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. Marcus:How can an organization best assess the systemic bias beneath the surface in their workplace? 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. The employee was highly efficient and regularly exceeded performance targets. According to 2018 research by Russell Reynolds Associates, 69 percent of chief diversity officers track 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. Change is very slow, says Christine De Groot, a Calvert sustainability analyst who wrote the report. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. Diversity is the vast mix of individual identities, talents, perspectives and experiences in the world and the workforce. According to a report from the Boston Consulting Group, companies with more diverse leadership teams report higher innovation revenues. In their new book, Indivisible: Radically Rethinking Inclusion For Sustainable Business Results, authors Alison Maitland and Rebekah Steele provide a roadmap and comprehensive action plan for companies to reassess their goals and best practices for improved results. Maitland: We illustrate this in one of the books 14 case studies. For years, organizations have spent billions of dollars on DE&I programs that have largely failed. Hes a white man, and such posts are typically reserved for women or people of color. Companies are still pumping money into traditional exercises like unconscious-bias training as part of their response to Floyds killing, as well as issuing ubiquitous statements proclaiming that Black Lives Matter, donating to social justice organizations and promising more diverse hiring. That mindset could help diversity efforts, she says. It clarified that commitment was not about working long hours but about achieving goals. But theres something different going on now. Others didnt prioritize diversity even in good times. Microsoftsboard of directors is among the most diverse of any tech company with women and ethnic minorities insix of 14 positions. All Shimadzu Group companies had time together to think about diversity and inclusion (D&I). By working with diverse suppliers, companies can tap into new markets . His company, Berkshire Hathaway Inc. (BRK.A), however, ranks far from progressive in its commitment to workplace diversity. Refinitiv He maintains that executives tendency to put short-term gains in front of long-term strategy blocks them from prioritizing diversity. Industry: Retail. At Refinitiv, we are committed to using our data to further our own goals and to provide those insights to the broader market.. The reports that specified gender and race said most of these women were White. The benefits include improving financial performance, leveraging talents, reflecting the marketplace,. Recently, many have made D&I pledges in the face of the Covid-19 crisis and the #BlackLivesMatter movement. Your session has expired. When it comes to diversity, oil and gas companies typically tend to fall behind other industries. var temp_style = document.createElement('style'); The percentage of Black employees increased less than 3% during the same period. Summary. - Though 98 companies have women directors and 86 have minority directors, only 37 have minority women on their boards. It requires establishing procedures to ensure continuous questioning of how things are done here. Calvert Investments, a mutual fund firm that invests in companies that engage in sustainable and responsible practices, put together the survey, released today. Steele: In contrast with these piecemeal efforts, we provide a comprehensive, step-by-step approach that aligns inclusion to business goals, integrates it into business strategy and makes it indivisible from the way the organization operates. At many companies, the groups created for Black employees are proving instrumental in trying to push DE&I efforts forward. Simon treats diversity issues as a compliance matterand does the minimum to avoid running afoul of EEO laws. Inclusion is about behavior, relationships. But they often miss the importance of integrating D&I into the fabric of the organization. The firm has pledged to fight the charges. As employees across the globe engage in discussions of racial . National Oilwell Varco (NOV 1.55%) -- 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 only two companies in the study that doesn't have any diversity on its board of directors. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. A total of 25% more companies have a career development policy in place than five years ago. Do you think having more people working remotely will affect diversity programs? People just dont believe it, Ellis says. 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. Companies spend $8 billion a year on diversity training, according to consulting company McKinsey & Co. We wanted to say, We understand that youre not OK, Butler-Morton says. 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 companies in the study were ranked on 10 different diversity criteria, which included internal and external diversity initiatives, board diversity, diversity of their highest-paid executives, Equal Employment Opportunity (EEO) policies, and director selection criteria, as well as the company's overall commitment to diversity. 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. 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. 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. Backed by the content, data, independence and global information network of Refinitiv, our indices and index services are designed to suit any need. 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. And they arent measuring business-relevant impacts. Thereal estate giant Simon Property Group Inc. (SPG) was ranked last in the analysis. The Calvert study designated Berkshire Hathaway as the second to worst company in the S&P 100 for workplace diversity. Got a confidential news tip? The Index is then calculated by weighing each metric based on importance in the market and how each company compares with its peers. Were talking about racism, Berardinelli says. 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. Ellis is a fan of unconscious-bias training, though detractors say it can make white employees feel uncomfortable. As of July 2020, Walmart's US associates are 20.69% Black, 16.39% Latinx, and 55% women. 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. What changes have you made since you took over the role? 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. 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 . target_type: 'mix' J. Yo-Jud Cheng. "And these are the jobs that can lift entire families up into the middle class," Barrett said. 1. To summarize, leaders need to be more ambitious for inclusion. It also gave 10 points to companies that use specific language about a desire for diversity in their director nominating guidelines. Executives at AssetMark Financial Holdings Inc. have been thinking about how to bolster the companys commitment to DE&I and dont want to make a knee-jerk decision, says Esi Minta-Jacobs, vice president of human resources at the Concord, Calif.-based money management firm. I have an even greater responsibility to be an ally to individuals and advocate to change the system that has allowed racism to continue. 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. They know the value, but are less certain about what to do. 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. Do you think the current focus on racial inequality will change anything? Research: What Inclusive Companies Have in Common. Citi provides a publicly available diversity report, available on its website. 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 . That runs counter to whats good for profits. CNBC's Jon Fortt described it like this: "Women, people of color, often have different experiences. In identifying director nominees, the Governance Committee does not seek diversity, however defined.". We treat diversity like were trying to hire diverse people from another planet, she says. 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. Or they focus only on inclusive leadership development without recognizing that everyone at all levels is accountable for inclusion and needs support to play their part. These things never came to my mind, says Berardinelli, PPG human resources director, global architectural coatings, U.S. and Canada. Companies are supplementing these dialogues with expert guest speakers, book clubs and websites with tools to help employees learn more about racism. 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, Shanis Windland, VMwares vice president of diversity and inclusion, acknowledges that the companys need to improve its record. 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. 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. That number rose only one point, to 19%, in two years. We never talked about this before.. In 2022, Diversity Day was broadened to "SHIMADZU Diversity and Inclusion Week 2022", which ran from December 5 to 9. 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. Irick agrees and will be instituting unconscious-bias training in his division. Refinitiv temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; 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. 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. 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. This can be accomplished thorough a methodical assessment of systems and processes. The number of companies with an official flexible working policy has increased by 54% over the last five years. 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. Senior PR Director The inequity increases with power: White people account for 81 percent of vice president posts, compared with 19 percent for people of color. It provides leading data and insights, trading platforms, and open data and technology platforms that connect a thriving global financial markets community driving performance in trading, investment, wealth management, regulatory compliance, market data management, enterprise risk and fighting financial crime. What company wouldnt want to see improvement in these areas? The benefits include improving financial performance, leveraging talents, reflecting the marketplace, and increasing innovation and group performance. $("span.current-site").html("SHRM MENA "); For more information visit: www.refinitiv.com, Lemuel Brewster 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. Mobile + 1 610-390-4394 By clicking Sign up, you agree to receive marketing emails from Insider 36% of out employees have lied or "covered" parts of their identities at work in the past year. Data-based insights and transparency are a fundamental element of a successful movement to achieve more diverse and inclusive workplaces. Diversity-Fueled 'Reverse' Bias Claims Put Employers in Quandary. 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. It's a story that's been told time and time again: Tech companies are just not diverse enough. We are delighted that our D&I Index continues to be used as a guide to help firms across the globe create a more effective workforce through diverse teams, said Debra Walton, chief revenue officer at Refinitiv. Why tech companies struggle with diversity and inclusion. The 2020 report found that companies with greater gender diversity were . Inclusion is seizing the opportunities of that rich mix. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Typically, however, DE&I leaders lack influence. Industries leading this years index: 18 banking, investment services & insurance; 9 pharmaceuticals; 7 telecommunications services, specialty retailers and personal & household products & services. 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. Out of the 330 companies that submitted a report, 48 did not comply and had all-male boards. This isnt going to be one and done, she says. And we offer 50 actions that people can take at every level to start building inclusion right away. Example: In 2010 women held 18% of director positions. 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