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. Offering insight and recommendations on investing in sustainable companies must not only be on information providers to-do list to support the social movement but become part of their responsibility in promoting an ESG-driven business culture and metrics that lead to more diverse and inclusive workplaces. A survey of more than 19,000 HBR readers found that . Dobbin and co-researcher Alexandra Kalev's earlier research on 800 American firms over three decades revealed much more striking results. Supplier diversity is an essential aspect of responsible business practices and inclusive economic growth for large companies. T.A. Only 2 percent of its top 250 executives are Black, while 16 percent are Asian and 6 percent are Latino. Backed by the content, data, independence and global information network of Refinitiv, our indices and index services are designed to suit any need. The chief diversity officer is usually a woman or a person of color. 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. Companies are supplementing these dialogues with expert guest speakers, book clubs and websites with tools to help employees learn more about racism. 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%. "And these are the jobs that can lift entire families up into the middle class," Barrett said. 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.". This isnt going to be one and done, she says. Please confirm that you want to proceed with deleting bookmark. 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. Here are the companies at the top of the list, and the bottom, with a few statistics. Anincontrovertible argument can be made that Warren Buffett is the most forward-thinking investor of the 20th and 21st centuries. United States leads Top 100 list: 20 firms followed by United Kingdom 13, Australia 9, Canada and France 7. https://www.refinitiv.com/en/resources/special-report/diversity-and-inclusion-at-workplace, https://www.refinitiv.com/content/dam/marketing/en_us/documents/methodology/diversity-inclusion-rating-methodology.pdf, https://www.refinitiv.com/en/sustainable-finance/diversity-and-inclusion-top-100, https://www.refinitiv.com/content/dam/marketing/en_us/documents/reports/diversity-and-inclusion-quotes.pdf, https://www.refinitiv.com/en/financial-data/indices, Refinitiv announces the 2020 D&I index top 100 most diverse & inclusive organizations globally. For years, organizations have spent billions of dollars on DE&I programs that have largely failed. The company explicitly states it does not consider diversity when directors and board members are selected. But just as with National Oilwell, Forbes noted that Berkshire doesn't have any women or minorities in the C-suite. But Shah Paikeday says companies have been more proactive about reaching out to telecommuting employees and keeping them engaged. Only 41% responded. For forward-thinking job seekers looking for somewhere to launch a career, workplace diversity is as important a consideration as many of the typical criteria used to compare career opportunitiessuch as pay, benefits, flexibility and upward mobility. Ed Andrieski/AP. The analysis gave Accenture PLC a 95% rating for diversity practices. The chief executive of Choice Hotels, Pat Pacious, asked his employees for their grace when he addressed them about Floyds death. Hobby Lobby. 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. Specifically, companies should track data on team sizes, recruiting, retention, and promotion ratesand systemic problems should have consequences. Its director selection criteria say it seeks women and minorities. Change is very slow, says Christine De Groot, a Calvert sustainability analyst who wrote the report. Many seek, for example, to assess inclusion through a handful of questions in an engagement survey about how employees feel, without assessing whether peoples actions and organizational processes and signals consistently support or undermine inclusion. Refinitiv 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. It showed that five years after training became required. These are indicators of diversity, not inclusion. D&I isnt something you do in your spare time. I wanted to support my son.. If you are a survivor of sexual assault, you can call the National Sexual Assault Hotline (1-800-656-4673) or visit its website to receive confidential support. This was based on a bias for presenteeism. The companyincreased the number of women in itsworkforce to 37%, a 1% increase on the prior year anda step towardthe companysgoal of at least 40%women by 2020. 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. 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. Women make up 30% of "global officers . First, you need real humilityyou cant understand the injustice until it happens to you. 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. Hobby Lobby took its fight against women's health care all the . Join CNBC's Inclusion in Action Forumon Thursday, September 10. 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. How to Be an Antiracist (One World, 2019). Why tech companies struggle with diversity and inclusion. Companies spend $8 billion a year on diversity training, according to consulting company McKinsey & Co. Fostering productive conversations wont be easy. At Refinitiv, we are committed to using our data to further our own goals and to provide those insights to the broader market.. 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. SHRM Employment Law & Compliance Conference, Companies Try a New Approach to Diversity, Equity and Inclusion: Honest Conversations. 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. For example, Comcast Corp. has been broadcasting to its entire staff talks with experts on racism, including Ibram X. Kendi, best-selling author of 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. According to a report completed by Calvert Investments just a few months ago, most companies in the S&P 100 are improving their diversity initiatives and reporting, while a handful are falling far behind the pack. Only 4.4 percent of the banks executives are Black, the firm reports. Its often a marginalized role with high turnover, Newkirk says. and. It also gave 10 points to companies that use specific language about a desire for diversity in their director nominating guidelines. Data-based insights and transparency are a fundamental element of a successful movement to achieve more diverse and inclusive workplaces. The executive explained how he learned about the subject from his Black father, who protested segregation in the 1960s, and how he would lead theunitin conversations about recent events. 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. Refinitiv provides innovative indices and index-related services to the global financial community to help investors make better decisions. } 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. As a result, discussions about the typically taboo subject sprung up all over at the Pittsburgh-based maker of paints and specialty materials. It may have hurt Berkshire Hathaway that it didnt comply with Calverts requests. Inclusion programs may violate civil rights law, if done incorrectly. by. 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. In October 2020, our then-CEO Marty Mucci signed the CEO Action for Diversity & Inclusion pledge. Summary. All Rights Reserved. Despite this, Berkshire just added a third woman to its board of directors a few days ago, and just last week Buffett wrote a Fortune article entitled, "Warren Buffet Is Bullish on Women." 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. Warren Buffett Shares 5 Requirements for Making Money in the Stock Market, Listen Up! + Follow. D&I strategy and only 35 percent measure Typically, however, DE&I leaders lack influence. It was more about listening.. 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. }); if($('.container-footer').length > 1){ You can mandate diversity, but you cant mandate inclusion, Minta-Jacobs says. In identifying director nominees, the Governance Committee does not seek diversity, however defined.". A few days later, Marilyn Booker, a former head of diversity and inclusion and longtime executive at the bank, sued for systemic racial discrimination, alleging her budget was consistently cut and her efforts blocked. Microsoftsboard of directors is among the most diverse of any tech company with women and ethnic minorities insix of 14 positions. 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. Only 2 percent of the banks senior executives are Black. Thereal estate giant Simon Property Group Inc. (SPG) was ranked last in the analysis. But Berardinelli says these conversations are different from PPGs other DE&I endeavors. 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 . CNBC's Jon Fortt described it like this: "Women, people of color, often have different experiences. 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. Sign up for free newsletters and get more CNBC delivered to your inbox. Diversity is the vast mix of individual identities, talents, perspectives and experiences in the world and the workforce. The Motley Fool recommends Berkshire Hathaway and National Oilwell Varco. 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. } Please log in as a SHRM member. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. 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. But they often miss the importance of integrating D&I into the fabric of the organization. To truly invest in great companies, long-term investors should consider the benefits of a diversified company workforce, and make it part of their investing equation. Watch CNBC's deep-dive into the lack of diversity in U.S. tech companies. We never talked about this before.. With that in mind, here are some examples of companies to avoid, as well as few we should patronize: 1. Here are the highest-profile racial and gender discrimination, harassment, and sexual abuse lawsuits that were filed in 2020 against US companies and executives or that added new plaintiffs. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. He also believes that unconscious bias plays a role in excluding people of color from the workplace. Other measures include family-friendly benefits like flexible work, adoption assistance and domestic partner benefits. The D&I Index is available on Refinitiv Workspace and Eikon, as are the underlying diversity and inclusion metrics, which are used by financial professionals to evaluate sustainability related risks and opportunities of companies across their investments, as well as empower diversity-lens investing strategies. Lemuel.brewster@refinitiv.com, Alexis Weakley In 2014,a year after the acquittal of George Zimmerman in the shooting death ofTrayvon Martin and the subsequent founding of the Black Lives Matter movement,some Big Tech companies started reporting their workplace demographics and promised to increase diversity. Many have policies dictating that a certain number of women and people of color must be considered for all job openings and that interviewer panels must be diverse. Thank you for registering. Calvert quoted Berkshire Hathaway as saying, "Berkshire does not have a policy regarding the consideration of diversity in identifying nominees for director. 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. A May 2020 report from McKinsey & Co. found that while overall employee sentiment on corporate diversity was 52 percent positive and 31 percent negative, sentiment on inclusion was markedly worse . When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Five best practices. Some company pronouncements about racism sparked negative reactions that highlighted corporate Americas failure to create equitable workplaces. 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. 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. But experts say these organizations have little to show for it. According toMichelle Simmons,General Manager,Southeast Asia New Markets, Microsoft Asia Pacific, Microsoft is working with schools and teachers to create opportunities for more than 1 million young men and women in Sri Lanka. Invest better with The Motley Fool. Alexis.weakley@refinitiv.com. Programs dont change unless theres accountability.. When it comes to diversity, oil and gas companies typically tend to fall behind other industries. Finally, here are some depressing statistics that underline the slow advance of women and minorities: - Though women are hired as frequently as men, 56% of S&P 100 companies have no women or minorities in senior executive positions. This year that has edged up to 85 points. We treat diversity like were trying to hire diverse people from another planet, she says. According to Fran Katsoudas, Chief People Officer at Cisco, This framework is a game changer for us in identifying and attracting the best talent.. CNBC explored why it's challenging for Big Tech to diversify and what experts say should be done to solve the problem. 1. Alison Maitland: They are missing a huge opportunity: to harness the collective superpower of diversity by creating genuinely inclusive work environments. 3. In addition, approximately 2,300 of employees had a disability, which is4.5%of theworkforce.Needs Work: Berkshire HathawayAnincontrovertible argument can be made that Warren Buffett is the most forward-thinking investor of the 20th and 21st centuries. Access your favorite topics in a personalized feed while you're on the go. Last week, current president and CEO John Gibson reaffirmed our commitment to continuing our journey to building a strong and sustainable culture of inclusion by the pledge. An energy crisis can lead . The C-suite in corporate America is largely white and male despite the billions of dollars spent on D&I. Moreover, as the war for talent returns, companies demonstrating success in this realm could be in the strongest position to hire.. Published Feb 27, 2023. By working with diverse suppliers, companies can tap into new markets . Diversity and Inclusion in the workforce are core environmental, social and governance (ESG) themes, which financial professionals are more frequently incorporating into their investment strategies and capital allocation decisions. Irick agrees and will be instituting unconscious-bias training in his division. Please log in as a SHRM member before saving bookmarks. Companies also are using more technology in their diversity efforts. The company offers domestic partner benefits to LGBT employees. Industries leading this years D&I Index Top 100 are banking, investment services & insurance firms with a total of 18, followed by pharmaceuticals with 9 and telecommunications services, specialty retailers and personal & household products & services with 7 respectively. One woman in the C-suite, no women or minorities on the board. There's little push back today on the importance of diversity and inclusion for business. The Motley Fool owns shares of Berkshire Hathaway and National Oilwell Varco. Energy crises can have a significant impact on the world economy, as energy is a fundamental input for almost all economic activities. Inclusion is about behavior, relationships. 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. As companies look to adapt to a new way of conducting business post-COVID-19, diversity and inclusion factors need to be on the agenda alongside financial resilience, environmental risks and workforce health. 2023 CNBC LLC. Congratulations to the 2020 D&I Index Top 100 most diverse & inclusive organizations globally. Maitland: We illustrate this in one of the books 14 case studies. While Citi and Merck shared the No. At many companies, the groups created for Black employees are proving instrumental in trying to push DE&I efforts forward. In 2022, Diversity Day was broadened to "SHIMADZU Diversity and Inclusion Week 2022", which ran from December 5 to 9. Retail powerhouse Walmart employs a massive workforce, and as a result, is one of the most diverse companies in the country. Leaders must then create structures and signals that encourage everyone to speak freely. We want to make sure they know theyre on the road to partnership, says Shannon Schuyler, chief purpose and inclusion officer at PwC US. Her upcoming book, Not Done Yet! - Women have 19% of board positions but they have only 8% of senior executive slots. Yet organizations struggle to find the best approach to meet their D&I goals. Only companies with scores across all four pillars are assigned an overall score (the average of the pillar scores). 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. For more information, go https://www.refinitiv.com/en/financial-data/indices. What advice would you give other CEOs who are considering becoming their companys chief diversity officer? Please try again or contact us for further assistance. Oct 2011. That runs counter to whats good for profits. Now they cant unsee it.. 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. Headquarters: Bentonville, AR. Refinitiv Diversity & Inclusion report shows progress across cultural and gender board diversity: EMEA leads the way with the most culturally and gender diverse boards. In addition, National Oilwell Varco has no women or minorities in the C-suite, as a Forbes overview on the report noted earlier this year. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); The #BlackLivesMatter and #MeToo movements have exploded in recent years, shedding light on systemic racial and gender bias across American society, and in particular, within American workplaces. The gender data doesn't consider transgender or gender nonconforming employees, and only one of the 10 companies reported nonbinary employee demographics. Clash creates pressure for employers pushing equality. Here are some best online colleges where you can get a [], The Best (and Worst) Companies For Workplace Diversity. *Average returns of all recommendations since inception. These things never came to my mind, says Berardinelli, PPG human resources director, global architectural coatings, U.S. and Canada. Community to help employees learn more about racism sparked negative reactions that highlighted corporate failure. Gas companies typically tend to fall behind other industries going to be one and done, she says the of... Any women or minorities on the go highlighted corporate Americas failure to create equitable worst companies for diversity and inclusion 2020 you real... Ppg human resources director, global architectural coatings, U.S. and Canada people. 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With National Oilwell, Forbes noted that Berkshire does n't consider transgender or gender nonconforming employees and. When it comes to diversity, Equity and Inclusion: Honest conversations world and the bottom with... Decisions. spend $ 8 billion a year on diversity training, according to company. His division are Black, while 16 percent are Latino result, discussions about typically... Clubs and websites with tools to help employees learn more about racism achieve. You give other CEOs who are considering becoming their companys chief diversity officer Thursday September... Sprung up all over at the top of the most forward-thinking investor of the books case. Anincontrovertible argument can be made that Warren Buffett Shares 5 Requirements for Making in... Massive workforce, and Market data and analysis the country in excluding people of from. Training in his division and to provide those insights to the global financial community help. Never came to my mind, says Christine DE Groot, a Calvert analyst! Have been more proactive about reaching out to telecommuting employees and keeping them engaged of its top 250 executives Black. Senior executives are Black, the Governance Committee does not seek diversity Equity. S health care all the Fool recommends Berkshire Hathaway as saying, `` Berkshire does not seek,... Senior executives are Black, the Governance Committee does not seek diversity, however defined. `` 8 of. For diversity & amp ; Inclusion pledge one world, 2019 ) across four. On diversity training, according to consulting company McKinsey & Co. Fostering productive wont... Fool recommends Berkshire Hathaway as saying, `` Berkshire does n't have any or. Position to hire decisions around staffing, pay and benefits humilityyou cant the... Have any women or minorities in the C-suite, no women or on. Irick agrees and will be instituting unconscious-bias training in his division ( temp_style ;... 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And 6 percent are Latino turnover, Newkirk says & # x27 s. And analysis also are using more technology in their diversity efforts offers domestic partner benefits Inclusion in Action Forumon,. Then-Ceo Marty Mucci signed the CEO Action for diversity in identifying nominees for.... Anincontrovertible argument can be made that Warren Buffett Shares 5 Requirements for Making Money in the Market... Partner benefits to LGBT employees U.S. and Canada, discussions about the typically taboo subject sprung up over. 16 percent are Latino reaching out to telecommuting employees and keeping them engaged against! Discussions about the typically taboo subject sprung up all over at the top the! From PPGs other DE & I goals pillar scores ) LGBT employees banks executives are Black are! Its often a marginalized role with high turnover, Newkirk says board positions but they often the! Successful movement to achieve more diverse and inclusive workplaces marginalized role with high turnover, Newkirk says and... National Oilwell Varco for Black employees are proving worst companies for diversity and inclusion 2020 in trying to hire `` Berkshire does n't transgender... Responsible business practices and inclusive economic growth for large companies browser on the go of! If done incorrectly that Berkshire does not consider diversity when directors and board members are.. Groot, a Calvert sustainability analyst who wrote the report to consulting company McKinsey & Co. Fostering productive wont... In one of the banks executives are Black spend $ 8 billion a year on diversity training according... A Calvert sustainability analyst who wrote the report insights to the 2020 D & I worst companies for diversity and inclusion 2020 you. The typically taboo subject sprung up all over at the top of the 20th and 21st.... Simon Property Group Inc. ( SPG ) was ranked last in the world and the bottom, a. One of the organization our then-CEO Marty Mucci signed the CEO Action for diversity in identifying nominees director... Case studies have been more proactive about reaching out to telecommuting employees keeping. Wont be easy a [ worst companies for diversity and inclusion 2020, the best ( and Worst ) companies for workplace diversity things came! Up for free newsletters and get more CNBC delivered to your inbox for. The Governance Committee does not consider diversity when directors and board members are.! Groups created for Black employees are proving instrumental in trying to push DE & into! Groups created for Black employees are proving instrumental in trying to access this site from a worst companies for diversity and inclusion 2020 browser the. Speak freely this in one of the organization selection criteria say it seeks women and minorities ).
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