Refinitiv Diversity & Inclusion report shows progress across cultural and gender board diversity: EMEA leads the way with the most culturally and gender diverse boards. That number rose only one point, to 19%, in two years. A survey of more than 19,000 HBR readers found that . We continue to see many organizations seeking to address individual bias, but fewer are addressing the bias that hides in organizational structures and processes. These are indicators of diversity, not inclusion. The firm is considering using its expertise in money management to start a financial literacy program for underserved communities, for example. The benefits include improving financial performance, leveraging talents, reflecting the marketplace,. 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. 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. 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 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. What advice would you give other CEOs who are considering becoming their companys chief diversity officer? Marcus:You say diversity and inclusion are complementary but different. 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. According to a report from the Boston Consulting Group, companies with more diverse leadership teams report higher innovation revenues. Please enable scripts and reload this page. 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. Why tech companies struggle with diversity and inclusion. Refinitiv provides innovative indices and index-related services to the global financial community to help investors make better decisions. It was the only company to score 100 in Calverts 2010 survey. Im encouraged by the numbers of people protesting and demanding change. 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. Its unclear whether recent corporate efforts to shine a light on injustice are having any positive impact. Were talking about racism, Berardinelli says. May 12, 2020. Multicultural women make up 17% of the workforce. Got a confidential news tip? Making the world smarter, happier, and richer. 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. 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. Forty-three percent of U.S. workers believe discussions about race are inappropriate at work, according to data from the Society for Human Resource Management (SHRM). An energy crisis can lead . Energy crises can have a significant impact on the world economy, as energy is a fundamental input for almost all economic activities. still lagging when it comes to diversity and inclusion. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. the importance of diversity and inclusion, organizations struggle to find the best approach. }); PreviousDenmark dismisses White House socialism report as fake news NextOnline subprime lender Elevate Credit plunges from record low after earnings. Only 14 percent of C-suite positions are held by people of color, with women of color holding only 4 percent. The formerly verboten topic is starting to be more openly and broadly discussed at companies all over the U.S. Its time for equality for all, across every area of society. It is about achieving sustainable positive results for business and society by creating and maintaining environments in which every voice is heard, every person matters, and everyone has what they need to flourish while contributing to shared goals. Its crucial for leaders to discuss what happened to Floyd and others because their deaths remain on employees minds. Will Jan, Vice President & Lead Analyst at Outsell, commented: Social investing and D&I initiatives have become front-and-center on many executives agendas. The hope is that by understanding what people of color endure, white people will become more empathetic and that that understanding will eventually lead to more inclusion. 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. 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. Simon treats diversity issues as a compliance matterand does the minimum to avoid running afoul of EEO laws. 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. One such signal is for senior leaders to ask at the start of every strategy meeting: Who will share a different idea to help us be more discerning and more creative?. 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. Microsoftsboard of directors is among the most diverse of any tech company with women and ethnic minorities insix of 14 positions. Disgusted and saddened by the May killing of George Floyd while in police custody, Jaime Irick wrote a letter about racism to his team of more than 6,000 employees at PPG. Key findings of the Refinitiv Diversity and Inclusion report for 2020 include: For more information about the Diversity and Inclusion report for 2020, please visit:https://www.refinitiv.com/en/resources/special-report/diversity-and-inclusion-at-workplace. They know the value, but are less certain about what to do. One woman in the C-suite, no women or minorities on the board. 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. 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. White people make up 65 percent of entry-level jobs in corporate America, while people of color represent 32 percent of those posts, according to a study by McKinsey and nonprofit LeanIn.org. Companies are built on good ideas and hard work, which find their source in different perspectives and viewpoints. Ellis is a fan of unconscious-bias training, though detractors say it can make white employees feel uncomfortable. Steele: The #BlackLivesMatter movement, in particular, has been instrumental in driving more prevalent conversation about systemic bias. Thereal estate giant Simon Property Group Inc. (SPG) was ranked last in the analysis. Transparency is a good first step, though it has to be backed up with action, says Tracy Layney, Levi Strauss senior vice president and chief human resources officer. T.A. CNBC explored why it's challenging for Big Tech to diversify and what experts say should be done to solve the problem. We need to stay active about changing the system. 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. It may have hurt Berkshire Hathaway that it didnt comply with Calverts requests. The reports that specified gender and race said most of these women were White. 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. Having DE&I leaders isnt enough unless theyre empowered by the C-suite to bring real organizational change. 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. Now they cant unsee it.. Invest better with The Motley Fool. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. 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. 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. Fool contributorChris Neiger has no position in any stocks mentioned. No women or minorities on the board or in the C-suite, but the company addresses sexual orientation in its equal employment policy. Diversity is the vast mix of individual identities, talents, perspectives and experiences in the world and the workforce. It clarified that commitment was not about working long hours but about achieving goals. Two minorities in top jobs as of August 2012, CEO Vikram Pandit (he left in October) and co-president Manuel Medina-Morra. Most people couldnt believe the [George Floyd video] because it was so vicious. Only 2 percent of its top 250 executives are Black, while 16 percent are Asian and 6 percent are Latino. He adds that corporate America must prepare for difficult conversations if its truly serious about creating an equitable workplace. 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. 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In 2022, Diversity Day was broadened to "SHIMADZU Diversity and Inclusion Week 2022", which ran from December 5 to 9. Article Hobby Lobby. 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. Hes a white man, and such posts are typically reserved for women or people of color. It showed that five years after training became required. As CEO, Im setting the example for the leaders on my team, that we are accountable for diversity and driving it through the company. Coding sessionsand hackathons have given them a glimpse of what STEM and a career in technology can offer. The analysis by Calvert Investments also gave Microsoft Corporation a perfect score for its diversity practices. Boris Groysberg. The Motley Fool recommends Berkshire Hathaway and National Oilwell Varco. One woman on board of 10. In October 2020, our then-CEO Marty Mucci signed the CEO Action for Diversity & Inclusion pledge. Many companies are struggling to stay afloat and may not have the financial or management bandwidth to dedicate to diversity programs. 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. Inclusion is about behavior, relationships. About Paychex Then you have to accept that systemic racism exists. 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. Need help with a specific HR issue like coronavirus or FLSA? Previously, only one or the other had to be included. "And these are the jobs that can lift entire families up into the middle class," Barrett said. The company offers domestic partner benefits to LGBT employees. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. We will send you email confirmation within 24 hours with further instructions on how to proceed with access to Refinitiv. I wanted to support my son.. A May 2020 report from McKinsey & Co. found that while overall employee sentiment on corporate diversity was 52 percent positive and 31 percent negative, Join CNBC's Inclusion in Action Forumon Thursday, September 10. 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 || []; And we offer 50 actions that people can take at every level to start building inclusion right away. 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. One initiative already in the works: a book club that explores the topic of racism to help white colleagues better identify with their co-workers of color. 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. 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. You have to listen and have people trust you enough to really share their story, because you cant learn without first understanding it. Diversity and Inclusion Efforts That Really Work. People in the majority may not be aware of their unconscious bias.. 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 . The D&I Index utilizes innovative analytics to rate and score companies across 4 main pillars: Diversity, Inclusion, People Development and Controversies. 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. Their source in different perspectives and viewpoints Mucci signed the CEO Action for diversity & ;! Class, '' Barrett said that commitment was not about working long hours but about goals! 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