Two minorities in top jobs as of August 2012, CEO Vikram Pandit (he left in October) and co-president Manuel Medina-Morra. Why? Refinitiv More than 1,600 CEOs have signed onto the CEO Action for Diversity & Inclusion Pledge, and 40% of companies discussed diversity and inclusion in their Q2 2020 earnings calls versus only 4% the . Summary. 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. Alexis.weakley@refinitiv.com. The reports that specified gender and race said most of these women were White. Its crucial for leaders to discuss what happened to Floyd and others because their deaths remain on employees minds. More than ever, companies mired in culturally myopic ideas are finding it more difficult to get ahead in a society that has embraced different backgrounds and lifestyles.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. The company must clearly communicate that dedication to diversity and inclusion is not just a passing trend that frontline leaders can wait out or avoid implementing. No women or minorities in the C-suite, two women on the board of 12. There are only three Black CEOs in theFortune500. _taboola.push({ Only 2 percent of the banks senior executives are Black. Many companies have what are commonly called employee resource groups as part of their DE&I efforts. Rusty Hill/Getty Images. Steele: The #BlackLivesMatter movement, in particular, has been instrumental in driving more prevalent conversation about systemic bias. Calvert last did a corporate diversity survey in 2010, and the strides since then have been small. But tech companies are still lagging when it comes to diversity and inclusion. Maitland: We illustrate this in one of the books 14 case studies. A 2018 study by the National Urban League found that fewer than 3% of tech workers identify as black at companies such as Uber, Twitter, Google and Facebook. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. No women or minority top executives, two women on board of 12. The chief diversity officer is usually a woman or a person of color. This concerns the CEO of investment managing company HIP Investor, Paul Herman, who said in aRigzone article last year that the lack of diversity in oil and gas companies can destroy shareholder value. Previously, only one or the other had to be included. Without these investments, progress will be difficult. The Index is then calculated by weighing each metric based on importance in the market and how each company compares with its peers. No women or minorities on the board or in the C-suite, but the company addresses sexual orientation in its equal employment policy. It has also instituted more training on inclusion for its managers, and now both a woman and a minority must be considered for any open position. BlackRock, Inc., ranked first on the D&I index for 2020. A May 2020 report from McKinsey & Co. found that while overall employee sentiment on corporate diversity was 52 percent positive and 31 percent negative, You cant solve it if you cant admit it, Ellis 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. Accountability is key to moving that needle, alongside investments in D&I programs that attract and create a pipeline of diverse talent. Erin advances organizational cultures of diversity, equity, and inclusion by developing policy,. The dissatisfaction among LGBTQ respondents with the current state of LGBTQ inclusion is clear: 40% of LGBTQ employees are not out at work, and 26% of these individuals wish they could be out. Using its definition and looking at public data, as well as reaching out to companies to clarify their diversity data, Calvert found the following companies were the least diverse out of all the companies in the S&P 100: 1. Thirty-three companies on the list support the legislation, which has stalled in Congress. 3 slot, with 90 points. That number rose only one point, to 19%, in two years. They know the value, but are less certain about what to do. You have successfully saved this page as a bookmark. 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. employee survey results, but only 28 percent of them believe that formal employee surveys drive This encapsulates the challenge that even diverse companies face in tackling inclusion. CNBC's Jon Fortt described it like this: "Women, people of color, often have different experiences. D&I isnt something you do in your spare time. Backed by the content, data, independence and global information network of Refinitiv, our indices and index services are designed to suit any need. var currentUrl = window.location.href.toLowerCase(); 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. 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. 2. 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. J. Yo-Jud Cheng. If the boss says you have to do better, people will do better. 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. We want to make sure they know theyre on the road to partnership, says Shannon Schuyler, chief purpose and inclusion officer at PwC US. The analysis gave Accenture PLC a 95% rating for diversity practices. According to the company website, Accenture added more than 1,800 employees of diverse backgrounds in 2017 up from approximately 1,000 in 2016. 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. var temp_style = document.createElement('style'); A survey of more than 19,000 HBR readers found that . 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. You have to change hearts and minds.. Marcus:What are some actions senior leadership, middle managers, and individuals can take to support D&I? Other measures include family-friendly benefits like flexible work, adoption assistance and domestic partner benefits. Hiring diverse talent isnt enoughits the workplace experience that shapes whether people remain and thrive. As I see it, although investors may not see any direct effects of the company's lack of diversity right now, no publicly traded company can continue down the road of minimal diversity in a global market and not experience negative outcomes at some point. A 2018 McKinsey & Co. report found that organizations with diverse boards and executive teams were up to 35 percent more likely to financially outperform their less-diverse competitors. 2023 CNBC LLC. Programmed in partnership with The Executive Leadership Council, the event examines how business leaders can take immediate, concrete action addressing racial disparities in their organizations and create sustainable solutions to allow for equity and opportunity for all. Bronwen Evans, Chief Talent Officer with MedCan, a leading health management company in Canada, says, "With the vast majority of our talent working remotely through the pandemic, we've had to. 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. Some company pronouncements about racism sparked negative reactions that highlighted corporate Americas failure to create equitable workplaces. Some of the largest asset managers in the world have this year become much more active in engaging in shareholder voting on the issue of improving diversity and even the worlds oldest private banks have taken to the industry stage to discuss their investment strategies around ESG.. We treat diversity like were trying to hire diverse people from another planet, she says. $("span.current-site").html("SHRM MENA "); Simon Property's website does list one woman on its board of directors, who's been a director for the company since 2004. Once we uncovered the hidden bias about what commitment and leadership looked like, it was swiftly addressed. *Average returns of all recommendations since inception. Refinitiv D&I Index measures relative performance against multiple factors that define diverse and inclusive workplaces. At the best-rated companies at least, Calvert awarded top marks on the 10 factors it used to measure progress on diversity. Refinitiv 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. Its unclear whether recent corporate efforts to shine a light on injustice are having any positive impact. 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. Data-based insights and transparency are a fundamental element of a successful movement to achieve more diverse and inclusive workplaces. Warren Buffett Shares 5 Requirements for Making Money in the Stock Market, Listen Up! And we offer 50 actions that people can take at every level to start building inclusion right away. Maitland: We set out 10 enablers that drive inclusion by creating connection, opportunity and common cause across organizations. Its an emerging phenomenon in corporate America. In identifying director nominees, the Governance Committee does not seek diversity, however defined.". Get this delivered to your inbox, and more info about our products and services. 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. More than ever, companies mired in culturally myopic ideas are finding it more difficult to get ahead in a society that has embraced different backgrounds and lifestyles. 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. The benefits include improving financial performance, leveraging talents, reflecting the marketplace, and increasing innovation and group performance. Progress is taking place, but slowly. 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. But experts say these organizations have little to show for it. The Motley Fool has a disclosure policy. People just dont believe it, Ellis says. 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. Abbott Laboratories, Accenture, American Express, Bristol-Myers Squibb, Comcast, Dell, Kraft Foods, McDonald's, Nike, PepsiCo, Pfizer. I needed to make sure that our company is diverse and that our diverse associates were included in every decision and everyone here is advancing. More than that, the company moved from relying on individual awareness and actions for inclusion to refining its people processes. Hes a white man, and such posts are typically reserved for women or people of color. Data is a real-time snapshot *Data is delayed at least 15 minutes. Invest better with The Motley Fool. Kenny explains why he made the decision and what hes done since. 138 companies, from nearly every industry, participated in the CEI for the first time this year. 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