worst companies for diversity and inclusion 2020

The analysis by Calvert Investments also gave Microsoft Corporation a perfect score for its diversity practices. Mobile + 1 610-390-4394 Two minority executives as of August 2012 and two minority women on 17-member board plus two minority men. Programs dont change unless theres accountability.. Only companies with scores across all four pillars are assigned an overall score (the average of the pillar scores). 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. As a result, discussions about the typically taboo subject sprung up all over at the Pittsburgh-based maker of paints and specialty materials. What surprised me was how many people wanted to tell their stories, says Irick, vice president, architectural coatings, U.S. and Canada. Diversity-Fueled 'Reverse' Bias Claims Put Employers in Quandary. The analysis gave Accenture PLC a 95% rating for diversity practices. Only 2 percent of the banks senior executives are Black. by. and. Clash creates pressure for employers pushing equality. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { 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. 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. That number rose only one point, to 19%, in two years. Here are the 11 companies that earned 90 points, including PepsiCo, the only company in the S&P 100 with a minority woman, Indra Nooyi, as its CEO: Abbott Laboratories, Accenture, American Express, Bristol-Myers Squibb, Comcast, Dell, Kraft Foods, McDonalds, Nike, PepsiCo, Pfizer. 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 . 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. She advises them to lead with vulnerability and concede that unease. 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. Offering insight and recommendations on investing in sustainable companies must not only be on information providers to-do list to support the social movement but become part of their responsibility in promoting an ESG-driven business culture and metrics that lead to more diverse and inclusive workplaces. }); if($('.container-footer').length > 1){ Members may download one copy of our sample forms and templates for your personal use within your organization. The panel, which was held at the New York City Bar Association and led by Jeremiah DeBerry, also . 138 companies, from nearly every industry, participated in the CEI for the first time this year. Example: In 2010 women held 18% of director positions. 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. 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. The firm has pledged to fight the charges. 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%. Globally the cultural diversity of board members has increased from five years ago but has stalled at around 30%. Tech companies supply some of the most financially beneficial jobs on the market. Get this delivered to your inbox, and more info about our products and services. }); PreviousDenmark dismisses White House socialism report as fake news NextOnline subprime lender Elevate Credit plunges from record low after earnings. Here are the companies at the top of the list, and the bottom, with a few statistics. Got a confidential news tip? *Average returns of all recommendations since inception. The United States is leading with 20 companies out of the top 100. Without these investments, progress will be difficult. You cant solve it if you cant admit it, Ellis says. 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. We want to make sure they know theyre on the road to partnership, says Shannon Schuyler, chief purpose and inclusion officer at PwC US. Shah Paikeday acknowledges that some executives may find it difficult to broach such a sensitive topic. Typically, however, DE&I leaders lack influence. Warren Buffett Shares 5 Requirements for Making Money in the Stock Market, Listen Up! Industries leading this years index: 18 banking, investment services & insurance; 9 pharmaceuticals; 7 telecommunications services, specialty retailers and personal & household products & services. The 2020 report found that companies with greater gender diversity were . 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. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. 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. 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. That runs counter to whats good for profits. Why tech companies struggle with diversity and inclusion. A Stanford and Harvard professor convened a symposium on . Thank you for registering. At Refinitiv, we are committed to using our data to further our own goals and to provide those insights to the broader market.. Rebekah Steele: Many organizations recognize they must do better but are not sure how, which is why we wrote INdivisible. 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. Theresa Agovino is the workplace editor for SHRM. Featured speakers includeBlavity's Morgan DeBaun, IBM's Ginni Rometty, Carnival's Arnold Donald, Uber's Bo Young Lee, Kearney's Alex Liu, Washington Football Teams's Jason Wright and more. Four companies tied for next-worse: Philip Morris International, Halliburton, Gilead Sciences and Emerson Electric. This collection examines the barriers that prevent companies from addressing gender and racial equality and identifies solutions for building a stronger, more inclusive workforce. NEW YORK/LONDON - Refinitiv today announced the 2020 Top 100 most diverse and inclusive organizations globally as ranked by the Diversity & Inclusion (D&I) Index. You have to listen and have people trust you enough to really share their story, because you cant learn without first understanding it. Research: What Inclusive Companies Have in Common. Hiring diverse talent isnt enoughits the workplace experience that shapes whether people remain and thrive. 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. 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. Others didnt prioritize diversity even in good times. No women top executives, did not respond to survey, no evidence of diversity programs, though it does address sexual orientation as part of its equal opportunity program. Specific actions depend on the organizations priorities. People just dont believe it, Ellis says. 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. When it comes to diversity, oil and gas companies typically tend to fall behind other industries. We want to make sure its impactful, she explains. Three of those had to do with executive and board representation. 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. Many have policies dictating that a certain number of women and people of color must be considered for all job openings and that interviewer panels must be diverse. 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. What company wouldnt want to see improvement in these areas? 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. 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. According to 2018 research by Russell Reynolds Associates, 69 percent of chief diversity officers track Change is very slow, says Christine De Groot, a Calvert sustainability analyst who wrote the report. The analysis gave Accenture PLC a 95% rating for diversity practices. } 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. The chief executive of Choice Hotels, Pat Pacious, asked his employees for their grace when he addressed them about Floyds death. In addition, National Oilwell Varco has no women or minorities in the C-suite, as a Forbes overview on the report noted earlier this year. Summary. Citi provides a publicly available diversity report, available on its website. A May 2020 report from McKinsey & Co. found that while overall employee sentiment on corporate diversity was 52 percent positive and 31 percent negative, Home Markets The Best (and Worst) Companies For Workplace Diversity, The Best (and Worst) Companies For Workplace Diversity 10/30/2018 Markets A culture of workplace diversity ensures that performance and qualifications, rather than membership in a preferred demographic, dictate ascension up the corporate ladder, but also that a broad array of ideas and backgrounds are used to move acompany forward. 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 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. Anincontrovertible argument can be made that Warren Buffett is the most forward-thinking investor of the 20th and 21st centuries. The company offers domestic partner benefits to LGBT employees. All Shimadzu Group companies had time together to think about diversity and inclusion (D&I). 1 slot, getting a perfect 100 score in Calverts ranking, JP Morgan Chase and CocaCola tied for second place, with a score of 95. T.A. 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 D&I Index measures relative performance against multiple factors that define diverse and inclusive workplaces. 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. Maitland: We illustrate this in one of the books 14 case studies. Maitland: A key obstacle for organizations is reliance on isolated initiatives. 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. Individuals can take action too, for example by asking questions, listening carefully and creating a non-judgmental space for new perspectives. It also gave 10 points to companies that use specific language about a desire for diversity in their director nominating guidelines. We will send you email confirmation within 24 hours with further instructions on how to proceed with access to Refinitiv. To summarize, leaders need to be more ambitious for inclusion. 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. The company explicitly states it does not consider diversity when directors and board members are selected. Regionally the largest increases have been seen in Oceania with a 40% increase. Thirty-three companies on the list support the legislation, which has stalled in Congress. 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.. Our index clients and partners rely upon the unparalleled breath, depth, global network and vast data and content sets that only Refinitiv can provide. Fostering productive conversations wont be easy. A total of 25% more companies have a career development policy in place than five years ago. 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. Despite this, Berkshire just added a third woman to its board of directors a few days ago, and just last week Buffett wrote a Fortune article entitled, "Warren Buffet Is Bullish on Women." May 12, 2020. 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. 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. For years, organizations have spent billions of dollars on DE&I programs that have largely failed. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Will Jan, Vice President & Lead Analyst at Outsell, commented: Social investing and D&I initiatives have become front-and-center on many executives agendas. This encapsulates the challenge that even diverse companies face in tackling inclusion. National Oilwell Varco ( NOV -0.78%) -- 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. $(document).ready(function () { Multicultural women make up 17% of the workforce. Most people couldnt believe the [George Floyd video] because it was so vicious. Opinions expressed by Forbes Contributors are their own. Bonnie Marcus:What are most organizations missing when it comes to D&I initiatives? It was the only company to score 100 in Calverts 2010 survey. Access your favorite topics in a personalized feed while you're on the go. For example, Comcast Corp. has been broadcasting to its entire staff talks with experts on racism, including Ibram X. Kendi, best-selling author of else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Diversity and Inclusion in the workforce are core environmental, social and governance (ESG) themes, which financial professionals are more frequently incorporating into their investment strategies and capital allocation decisions. Only 4.4 percent of the banks executives are Black, the firm reports. Bonnie Marcus M.Ed, CEC, is a certified coach, speaker, host of the podcast Badass Women at Any Age, and author of The Politics of Promotion: How High Achieving Women Get Ahead and Stay Ahead. Its crucial for leaders to discuss what happened to Floyd and others because their deaths remain on employees minds. Im encouraged by the numbers of people protesting and demanding change. Number of US employees: 1.4 million. First, you need real humilityyou cant understand the injustice until it happens to you. The companies in the study were ranked on 10 different diversity criteria, which included internal and external diversity initiatives, board diversity, diversity of their highest-paid executives, Equal Employment Opportunity (EEO) policies, and director selection criteria, as well as the company's overall commitment to diversity. This requires building a comprehensive inclusion strategy with clear links to organization goals, shared understanding and robust metrics. $('.container-footer').first().hide(); The global pandemic has certainly brought to light a renewed focus on diversity and inclusion, reinforcing the reality that we are all in this together. About Paychex They know the value, but are less certain about what to do. Inclusion is about behavior, relationships. The top 100 ranked companies with the best overall D&I scores are selected for the Index. Out of the 330 companies that submitted a report, 48 did not comply and had all-male boards. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. These things never came to my mind, says Berardinelli, PPG human resources director, global architectural coatings, U.S. and Canada. 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. 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. 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At the best-rated companies at least, Calvert awarded top marks on the 10 factors it used to measure progress on diversity. This was based on a bias for presenteeism. In October 2020, our then-CEO Marty Mucci signed the CEO Action for Diversity & Inclusion pledge. At a country level, Germany is the only country that has maintained a positive increase in the percentage of culturally diverse board members. Once we uncovered the hidden bias about what commitment and leadership looked like, it was swiftly addressed. Congratulations to the 2020 D&I Index Top 100 most diverse & inclusive organizations globally. One woman on board of 10. And they arent measuring business-relevant impacts. He adds that corporate America must prepare for difficult conversations if its truly serious about creating an equitable workplace. 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. The majority of people doing the hiring arent minorities, he says. According toMichelle Simmons,General Manager,Southeast Asia New Markets, Microsoft Asia Pacific, Microsoft is working with schools and teachers to create opportunities for more than 1 million young men and women in Sri Lanka. Please log in as a SHRM member before saving bookmarks. 2023 CNBC LLC. Illustration by Ty Dale. Maitland: We set out 10 enablers that drive inclusion by creating connection, opportunity and common cause across organizations. Yet organizations struggle to find the best approach to meet their D&I goals. Article 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. An in-depth discussion among diversity experts on realizing the benefits of diversity. Those sticking with the status quo will face greater risks and be less prepared for the big challenges and opportunities that lie ahead. I wanted to support my son.. He didnt know what to say, but he knew he had to say something, says Corinne Abramson, the companys national inclusion director. White men hold 68 percent of C-suite positions, with white women accounting for 18 percent. Fool contributorChris Neiger has no position in any stocks mentioned. 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.

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