inclusion,” she says. “But a good 75 percent of the time, I was touching, influencing or involved
with diversity.”
Lee lives with her partner of 21 years. “Although I can’t say I’m totally out to the world, I have shared my personal
experiences and life with many friends and coworkers,” she says. “It hasn’t stood in my way and it continues to give me
the opportunity to further understanding of what diversity is and how it impacts individuals.”
Lee first joined Wyndham Exchange and Rental in March 2004 when it was still a Cendant company, she says. In
2006, Lee asked to join Wyndham Worldwide in her current role when the company was spun off in August 2006.
Wyndham employs 25,000 employees globally and operates in more than 100 different countries.
Lee has always had a passion for diversity issues because she knows “the power of unleashing talent, of removing the
barriers of someone being constrained by their perceptions of difference or the reality of bias in the workplace.”
“It’s freeing, energizing and empowering,” she adds. “That’s when people can really make a difference.” BY SAM ALI

For more on diversity management and leadership best practices, go to


www.DiversityIncBestPractices.com

136 DiversityInc
DiversityInc
WEBINAR
WEBINAR CALENDAR
2010
Nov. 16 Lessons Learned From the
DiversityInc Top 50/
Employee Engagement

SERIES
Dec. 14 Supplier Diversity

2011
Jan. 25 Talent Development
Feb. 22 Retention
JUST THINGS YOU CAN EXPECT FROM OUR WEBINARS
March 22 Work/Life RELEASED!
April 26 Recruitment OUR 2011 Presenters are executives from the DiversityInc Top 50, not
May 17 Mentoring
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1 consultants, and all presentations are vetted to ensure quality
and relevance
June 21 DiversityInc Top 50
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July 26 Generations in the Workplace 2 Diversity metrics you need to strengthen your company’s
bottom line
Aug. 23 Global Diversity
Sept. 20 Employee-Resource Groups 3 Data about diversity in business—without leaving your office
Oct. 18 Diversity Councils Opportunities to ask questions live via web chat during the
Nov. 15 Lessons Learned From the
DiversityInc Top 50
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hours afterward
Dec. 13 Supplier Diversity
WWW.DIVERSITYINC.COM/WEBINARS

FOR INFORMATION, CONTACT Veronica McCoy: (973) 494-0506 | vmccoy@DiversityInc.com


Dr. Kamal Khan
Rutgers University Office of Diversity and Academic Success
LEADERSHIPPROFILES

in the Sciences (ODASIS)

Born in Trinidad, Dr. Kamal Khan had parents who placed a high priority
on academics. That’s what prompted Khan to finish his senior year of
high school in New Jersey, where his uncle, a family physician and role
model, ran a private practice.
But after earning his master’s degree in public health from Rutgers University,
Khan quickly discovered that “as a foreign student, you have limited opportunities
in the United States if you want to go to medical school.” So Khan got his M.D. from
University Eugenia Maria De Hostos in the Dominican Republic and then returned to
the United States to dedicate his life to helping Black, Latino and other underrepresented
students pursue careers in the STEM (science, technology, engineering and mathematics) fields.
In 1985, while serving as an instructor at Robert Wood Johnson University Hospital, Khan cofounded Rutgers’
ODASIS, whose Access-Med program prepares promising undergrads from economically and/or academically disad-
vantaged groups for STEM careers with emphasis on health-allied professions. Today, Khan’s program serves about
500 at-risk undergrads annually, and in 2009, 86 percent were accepted to medical school.
“It’s all about increasing the numbers,” says the associate director, noting that the year ODASIS began, only one
Rutgers student had gone into the medical profession.
When Khan isn’t pushing undergrads to “give it their all,” he’s creating a feeder pool of potential STEM students by
working with local students as early as ninth grade through four separate college-prep programs. A tireless and char-
ismatic leader, Khan also serves as faculty adviser to Rutgers’ Islamic Society, the West Indian Student Organization
and the Department of Africana Studies.
Last year, Khan was recognized with the AspiringDocs.org Recognition Award from the Association of American
Medical Colleges for helping to close the disparities gap in the med-school application pool.
BY GAIL ZOPPO

Nicole Dean
Belk

Nicole Dean, the vice president of human resources and chief diversity officer at
Charlotte-based department-store chain Belk, has a few principles that govern
her life—taking initiative, for example. Don’t just walk over the napkin that’s on the
floor, she always reminds her two sons, ages 9 and 7. Bend down and pick it up.
“You need to raise your hand because if you have initia- “‘Our customers have been
tive, people will teach you,” she says. “If you come to the loyal to us, but clearly they are
table smart but you don’t have initiative, you will miss out.” shopping elsewhere for their foundation and pantyhose
It’s the reason why Dean is now the chief diversity officer because we don’t offer their hues,’” Dean recalls saying
at Belk, the largest privately held department-store chain to company executives. “‘But if I can help you under-
in the United States. She asked if she could take a shot at stand that if we get their pantyhose and foundation
the job when the diversity officer left. shades, more of their wallet share would stay at our store
Dean, who was hired four years ago as vice president [and] you would be more inclined to hire people like me
of internal audit, is a CPA by trade and was in charge of who can identify that this is a gap in this store.’”
risk-mitigation strategies for the 125-year-old retail giant. Dean says she has always been drawn to diversity
Dean, born in Brooklyn and raised in Philadelphia, issues, even when she worked as an accountant at
graduated from Clarion University in Pennsylvania with Deloitte, No. 25 on The DiversityInc Top 50 Companies
an accounting degree. She worked at Deloitte and Mays for Diversity® list. “[Deloitte] had a national diversity
© 2010 DIVERSITYINC

Department Stores before joining Belk. initiative, but we had nothing going on in the Pittsburgh
For Dean, diversity is “a sales-driving initiative.” For office at the time, so being the go-getter I am, I raised my
example, more than 30 percent of Belk’s customer base is hand and said, ‘I’d love to be our delegate for the Deloitte
Black, Dean says. Yet the company’s marketing materials conference on diversity,’” she says. “I’m always raising
and in-store visuals did not reflect that. my hand.” BY SAM ALI

For more on diversity management and leadership best practices, go to


www.DiversityIncBestPractices.com

138 DiversityInc
Companies are indexed to the page where they are first mentioned in an article or
ad in this issue. Advertisers are highlighted in red type.
A HighGround ................................................................................................ 66 Pfizer...................................................................................82, 22, 136, 140
AARP ................................................................................................................... 40 Howard University............................................................................. 142 PG&E ...........................................................................................................81, 82
Accademia Europea per le Relazioni Policy Development Group......................................................... 66
Econimiche e Culturali ............................................................... 134 I PricewaterhouseCoopers .............................................................. 19
Accenture............................................................... 19, 47, 42, 124-129 IBM................................................................................................... 46, 41, 134 PRIMER......................................................................................................... 143
Accor Hospitality ................................................................................. 143 Institute for Economic Prison Legal News ................................................................................ 68
ADP ........................................................................................................................... 5 Empowerment of Women ........................................................ 113 Procter & Gamble ................................................................................ 134
Adweek.............................................................................................................. 82 Institute for Supply Management ..................................... 143 Provident Bank ....................................................................................... 143
Aetna ................................................................................ 19, 14, 34, 40, 43 International Centre for Human Rights and Prudential Financial ............................................................................39
Alzheimer’s Association................................................................. 40 Democratic Development........................................................... 75 PSEG .................................................................................................................. 143
Ameren .............................................................................................................. 94 ITT Corp. ...................................................................................................... 134
American Express ................................................................................. 24 R
American Legislative Exchange Council .................... 66 J Robert Wood Johnson University Hospital............ 138
Asian American Government Jackson Lewis LLP ............................................................................108 Rutgers University.................................... 61, 69, 110, 138, 140
Executives Network ....................................................................... 142 JCPenney .................................................................................................7, 142
Association of American Medical Colleges.....138, 110 Johnson Controls ................................................................................. 142 S
AT&T ......................................................................................... 112, 123, 140 Johnson & Johnson .......................................................23, 111, 140 Selig Center for Economic Growth.............................17, 82
Justice Policy Institute .....................................................................65 Silberman College of Business ................................................ 54
B Justice Strategies.................................................................................... 66 Sodexo ................................................................ 19, 28, 142, Cover IV
BASF....................................................................................................................... 11 StarTribune ................................................................................................109
BCT Partners .............................................................................................. 90 K
Belk ...................................................................................................................... 138 Kaiser Permanente ............................................................................... 47 T
Big Brothers Big Sisters ................................................................ 134 Kellogg NA Co. ........................................................................................... 15 Target .................................................................................................................. 30
Blend Images ............................................................................................105 KeyBank ............................................................................................................27 The Coca-Cola Co..................................................................................97
Blue Cross and Blue Shield of Florida ..........26, 47, 42 Kings College in London ................................................................58 The Economist........................................................................................... 77
Boardman Law Firm ....................................................................... 104 KPMG ......................................................18, 14, 22, 33, 30, 136, 143 The New York Times .......................................................................... 16
BP ............................................................................................................................. 75 Kraft Foods........................................................................................... 22, 32 The Pew Center on the States .................................................. 62
Bureau of Justice Statistics The PhD Project........................................................................... 29, 143
Correctional Surveys....................................................................... 64 L The Walt Disney Co. .......................................................................... 131
Burger King Corp. .................................................................................. 31 Liberian Humanitarian Foundation ............................... 142 Toyota Motor North America .......................................94, 101
Liberty Travel .......................................................................................... 136
C Library of Congress .............................................................................. 16 U
Career Opportunities for Students Los Angeles Times.................................................................................65 UNCF ...................................................................................................................63
with Disabilities (COSD)................................................ 115–117 Unilever .......................................................................................................... 136
Cargill......................................................................................................... 83, 88 M United Jewish Appeal ....................................................................... 40
Catholic Charities ................................................................................. 40 Marriott International ......................................................... 80, 132 United States Trade Representative .................................. 16
Cengage Learning .................................................................................. 16 MasterCard Worldwide...................................................................... 3 University of Florida ........................................................................ 134
Center for Women’s Business Research ....................... 92 Mays Department Stores ............................................................. 138 USA Today ..................................................................................................... 66
Center for Work-Life Policy........................................................39 Merck & Co...................................................................................... 111, 140 US Business Leadership
Centers for Medicaid and MetLife ..................................................................................................... 38, 54 Network (USBLN) ................................................................ 137, 143
Medicare Services ...............................................................................39 Mineral Management Services................................................ 76 U.S. Air Force .................................................................................. 90, 132
CIA ....................................................................................................................... 142 Minority Information U.S. Census Bureau ............................................................. 17, 82, 92
Cornell Companies ...............................................................................58 Technology Consortium .............................................................. 90 U.S. Citizenship and Immigration Services ............... 16
Corrections Corporation of America ................................58 U.S. Department of Agriculture ........................................... 132
Coverplay ........................................................................................................ 80 N U.S. Department of Health & Human Services ...... 16
Cox Communications ................................18, 80, 91, 94, 142 National Alliance for Caregiving .......................................... 40 U.S. Department of Homeland Security ........................59
CVS Caremark .........................................................................................130 National Archives ................................................................................... 16 U.S. Department of Justice ..................................................16, 59
National Association for Multi-Ethnicity U.S. Department of Labor ........................................................... 143
D in Communications......................................................................... 142 U.S. Department of State...................................................... 16, 113
Deloitte.................................................. 9, 22, 45, 52, 131, 138, 142 National Association of Black Accountants............ 143 U.S. Department of Veterans Affairs............................... 132
Department of Homeland Security ................................... 60 National Association of State Budget Officers ....... 68 U.S. Food and Drug Administration ................................ 136
Detention Watch Network ...........................................................59 National Association of Women U.S. Immigration and Customs Enforcement .........59
Business Owners ................................................................................. 113 U.S. Internal Revenue Service.................................... 132, 134
E National Baseball Hall of Fame ............................................... 16 U.S. Marine Corps ...............................................................................130
Eastman Kodak Co. ..................................................................... 82, 85 National Council on Aging............................................................39 U.S. Marshals Service ........................................................................ 64
Educational Opportunity Fund Central Office .....111 National Domestic Violence Hotline ............................. 143 U.S. Navy .............................................................................................. 25, 142
Eli Lilly and Co. ...................................................................................... 142 National Gay & Lesbian Chamber of Commerce... 86

COMPANYINDEX
Elizabeth Detention Facility...................................................... 62 National Grid ................................................................................140, 143 V
Ernst & Young ....................................................................................13, 24 National Hispanic Corporate Council .......................... 133 Verizon Communications........................................................... 143
National Immigration Law Center ...................................... 16
F National Institute on Money in State Politics..........67 W
Fairleigh Dickinson University .............................................. 54 National Minority Supplier Walmart .................................................................... 94, 118, Cover III
Federal Bureau of Prisons .............................................................59 Development Council .................................................................... 90 Walt Disney Studios ........................................................................... 131
Financial Services Roundtable Committee National Organization for Women ................................... 134 WEFCOS .......................................................................................................130
on Supplier Diversity ...................................................................... 90 National Society of Hispanic MBAs ....................................71 WellPoint....................................................................................84, 99, 130
Ford Motor Co........................................................................................... 24 New Jersey City University .........................................................53 Wells Fargo & Co. ....................................................................................95
Friends of the National WWII Memorial ................. 123 Node Research .......................................................................................... 50 Women Presidents’ Educational Organization .... 82
Northwood University .................................................................... 113 Women’s Business Enterprise
G Novartis Pharmaceuticals Corp. ............................................ 19 National Council ...........................................................82, 121, 140
GEO Group.....................................................................................................58 Women’s Forum for the
Georgetown University .................................................................108 O Economy & Society.............................................................. 130, 135
Georgia Minority Supplier Omnicom Group ...................................................................................108 Women’s Venture Fund................................................................. 143
Development Council .................................................................... 86 World Bank Group...............................................................................141
Greenbaum, Rowe, Smith & Davis ....................................... 76 P W. Stanton Smith LLC .......................................................................52
PBS ......................................................................................................................... 66 Wyndham Worldwide Corp. ................................................... 136
H Peking University..................................................................................119
Harley-Davidson......................................................................................87 Pepsi Bottling Group ........................................................................ 134 Y
Harper’s Magazine ................................................................................65 PepsiCo.........................................................................................86, 93, 108 Yahoo Finance ............................................................................................58
Health Care Service Corp....................................................86, 89 Pew Research Center.......................................................................... 51 Yale University .........................................................................................119

September/October 2010 139


PEOPLEANDEVENTS

LUZ TORRES JASON GAINES SHAKEERA WEST

Rutgers Future Scholars Presentations


NEWARK, N.J. Rutgers University selects 200 promising Several young participants (shown) and the Rutgers
seventh-graders each year from across New Jersey to Future Scholars staff shared their career pursuits
be part of its Future Scholars program, a pre-college and educational progress with diversity leaders who
preparatory program for Black, Latino and other attended DiversityInc’s roundtable discussions in July
youth from disadvantaged communities. The program and August. DiversityInc CEO Luke Visconti co-chairs
is expected to be an academic model for universities the program’s fundraising committee and was one
nationwide. Scholars who stay with the program of the original donors. Other donors include Merck
through high school, apply to Rutgers University and & Co. (No. 13 in The DiversityInc Top 50 Companies
are admitted will receive free tuition and continued for Diversity®), AT&T (No. 3) and National Grid. For
educational support. The goal: to build a pipeline more information on Rutgers Future Scholars, contact
of underrepresented talent for corporate America. DiversityInc’s Visconti at lvisconti@DiversityInc.com.

WBENC’s 11th Annual Women


in Business National Conference
and Business Fair
BALTIMORE, MD. About 3,200 corporate supplier-
diversity leaders, federal-agency heads and
owners of certified women business enterprises
(WBEs) attended WBENC’s 11th annual event at
the Baltimore Convention Center June 22–24.
They made valuable connections, went to work-
shops and gained insights from speakers, includ-
ing WBENC President and CEO Linda Denny;
Beverly Williamson, vice president, process
excellence and supplier-diversity champion at
Johnson & Johnson (No. 2 in the DiversityInc
Top 50); and Pamela Prince-Eason, chair of
WBENC’s board of directors and vice presi-
dent of worldwide procurement at Pfizer (one
LINDA DENNY (LEFT) AND BEVERLY WILLIAMSON of DiversityInc’s 25 Noteworthy Companies).
WBENC is a DiversityInc partner organization.

For more on diversity management, go to


www.DiversityIncBestPractices.com

140 DiversityInc
STEP students with Rutgers’
Dr. dt ogilvie and DiversityInc’s
Carolynn Johnson
(second row, far right).

Rutgers STEP Students World Bank Group


Visit DiversityInc D&I Community
NEWARK, N.J. About 20 students from a variety of racial/ethnic backgrounds
Building
who are enrolled in Rutgers Business School’s six-week pre-college STEP WASHINGTON, D.C. DiversityInc CEO
(Scholars Training and Enrichment Program) initiative toured DiversityInc’s Visconti kicked off the
offices July 23. The mission of STEP, the brainchild of Rutgers Associate Office of Diversity’s “Diversity &
Professor of Business Strategy Dr. dt ogilvie, is to help high-potential Inclusion Community Building”
students from underperforming New Jersey public high schools who plan to event with a keynote address, “D&I
matriculate to the school to succeed academically and become a feeder pool Practices in Private and Public
of talent for corporations nationwide. DiversityInc has contributed $25,000 Organizations.” About 70 human-
to STEP this year. resources officers, members of the
conflict-management team, key
employee-group representatives
5th Annual Connect-Ability Employment Summit and others convened at The World
HARTFORD, CONN. DiversityInc CEO Visconti presented at the state of Bank May 10 to launch a coordi-
Connecticut’s annual Connect-Ability Employment Summit, joining the nated effort for long-term cultural
state’s employers with its talent pool of people with disabilities, on June 24 change. Said Visconti, “Diverse
at the Connecticut Convention Center. Employers and advocates for people ideas will always outperform ideas
with disabilities attended the event. from a homogenous group.”

September/October 2010 141


PEOPLEONTHEMOVE

STEPHEN DUNMORE ADMIRAL GARY ROUGHEAD ALISON PAUL SHAUN HAWKINS

STEPHEN DUNMORE was management of the organization’s created to increase the capabili-
recently appointed president of top clients. Deloitte is No. 25 in the ties of existing offices responsible
Sodexo’s school-services division DiversityInc Top 50. for promoting diversity and equal
and is responsible for oversee- opportunity within the agency.
ing the company’s operations and
strategic growth at public-school Eli Lilly and Co. appointed SHAUN
districts throughout the United HAWKINS chief diversity offi- DIANNE EARLEY has been
States. Dunmore held key leader- cer. He will drive the company’s promoted to vice president of
ship positions at Johnson Controls, diversity and inclusion strategy. Cox Media Virginia, Cox’s adver-
where he piloted teams providing Previously, as director of Lilly’s tising division. She has more
facilities-management solutions to Private Equity Ventures, he built than 25 years of media sales
Fortune 500 clients. Sodexo is No. investment syndicates and new and sales-management experi-
1 on The 2010 DiversityInc Top 50 entities to accelerate the develop- ence in radio, broadcast and
Companies for Diversity® list. ment of early-stage innovation. cable television. Earley serves
Hawkins serves on the board of the as president of the mid-Atlantic
Liberian Humanitarian Foundation. chapter of NAMIC (the National
Chief of Naval Operations Eli Lilly is one of DiversityInc’s 25 Association for Multi-Ethnicity
ADMIRAL GARY ROUGHEAD Noteworthy Companies. in Communications) and sits
was honored with the Outstanding on the Board of Visitors of the
Public Service Award from the John H. Johnson School of
Asian American Government CIA Director Leon E. Panetta Communications at Howard
Executives Network during its appointed senior officer GERALD University. Cox Communications is
11th Annual Awards Banquet. Last P. HAMILTON to lead the agen- No. 21 in the DiversityInc Top 50.
year, he signed a memorandum cy’s diversity programs, including
of understanding with the Naval its public-outreach efforts. “As a
Officers Mentorship Program to seasoned leader, Gerry has a clear JCPenney has hired KELLEY
develop, implement and improve understanding of how crucial JOHNSON as inclusion and
strategies for mentoring diverse a diverse workforce truly is,” diversity manager. She is respon-
generations of future officers. Panetta said. Hamilton heads the sible for associate engagement,
The U.S. Navy is one of The 2010 new Employee Resource Center, development and recruitment.
DiversityInc Top Federal Agencies
for Diversity.

ALISON PAUL was named


Deloitte’s leader of the U.S. retail
practice, responsible for oversee-
ing one of the largest industry
practices at Deloitte with more
than 1,400 professionals. Paul is
overseeing the development and
implementation of key retail-sector DIANNE EARLEY KELLEY JOHNSON
initiatives and works with senior

For more on diversity management, go to


www.DiversityIncBestPractices.com

142 DiversityInc
ROSE STUCKEY KIRK NEREIDA (NEDDY) PEREZ MAGGIE ROFFEE BERNIE J. MILANO

Johnson previously managed separate awards. Perez received Association of Black Accountants
diversity and corporate communi- the 2010 Highest Leaf Award, Legend Award for his dedica-
cations at Accor Hospitality, help- presented by the Women’s tion to the KPMG Foundation
ing to expand its formal mentoring Venture Fund. Santos was named and commitment to increasing
program, community outreach by National Grid as the 2010 the diversity of business-school
and women’s leadership initia- Jefferson Awards Champion for faculty by attracting more Blacks,
tive. JCPenney is No. 46 in the his voluntary contributions. Latinos and American Indians to
DiversityInc Top 50. the profession. When The PhD
Project was formed about 15 years
MAGGIE ROFFEE, a senior ago, there were only 294 such pro-
ROSE STUCKEY KIRK was pro- executive from the U.S. fessors in business schools; today,
moted to vice president of public Department of Labor’s Office of there are 1,043—a 255 percent
relations for corporate reputation Disability Employment Policy, increase. KPMG is No. 15 in the
at Verizon Communications, No. 11 has joined the US Business DiversityInc Top 50.
in the DiversityInc Top 50. She is Leadership Network (USBLN) as
leading the strategic implementa- senior corporate-relations man-
tion and measurement of commu- ager. Roffee brings more than The Institute for Supply
nications, focusing on corporate 30 years of disability policy and Management (ISM) honored
responsibility and sustainability program employment experience DEBORA CSONTOS, procure-
initiatives. Kirk is also chair of the to USBLN, a DiversityInc partner ment analyst for PSEG’s Fossil
board of directors for the National organization. The organization Procurement Organization, with
Domestic Violence Hotline. recently launched a certification the “Innovation/Creativity Person
program for businesses owned by of the Year” award at ISM’s 95th
people with disabilities. Annual International Supply
National Grid’s NEREIDA Management Conference. Csontos
(NEDDY) PEREZ, vice president spearheaded efforts to educate
of inclusion and diversity, and BERNIE J. MILANO, president affiliate members about ISM’s
MIGUEL SANTOS, a Buffalo, of the KPMG Foundation and Certified Professional in Supply
N.Y.–based consumer advocate, president/cofounder of The PhD Management credential.
were each recently honored with Project, received the National

RUBEN MUNIZ joined Provident


Bank as vice president, MIS
officer. In this role, he is devis-
ing and implementing strategies
for management-information
reporting. Muniz, who brings
30 years of IT knowledge to
Provident Bank, is also a member
of PRIMER, a network of Latino
business and professional leaders
DEBORA CSONTOS RUBEN MUNIZ and a DiversityInc partner. Luke
Visconti, CEO of DiversityInc, is
also a member of PRIMER.

September/October 2010 143


CONTROVERSIAL Q&A

Ask the

Follow Luke Visconti on


Guy
at www.twitter.com/LukeVisconti

Is It OK to Alter Your Standards to


Conform to Another Culture?
Q
[Here] is an honest question that hit me this week after a briefing from the Afghan Marine Brigade commander. My
comment is regarding the imminent repeal of DADT (the “don’t ask, don’t tell” policy). If it is repealed and gays are
serving openly, what happens in the Middle East and Afghanistan? I am certain al-Qaeda and the Taliban will use
this as recruiting propaganda in Iraq and Afghanistan. I think it is critical to examine the impact of these decisions. I think the
timing for the repeal is very, very bad.

A
This is a good question—and a common theme course—we’ll send a Muslim. Oh, oh—now WE look and
in diversity management. The answer goes act like the Taliban.
back to defining values. History demonstrates that you can win the war by
Our culture is increasingly demanding respect for projecting power kinetically, but you win the peace by
people’s orientation. As Admiral Mike Mullen, chairman projecting values. What is more of a recruiting aid to
of the Joint Chiefs of Staff, said in the congressional al-Qaeda: upholding our human rights, or our side tortur-
hearing on DADT, “No matter how I look at the issue, I ing people and bending the law with “flights of rendition”?
cannot escape being troubled by the fact that we have in We help extremists when we are hypocritical.
place a policy which forces young men and * This is not meant to give license to be
women to lie about who they are in order rude. Do you prefer modest dress? No
to defend their fellow citizens.” He did a “I’m not problem, we’ll dress modestly. Don’t drink
magnificent job in expressing the crux of alcohol or eat pork? No problem, we’ll serve
this matter. President Obama recently put a
different you halal meals and we can skip the beer
deadline on ending DADT. It’s just about than you, today to be hospitable. Is it Ramadan? No
over; our country’s values have been problem, we won’t have a business lunch.
expressed. Many gay and lesbian troops
I’m different Sexuality shouldn’t typically come up in
have served in the two wars we’ve been like you.” business. It’s not acceptable to make out with
fighting for the past eight years (as they or fondle someone in a meeting, or a squadron
have served since our Revolution). We are picnic, in the cockpit, on the firing line, or out
at the threshold of finally respecting our service people on patrol. Now if you ask about someone’s family, you may
and veterans as whole people. hear something that is different than what you do (in my
In my opinion, it is damaging to change our values to case, my wife and I adopted children that are not our race).
conform to other people’s values.* The minute we cede our That’s OK—as a reader recently wrote, “I’m not different than
values, we put ourselves on a slippery slope. What’s next? you, I’m different like you.”
Their culture doesn’t allow women to be in positions of One last thing: Our constitutional protections on
authority (outside the house)? OK, women won’t serve in religion mean that the end of DADT and a religion’s rights
this area. Hmm, what about Secretary Clinton (or are separate. Our Constitution protects your church,
Secretary Rice, before her)? No problem, we’ll send a man. synagogue or temple from ever having to marry two men
Don’t like Christians, Hindus, Buddhists or Jews? Of or two women. Those are our American values. DI

Have a question for Luke?


• E-mail him at askthewhiteguy@DiversityInc.com
• To read more “Ask the White Guy” articles, go to www.DiversityInc.com/atwg

144 DiversityInc
Creative spark
At Walmart, diversity is the doorway to creativity,
opportunity and excellence. Inclusion is the key
that unlocks that door.

Visit us at www.walmartstores.com/diversity to learn more.

The “Spark” Design ( ), Walmart and Save Money. Live Better. are marks and/or registered marks of Wal-Mart Stores, Inc. ©2010 Wal-Mart Stores, Inc., Bentonville, AR.
TOP

2010
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