Diversity and Inclusion in Corporate Social Engagement Accelerate Community April 2 nd , 2019
INITIAL TRENDS
Diversity .. but Inclusion? “It’s easy to measure diversity: It’s a simple matter of headcount. But quantifying feelings of inclusion can be dicey. Understanding that narrative along with the numbers is what really draws the picture for companies. ” – Harvard Business Review 3 Source: Diversity Doesn’t Stick Without Inclusion – Laura Sherbin & Ripa Rashid, Harvard Business Review
Work in progress for D&I data collection PHILANTHROPY CSR PURPOSE % OF F500 COMPANIES TRACKING 1999 2017 2005 0% Governance 15% 83% Disclosure % Women 15% 89% 0% on Boards ESG Disclosure 0% 89% 14% 4 Source: Bloomberg Terminal Data, Companies in the 2017 Fortune 500 Ranking, n=500
Our two main groups of study for this session PHILANTHROPY CSR PURPOSE Roundtable DInc50 70 66 Governance Disclosure FY17 (Median) 24% % Women 30% on Boards FY17 53 % Women in the 63 % % Workforce 47 37% % n=8 n=38 5 Source: Bloomberg Terminal Data
How + Who + What Term/Action Recipients Access Focus 6 Source: CSR Report Review from DiversityInc Top 50 companies and companies in the RT 6
Common 58% noted Trends their CEI Score in their public Communications > 56% of companies have short- term D&I Goals (2020) > 47% of companies report proving 59% signed unconscious bias training for leadership “CEO Action for > GRI: most common framework Diversity and (93% of companies) Inclusion” pledge Source: CSR Report Review from DiversityInc Top 50 companies and companies in the RT 7
Rankings: performance measurement or checklist? > No correlation between Governance Disclosure Score/% of Women on Boards and DiversityInc50 Ranking DiversityInc Ranking DiversityInc Ranking % of Women on Boards Governance Disclosrue 8 Source: Bloomberg Terminal and DiversityInc Top 50 Ranking
Gender and Race: top diversity strands when implementing external D&I Which of these diversity strands does your company focus on when integrating diversity and inclusion into your CSE efforts? (Options don't refer to internal initiatives that benefit your company's employees. You can select more than one option.) 38 38 33 33 26 19 19 19 17 14 14 13 10 6 5 4 4 9 Source: CECP’s Diversity & Inclusion in Corporate Social Engagement, n=47
Both topics tend to be grouped, however there are more metrics for Gender D&I BAROMETER: GENDER & RACE Executives Career Workforce Management (3rd level - Recruitment/ Development Pay Equity Workforce Retention/ (1st/2nd VPs, Reports Board New Hires + Promotions Engagement level) to CEO, Partners, etc) Gender 33% 24% 21% 70% 24% 56% 58% 45% Race 30% 18% 15% 61% 12% 31% 33% 33% % of metrics available in each category 10 Source: CSR Report Review from DiversityInc Top 50 companies and companies in the RT, n=33
Main tactic to support CSE with D&I: select nonprofits based on their D&I metrics What tactics do you use to support diversity and inclusion within your CSE efforts? Please select all the apply: Monitor the internal diversity and inclusion metrics of current or Monitor Nonprofit Internal 13 potential nonprofit partners and grantees (i.e. gender distribution of Diversity board, race representation of leadership positions etc.) Provide guidance to nonprofit partners to help them advance diversity Guidance to Nonprofit 16 and inclusion internally and/or in executing their mission Internal Diversity Monitor the diversity and inclusion metrics of your internal staff team Monitor Company’s CSE 21 directing CSE efforts (i.e., gender distribution, race representation etc.) Team’s Internal Diversity Connect your Employee Resource Groups to CSE decision making (e.g. Connect ERG’s to CSE 26 give them the opportunity to provide input on where philanthropic dollars are allocated) Use diversity and inclusion metrics as criteria for selecting nonprofit Use D&I Metrics 32 partners and grantees (e.g., reach to diverse audiences, diversity and inclusion related programming, demonstrated social impact) to Select Nonprofits 11 Source: CECP’s Diversity & Inclusion in Corporate Social Engagement, n=48
Demographic of end-recipients: most frequently used metric to measure success of external D&I What metrics do you capture to measure the success of your external diversity and inclusion efforts? (Select all that apply) Demographics of those served by non-profit beneficiaries of your support 30 (cash and in-kind) 21 Amount of CSE spend on external diversity and inclusion efforts 16 Demographics of new employee applicants Changes in select socio-economic indicators (e.g. high school graduation 15 rates; infant mortality) that result from your CSE investments 5 Other (Please specify) 5 Demographics of new customers 3 Do not have measurement metrics 12 Source: CECP’s Diversity & Inclusion in Corporate Social Engagement, n=41
Main challenges external D&I: Lack of strategic alignment & measurement metrics What are the main challenges your company is facing in terms of integrating diversity and inclusion into your CSE efforts? 7 Lack of strategic aligment within the company 6 Measurement Challenges 4 Lack of resources 4 Lack of Clarity of Priorities/Needs 3 Lack of Collaboration/Coordination/Communication between Units 3 Other 3 Lack of Involvement from Leaders 3 Implementation Challenges 2 Lack of impactful partners 1 Not enough relevance 1 Lack of Tradition in D&I 13 Source: CECP’s Diversity & Inclusion in Corporate Social Engagement, n=37
COMMON D&I MEASUREMENT DIMENSIONS
Gender “ Raise the number of female employees in managerial positions threefold by 2020, and fivefold by 2030, compared to 2014 levels ” - Toyota 15
Race 16
Pay Equity 17
Recruitment “ We also launched a pilot program with Thurgood Marshall “ Maintain a hiring rate for female College Fund to recruit summer interns from across the graduates (Administrative Historically Black College and University/Minority-Serving positions 40 percent; Engineering Institution network as part of a scholarship partnership. A total positions 10 percent)” - Toyota of 13 scholars, exceeding the goal of 10 ” - Altria 18
Retention/Engagement “ In 2016 we launched our first formal sponsorship program, matching our CEO and 14 members of our senior leadership team with a high-potential diverse group of associates. As of Q4 2017, we have 100-percent retention of sponsored associates and 60-percent of participants in new roles since the start of the program ” - Nielsen 19
Executives/Board 20
Age 21
Supplier Diversity “ In 2017, Abbott spent $1.29 billion with diverse suppliers. This represents 11 percent of total spending in our supply chain and 19 percent of our North America spending. Our Supplier Diversity Governance Council takes the lead in guiding our organization toward a more diverse and sustainable supply chain. Our 2018 supplier diversity goal is to expand spend with small, diverse suppliers by at least 3 percent ”. - Abbott 22
Veterans > “ The company is committed to increasing its veteran team member population to 20,000 by 2020 ” – Wells Fargo 23
Refugees 24
ERGs > 100+ events held by employee resource groups > 42% of employees are members of at least one resource group – New York Life > “ The combined ERGs in 2017 accounted for more than 388,000 volunteer hours and granted more than $882,000 in scholarships” – AT&T > “Over 2,300 employees participated in one or more of our nine ERGs” > “Eighteen percent of eligible employees enrolled in the AltriaConnects mentoring program, which exceeded our launch goal - Altria 25
SDGs 26
LGBTQ 27 Source: Indian LGBT Workplace Climate Survey 2016, MINGLE
Disabilities > “ As of June 2018, the number of people with disabilities employed was 1,282 accounting for 2.25 percent of the entire workforce (including special-purpose subsidiaries) which is above the legal requirement of 2.2 percent. We are working towards a better workplace to retain employees, by holding sign language classes, assigning consultants, and rolling out best practices. ” - Toyota 28
Cross-Dimensions • Business-level dashboards that track hiring, promotions, retention and engagement of workforce across diversity dimensions • Diverse slates for executive-level openings • Dedicated diversity recruiting efforts • Monthly review of diversity metrics at executive committee level • Targeted leadership opportunities to help develop high-potential women and minorities • Expansion of unconscious bias training for leaders • Development and recruitment programs through Business Resource Groups • Executive sponsorship of high-profile diverse organizations 29
External D&I Corporate Lens “In each focus area, we also look for opportunities to promote inclusion and diversity. ” 30
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