Berkshire has two women on its board of directors but none in the C-suite. A May 2020 report from McKinsey & Co. found that while overall employee sentiment on corporate diversity was 52 percent positive and 31 percent negative, Only 14 percent of C-suite positions are held by people of color, with women of color holding only 4 percent. 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. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. And a place where we, our members, and our business community can bring our unique professional talents to stand together against all forms of social injustice. 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. The number of Hispanic employees increased about 1% and the number of Indigenous employees decreased about .01%. In the 2022 CEI, 842 employers achieved a top score of 100 and earning the coveted title of "Best Place to Work for LGBTQ+ Equality.". 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. It was more about listening.. still lagging when it comes to diversity and inclusion. 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. United States leads the Top 100 list with 20 firms followed by the United Kingdom with 13, Australia with 9 and Canada and France with 7. The Calvert study designated Berkshire Hathaway as the second to worst company in the S&P 100 for workplace diversity. Her upcoming book, Not Done Yet! And there is even greater opportunity for positive impact in what we describe as an IN Corps of organizations working collaboratively to influence education, public policy and other external dynamics affecting inclusion. How Women Over 50 Regain Their Confidence and Claim Their Workplace Power, will be published March 2021. Congratulations to the 2020 D&I Index Top 100 most diverse & inclusive organizations globally. 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. What company wouldnt want to see improvement in these areas? 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.As of 2018, the following are the companies best known for embracing workplace diversity, as well as a few that still have work to do.The Best: Cisco SystemsA 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. Top editors give you the stories you want delivered right to your inbox each weekday. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); This isnt going to be one and done, she says. The firm is considering using its expertise in money management to start a financial literacy program for underserved communities, for example. However, this year PwC opted to double the time in the program for women and minorities to ensure they get the attention they need. According to the company website, Accenture added more than 1,800 employees of diverse backgrounds in 2017 up from approximately 1,000 in 2016. 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. First, you need real humilityyou cant understand the injustice until it happens to you. You have to listen and have people trust you enough to really share their story, because you cant learn without first understanding it. 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. Hes a white man, and such posts are typically reserved for women or people of color. The inequity increases with power: White people account for 81 percent of vice president posts, compared with 19 percent for people of color. 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. 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. Two minorities in the C-suite including Kenneth Frazier, an African-American, and Executive Vice President Peter S. Kim. 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. American workplaces have long been hotbeds of discrimination and harassment, particularly for those who aren't white, light-skinned, male, straight, single, young, able-bodied Americans. Illustration by Ty Dale. The Motley Fool recommends Berkshire Hathaway and National Oilwell Varco. Its crucial for leaders to discuss what happened to Floyd and others because their deaths remain on employees minds. Clash creates pressure for employers pushing equality. } United States leads Top 100 list: 20 firms followed by United Kingdom 13, Australia 9, Canada and France 7. 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. + Follow. var currentUrl = window.location.href.toLowerCase(); Kenny explains why he made the decision and what hes done since. We need to stay active about changing the system. At a country level, Germany is the only country that has maintained a positive increase in the percentage of culturally diverse board members. The study measured company performance as of August 2012. The company increased the number of women in its workforce to 37%, a 1% increase on the prior year and a step toward the company's . 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. Watch CNBC's deep-dive into the lack of diversity in U.S. tech companies. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. 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. 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. Microsoftsboard of directors is among the most diverse of any tech company with women and ethnic minorities insix of 14 positions. Multicultural women make up 17% of the workforce. By 2020, there could be 1 million unfilled tech jobs. Its unclear whether recent corporate efforts to shine a light on injustice are having any positive impact. Article We wanted to say, We understand that youre not OK, Butler-Morton says. Being part of an ERG helps leaders understand our diverse associates and set the example for the rest of our associates. The companys lack of commitment to diversity is especially troubling given its influence in an industry where practices such as redlining and predatory lending have put minorities at a disadvantage in the real estate market for decades. But it also reached out to all the companies. The top 100 ranked companies with the best overall D&I scores are selected for the Index. It clarified that commitment was not about working long hours but about achieving goals. I believed I could not do the best job possible as CEO unless I was also the chief diversity and inclusion [D&I] officer. Refinitiv Tech companies supply some of the most financially beneficial jobs on the market. 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. Cisco plans to scale DRF with its leaders worldwide. This requires building a comprehensive inclusion strategy with clear links to organization goals, shared understanding and robust metrics. Alison Maitland: They are missing a huge opportunity: to harness the collective superpower of diversity by creating genuinely inclusive work environments. 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. 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. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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 . What surprised me was how many people wanted to tell their stories, says Irick, vice president, architectural coatings, U.S. and Canada. Our index clients and partners rely upon the unparalleled breath, depth, global network and vast data and content sets that only Refinitiv can provide. 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). To address the complex challenges facing organizations and society, everyone has to be on board, contributing to breakthrough solutions and playing their part in them. There's little push back today on the importance of diversity and inclusion for business. Backed by the content, data, independence and global information network of Refinitiv, our indices and index services are designed to suit any need. 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 gender data doesn't consider transgender or gender nonconforming employees, and only one of the 10 companies reported nonbinary employee demographics. } Quanloop managed to [], It is quite possible that you may have come across your friends talking about Escape Hour and also other terms such as quest game. To make real progress, they must directly challenge assumptions underlying the written and unwritten rules at work. The company explicitly states it does not consider diversity when directors and board members are selected. Such honesty has been largely missing from failed diversity efforts that have cost billions of dollars. Oct 2011. In 2014,a year after the acquittal of George Zimmerman in the shooting death ofTrayvon Martin and the subsequent founding of the Black Lives Matter movement,some Big Tech companies started reporting their workplace demographics and promised to increase diversity. The study said that Simon Property's diversity policy is treated as a human resources matter and the company isn't as public with its diversity programs or data as others are. Theres another potentially complicating factor: Vast amounts of employees are now working from home because of the pandemic, and its unclear whether that will impact the reinvigorated diversity efforts. She adds that the company is committed to learning more about racism and will move to make more changes as it progresses. 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. Its not enough to measure diversity in your total associate population. CNBC's Jon Fortt described it like this: "Women, people of color, often have different experiences. 138 companies, from nearly every industry, participated in the CEI for the first time this year. Data-based insights and transparency are a fundamental element of a successful movement to achieve more diverse and inclusive workplaces. According to Diversity Inc., which compiles a list of the top 50 most diverse companies each year, no oil company has made it on its list since 2004. 2023 CNBC LLC. Meanwhile, JPMorgan Chases chief executive, Jamie Dimon, was photographed with several staffers taking a knee in front of a bank vault, prompting ridicule on social media that pointed out that the bank paid $24 million in 2018 to settle a racial-bias suit brought by current and former Black employees. Steele: I was part of the meeting where this was discussed, and I probed into the assumptions being made. When it comes to diversity, oil and gas companies typically tend to fall behind other industries. Dobbin and co-researcher Alexandra Kalev's earlier research on 800 American firms over three decades revealed much more striking results. About Paychex The rebound in hiring for diversity-and-inclusion-related jobs is a meaningful signal of a deeper and more sustained investment, given how expensive and challenging it is to find, hire and retain . As part of the campaign, VMware has contributed to social justice organizations and will match employees donations. Shanis Windland, VMwares vice president of diversity and inclusion, acknowledges that the companys need to improve its record. Major businesses including Google, Amazon, McDonald's, Pinterest, and Johnson & Johnson faced new legal battles this year over allegations of racism and sexism. 36% of out employees have lied or "covered" parts of their identities at work in the past year. Its critical to how we do business at Nielsen, and it starts with learning about the experiences of colleagues who are different from you. Fool contributorChris Neiger has no position in any stocks mentioned. Bonnie Marcus:What are most organizations missing when it comes to D&I initiatives? The Motley Fool has a disclosure policy. It showed that five years after training became required. Inclusion is seizing the opportunities of that rich mix. What we havent done before is have these open discussions and understanding of our colleagues experiences, she says. For more information, go https://www.refinitiv.com/en/financial-data/indices. UK fishermen blast EU trawlers for bullying our boats out of waters, Quanloop Review a trustworthy investment company, Understanding More About Quest Room Platform, Best online colleges to get business degree. Full list. Even though there are laws against pay discrimination, US companies on average still pay women just $0.82 for every dollar they pay men, and pay women of color even less and executives have made virtually no progress in closing wage gaps across the country since the early 2000s. To request permission for specific items, click on the reuse permissions button on the page where you find the item. 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. Once we uncovered the hidden bias about what commitment and leadership looked like, it was swiftly addressed. People would say, Black people exaggerated the race card because they couldnt see it, says Eric Ellis, president and chief executive officer of Integrity Development Corp., a West Chester, Ohio-based consulting firm. Together Forward @Work, a call to action to bring racial equity to the workplacethe place we know best and have served the longest. 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. In addition, approximately 2,300 of employees had a disability, which is4.5%of theworkforce.Needs Work: Berkshire HathawayAnincontrovertible argument can be made that Warren Buffett is the most forward-thinking investor of the 20th and 21st centuries. } 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.Needs Work: Simon Property GroupThereal estate giant Simon Property Group Inc. (SPG) was ranked last in the analysis. Here are the companies at the top of the list, and the bottom, with a few statistics. Diversity and Inclusion The business case for gender equality, diversity, and inclusion is strong and growing stronger. Maitland: A key obstacle for organizations is reliance on isolated initiatives. Previously, only one or the other had to be included. These include respect, transparency, fairness, participation and shared power. 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. Theresa Agovino is the workplace editor for SHRM. Ed Andrieski/AP. Learn More. 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. 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. Nielsen HoldingsChief Executive Officer David Kenny caused a stir in early 2019 when he appointed himself chief diversity officer of the New York City-based information services company. Many companies are struggling to stay afloat and may not have the financial or management bandwidth to dedicate to diversity programs. According to 2018 research by Russell Reynolds Associates, 69 percent of chief diversity officers track I have an even greater responsibility to be an ally to individuals and advocate to change the system that has allowed racism to continue. Published Feb 27, 2023. 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. 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. 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. 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.. Recently, many have made D&I pledges in the face of the Covid-19 crisis and the #BlackLivesMatter movement. Her husband, who has experienced police violence firsthand, only acquiesced when white family friends vowed to protect them if anything happened. Cisco plans to scale DRF with its leaders worldwide. 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. Its also important thatwere tracking the progress were making, so in 2019 weadded an inclusion index in our annual employee engagement survey. 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. 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 . Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Simon treats diversity issues as a compliance matterand does the minimum to avoid running afoul of EEO laws. Some suggest delicate conversations about race lose their impact in a virtual setting. Summary. According to the available data from 10 major U.S. tech companies gathered between 2014 and 2019, the percentage of women in these workforces increased less than 2%. Industries leading this years index: 18 banking, investment services & insurance; 9 pharmaceuticals; 7 telecommunications services, specialty retailers and personal & household products & services. She advises them to lead with vulnerability and concede that unease. 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. 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