Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The Index is then calculated by weighing each metric based on importance in the market and how each company compares with its peers. How to Be an Antiracist (One World, 2019). document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Other measures include family-friendly benefits like flexible work, adoption assistance and domestic partner benefits. Calvert Investments, a mutual fund firm that invests in companies that engage in sustainable and responsible practices, put together the survey, released today. The D&I Index, launched in 2016, ranks the top 100 publicly traded companies globally with the most diverse and inclusive workplaces, as measured by 24 metrics across four key categories: Diversity, Inclusion, People Development and News Controversies. Coding sessionsand hackathons have given them a glimpse of what STEM and a career in technology can offer. Major businesses including Google, Amazon, McDonald's, Pinterest, and Johnson & Johnson faced new legal battles this year over allegations of racism and sexism. We need to engage policymakers and the government to build out comprehensive reforms, including policing and education. 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. D&I strategy and only 35 percent measure Do you think the current focus on racial inequality will change anything? 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. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The company explicitly states it does not consider diversity when directors and board members are selected. Women make up 30% of "global officers . 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. Your session has expired. Warren Buffett Shares 5 Requirements for Making Money in the Stock Market, Listen Up! Its not enough to measure diversity in your total associate population. Another 11 companies, including Accenture, American Express, Dell, McDonalds and PepsiCo, tied for the No. 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. Many companies have what are commonly called employee resource groups as part of their DE&I efforts. His company, Berkshire Hathaway Inc. (BRK.A), however, ranks far from progressive in its commitment to workplace diversity. Simon treats diversity issues as a compliance matterand does the minimum to avoid running afoul of EEO laws. According to the company website, Accenture added more than 1,800 employees of diverse backgrounds in 2017 up from approximately 1,000 in 2016. 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.Source: Read Full Article window._taboola = window._taboola || []; 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.". Our index clients and partners rely upon the unparalleled breath, depth, global network and vast data and content sets that only Refinitiv can provide. The analysis by Calvert Investments also gave Microsoft Corporation a perfect score for its diversity practices. We notice that you have used an expired link to try and complete registration. 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). 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. Please enable scripts and reload this page. Illustration by Ty Dale. Individuals can take action too, for example by asking questions, listening carefully and creating a non-judgmental space for new perspectives. var temp_style = document.createElement('style'); 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%. Thank you for registering. The Trump administration's condemnation of some diversity and inclusion programs presents a Catch-22 for employers seeking to . The bold insights, practical actions, and whole-system approach we lay out in INdivisible will help organizations to harness that collective superpower that enables the innovation and commitment we need for a sustainable future. 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. You [], Do you want to get a degree in business while you work and earn? Diversity and Inclusion Efforts That Really Work. 2023 CNBC LLC. The gender data doesn't consider transgender or gender nonconforming employees, and only one of the 10 companies reported nonbinary employee demographics. Rusty Hill/Getty Images. We treat diversity like were trying to hire diverse people from another planet, she says. You can mandate diversity, but you cant mandate inclusion, Minta-Jacobs says. 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. 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. CNBC explored why it's challenging for Big Tech to diversify and what experts say should be done to solve the problem. Its time for equality for all, across every area of society. Only companies with scores across all four pillars are assigned an overall score (the average of the pillar scores). Marcus:Do you think senior leadership understands the business case for a more diverse and inclusive workplace? 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. She advises them to lead with vulnerability and concede that unease. Kenny explains why he made the decision and what hes done since. Oct 2011. Silence is perceived as a lack of solidarity, says Tina Shah Paikeday, global head of diversity and inclusion advisory services at Russell Reynolds Associates, a New York City-based executive search and consulting firm. A May 2020 report from McKinsey & Co. found that while overall employee sentiment on corporate diversity was 52 percent positive and 31 percent negative, The panel, which was held at the New York City Bar Association and led by Jeremiah DeBerry, also . Industry: Retail. These are indicators of diversity, not inclusion. But for these companies, whose. Boris Groysberg. 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 importance of diversity and inclusion, organizations struggle to find the best approach. Access your favorite topics in a personalized feed while you're on the go. Citi provides a publicly available diversity report, available on its website. What do you say to those who think that a white man doesnt have the right experience or authority for the role? Calvert quoted Berkshire Hathaway as saying, "Berkshire does not have a policy regarding the consideration of diversity in identifying nominees for director. For example, Comcast Corp. has been broadcasting to its entire staff talks with experts on racism, including Ibram X. Kendi, best-selling author of This encapsulates the challenge that even the more diverse companies still face in tackling inclusion (Exhibit 4). Firms must prioritize diversity and inclusion or face tangible pressure from activists and consumers as well as investors, particularly as stakeholder capitalism challenges the primacy of the shareholder in corporate decision-making. Steele: Although some brush aside the business case, many are talking about how important D&I are, particularly for talent attraction, customer connections, and innovation. 1. 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. Leaders were about to rule out a high-potential employee for promotion on the grounds that the individual lacked commitment because they left work daily at 5pm. Her husband, who has experienced police violence firsthand, only acquiesced when white family friends vowed to protect them if anything happened. Now they cant unsee it.. It's in the best interest of National Oilwell Varco, and its investors, to address its diversity issues now so it can make changes to its policies in the near future. The United States is leading with 20 companies out of the top 100. Out of the 330 companies that submitted a report, 48 did not comply and had all-male boards. Senior leaders must first ask how elevating inclusion can help them achieve that goal, such as by ensuring that no one holds back creative ideas. To summarize, leaders need to be more ambitious for inclusion. An outstanding 1,271 companies actively participated in the CEI 2022 Survey. One woman in the C-suite, no women or minorities on the board. Data-based insights and transparency are a fundamental element of a successful movement to achieve more diverse and inclusive workplaces. In the 2022 CEI, 842 employers achieved a top score of 100 and earning the coveted title of "Best Place to Work for LGBTQ+ Equality.". If the boss says you have to do better, people will do better. Many companies are struggling to stay afloat and may not have the financial or management bandwidth to dedicate to diversity programs. Sign up for free newsletters and get more CNBC delivered to your inbox. Its an emerging phenomenon in corporate America. Only 35 percent of chief diversity officers say they have employee demographic data, leaving the majority without necessary information to support their work, according to the Russell Reynolds report. Simon treats diversity issues as a compliance matterand does the minimum to avoid running afoul of EEO laws. While overall sentiment on diversity was 52 percent positive and 31 percent negative, sentiment on inclusion was markedly worse, at only 29 percent positive and 61 percent negative. Hobby Lobby. 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. The Motley Fool recommends Berkshire Hathaway and National Oilwell Varco. 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 minority executives as of August 2012 and two minority women on 17-member board plus two minority men. We want to make sure they know theyre on the road to partnership, says Shannon Schuyler, chief purpose and inclusion officer at PwC US. - Women have 19% of board positions but they have only 8% of senior executive slots. 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. Diversity in the tech industry is crucial for technical progress. The Calvert study designated Berkshire Hathaway as the second to worst company in the S&P 100 for workplace diversity. The D&I Index utilizes innovative analytics to rate and score companies across 4 main pillars: Diversity, Inclusion, People Development and Controversies. We continue to see many organizations seeking to address individual bias, but fewer are addressing the bias that hides in organizational structures and processes. Here are the companies at the top of the list, and the bottom, with a few statistics. Why did you decide to become chief diversity officer? 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. You have to listen and have people trust you enough to really share their story, because you cant learn without first understanding it. Some employers have increased those numbers. Companies are supplementing these dialogues with expert guest speakers, book clubs and websites with tools to help employees learn more about racism. Shanis Windland, VMwares vice president of diversity and inclusion, acknowledges that the companys need to improve its record. Alexis.weakley@refinitiv.com. Ed Andrieski/AP. This was based on a bias for presenteeism. In October 2020, our then-CEO Marty Mucci signed the CEO Action for Diversity & Inclusion pledge. To make real progress, they must directly challenge assumptions underlying the written and unwritten rules at work. Beyond the slow advance for women and minorities, there is a smattering of good news in this report. Why? Regionally the largest increases have been seen in Oceania with a 40% increase. 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. As employees across the globe engage in discussions of racial . But they often miss the importance of integrating D&I into the fabric of the organization. Key mistakes to avoid to promote diversity equity and inclusion in the workplace amid a changing climate. Im encouraged by the numbers of people protesting and demanding change. Having DE&I leaders isnt enough unless theyre empowered by the C-suite to bring real organizational change. Tatiana Berardinelli was shocked when she heard Black colleagues describe being gripped by fear after being pulled over by police while driving, and others explain how they worried about their childrens safety when the kids left the house. These things never came to my mind, says Berardinelli, PPG human resources director, global architectural coatings, U.S. and Canada. 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. What company wouldnt want to see improvement in these areas? Retail powerhouse Walmart employs a massive workforce, and as a result, is one of the most diverse companies in the country. At Refinitiv, we are committed to using our data to further our own goals and to provide those insights to the broader market.. This establishes an organizational ecosystem, cultivating and signalling inclusion for widespread, lasting impact. Progress remains elusive, as evidenced by persistent trends such as the exclusion of a broad range of talent from leadership, continuing pay gaps, and research showing that a majority of people hide or downplay part of who they are at work to try to fit in, all of which can have a detrimental impact on performance. 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." Typically, however, DE&I leaders lack influence. One woman on board of 10. Bonnie Marcus:What are most organizations missing when it comes to D&I initiatives? This collection examines the barriers that prevent companies from addressing gender and racial equality and identifies solutions for building a stronger, more inclusive workforce. You have successfully saved this page as a bookmark. Lets suppose the business goal is to become more consistently innovative. Only 14 percent of C-suite positions are held by people of color, with women of color holding only 4 percent. *Average returns of all recommendations since inception. A 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. Four companies tied for next-worse: Philip Morris International, Halliburton, Gilead Sciences and Emerson Electric. 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. 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. This organization eradicated rewards based on presenteeism and developed a strategy for a flexible working environment focused on rewarding results. Maitland: We set out 10 enablers that drive inclusion by creating connection, opportunity and common cause across organizations. You have to change hearts and minds.. December 2019 marked the end of the first phase for California's Senate Bill 826, and the results as shown below indicate that 47% of the companies did not disclose their diversity data as per the law. The inequity increases with power: White people account for 81 percent of vice president posts, compared with 19 percent for people of color. Three of those had to do with executive and board representation. 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. 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. By clicking Sign up, you agree to receive marketing emails from Insider 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. How Women Over 50 Regain Their Confidence and Claim Their Workplace Power, will be published March 2021. Please purchase a SHRM membership before saving bookmarks. 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. Invest better with The Motley Fool. Hiring diverse talent isnt enoughits the workplace experience that shapes whether people remain and thrive. We are currently reviewing your application. 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. Workplace diversity may not be one of the first things you think of when considering investing in a company, but for a company to be truly great it needs the perspective of many individuals. Domestic partner benefits Investing services secured browser on the board we notice that have. The government to build out comprehensive reforms, including policing and education and registration! 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