Corporate America -- Don’t Preach Diversity, Practice It

By Earl Ofari Hutchinson
New America Media

Editor's Note: Stanley O’Neal, forced out of the top job at Merrill Lynch, is the highest ranking casuality of the sub-prime loan fiasco -- even as diversity in corporate America is still an issue.

With the forced retirement of Merrill Lynch CEO E. Stanley O’Neal, the ranks of African-American top gun Fortune 500 company CEOs was sliced from six to five. O’Neal’s fall had nothing to do with race, but rather questionable investments that caused the company’s stock to plunge, and supposedly being a loner type in a corporate culture that thrives on “good old boy” insider networking. But the demise of O’Neal, for whatever reason, still raises fresh questions about how committed many corporations are to making diversity a reality in their boardrooms and in management.

The answer varies widely from corporation to corporation. Fifty companies appear on Fortune Magazine’s list of corporations with the best track record for cultural diversity. Minorities made up almost 21 percent of their boardrooms in 2003, compared with 11 percent two years earlier. The figures almost certainly have edged up even more since then.

But for every one of the 50 corporations that makes diversity more than a buzz word, there are dozens more that pat themselves on the back for having one Latino, Asian or African American on their board, or for hiring a handful in lower-level management positions.

In recent years, some of America's biggest and best-known corporations that have been widely praised as having a good track record on minority hiring and promotions have been plastered with discrimination lawsuits. Texaco, Coca-Cola, Boeing, Lockheed Martin and Toyota have been thrust into the legal hot seat and have made costly settlements or signed consent decrees with the EEOC.

Forty years after the passage of the 1964 Civil Rights Act that forbade workplace discrimination and Executive Order 11246, signed by Lyndon Johnson in 1965, that prodded firms to promote management diversity, many companies still practice their own subtle brand of workplace apartheid. Despite the well-publicized rise of O’Neal and other black executives at AOL-Time Warner, American Express and Aetna, black CEOs are still a rarity at most of the Fortune 1000 corporations.

The overwhelming majority of senior managers at these companies are white males, and as is evident from the rash of management discrimination lawsuits, women and minority managers are still paid less on average than their white, male counterparts. They are still just as likely to be pigeonholed in departments such as head of “special markets” or “minority affairs.”

An embarrassing and highly publicized corporate discrimination case may bring the issue onto the public radar, but then it’s back to business as usual. That business, more often than not, is discrimination. It takes place quietly and far out of public view. The worst offending corporations employ a variety of tactics to mask discrimination. They issue glowing press releases, brochures, assorted handouts and annual stockholder reports loaded with pictures of smiling women and minority employees that tout their commitment to diversity. With much public fanfare, they establish minority and women hiring and training programs.

The refusal of many companies to make cultural diversity the watchword in middle and upper management is bad enough, but even worse is the relentlessly hostile environment that many companies create and maintain toward minorities.

Since 1990, the number of complaints of racial disrimination toward employees has climbed. Black and Latino employees have been poked with sticks, called racial slurs, have had pictures of burning crosses and white sheets placed near their lockers, have discovered the initials KKK carved on tables and benches, and even found nooses hanging at or near their desks.

Most CEOs are not hypocrites when they say that they work hard to hire and promote more minorities and women. But the degree of real commitment to cultural diversity hinges on the commitment of a corporation’s top CEO and its board. When CEOs implement an outreach program that includes a diversity task force, aggressive recruiters, and a mentoring program aimed at moving talented female and minority employees up the corporate career ladder, cultural diversity will be readily apparent in the company’s hires and promotions.

O’Neal’s departure was disappointing, given the still relative paucity of minority and women Fortune 500 CEO leaders. But even if O’Neal had stayed in good grace with Merrill, and had a long shelf life there, the challenge to corporate laggards on diversity wouldn’t change. And that is, don’t just preach it – practice it.

About the Author

New America Media Associate Editor Earl Ofari Hutchinson is an author and political analyst. His new book is The Latino Challenge to Black America: Towards a Conversation between African-Americans and Hispanics (Middle Passage Press).

Source : New America Media

Minority Hiring: The Do’s, Don’ts, Whys, How To’s and Rewards

By Jackie Headapohl

Diversity is strength. Financial experts know that a diversified portfolio is the best way to build wealth, and business experts know that a culturally-diverse candidate pool is the best way to build a staff that will provide the maximum performance and results.

“Study after study shows diversity creates a positive impact on businesses,” says Tracey de Morsella, who produces the Multicultural Advantage, a Web site with resources to help employers increase their effectiveness in diversity recruiting. Miami-based Convergence Media Inc., runs the site and publishes multicultural-focused directories.

“Studies show culturally-diverse companies increase productivity, creativity and develop new and more varied products and services,” de Morsella says. “Most new business owners think, ‘I’ll deal with that later.’ Cultural diversity seems out of reach, but there are benefits to doing it right away.”

Just don’t confuse diversity with representation, says Roosevelt Thomas, CEO of Roosevelt Thomas Consulting & Training in Atlanta, Ga., and author of Building on the Promise of Diversity (AMACOM Books, 2005, $27.95).

Plan to Manage Diversity

“Most companies who think they’re talking about diversity are really talking about representation,” Thomas says. He defines “representation” as a workforce that racially and ethnically reflects a company’s customer base.

“The main benefit to a representative workforce is that society expects it,” he says. “Truth be told, it’s difficult to get ‘diversity’ through representation because most employers want to assimilate their candidates to their way of thinking and doing things. Those companies may have a ‘diverse’ workforce, but they also have a sameness of thought.”

For example, Thomas says, if you hire African American, Hispanic and Asian candidates who all have Ivy League educations, you’re not getting diversity at all. Attribute and behavioral diversity don’t always come along with diverse ethnicities, he says. Functional diversity takes time to develop and it comes with its own set of challenges.

“True diversity breeds difficulties, tensions and complexities,” Thomas says, “and that can be difficult to manage.” Companies need to plan for training, building skills, policies and processes to effectively manage diversity.

Even so, Thomas says, companies are more likely to reach truly functional diversity with a representative workforce. “They should take on the challenge right away.”

Managed well, diversity helps companies avoid that innovation-killer called groupthink, which locks employees into one way of thinking and stifles the ability to compete. Study after study has shown that cultural diversity improves customer focus, spurs creativity and innovation, and leads to better decision-making and problem solving, de Morsella says.

Your Workforce Should Look Like Your Customer Base

The population of America is changing. According to the 2004 U.S. Census, Hispanics (14.1 percent) now are the largest minority group, with African Americans (12.8 percent) second. Experts predict that by 2050, people of color will outnumber white Americans.

Women, 51 percent of the marketplace, are also changing the American landscape. Research findings by BusinessWeek and Gallup led to a forecast that by 2010, women are expected to control $1 trillion, or 60 percent of the country’s wealth. They already buy or influence the purchase of 80 percent of all consumer goods.

These are the faces of the marketplace, and if they’re not seen in your company, they’re likely to take their business elsewhere, de Morsella warns.

Make Your Business Attractive to Diverse Candidates

Diversity candidates are like any others - they want to find an employer with whom they’ll feel comfortable, have opportunities to advance and make a decent income. But, de Morsella notes, “If you have 20 people on staff and they’re all white guys, you send a weird message.”

So how do you get a diverse staff? “You don’t go out looking for a black man or a Latino woman,” she says. There are potential legal minefields associated with diversity hiring, such as reserving spots or job openings solely for diverse candidates. It’s reverse discrimination and illegal.

“The biggest mistake that companies [startups or established] make is being afraid - afraid of being called racist, being accused of setting quotas, etc.,” says Damali Ayo, a Portland writer and artist whose book, How to Rent a Negro (Lawrence Hill Books, 2005, $14.95) is intended to encourage open dialogue about race in the workplace. “People are so afraid of ‘doing it wrong’ when it comes to cultural diversity that procrastination and cowardice easily find their way in. Thus some companies who are strong in many areas find themselves weak in cultural diversity.”

As you create your recruiting materials, build in a diversity message that says, “This is a great place to work,” Ayo says. “You just need to broaden your talent pool, and you’ll have no problem finding people from varied backgrounds.”

Does Your Web Site Reflect Diversity?

One easy way to attract a broad talent pool is by adding a diversity page to your Web site, de Morsella says: “This is a very low-cost method and will help your site show up on search engines for diversity.

“If you’re not sure how to do it, go to the sites of major companies with a reputation for good diversity programs – Microsoft and Merrill Lynch, for example - and use them as a model.”

De Morsella also urges including minorities and women on your board. “This puts a diverse face on your company and makes those from diverse backgrounds want to work with you,” she says.

Widen Your Candidate Pool

One of the simplest ways to recruit for diversity is posting your company on minority-focused Web sites that offer various combinations of job listings, recruitment-marketing services and diversity-related news (see related sidebar).

De Morsella suggests that when looking for highly skilled talent and executives, tap into the local chapters of national groups. “It’s much less expensive,” she says. “Working through the national organization could cost up to $20K.”

For entry- to mid-level, she advises looking to such advocacy groups as the Urban League. “I’ve done this to hire sales staff and interns, and it’s worked out great,” she says. “Most large cities have a local chapter and will be happy to send candidates right away.”

It Won’t Pay If You Delay

Begin your efforts to hire a representative staff as soon as possible because cultural diversity can make a huge difference in the bottom line.

Robert Rodriguez is faculty chair in the School of Business & Technology at Capella University online, and chairman for the Hispanic Alliance for Career Enhancement, a nonprofit that helps companies attract, develop and retain Latino talent. On the Society for Human Resource Management Web site, he recounts how a representative and diverse workforce led to big profits for Frito-Lay.

The Latino Employee Network at Frito-Lay proved invaluable during the development of Doritos Guacamole Flavored Tortilla Chips, Rodriguez writes. Members of the network provided feedback on the taste and packaging to help ensure authenticity, helping launch one of the most successful products in the company’s history. The snack generated more than $100 million in sales in the first year alone.

“A diverse staff is going to give you the best performance and results,” Ayo says. “A diverse staff is only one of the tools you need to build the best business possible. You should treat it with the same immediacy and importance as you would in finding the right tools in every other area.

“Become a leader in creating a diverse staff. Your clients’ confidence, staff morale, press coverage, productivity and, of course, your profits will increase for doing it.”

About the Author

Jackie Headapohl is a freelance writer for StartupNation.

Source : StartupNation

False Notions Smear Minority Hiring

By Anita Bruzzese

Gannett News Service

Ken Arroyo Roldan says that there is a dearth of diversity at the senior levels in American companies today, and executive search firms share much of the blame for that fact.

By the way, Roldan works for an executive recruiting company.

"We are the perpetuators," he says. "We control a lot of the search for the new talent brought on board, and if there are not incentives to do it, it doesn't get done."

Specifically, Roldan says that recruiters often ask employers to pay a 40 percent premium to recruit a minority "because they say it's more difficult," a fact that Roldan disputes.

As diversity practice leader with Battalia Winston Amrop Hever Group, Roldan says that assertion is just one of the myths that compounds the problem of minorities in the workplace. Without minorities at the senior levels, he says, minorities fail to get hired in lower tier positions as well.

"The titans of business really don't care about this issue," he says. "They have this "I gave at the gate' mentality. Many executives have been sensitized to death (about minorities) but at the end of the day, are they exposed to others? No. It's a gated community of white males."

He argues that a multipronged approach is needed to bring true diversity to the workplace, including the education of senior leaders and recruitment of diverse talent of workers at all levels of an organization.

"In corporations, the internal recruiters are not risk takers. They go with the tried and true method and they won't buck the system," he says. "They will go with the usual suspects," and forego searching and actively recruiting minority candidates, Roldan says.

"Companies can no longer sustain the argument that "we grow our talent organically,' because that's just an excuse to exclude minorities," he says.

Roldan says that he's trying to educate more recruiters about minority hiring, and how things can be done differently. He says that while discrimination exists, he believes it is more a matter of "ignorance" on the part of recruiters. To that end, he has come up with a list of myths that he's trying to dispel:

Myth 1: Qualified people of color at high levels are not out there. He says too often only a small group of upper level minority candidates are considered, when there are many more available.

Myth 2: It's hard to recruit minority candidates to some areas of the country. Roldan says that if more recruiters promoted what's attractive and appealing about a community to a minority candidate (good schools, beautiful scenery, etc.) then more minority job seekers would be interested in relocating.

Myth 3: Minority candidates are hard to manage and hard to terminate because they could claim discrimination and sue the company. Not true, he says.

Another problem he says, is "that when companies think of minorities, they only want someone like Tiger Woods. The best of the best. They're not willing to consider someone else, like they would with white males," he says.

According to the latest figures from the Equal Employment Opportunity Commission, while African Americans make up 14.1 percent of the workforce, they only comprise 7.3 percent of the professional ranks in this country. Hispanics, with nearly 12 percent of the workforce, only have 4.4 percent in the professional ranks. Asian Americans, on the other hand, are only 5 percent of the labor force in the U.S., but comprise 9.7 percent of the professional forces.

"There is a lot of work still to be done," Roldan says. "A lot of education in the recruitment marketplace is still required. We cannot revert to tokenism. There are a lot of kids out there who want to make an impact on the world, and we can't shut them out."

About the Author

Anita Bruzzese is author of "45 Things You Do That Drive Your Boss Crazy," (www.45things.com). Write to her at anita@anitabruzzese.com or c/o: Business Editor, Gannett News Service, 7950 Jones Branch Dr., McLean, Va. 22107.

Source : JobBank USA