Diversity Programs | Are they working?

It is 2019, and the push for diversity in all aspects of human life is very much alive. More companies than ever are under the microscope, and consumers are not the only ones holding the lens. Even companies looking to approve providers to partner with are asking a series of questions regarding diversity before signing the dotted line for a new partnership. “In order to effectively promote diversity, we must take greater steps to hold ourselves, our peers, and our collaborators accountable. These questions were created with this idea in mind,” says Amy Sellars of Walmart (PR Newswire, 2018). Other large enterprises are also concerned with diversity in their organizations due to an increase in class action suits.

In 2000, Coca-Cola agreed to a $192 million settlement, the largest settlement ever in a corporate racial discrimination case (Business & Human Rights Resource Centre, n.d.). Companies everywhere are launching diversity programs and investing in training with hopes of avoiding such costly discrimination lawsuits (STARR, n.d.). Nonetheless, the gaps in diverse headcounts still remain in the American workforce despite diversity programs. Startling statistics such as women-only holding 4.2% of CEO positions in America’s 500 biggest companies drive the questioning of these diversity programs (Zarya, 2016). Additionally, only 1% of Fortune 500 companies have African American or Black CEOs (Donelly, 2018). If the implementation of diversity programs is not moving the needle, what is working to promote diversity and inclusion in the workplace?

A five-year study discovered that programs that ignite engagement and increase contact among different groups are most effective in increasing representation among managers (Dobbin and Kalev, 2016). The top three types of programs were diversity task forces, mentoring, and college recruitment programs targeting women and minorities. Coca Cola implemented both recruitment and mentoring programs after their costly settlements. A look at the giant today shows there are 17 African-American women in VP roles and above at the organization. 

While the conversations on diversity are swirling all around America, and programs are being implemented to close the gaps, it is essential to remember that changes bring positive impact for everyone. Inclusive companies are 120% more likely to hit financial goals, and highly gender-diverse executive teams are 21% more likely to outperform on profitability (Dobbin and Kalev, 2016). It is time to frame diversity programs positively. Beyond avoiding litigation, organizations should focus on improving work environments for everyone and promoting diverse workplaces because it is the right thing to do. Improving the bottom line is the cherry on top!

 

Works Cited
Coca-Cola Lawsuit (Re Racial Discrimination in USA) | Business & Human Rights Resource Centre. https://www.business-humanrights.org/en/coca-cola-lawsuit-re-racial-discrimination-in-usa. Accessed 22 Sept. 2019.

Dobbin, Frank, and Alexandra Kalev. “Why Diversity Programs Fail.” Harvard Business Review, no. July–August 2016, July 2016. hbr.org, https://hbr.org/2016/07/why-diversity-programs-fail.

Donelly, Grace. “Black History Month: Diversity in CEO Spot Very Low for Blacks.” Fortune, 28 Feb. 2018, https://fortune.com/2018/02/28/black-history-month-black-ceos-fortune-500/.

“EDI Diversity Initiative Releases Questions Aimed to Promote Diversity During RFP Process.” PR Newswire, 2 Oct. 2018, https://www.prnewswire.com/news-releases/edi-diversity-initiative-releases-questions-aimed-to-promote-diversity-during-rfp-process-300722825.html.

Employee Lawsuits Are Costly — Win or Lose. These 4 Trends Are Making the Risks More Severe | STARR. http://www.starrcompanies.com/news/blog/employee lawsuits are costly. Accessed 22 Sept. 2019.

Zarya, Valentina. “The Percentage of Female CEOs in the Fortune 500 Drops to 4%.” Fortune, 6 June 2016, https://fortune.com/2016/06/06/women-ceos-fortune-500-2016/.