Diversity and Inclusion in Corporate Social Engagement Accelerate - - PowerPoint PPT Presentation

Diversity and Inclusion in Corporate Social Engagement Accelerate Community

April 2nd, 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

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2005 2017 1999

15% 83% 0% 15% 89% 0% 14% 89% 0%

Source: Bloomberg Terminal Data, Companies in the 2017 Fortune 500 Ranking, n=500

% OF F500 COMPANIES TRACKING Governance Disclosure ESG Disclosure % Women

• n Boards

PHILANTHROPY  CSR  PURPOSE

Our two main groups of study for this session

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DInc50 Roundtable

70

66

24% 30%

Source: Bloomberg Terminal Data

Governance Disclosure FY17 (Median) % Women in the Workforce % Women

• n Boards FY17

PHILANTHROPY  CSR  PURPOSE

47 % 53 % 37% 63 %

n=8 n=38

How + Who + What

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Term/Action Recipients Access Focus

Source: CSR Report Review from DiversityInc Top 50 companies and companies in the RT

Common Trends

> 56% of companies have short- term D&I Goals (2020) > 47% of companies report proving unconscious bias training for leadership > GRI: most common framework (93% of companies)

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58% noted

their CEI Score in their public Communications

59% signed

“CEO Action for Diversity and Inclusion” pledge

Source: CSR Report Review from DiversityInc Top 50 companies and companies in the RT

Rankings: performance measurement or checklist?

>No correlation between Governance Disclosure Score/% of Women on Boards and DiversityInc50 Ranking

8 Source: Bloomberg Terminal and DiversityInc Top 50 Ranking

Governance Disclosrue % of Women on Boards DiversityInc Ranking DiversityInc Ranking

Gender and Race: top diversity strands when implementing external D&I

9 38 38 33 33 26 19 19 19 17 14 14 13 10 6 5 4 4

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

• ne option.)

Source: CECP’s Diversity & Inclusion in Corporate Social Engagement, n=47

Both topics tend to be grouped, however there are more metrics for Gender

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Recruitment/ New Hires Career Development + Promotions Pay Equity Workforce Workforce Retention/ Engagement Management (1st/2nd level) Executives (3rd level - VPs, Reports to CEO, Partners, etc) Board Gender 33% 24% 21% 70% 24% 56% 58% 45% Race 30% 18% 15% 61% 12% 31% 33% 33%

D&I BAROMETER: GENDER & RACE

Source: CSR Report Review from DiversityInc Top 50 companies and companies in the RT, n=33

% of metrics available in each category

Main tactic to support CSE with D&I: select nonprofits based on their D&I metrics

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32 26 21 16 13

Use diversity and inclusion metrics as criteria for selecting nonprofit partners and grantees (e.g., reach to diverse audiences, diversity and inclusion related programming, demonstrated social impact) Connect your Employee Resource Groups to CSE decision making (e.g. give them the opportunity to provide input on where philanthropic dollars are allocated) Monitor the diversity and inclusion metrics of your internal staff team directing CSE efforts (i.e., gender distribution, race representation etc.) Provide guidance to nonprofit partners to help them advance diversity and inclusion internally and/or in executing their mission Monitor the internal diversity and inclusion metrics of current or potential nonprofit partners and grantees (i.e. gender distribution of board, race representation of leadership positions etc.)

What tactics do you use to support diversity and inclusion within your CSE efforts? Please select all the apply:

Source: CECP’s Diversity & Inclusion in Corporate Social Engagement, n=48

Monitor Nonprofit Internal Diversity Guidance to Nonprofit Internal Diversity Monitor Company’s CSE Team’s Internal Diversity Connect ERG’s to CSE

Use D&I Metrics to Select Nonprofits

Demographic of end-recipients: most frequently used metric to measure success of external D&I

12 Source: CECP’s Diversity & Inclusion in Corporate Social Engagement, n=41

3 5 5 15 16 21 30

Do not have measurement metrics Demographics of new customers Other (Please specify) Changes in select socio-economic indicators (e.g. high school graduation rates; infant mortality) that result from your CSE investments Demographics of new employee applicants Amount of CSE spend on external diversity and inclusion efforts Demographics of those served by non-profit beneficiaries of your support (cash and in-kind)

What metrics do you capture to measure the success of your external diversity and inclusion efforts? (Select all that apply)

Main challenges external D&I: Lack of strategic alignment & measurement metrics

13 Source: CECP’s Diversity & Inclusion in Corporate Social Engagement, n=37

1 1 2 3 3 3 3 4 4 6 7

Lack of Tradition in D&I Not enough relevance Lack of impactful partners Implementation Challenges Lack of Involvement from Leaders Other Lack of Collaboration/Coordination/Communication between Units Lack of Clarity of Priorities/Needs Lack of resources Measurement Challenges Lack of strategic aligment within the company

What are the main challenges your company is facing in terms of integrating diversity and inclusion into your CSE efforts?

COMMON D&I MEASUREMENT DIMENSIONS

Gender

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“Raise the number of female employees in managerial positions threefold by 2020, and fivefold by 2030, compared to 2014 levels” - Toyota

Race

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Pay Equity

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Recruitment

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“We also launched a pilot program with Thurgood Marshall College Fund to recruit summer interns from across the Historically Black College and University/Minority-Serving Institution network as part of a scholarship partnership. A total

• f 13 scholars, exceeding the goal of 10” - Altria

“Maintain a hiring rate for female graduates (Administrative positions 40 percent; Engineering positions 10 percent)” - Toyota

Retention/Engagement

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“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

Executives/Board

20

Age

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Supplier Diversity

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“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

Veterans

>“The company is committed to increasing its veteran team member population to 20,000 by 2020” – Wells Fargo

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Refugees

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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

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SDGs

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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

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Cross-Dimensions

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• 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

External D&I Corporate Lens

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“In each focus area, we also look for opportunities to promote inclusion and diversity. ”

Access Focus

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“ADP is investing in the future through the Math and Science Teachers (MaST) Academy at The University of Texas at El Paso. Since the Academy’s inception 10 years ago, more than 100 students have completed the program, with 95 percent of the graduates continuing on as high school teachers today. UTEP estimates that the ADP MaST alumni have touched the lives of approximately 67,000 young people, and ADP MaST graduates now teach in eight states” - ADP

>Education >Healthcare

• “Establish MinuteClinic relationships with five VA Health Care Systems

by 2022” – CVS

• “Reaching Diverse Communities through Project Health In September 2017, we launched
• ur 12th annual Project Health free health screening campaign. Over four months, 450

Project Health wellness events were held in 10 multicultural communities with a large number of uninsured or underinsured Americans. More than $6.4 million worth of free services were delivered. Project Health continues to grow. In 2017, we reached more than 63,000 participants, a 5 percent increase over past years” - CVS

VISUALIZATIONS/FORMATS

Graphics

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>Bar Charts

Graphics

>Pie Charts

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Graphics

35

>Bell Curves

Tables

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Timeline

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Timeline

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Scorecard

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Scorecard

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Infographic

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Infographic

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Putting a face to a name: Seeing is believing

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Storytelling

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Videos

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CONCLUSIONS

Areas of Opportunity

> Gender & Race are grouped together when they should have different approaches and strategies (Intersectionality?) > Certain topics are tackled by just providing ERGs that cover them but have no concrete KPIs (e.g. LGBT, Ethnicity, Cultural Origin, etc.) > There are few KPIs assessing ERGs, in part because it may be more difficult to retrieve metrics from nonprofits > Many companies list partners and nonprofits as proof of commitment and impact but it does not seem authentic or substantial in lieu of data and transparency > Other topics are just covered by creating employee policies (non-discrimination policies, equal benefits, organizational training) > Some D&I reporting could be perceived as “distractors.” Some companies mentioned internally circulated benchmarking, dashboards, and data collection that are not included in the CSR/D&I reports...what does this say about perceived risks about transparency/disclosure?

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Areas of Opportunity

> Few companies have SMART D&I goals. They may state general/aspirational goals or annual goals but they do not set a timeline or show progress towards a long-term goal > US reporting differs from Global reporting (necessarily good?) > Few goals go beyond 2025 > SDGs present on website but not necessarily in the report. Most SDGs revolves around SDG 5. Is minority representation in the workforce bundled up in a non-material SDG or tacit? > Not all companies include their CEOs pledge on “CEO Action for D&I.” Not clear what would be the follow-up > Most story-telling focuses on data on diversity and not so much on inclusion (e.g. inclusive work setting, parental leave, improved insurance coverage for LGBTQ, bias training, professional development) > Engagement data mostly reflected at a macro level

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QUESTIONS?

List of Companies

> Abbott > AbbVie > Accenture > ADP > Aetna > AIG > Allstate Insurance Co > Altria Group, Inc. > AmerisourceBergen Corporation > Anthem > Aramark > AT&T > BASF > Bayer (formerly Monsanto) > BD > Capital One Financial Corporation > Cigna (formerly Express Scripts) > Colgate-Palmolive > Comcast NBCUniversal > Cox Communications > Cummins > CVS Health > Dow Chemical > DTE Energy Company > Eli Lilly and Co > Exelon > FMC Corporation > General Motors > Hilton > Humana > JCPenney > Johnson & Johnson > Kellogg Company > KeyBank > KPMG > Marriott International > Mastercard > McCormick & Co > Medtronic > MUFG Union Bank > New York Life > Nielsen > Northrop Grumman Corp > Procter & Gamble > Prudential Financial > Public Service Enterprise Group Incorporated > Sanofi > Southern Company > Target > Tata Consultancy Services > TD Bank > The Boeing Company > The Hershey Company > The Walt Disney Co > TIAA > Toyota Motor North America > Warner Media (formerly Time Warner) > Wells Fargo

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