Only 2 percent of its top 250 executives are Black, while 16 percent are Asian and 6 percent are Latino. The groups will now be a vehicle for training programs, including Path to Partnership, which is a three-year program that pairs promising executives with mentors and other forms of support to prepare them to become partners. The company did not return a call seeking comment but I know from past stories that it has a policy of not participating in surveys. For example, Comcast Corp. has been broadcasting to its entire staff talks with experts on racism, including Ibram X. Kendi, best-selling author of According to the company website, Accentureadded more than 1,800 employees of diverse backgrounds in 2017up from approximately 1,000 in 2016. Home Markets The Best (and Worst) Companies For Workplace Diversity, The Best (and Worst) Companies For Workplace Diversity 10/30/2018 Markets A culture of workplace diversity ensures that performance and qualifications, rather than membership in a preferred demographic, dictate ascension up the corporate ladder, but also that a broad array of ideas and backgrounds are used to move acompany forward. The chief diversity officer is usually a woman or a person of color. Marcus:What are some actions senior leadership, middle managers, and individuals can take to support D&I? 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. Please log in as a SHRM member. Lemuel.brewster@refinitiv.com, Alexis Weakley You have successfully saved this page as a bookmark. A Division of NBCUniversal. What advice would you give other CEOs who are considering becoming their companys chief diversity officer? Rusty Hill/Getty Images. We continue to see many organizations seeking to address individual bias, but fewer are addressing the bias that hides in organizational structures and processes. At a VMware Inc. event, LaTreece Butler-Morton shared how her husband didnt want her and their teenage son to attend a Black Lives Matter protest because he feared for their safety. Why must your senior management team join an ERG? We and our partners use cookies on this site to improve our service, perform analytics, personalize advertising, measure advertising performance, and remember website preferences. Please confirm that you want to proceed with deleting bookmark. 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. Members can get help with HR questions via phone, chat or email. All S&P 500 companies now have at least one woman on the board, and executive search firm Spencer Stuart found that last year, of the 432 new independent directors added to S&P 500 boards, 59%. Her upcoming book, Not Done Yet! And they arent measuring business-relevant impacts. The firm has pledged to fight the charges. The chief executive of Choice Hotels, Pat Pacious, asked his employees for their grace when he addressed them about Floyds death. Companies also are using more technology in their diversity efforts. 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. We will send you email confirmation within 24 hours with further instructions on how to proceed with access to Refinitiv. Got a confidential news tip? Such honesty has been largely missing from failed diversity efforts that have cost billions of dollars. Refinitiv provides innovative indices and index-related services to the global financial community to help investors make better decisions. Our Diversity and Inclusion Index, now in its fifth year, emphasizes the critical importance for companies to commit to, measure and report on their diversity journey beyond gender. Maitland: We set out 10 enablers that drive inclusion by creating connection, opportunity and common cause across organizations. You can mandate diversity, but you cant mandate inclusion, Minta-Jacobs says. The company offers domestic partner benefits to LGBT employees. Because more prospective employees than ever are assigning paramount importance to workplace diversity, think tanks and research groups have conducted extensive studies to determine which of the economys largest employers excel in this area and which are lagging behind. Because more prospective employees than ever are assigning paramount importance to workplace diversity, think tanks and research groups have conducted extensive studies to determine which of the economys largest employers excel in this area and which are lagging behind.As of 2018, the following are the companies best known for embracing workplace diversity, as well as a few that still have work to do.The Best: Cisco SystemsA comprehensive analysis by Calvert Investmentsof hiring practices, internal and external initiatives to increase diversity, family-friendly benefitsand representation of women and minorities on company gave Cisco Systems a perfect score for its diversity practices. Sign up for free newsletters and get more CNBC delivered to your inbox. In 2011, at a conference on women in Laguna Niguel, Calif., he talked about how, in the early years of corporate America, we wasted half our talent. Yet according to De Groot, we were not able to find any evidence that they value diversity throughout their corporation.. Cost basis and return based on previous market day close. Inclusion is about behavior, relationships. For years, organizations have spent billions of dollars on DE&I programs that have largely failed. 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. The social unrest has been a powerful incentive for companies to bolster their diversity efforts, though theres another powerful force sweeping the U.S. that could undermine those intentions: the recession brought on by the COVID-19 pandemic. Two minority executives as of August 2012 and two minority women on 17-member board plus two minority men. We want to make sure its impactful, she explains. Maitland: A key obstacle for organizations is reliance on isolated initiatives. Inclusion programs may violate civil rights law, if done incorrectly. Here are some best online colleges where you can get a [], The Best (and Worst) Companies For Workplace Diversity. }); PreviousDenmark dismisses White House socialism report as fake news NextOnline subprime lender Elevate Credit plunges from record low after earnings. We notice that you have used an expired link to try and complete registration. A survey of more than 19,000 HBR readers found that . That runs counter to whats good for profits. The inequity increases with power: White people account for 81 percent of vice president posts, compared with 19 percent for people of color. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. Microsoftsboard of directors is among the most diverse of any tech company with women and ethnic minorities insix of 14 positions. This was based on a bias for presenteeism. SPG is opaque with its EEO-1 stats and its hiring practices withregard to race, gender and sexual orientation, and the company features a glaring lack of diversity in leadership positions. Calvert last did a corporate diversity survey in 2010, and the strides since then have been small. The Calvert study designated Berkshire Hathaway as the second to worst company in the S&P 100 for workplace diversity. As part of the campaign, VMware has contributed to social justice organizations and will match employees donations. Im a senior editor in charge of Forbes education coverage. Overall, much of the key findings of the 2020 report echo similar data from the 2015 Why diversity matters McKinsey report. The reports that specified gender and race said most of these women were White. Top 20 companies with best diversity and inclusion numbers overall: Microsoft Centene Target Gap Biogen Intel Verizon Communications Allstate PVH Bank of America Amazon.com Nike Wells Fargo. Coding sessionsand hackathons have given them a glimpse of what STEM and a career in technology can offer. Top 25 Index ranking and their corresponding overall D&I percentage score (%): For more information about the D&I Index (Methodology) please visit: https://www.refinitiv.com/content/dam/marketing/en_us/documents/methodology/diversity-inclusion-rating-methodology.pdf, For a complete list of the Top 100 Most Diverse & Inclusive Organizations Globally, please visit: https://www.refinitiv.com/en/sustainable-finance/diversity-and-inclusion-top-100, To learn what top-ranked institutions are saying about the D&I index, please visit: https://www.refinitiv.com/content/dam/marketing/en_us/documents/reports/diversity-and-inclusion-quotes.pdf. 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." In 2020, workers spoke publicly in increasing numbers, often by taking their employers to court over pay disparities, harassment and abuse, and toxic company cultures. Industries leading this years index: 18 banking, investment services & insurance; 9 pharmaceuticals; 7 telecommunications services, specialty retailers and personal & household products & services. Cisco plans to scale DRF with its leaders worldwide. Quanloop managed to [], It is quite possible that you may have come across your friends talking about Escape Hour and also other terms such as quest game. Progress is taking place, but slowly. According to a report from the Boston Consulting Group, companies with more diverse leadership teams report higher innovation revenues. Get this delivered to your inbox, and more info about our products and services. Maitland: We illustrate this in one of the books 14 case studies. SHRM Employment Law & Compliance Conference, Companies Try a New Approach to Diversity, Equity and Inclusion: Honest Conversations. 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. According to the company website, Accentureadded more than 1,800 employees of diverse backgrounds in 2017up from approximately 1,000 in 2016. + Follow. The Index is then calculated by weighing each metric based on importance in the market and how each company compares with its peers. The company also announced last month -- after the Calvert report was released -- that Liz Zale, formerly the vice president of investor relations for Nielsen Holdings, is a new senior vice president with Simon. William Trout, Head of Wealth Management at Celent, commented: ESG today has reached a tipping point, and issues related to employee welfare, gender equality, supplier diversity and other social concerns today vie with governance and environmental considerations for attention. container: 'taboola-below-article-thumbnails', Citigroup and Merck get top ratings for their records on including women, minorities and people with diverse sexual orientation, while Berkshire Hathaway and Ebay score at the bottom of a new ranking of diversity among companies in the S&P 100. 3 slot, with 90 points. The D&I Index utilizes innovative analytics to rate and score companies across 4 main pillars: Diversity, Inclusion, People Development and Controversies. $("span.current-site").html("SHRM China "); Dobbin and co-researcher Alexandra Kalev's earlier research on 800 American firms over three decades revealed much more striking results. The majority of people doing the hiring arent minorities, he says. Even though there are laws against pay discrimination, US companies on average still pay women just $0.82 for every dollar they pay men, and pay women of color even less and executives have made virtually no progress in closing wage gaps across the country since the early 2000s. 2. Regionally the largest increases have been seen in Oceania with a 40% increase. The Calvert study designated Berkshire Hathaway as the second to worst company in the S&P 100 for workplace diversity. And here at work we need to make room for people to share stories of injustice, microaggressions and inequity and for others to listen and act to change wherever and however we can. 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. You have to listen and have people trust you enough to really share their story, because you cant learn without first understanding it. Research: What Inclusive Companies Have in Common. Major businesses including Google, Amazon, McDonald's, Pinterest, and Johnson & Johnson faced new legal battles this year over allegations of racism and sexism. Article Clash creates pressure for employers pushing equality. 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. Organizations will continue to miss out on well-researched benefits of inclusion, such as enhanced team performance, consistent innovation, smarter decision-making, greater productivity, and improved customer relations. One woman on board of 10. And a place where we, our members, and our business community can bring our unique professional talents to stand together against all forms of social injustice. United States leads Top 100 list: 20 firms followed by United Kingdom 13, Australia 9, Canada and France 7. Accountability is key to moving that needle, alongside investments in D&I programs that attract and create a pipeline of diverse talent. A May 2020 report from McKinsey & Co. found that while overall employee sentiment on corporate diversity was 52 percent positive and 31 percent negative, It requires establishing procedures to ensure continuous questioning of how things are done here. It may have hurt Berkshire Hathaway that it didnt comply with Calverts requests. Berkshire Hathaway (BRK.B -0.18%) -- Diversity score of 5: One of the reasons Warren Buffett's company, favored by many investors, received the lowest diversity score out of all the S&P 100 companies was because it was the only company that specifically stated it does not consider diversity in selecting its board of directors, according to the report. J. Yo-Jud Cheng. It showed that five years after training became required. Transparency is a good first step, though it has to be backed up with action, says Tracy Layney, Levi Strauss senior vice president and chief human resources officer. There's little push back today on the importance of diversity and inclusion for business. Individuals can take action too, for example by asking questions, listening carefully and creating a non-judgmental space for new perspectives. Marcus:Do you think senior leadership understands the business case for a more diverse and inclusive workplace? The D&I index continues to receive recognition from industry analysts across the globe: Sang Lee, Managing Partner at Aite Group, commented: The continued industry interest in the D&I index reflects the increased investor appetite to invest in environmental, social, and governance related areas and the changes that are happening across all sectors of the capital markets. She says she thinks that her white colleagues view the Black individuals who have died violently in racist incidents as being somehow different from their Black co-workers. Register here. 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. According to Diversity Inc., which compiles a list of the top 50 most diverse companies each year, no oil company has made it on its list since 2004. Were talking about racism, Berardinelli says. 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. We are currently reviewing your application. As employees across the globe engage in discussions of racial . June 18, 2021. Tech companies are notoriously white and male, a homogeneity that stems from the white and male venture capital firms that finance them. Published Feb 27, 2023. Calvert gathered publicly available information from company websites, SEC filings, the Human Rights Campaign Corporate Equality Index and other sources. 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. This encapsulates the challenge that even the more diverse companies still face in tackling inclusion (Exhibit 4). The top 100 ranked companies with the best overall D&I scores are selected for the Index. David Pedulla. 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. 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. A total of 25% more companies have a career development policy in place than five years ago. Opinions expressed by Forbes Contributors are their own. Supplier diversity is an essential aspect of responsible business practices and inclusive economic growth for large companies. We had to plead with him, says Butler-Morton, VMwares director of product lifecycle operations management. PPG already has a variety of diversity, equity and inclusion (DE&I) initiatives, though it doesnt break out statistics on people of color. While Citi and Merck shared the No. For example, after Floyds death, Morgan Stanleys chief executive, James Gorman, promoted two Black women to senior roles and pledged $25 million to create a diversity institute at the investment bank. UK fishermen blast EU trawlers for bullying our boats out of waters, Quanloop Review a trustworthy investment company, Understanding More About Quest Room Platform, Best online colleges to get business degree. Some company pronouncements about racism sparked negative reactions that highlighted corporate Americas failure to create equitable workplaces. CNBC's Jon Fortt described it like this: "Women, people of color, often have different experiences. NEW YORK/LONDON - Refinitiv today announced the 2020 Top 100 most diverse and inclusive organizations globally as ranked by the Diversity & Inclusion (D&I) Index. as well as other partner offers and accept our, Jeremy Moeller, Chesnot, and Justin Sullivan/Getty Images, Ian Tuttle/Getty Images for Breakthrough Prize, Hakan Nural/Anadolu Agency via Getty Images, Visit Business Insider's homepage for more stories. 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. Why tech companies struggle with diversity and inclusion. Multicultural women make up 17% of the workforce. Diversity-Fueled 'Reverse' Bias Claims Put Employers in Quandary. Thereal estate giant Simon Property Group Inc. (SPG) was ranked last in the analysis. Thank you for registering. Number of US employees: 1.4 million. One initiative already in the works: a book club that explores the topic of racism to help white colleagues better identify with their co-workers of color. An energy crisis can lead . Hes a white man, and such posts are typically reserved for women or people of color. Fool contributorChris Neiger has no position in any stocks mentioned. Having DE&I leaders isnt enough unless theyre empowered by the C-suite to bring real organizational change. That mindset could help diversity efforts, she says. The gender data doesn't consider transgender or gender nonconforming employees, and only one of the 10 companies reported nonbinary employee demographics. As many companies work to improve their diversity, equity, and inclusion efforts after a year of protests and calls for change, one career site has been looking at the best companies for. For the second annual report, Refinitiv analyzed trends in diversity and inclusion data, covering the following areas: trends in diversity and inclusion data reported by public companies over the last five years; long/short portfolio analysis using the Portfolio Analytics app in Refinitiv Eikon; and the constituents of the Refinitiv 2020 Diversity and Inclusion Index (based on the second quarter 2020 index rebalance). Your session has expired. "And these are the jobs that can lift entire families up into the middle class," Barrett said. Hobby Lobby. Only companies with scores across all four pillars are assigned an overall score (the average of the pillar scores). And there is even greater opportunity for positive impact in what we describe as an IN Corps of organizations working collaboratively to influence education, public policy and other external dynamics affecting inclusion. Members may download one copy of our sample forms and templates for your personal use within your organization. Data is a real-time snapshot *Data is delayed at least 15 minutes. At a country level, Germany is the only country that has maintained a positive increase in the percentage of culturally diverse board members. 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. The employee was promoted. Calvert quoted Berkshire Hathaway as saying, "Berkshire does not have a policy regarding the consideration of diversity in identifying nominees for director. NPR's Audie Cornish speaks with DEI consultant Lily Zheng about how the diversity, equity and inclusion industry has changed after 2020's racial injustice protests and how companies are responding. Five best practices. 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. target_type: 'mix' To make real progress, they must directly challenge assumptions underlying the written and unwritten rules at work. 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. It's a story that's been told time and time again: Tech companies are just not diverse enough. It is about achieving sustainable positive results for business and society by creating and maintaining environments in which every voice is heard, every person matters, and everyone has what they need to flourish while contributing to shared goals. SINGAPORE - Singapore is the second-worst performing country in terms of workplace diversity and inclusion (D&I) practices, based on a poll of employees in 14 developed countries by Kantar, a. An in-depth discussion among diversity experts on realizing the benefits of diversity. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. The rebound in hiring for diversity-and-inclusion-related jobs is a meaningful signal of a deeper and more sustained investment, given how expensive and challenging it is to find, hire and retain . This organization eradicated rewards based on presenteeism and developed a strategy for a flexible working environment focused on rewarding results. First, you need real humilityyou cant understand the injustice until it happens to you. It was more about listening.. Since 2018, companies like Google, Uber, Fox News, Riot Games, UPS, Coca-Cola, and Target have paid out multimillion-dollar settlements, and this year brought an even larger wave of high-profile cases. By sharing, I wanted them to see that its all Black people who have fear, not just those Black people, says Butler-Morton, who is a member of the African American POD, or power of diversity, community at the Palo Alto, Calif.-based software company. Only 3.2 percent of the companys employees are Black. While 38 percent of the San Francisco-based clothing companys total U.S. workforce is non-white, there are no Black individuals on its corporate board or among its executive leadership team. Irick agrees and will be instituting unconscious-bias training in his division. However, this year PwC opted to double the time in the program for women and minorities to ensure they get the attention they need. The United States is leading with 20 companies out of the top 100. Energy crises can have a significant impact on the world economy, as energy is a fundamental input for almost all economic activities. Previously, only one or the other had to be included. Typically, however, DE&I leaders lack influence. Distance also makes it more challenging to forge meaningful mentoring and sponsorship bonds.