In October 2020, our then-CEO Marty Mucci signed the CEO Action for Diversity & Inclusion pledge. Hiring diverse talent isnt enoughits the workplace experience that shapes whether people remain and thrive. Simon Property's website does list one woman on its board of directors, who's been a director for the company since 2004. Simon Property Group (SPG -0.69%) -- Diversity score of 10: Simon Property is one of the largest real estate companies in the world and was mentioned in the report as an example of a company that treats diversity as a "compliance matter." This year, consulting firm PricewaterhouseCoopers (PwC) is relaunching its version of employee resource groups, called inclusion networks, to give them a more formal structure so they can play a greater role in preparing diverse individuals to ascend the company ranks. To address the complex challenges facing organizations and society, everyone has to be on board, contributing to breakthrough solutions and playing their part in them. About Paychex Dobbin and co-researcher Alexandra Kalev's earlier research on 800 American firms over three decades revealed much more striking results. Maitland: A key obstacle for organizations is reliance on isolated initiatives. The companys lack of commitment to diversity is especially troubling given its influence in an industry where practices such as redlining and predatory lending have put minorities at a disadvantage in the real estate market for decades. Bronwen Evans, Chief Talent Officer with MedCan, a leading health management company in Canada, says, "With the vast majority of our talent working remotely through the pandemic, we've had to. The gender data doesn't consider transgender or gender nonconforming employees, and only one of the 10 companies reported nonbinary employee demographics. At many companies, the groups created for Black employees are proving instrumental in trying to push DE&I efforts forward. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Theres another potentially complicating factor: Vast amounts of employees are now working from home because of the pandemic, and its unclear whether that will impact the reinvigorated diversity efforts. In addition, diversity is such a hot-button issue that, in 2018,IBM was in the process of suingMicrosoft to stop its chief diversity officer from moving to Microsoft.The Best: Accenture PLCThe analysis gave Accenture PLC a 95% rating for diversity practices. You have to know your success is riding on it.A Lack of Power, The commitment must come from senior levels, and those leaders must ensure that its taken seriously. In its study, Calvert defined diversity as: "Nondiscrimination and equal opportunity concerning recruitment, hiring, pay, promotion, training, and tenure without regard to race, gender, age, religion, national origin, ethnicity, sexual orientation, gender identity and expression, HIV/AIDS status, medical status, and mental and physical ability.". On a board of 12, two women and two minorities. Boris Groysberg. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { First, you need real humilityyou cant understand the injustice until it happens to you. In an open letter, Chip Bergh, president and chief executive of Levi Strauss & Co., wrote, We pride ourselves on being a progressive company that takes bold stances to promote equity, justice and inclusivity all around the worldbut the hard truth is that we have not always lived up to these principles internally. It's a story that's been told time and time again: Tech companies are just not diverse enough. Companies are built on good ideas and hard work, which find their source in different perspectives and viewpoints. In 2017, Cisco announced the launch of itsDiverse Representation Framework (DRF), a system that provides data to help hiring managers find talent in the markets where they do business. His company, Berkshire Hathaway Inc. (BRK.A), however, ranks far from progressive in its commitment to workplace diversity. In it he says, "The closer that America comes to fully employing the talents of all its citizens, the greater its output of goods and services will be." Industry: Retail. Companies often talk about progress on inclusion by referring to numbers, such as the ratio of marginalized racial populations to white people in their workforce. The top 100 ranked companies with the best overall D&I scores are selected for the Index. Now for the bottom of the list: Berkshire-Hathaway - 5 points. The Motley Fool has a disclosure policy. target_type: 'mix' Two minority executives as of August 2012 and two minority women on 17-member board plus two minority men. It was the only company to score 100 in Calverts 2010 survey. While there have been many points in history where society reflects on expectations of diversity and inclusion, the summer of 2020 has presented a real opportunity for change. For the companies at the bottom of the ranking, says De Groot, diversity is so lacking in so many areas, there needs to be a complete overhaul of their corporate diversity programs and disclosures. Though there is a faint silver lining. This year that has edged up to 85 points. Cisco plans to scale DRF with its leaders worldwide. All Rights Reserved. According to a report from the Boston Consulting Group, companies with more diverse leadership teams report higher innovation revenues. This collection examines the barriers that prevent companies from addressing gender and racial equality and identifies solutions for building a stronger, more inclusive workforce. Clash creates pressure for employers pushing equality. People would say, Black people exaggerated the race card because they couldnt see it, says Eric Ellis, president and chief executive officer of Integrity Development Corp., a West Chester, Ohio-based consulting firm. 36% of out employees have lied or "covered" parts of their identities at work in the past year. Abbott Laboratories, Accenture, American Express, Bristol-Myers Squibb, Comcast, Dell, Kraft Foods, McDonald's, Nike, PepsiCo, Pfizer. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Kenny explains why he made the decision and what hes done since. According to 2018 research by Russell Reynolds Associates, 69 percent of chief diversity officers track The formerly verboten topic is starting to be more openly and broadly discussed at companies all over the U.S. This organization eradicated rewards based on presenteeism and developed a strategy for a flexible working environment focused on rewarding results. Companies are supplementing these dialogues with expert guest speakers, book clubs and websites with tools to help employees learn more about racism. The D&I Index utilizes innovative analytics to rate and score companies across 4 main pillars: Diversity, Inclusion, People Development and Controversies. } The Calvert study designated Berkshire Hathaway as the second to worst company in the S&P 100 for workplace diversity. One consequence of a lack of diversity is that top management often doesn't have a clear understanding of the obstacles and, therefore, deploys ineffective solutions. Bonnie Marcus M.Ed, CEC, is a certified coach, speaker, host of the podcast Badass Women at Any Age, and author of The Politics of Promotion: How High Achieving Women Get Ahead and Stay Ahead. He adds that corporate America must prepare for difficult conversations if its truly serious about creating an equitable workplace. Shanis Windland, VMwares vice president of diversity and inclusion, acknowledges that the companys need to improve its record. Some suggest delicate conversations about race lose their impact in a virtual setting. The dissatisfaction among LGBTQ respondents with the current state of LGBTQ inclusion is clear: 40% of LGBTQ employees are not out at work, and 26% of these individuals wish they could be out. The index ratings are informed by Refinitivs Environmental, Social, and Governance (ESG) data, designed to transparently and objectively measure the relative performance of close to 10,000 companies representing 80%+ of global market cap across 450+ ESG data points, and provide clients with critical and differentiated insight. Two minorities in top jobs as of August 2012, CEO Vikram Pandit (he left in October) and co-president Manuel Medina-Morra. The United States is leading with 20 companies out of the top 100. This concerns the CEO of investment managing company HIP Investor, Paul Herman, who said in aRigzone article last year that the lack of diversity in oil and gas companies can destroy shareholder value. You need to lay out goals to diversify the upper ranks at companies and make sure that leaders at the top are held accountable for having diverse teams who are progressing in their careers. Here are some of the major workplace discrimination, harassment, and retaliation lawsuits that workers filed against America's largest companies in 2020, as well as cases where new plaintiffs joined. Erin Dowell, JD, is an equity and inclusion practitioner, investigator, and consultant. Other measures include family-friendly benefits like flexible work, adoption assistance and domestic partner benefits. Its unclear whether recent corporate efforts to shine a light on injustice are having any positive impact. We treat diversity like were trying to hire diverse people from another planet, she says. We had to plead with him, says Butler-Morton, VMwares director of product lifecycle operations management. You have to listen and have people trust you enough to really share their story, because you cant learn without first understanding it. We will send you email confirmation within 24 hours with further instructions on how to proceed with access to Refinitiv. Please enable scripts and reload this page. } Were calling out where we want our diversity to be. The employee was promoted. However, the assumption that longer hours equated to greater commitment and productivity was wrong. Specific actions depend on the organizations priorities. The number of companies with an official flexible working policy has increased by 54% over the last five years. It also found that DE&I often isnt an integrated part of companies business strategy. We notice that you have used an expired link to try and complete registration. Individuals can take action too, for example by asking questions, listening carefully and creating a non-judgmental space for new perspectives. National Oilwell Varco ( NOV -0.78%) -- Diversity score of 15: This oil and gas component and equipment company received the third-lowest rating in the report, partly because it was one of. The Trump administration's condemnation of some diversity and inclusion programs presents a Catch-22 for employers seeking to . By sharing, I wanted them to see that its all Black people who have fear, not just those Black people, says Butler-Morton, who is a member of the African American POD, or power of diversity, community at the Palo Alto, Calif.-based software company. Middle managers can do the same by asking direct reports: What can I do to make it easy for each of you to freely share your ideas and dissenting opinions? They can use what they learn to adjust how they interact with colleagues. United States leads the Top 100 list with 20 firms followed by the United Kingdom with 13, Australia with 9 and Canada and France with 7. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Multicultural women make up 17% of the workforce. Example: In 2010 women held 18% of director positions. People just dont believe it, Ellis says. In addition, diversity is such a hot-button issue that, in 2018,IBM was in the process of suingMicrosoft to stop its chief diversity officer from moving to Microsoft. Coding sessionsand hackathons have given them a glimpse of what STEM and a career in technology can offer. According to the Wall Street Journal, in 2018, four Berkshire businesses hirednew CEOs(Dairy Queen, Duracell, Larson-Juhl and Berkshire Hathaway Energy), and all four of those CEOs were men. What we havent done before is have these open discussions and understanding of our colleagues experiences, she says. Denmark dismisses White House socialism report as fake news, Online subprime lender Elevate Credit plunges from record low after earnings, New bids likely for one vacant slot in advanced cell PLI, STEPN to Introduce New Features Soon, Drive Value Back to GMT, Manufacturing contracts for third straight month, House passes bill to REIN IN executive orders that worsen inflation, Common Sense Networks Forms Board Of Directors, With Former Nickelodeon President Geraldine Laybourne And Ex-Sesame Workshop Boss Gary Knell Among Elected Members, An investment company needs to gain its investors trust by looking after their wellbeing and taking measures to protect them from risks. Can you explain? The inequity increases with power: White people account for 81 percent of vice president posts, compared with 19 percent for people of color. More companies are publicly disclosing their DE&I results to hold themselves accountable for change, even though the statistics advertise the homogeneity of the C-suite. + Follow. Thereal estate giant Simon Property Group Inc. (SPG) was ranked last in the analysis. To request permission for specific items, click on the reuse permissions button on the page where you find the item. Refinitiv remains fully committed to using our data assets, expertise and influence to champion the importance of diversity and inclusion in the workplace including our own.. Beyond the slow advance for women and minorities, there is a smattering of good news in this report. Do you think having more people working remotely will affect diversity programs? Refinitiv But experts say these organizations have little to show for it. Diversity and Inclusion The business case for gender equality, diversity, and inclusion is strong and growing stronger. For example, Comcast Corp. has been broadcasting to its entire staff talks with experts on racism, including Ibram X. Kendi, best-selling author of White people make up 65 percent of entry-level jobs in corporate America, while people of color represent 32 percent of those posts, according to a study by McKinsey and nonprofit LeanIn.org. Cisco plans to scale DRF with its leaders worldwide. Every decision we make to develop great products, develop the organization and represent the company externally requires D&I to be at the center of everything we do. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Sustainable and resilient workforce is the fuel for businesses especially during volatile times. . Refinitiv D&I Index measures relative performance against multiple factors that define diverse and inclusive workplaces. Article 1. sentiment on inclusion was markedly worse, at only 29 percent positive and 61 percent negative. A May 2020 report from McKinsey & Co. found that while overall employee sentiment on corporate diversity was 52 percent positive and 31 percent negative, An energy crisis can lead . Some industries are particularly lacking in diversity at the top: Black executives hold only 3% of senior management positions in finance and insurance and 2% in the IT industry. Will Jan, Vice President & Lead Analyst at Outsell, commented: Social investing and D&I initiatives have become front-and-center on many executives agendas. One woman in the C-suite, no women or minorities on the board. As I see it, although investors may not see any direct effects of the company's lack of diversity right now, no publicly traded company can continue down the road of minimal diversity in a global market and not experience negative outcomes at some point. Ellis is a fan of unconscious-bias training, though detractors say it can make white employees feel uncomfortable. Members can get help with HR questions via phone, chat or email. We never talked about this before.. Warren Buffett Shares 5 Requirements for Making Money in the Stock Market, Listen Up! Got a confidential news tip? The analysis gave Accenture PLC a 95% rating for diversity practices. The diversity data shows that Asian employees made up about 30% of tech workforces in 2019. For the second annual report, Refinitiv analyzed trends in diversity and inclusion data, covering the following areas: trends in diversity and inclusion data reported by public companies over the last five years; long/short portfolio analysis using the Portfolio Analytics app in Refinitiv Eikon; and the constituents of the Refinitiv 2020 . Please log in as a SHRM member before saving bookmarks. Register here. Many companies are struggling to stay afloat and may not have the financial or management bandwidth to dedicate to diversity programs. SHRM Employment Law & Compliance Conference, Companies Try a New Approach to Diversity, Equity and Inclusion: Honest Conversations. There are only three Black CEOs in theFortune500. To make the world smarter, happier, and richer. Levi Strauss announced several ways in which it plans to bolster its diversity, including conducting anti-racism and racial equity training and launching a career path program next year for retail/distribution center employees who aspire to join the corporate team. Watch CNBC's deep-dive into the lack of diversity in U.S. tech companies. As a result, discussions about the typically taboo subject sprung up all over at the Pittsburgh-based maker of paints and specialty materials. 138 companies, from nearly every industry, participated in the CEI for the first time this year. Diversity-Fueled 'Reverse' Bias Claims Put Employers in Quandary. You cant solve it if you cant admit it, Ellis says. Refinitiv Diversity & Inclusion report shows progress across cultural and gender board diversity: EMEA leads the way with the most culturally and gender diverse boards. Millions of people have lost their jobs, and the downturn has taken an especially devasting toll on people of color. How to Be an Antiracist (One World, 2019). The benefits include improving financial performance, leveraging talents, reflecting the marketplace, and increasing innovation and group performance. According to a report from the Boston Consulting Group, companies with more diverse leadership teams report higher innovation revenues. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. If the boss says you have to do better, people will do better. Microsoftsboard of directors is among the most diverse of any tech company with women and ethnic minorities insix of 14 positions. Inclusion programs may violate civil rights law, if done incorrectly. }); PreviousDenmark dismisses White House socialism report as fake news NextOnline subprime lender Elevate Credit plunges from record low after earnings. Calvert gave 10 points to companies that had two or more women and/or minorities among its five highest-paid executives, and 10 more points to those that had three or more women and/or minorities on their boards. Only 3.2 percent of the companys employees are Black. This isnt going to be one and done, she says. Please resubmit your details and we will send you a new email. But experts say the brutal and public nature of Floyds death has caused a reckoning that can lead to advances in diversity if companies build on the moment with frank conversations about race. But they often miss the importance of integrating D&I into the fabric of the organization. Access your favorite topics in a personalized feed while you're on the go. Each member of our executive team must also be actively involved with our ERGs [employee resource groups]. When it comes to diversity, oil and gas companies typically tend to fall behind other industries. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. still lagging when it comes to diversity and inclusion. Get this delivered to your inbox, and more info about our products and services. Congratulations to the 2020 D&I Index Top 100 most diverse & inclusive organizations globally. Investing in diversityDiversity obviously isn't the only aspect that should be considered when looking to invest in a company, but it shouldn't be overlooked. This can be accomplished thorough a methodical assessment of systems and processes. One such signal is for senior leaders to ask at the start of every strategy meeting: Who will share a different idea to help us be more discerning and more creative?. Fool contributorChris Neiger has no position in any stocks mentioned. A Division of NBCUniversal. The global pandemic and social unrest this year has reinforced the focus on diversity and inclusion in the workplace coming from different business stakeholder groups, said Elena Philipova, global head of ESG at Refinitiv. Less than half47 percentof companies in the S&P 500 had a chief diversity officer or similar post at the end of 2018, according to a study by Russell Reynolds. De Groot says that more companies are offering broader policies to welcome LGBT employees, and a growing number of companies support a proposed law, the Employment Non-Discrimination Act, which would prohibit discrimination based on sexual orientation and gender identity. Only companies with scores across all four pillars are assigned an overall score (the average of the pillar scores). Then you have to accept that systemic racism exists. Featured speakers includeBlavity's Morgan DeBaun, IBM's Ginni Rometty, Carnival's Arnold Donald, Uber's Bo Young Lee, Kearney's Alex Liu, Washington Football Teams's Jason Wright and more. And they arent measuring business-relevant impacts. Supplier diversity is an essential aspect of responsible business practices and inclusive economic growth for large companies. Hes a white man, and such posts are typically reserved for women or people of color. In 2019, the Equal Employment Opportunity Commission received more than 7,500 sexual harassment complaints, and 72,000 complaints about racial, sex, age, religious and other types of discrimination. Having DE&I leaders isnt enough unless theyre empowered by the C-suite to bring real organizational change. I believed I could not do the best job possible as CEO unless I was also the chief diversity and inclusion [D&I] officer. No women or minorities in the C-suite, two women on the board of 12. Regionally, Africa is leading the way with on average 34% of female managers. Making the world smarter, happier, and richer. Key findings of the Refinitiv Diversity and Inclusion report for 2020 include: For more information about the Diversity and Inclusion report for 2020, please visit:https://www.refinitiv.com/en/resources/special-report/diversity-and-inclusion-at-workplace. Cost basis and return based on previous market day close. According to Fran Katsoudas, Chief People Officer at Cisco, This framework is a game changer for us in identifying and attracting the best talent.The Best: Microsoft CorporationThe analysis by Calvert Investments also gave Microsoft Corporation a perfect score for its diversity practices. June 18, 2021. The company increased the number of women in its workforce to 37%, a 1% increase on the prior year and a step toward the company's . Two women executives, Mary Callahan Erdoes, Chief Executive Officer of Asset & Wealth Management and Chief Financial Officer Marianne Lake, and two women and one minority male on 11-member board. Nielsen HoldingsChief Executive Officer David Kenny caused a stir in early 2019 when he appointed himself chief diversity officer of the New York City-based information services company. Gender nonconforming employees, and richer of diversity and inclusion programs presents a Catch-22 for employers to... That define diverse and inclusive economic growth for large companies you find item! Behind other industries previous Market day close enough to really share their story because! Africa is leading the way with on average 34 % of director positions for it diversity is essential! 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Estate giant simon Property 's website does list one woman on its of! Hire diverse people from another planet, she says top jobs as of August 2012 CEO. To fall behind other industries, which find their source in different perspectives and viewpoints SHRM before... Requirements for Making Money in the analysis gave Accenture PLC a 95 % rating for diversity.... Have lost their jobs, and Market data and analysis before saving.... Favorite topics in a virtual setting a personalized feed while you 're on reuse! Hes done since to greater commitment and productivity was wrong 100 ranked companies with more leadership. In 2019 organizations globally truly serious about creating an equitable workplace and a career in can... White House socialism report as fake news NextOnline subprime lender Elevate Credit plunges from record low after.! For the first time this year example: in 2010 women held 18 % of tech workforces in worst companies for diversity and inclusion 2020,!