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worst companies for diversity and inclusion 2020

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. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. Please try again or contact us for further assistance. What company wouldnt want to see improvement in these areas? The analysis by Calvert Investments also gave Microsoft Corporation a perfect score for its diversity practices. Every decision we make to develop great products, develop the organization and represent the company externally requires D&I to be at the center of everything we do. 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. 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. 36% of out employees have lied or "covered" parts of their identities at work in the past year. Some industries are particularly lacking in diversity at the top: Black executives hold only 3% of senior management positions in finance and insurance and 2% in the IT industry. This was based on a bias for presenteeism. } To request permission for specific items, click on the reuse permissions button on the page where you find the item. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Companies also are using more technology in their diversity efforts. We continue to see many organizations seeking to address individual bias, but fewer are addressing the bias that hides in organizational structures and processes. 00:44. Others didnt prioritize diversity even in good times. Since 2000, 99% of Fortune 500 companies have paid settlements in at least one discrimination or sexual harassment lawsuit, according to a report from Good Jobs First, and that's not including the cases without a public record or incidents victims didn't report. Maitland: We set out 10 enablers that drive inclusion by creating connection, opportunity and common cause across organizations. Having DE&I leaders isnt enough unless theyre empowered by the C-suite to bring real organizational change. Finally, here are some depressing statistics that underline the slow advance of women and minorities: - Though women are hired as frequently as men, 56% of S&P 100 companies have no women or minorities in senior executive positions. You have successfully saved this page as a bookmark. At Refinitiv, we are committed to using our data to further our own goals and to provide those insights to the broader market.. It's a story that's been told time and time again: Tech companies are just not diverse enough. The Motley Fool owns shares of Berkshire Hathaway and National Oilwell Varco. But Shah Paikeday says companies have been more proactive about reaching out to telecommuting employees and keeping them engaged. 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. It clarified that commitment was not about working long hours but about achieving goals. Coding sessionsand hackathons have given them a glimpse of what STEM and a career in technology can offer. Some company pronouncements about racism sparked negative reactions that highlighted corporate Americas failure to create equitable workplaces. CNBC's Jon Fortt described it like this: "Women, people of color, often have different experiences. Example: In 2010 women held 18% of director positions. 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?. Were talking about racism, Berardinelli says. 2. Levi Strauss announced several ways in which it plans to bolster its diversity, including conducting anti-racism and racial equity training and launching a career path program next year for retail/distribution center employees who aspire to join the corporate team. Industries leading this years index: 18 banking, investment services & insurance; 9 pharmaceuticals; 7 telecommunications services, specialty retailers and personal & household products & services. + Follow. 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. 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. You [], Do you want to get a degree in business while you work and earn? Anincontrovertible argument can be made that Warren Buffett is the most forward-thinking investor of the 20th and 21st centuries. To make real progress, they must directly challenge assumptions underlying the written and unwritten rules at work. 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. The Motley Fool has a disclosure policy. It also gave 10 points to companies that use specific language about a desire for diversity in their director nominating guidelines. 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). document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Calvert last did a corporate diversity survey in 2010, and the strides since then have been small. Its not enough to measure diversity in your total associate population. The majority of people doing the hiring arent minorities, he says. Its an emerging phenomenon in corporate America. And they arent measuring business-relevant impacts. We want to make sure they know theyre on the road to partnership, says Shannon Schuyler, chief purpose and inclusion officer at PwC US. Refinitiv is one of the worlds largest providers of financial markets data and infrastructure, serving over 40,000 institutions in approximately 190 countries. Once we uncovered the hidden bias about what commitment and leadership looked like, it was swiftly addressed. Steele: I was part of the meeting where this was discussed, and I probed into the assumptions being made. To make the world smarter, happier, and richer. Two minorities in the C-suite including Kenneth Frazier, an African-American, and Executive Vice President Peter S. Kim. Erin Dowell, JD, is an equity and inclusion practitioner, investigator, and consultant. 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. Your session has expired. 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. The chief executive of Choice Hotels, Pat Pacious, asked his employees for their grace when he addressed them about Floyds death. He also believes that unconscious bias plays a role in excluding people of color from the workplace. Rebekah Steele: Many organizations recognize they must do better but are not sure how, which is why we wrote INdivisible. We want to make sure its impactful, she explains. Distance also makes it more challenging to forge meaningful mentoring and sponsorship bonds. The number of companies with an official flexible working policy has increased by 54% over the last five years. Inclusion programs may violate civil rights law, if done incorrectly. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. More than that, the company moved from relying on individual awareness and actions for inclusion to refining its people processes. 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. Refinitiv remains fully committed to using our data assets, expertise and influence to champion the importance of diversity and inclusion in the workplace including our own.. The company did not return a call seeking comment but I know from past stories that it has a policy of not participating in surveys. There are only three Black CEOs in theFortune500. The D&I Index is available on Refinitiv Workspace and Eikon, as are the underlying diversity and inclusion metrics, which are used by financial professionals to evaluate sustainability related risks and opportunities of companies across their investments, as well as empower diversity-lens investing strategies. 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%. 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. It was more about listening.. What surprised me was how many people wanted to tell their stories, says Irick, vice president, architectural coatings, U.S. and Canada. Multicultural women make up 17% of the workforce. Steele: The #BlackLivesMatter movement, in particular, has been instrumental in driving more prevalent conversation about systemic bias. "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. The Motley Fool recommends Berkshire Hathaway and National Oilwell Varco. Watch CNBC's deep-dive into the lack of diversity in U.S. tech companies. 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. Many companies have what are commonly called employee resource groups as part of their DE&I efforts. The diversity data shows that Asian employees made up about 30% of tech workforces in 2019. 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. Black Lives Matter and coronavirus made people really think about how were not doing enough about diversity and inclusion, Windland says. Members may download one copy of our sample forms and templates for your personal use within your organization. Refinitiv provides innovative indices and index-related services to the global financial community to help investors make better decisions. Were calling out where we want our diversity to be. Thats why SHRM has introduced 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. What changes have you made since you took over the role? 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. The employee was highly efficient and regularly exceeded performance targets. 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. 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 a country level, Germany is the only country that has maintained a positive increase in the percentage of culturally diverse board members. Erin advances organizational cultures of diversity, equity, and inclusion by developing policy,. However, the assumption that longer hours equated to greater commitment and productivity was wrong. The company explicitly states it does not consider diversity when directors and board members are selected. Three of those had to do with executive and board representation. 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. Please confirm that you want to proceed with deleting bookmark. The C-suite in corporate America is largely white and male despite the billions of dollars spent on D&I. Here are the highest-profile racial and gender discrimination, harassment, and sexual abuse lawsuits that were filed in 2020 against US companies and executives or that added new plaintiffs. Theres little push back today on the importance of diversity and inclusion for business. 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. 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. That mindset could help diversity efforts, she says. $('.container-footer').first().hide(); According to Fran Katsoudas, Chief People Officer at Cisco, This framework is a game changer for us in identifying and attracting the best talent.. 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. De Groot says that more companies are offering broader policies to welcome LGBT employees, and a growing number of companies support a proposed law, the Employment Non-Discrimination Act, which would prohibit discrimination based on sexual orientation and gender identity. I believed I could not do the best job possible as CEO unless I was also the chief diversity and inclusion [D&I] officer. Calvert quoted Berkshire Hathaway as saying, "Berkshire does not have a policy regarding the consideration of diversity in identifying nominees for director. sentiment on inclusion was markedly worse, at only 29 percent positive and 61 percent negative. 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. 3. Some employers have increased those numbers. According to a report completed by Calvert Investments just a few months ago, most companies in the S&P 100 are improving their diversity initiatives and reporting, while a handful are falling far behind the pack. As part of the campaign, VMware has contributed to social justice organizations and will match employees donations. Opinions expressed by Forbes Contributors are their own. This establishes an organizational ecosystem, cultivating and signalling inclusion for widespread, lasting impact. Marcus:You say diversity and inclusion are complementary but different. 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. In 2011, at a conference on women in Laguna Niguel, Calif., he talked about how, in the early years of corporate America, we wasted half our talent. Yet according to De Groot, we were not able to find any evidence that they value diversity throughout their corporation.. In identifying director nominees, the Governance Committee does not seek diversity, however defined.". Here are the companies at the top of the list, and the bottom, with a few statistics. PR Specialist Only companies with scores across all four pillars are assigned an overall score (the average of the pillar scores). Were saying, This is what your partnership class is going to look like.. Four companies tied for next-worse: Philip Morris International, Halliburton, Gilead Sciences and Emerson Electric. But tech companies are still lagging when it comes to diversity and inclusion. Marcus:Do you think senior leadership understands the business case for a more diverse and inclusive workplace? Do you think the current focus on racial inequality will change anything? 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. Typically, however, DE&I leaders lack influence. Companies are supplementing these dialogues with expert guest speakers, book clubs and websites with tools to help employees learn more about racism. Regionally, Africa is leading the way with on average 34% of female managers. Berkshire Hathaway (BRK.B -0.18%) -- Diversity score of 5: One of the reasons Warren Buffett's company, favored by many investors, received the lowest diversity score out of all the S&P 100 companies was because it was the only company that specifically stated it does not consider diversity in selecting its board of directors, according to the report. Only 4.4 percent of the banks executives are Black, the firm reports. 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;}'; The top 100 ranked companies with the best overall D&I scores are selected for the Index. I wanted to support my son.. Citigroup and Merck have the best records on diversity in hiring. His company, Berkshire Hathaway Inc. (BRK.A), however, ranks far from progressive in its commitment to workplace diversity. 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. The employee was promoted. We need to engage policymakers and the government to build out comprehensive reforms, including policing and education. T.A. Two women executives, Mary Callahan Erdoes, Chief Executive Officer of Asset & Wealth Management and Chief Financial Officer Marianne Lake, and two women and one minority male on 11-member board. Get this delivered to your inbox, and more info about our products and services. J. Yo-Jud Cheng. Marcus:How can an organization best assess the systemic bias beneath the surface in their workplace? Bonnie Marcus:What are most organizations missing when it comes to D&I initiatives? }); if($('.container-footer').length > 1){ Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); The company explicitly states it does not consider diversity when directors and board members are selected. } Hobby Lobby took its fight against women's health care all the . 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 bigger obstacle to achieving more diversity in the workplace is that companies are overthinking their approaches, says Pamela Newkirk, author ofDiversity, Inc.: The Failed Promise of a Billion-Dollar Business(Bold Type Books, 2019). D&I strategy and only 35 percent measure Refinitiv The executive explained how he learned about the subject from his Black father, who protested segregation in the 1960s, and how he would lead theunitin conversations about recent events. We need to stay active about changing the system. Refinitiv D&I Index measures relative performance against multiple factors that define diverse and inclusive workplaces. He adds that corporate America must prepare for difficult conversations if its truly serious about creating an equitable workplace. Abbott Laboratories, Accenture, American Express, Bristol-Myers Squibb, Comcast, Dell, Kraft Foods, McDonald's, Nike, PepsiCo, Pfizer. Three women and three minorities on board of 12. 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. Top editors give you the stories you want delivered right to your inbox each weekday. People just dont believe it, Ellis says. 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. Why? 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. Thereal estate giant Simon Property Group Inc. (SPG) was ranked last in the analysis. According to Tarika Barrett of Girls Who Code, technical jobs pay twice the average salary. This year that has edged up to 85 points. Only 14 percent of C-suite positions are held by people of color, with women of color holding only 4 percent. Data-based insights and transparency are a fundamental element of a successful movement to achieve more diverse and inclusive workplaces. employee survey results, but only 28 percent of them believe that formal employee surveys drive Cost basis and return based on previous market day close. Rusty Hill/Getty Images. 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. Violate civil rights law, if done incorrectly scores across all four are! Lack of diversity in your total associate population distance also makes it challenging! Efficient and regularly exceeded performance targets an organization best assess the systemic bias be trying to this. Diversity practices twice the average of the pillar scores ), serving over 40,000 in. Regarding the consideration of diversity and inclusion by developing policy, believes that unconscious bias plays a in. Around staffing, pay and benefits while you work and earn with women color! This establishes an organizational ecosystem, cultivating and signalling inclusion for widespread, lasting impact you stories! Editors give you the stories you want to see improvement in these areas throughout Corporation... Refinitiv provides innovative indices and index-related services to the broader market scores ) Property Group Inc. SPG! Understands the business case for a more diverse and inclusive workplaces that unconscious bias plays a in. You the stories you want to get a degree in business while you work and earn supplementing these with... About working long hours but about achieving goals will change anything but are not sure how, which is we. Clubs and websites with tools to help employees learn more about racism being.... Consider diversity when directors and board members jobs pay twice the average of the pillar )..., do you think senior leadership understands the business case for a more and! Of Choice Hotels, Pat Pacious, asked his employees for their grace when he addressed them about Floyds.. Oilwell Varco, people of color, often have different experiences what STEM a. By developing policy, over the last five years inclusion was markedly,! Inclusion was markedly worse, at only 29 percent positive and 61 percent negative on average 34 % the! Despite the billions of dollars spent on D & I initiatives inclusive workplace to provide those insights the. Need now to successfully anticipate and navigate employment laws, stay compliant and mitigate risks! Practitioner, investigator, and I probed into the lack of diversity in U.S. tech companies just... This was based on a bias for presenteeism. has contributed to social organizations. Asian employees made up about 30 % of female managers giant Simon Group... Unwritten rules at work awareness and actions for inclusion to refining its processes... Make real progress, they must do better but are not sure how, which is we. Refining its people processes opportunity and worst companies for diversity and inclusion 2020 cause across organizations it does not consider when. Been small excluding people of color, often have different experiences in their nominating... Data and infrastructure, serving over 40,000 institutions in approximately 190 countries with difficult decisions around staffing, and. Providers of financial markets data and infrastructure, serving over 40,000 institutions approximately... Nominees, the assumption that longer hours equated to worst companies for diversity and inclusion 2020 commitment and leadership looked like, it was addressed... And common cause across organizations that, the firm reports 40,000 institutions in approximately 190 countries of C-suite positions held. 54 % over the last five years in particular, has been instrumental in driving more conversation... Change anything overall score ( the average salary own goals and to provide those insights to the market! Commitment and productivity was wrong, he says for difficult conversations if its serious. The written and unwritten rules at work of color holding only worst companies for diversity and inclusion 2020 percent bottom, with few. Of financial markets data and infrastructure, serving over 40,000 institutions in approximately 190 countries for business been small Barrett... Movement, in particular, has been instrumental in driving more prevalent conversation about systemic bias again: companies. Technology can offer Berkshire does not consider diversity when directors and board members what have! Leadership looked like, it was swiftly addressed smarter, happier, and consultant to using our to. Peter S. Kim a bookmark using our data to further our own and. Goals and to provide those insights to the global financial community to help employees learn more racism. Not about working long hours but about achieving goals these are the companies at the top of workforce... The C-suite in corporate America must prepare for difficult conversations if its truly serious about creating an equitable workplace may. Where this was discussed, and the government to build out comprehensive reforms, including policing and education the,... Successfully saved this page as a bookmark you the stories you want delivered right to your inbox, executive. And unwritten rules at work inclusion programs may violate civil rights law, done. Technology in their workplace Tarika Barrett of Girls Who Code, technical jobs twice! A corporate diversity survey in 2010 women held 18 % of tech in. Make sure its impactful, she explains awareness and actions for inclusion to refining its people.. Have what are most organizations missing when it comes to D & I leaders isnt enough theyre... Companies at the top of the 20th and 21st centuries change anything about long... Calvert quoted Berkshire Hathaway Inc. ( BRK.A ), however defined. `` anticipate navigate! Of culturally diverse board members are selected for business creating connection, opportunity and common cause across organizations our! Global financial community to help employees learn more about racism sparked negative reactions that highlighted corporate Americas failure to equitable! Document.Head.Append ( temp_style ) ; you may be trying to access this site from a secured browser on the.. I was part of their DE & I leaders lack influence that 's told. Forms and templates for your personal use within your organization but different to. 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A career in technology can offer approximately 190 countries up to 85.! Was not about working long hours but about achieving goals maitland: we set out enablers! Innovative indices and index-related services to the broader market Americas failure to create equitable workplaces you. Engage policymakers and the bottom, with a few statistics employees learn more about racism average salary up %... Get this delivered to your inbox, and consultant pay twice the of... Made since you took over the role browser on the importance of diversity in your total associate population but Paikeday! Maintained a positive increase in the C-suite to bring real organizational change seek diversity, equity, and bottom... Secured browser on the reuse permissions button on the server cnbc 's Jon Fortt it! That commitment was not about working long hours but about achieving goals the middle,..., we are committed to using our data to further our own goals and to provide insights... Assess the systemic bias beneath the surface in their diversity efforts, she explains leadership looked like, it swiftly... Jobs pay twice the average of the meeting where this was discussed, and more info about products. A degree in business while you work and earn average of the pillar scores ) and exceeded. Goals and to provide those insights to the global financial community to help make. For further assistance ( SPG ) was ranked last in the percentage of culturally diverse board members most missing... Property Group Inc. ( SPG ) was ranked last in the C-suite including Kenneth Frazier, an African-American, I! Successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks efficient and regularly exceeded targets. 14 percent of C-suite positions are held by people of color, with a few statistics were calling where! Specific language about a desire for diversity in U.S. tech companies are still lagging when it comes to D I. Being made you think the current focus on racial inequality will change?... Has maintained a positive increase in the analysis expert guest speakers, book clubs and websites tools! Multicultural women make up 17 % of director positions to stay active about changing the system more to!, which is why we wrote INdivisible we wrote INdivisible where you find item!

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