Diversity in Organizations: why it’s important

1. Diversity in Organizations: why it’s important

2. You are a well known company in the DFW area. It has come to the attention of Channel 5 NBC news that your company has recently had an issue between two employees and that there was by all accounts discriminatory language between them. • NBC has called you to alert you that they have dispatched a news team and camera truck to your location and they should be arriving in approximately five minutes. They have told you that they want to interview your executives and have the following questions: • How does your company define Diversity? • What has your company done to ensure the employees ‘buy-in’?

3. Diversity ….is an increasingly popular topic, and perceptions about diversity are influenced by life experiences, socialization, stereotypes, and misconceptions. ….is the mosaic of people who bring a variety of backgrounds, styles, perspectives, values and beliefs as assets to the groups and organizations with which they interact.

4. What Diversity is Not • It is not a workshop that can give you all the “answers” • Can’t be forced to value diversity • Can’t be “taught” • Can’t “fix” issues of diversity as a manager

5. Valuing Diversity Part of your duty as a company executive is to understand and promote the value of diversity. • Broader focus that includes demographic, cultural, and personal differences • Not required by law; organizations may adopt it voluntarily • The purpose is to create a positive work environment where no one is advantage or disadvantaged • Encourages organizations to value all kinds of differences • Many view it as giving no preference to any groups • People are viewed as qualified since no preferential treatment was given

6. 2013 DiversityInc Top 10 Companies for Global Diversity IBM Monsanto Deloitte Ernst & Young Sodexo Dell Accenture Procter & Gamble Merck & Co. PricewaterhouseCoopers Review Diversity Inc. for detailed information.

7. Diversity Statements • As our clients become more global and expand into new markets, they expect us to be equally diverse. • We have a strong commitment to bringing together the right teamsfor our clients from across our global organization. These teams match our clients’ needs in terms of knowledge, skills and cultural background. • Diverse teams are also proven to stimulate innovation and new ways of problem solving. But they need an inclusive culture to help them function at their best. • Inclusiveness is all about making the diverse mix work. It’s about equity and opportunity – making sure that differences are celebrated so that talented people from any background can rise to the top, and ensuring that opportunities to develop and advance are available for all from day one. • Making sure that all our people’s voices are heard and valued not only helps attract and retain the best people, but also it helps get better answers for our clients and our organization.

8. Diversity Statements We respect and value not only differences related to race, gender, ethnicity, disability, and sexual orientation, but also diversity of viewpoint, experience, talents, and ideas. We strive to empower all associates to excel on the job and reach their full potentials.

9. Diversity Statements We view diversity as a businessnecessity and opportunity, and a moral imperative. We undertake strategies and actions to recognize, accept, value and utilize differences and similarities among all applicants, employees, customers, suppliers, and the community.

10. Colgate’s Diversity Strategy "Recognizing and valuing the many differencesthat make us who we are is vital to our culture. This diversity includes more than the obvious traits, like nationality, culture, race and gender. Our diversity also encompasses many differences that are not so easily seen, such as life experiences, religion, sexual orientation and family situations, just to name a few. These differences bring a depth and variety of ideasto our business that cannot come from any other source. They are the keys to finding new solutions to business challenges and new opportunities from unique insights. Creating an inclusive environment is absolutely critical to ensure that we can benefit from these diverse viewpoints, diverse ideas and diverse perspectives.“ — Ian Cook, Chairman, President and Chief Executive Officer

11. Diversity and Organizational Competitiveness Resource Acquisition Cost Aside from fairness, why should organizations attend to diversity? SystemFlexibility Marketing ProblemSolving Creativity

12. Multicultural economy The Selig Center reports that total annual buying power in the United States exceeded $10 trillion for the first time in 2007 and is projected to be $13 trillion by 2012. What's particularly relevant here is that multicultural markets will account for the lion's share of that growth. • 2007 - the buying power of Blacks and Latinos was $913 billion and $951 billion, respectively—larger than the entire economies of all but 13 countries in the world. • 2008 - combined buying power of Asians, Blacks and American Indians was $1.5 trillion, a 227 percent increase over its 1990 level of $454 billion. • Marketing efforts for different racial/ethnic communities must address different geographical aspects. For example, the Latino and Asian markets are heavily concentrated in a few states, while the Black market is widespread throughout much of the United States.

13. PepsiCo, 2003 Campaign This advertising campaign attracted Latino customers with its Frito-Lay's Chile Limon and Doritos guacamole-flavored chips, which brought in $100 million in revenue.

14. Procter & Gamble • Procter & Gamble's Gain laundry detergent was created with scents and marketing that was specifically aimed at the Black and Latino communities. The company consulted extensively with its Black and Latino employee-resource groups before marketing the product. • The result? • Gain became the second-largest-selling laundry detergent in the United States, which the company primarily attributed to these two markets, and it became the fastest-growing brand among Black consumers.

15. Multicultural Dolls Multicultural dolls that reflect the diverse, mixed-race reality of children. Representing the changing world that no longer remains the "Barbie-doll standard" of beauty. This innovation generated a profit of $20.9 million.

16. Oreo Barbie • In 1997, Mattel entered into a cross-promotion with Nabisco, releasing the Oreo Barbie in both a white and a black version. Apparently, no one at Mattel had considered the negative connotations of pasting an Oreo label on an African-American doll.

17. At Mattel, Everyone Plays... As a part of our business strategy for success, we will strive for diversityin who we are and what we do, primarily through our: People: we will hire, retain, and promote a diverse workforce, and will encourage opportunities within the communities that we live, work, and play Perspectives: we will create a company culture that encourages an expression of, and a respect for, diverse viewpoints Partners: we will do business with customers and suppliers who reflect the diversity of the worldwide community in which we operate Products: we will create and market products that appeal to and engage our consumers around the world http://corporate.mattel.com/about-us/diversity.aspx

18. At Mattel, Everyone Plays... • As the world's largest toy company, Mattel's global workforce is diverse by any measure, be it ethnicity, race, religion or gender. However, Mattel doesn't see diversity in such limited terms. Rather, Mattel is committed to a broader global perspective. More importantly, we have a business imperative to think globally. Today, nearly half of Mattel's sales come from outside the US. And in the future, Mattel's greatest sales potential will be from its growing international markets. http://corporate.mattel.com/about-us/diversity.aspx

19. Toyota, 2006 Super Bowl Commercial The new 2007 Toyota Camry Hybrid was introduced in two languages in a 30-second commercial spot costing up to $2.5 million. It highlighted a Latino father in bilingual conversation with his young son during a car ride. When the son asks why his father uses both languages, the father responds, “for your future.”

20. Legalities of Diversity • Title VII of the Civil Rights Act of 1964 • The Equal Pay Act of 1963 • The Age Discrimination in Employment Act of 1967 • Section 504 of The Rehabilitation Act of 1973 • The Americans with Disabilities Act of 1990, Titles I and V • The Civil Rights Act of 1991 • The Pregnancy Discrimination Act • Lilly Ledbetter Fair Pay Act of 2009

21. Age and Disability • Misperception: Older workers will retire soon after being trained, therefore, employers should not invest training dollars in them. • Reality: Younger workers have higher turnover rates than older workers. • Misperception: People with disabilities have lower performance and higher absence than people without disabilities. • Reality: People with disabilities have similar or better performance and lower absence than people without disabilities.

22. Sex and Gender • Misperception: The majority of women with small children leave the workforce to be “stay-at-home” moms. • Reality: Most women with or without children work outside the home. Education increases women’s likelihood of being employed. • 60% of women and 74% of men work; 74% of women without children work and 74% of women with graduate degrees and children less than 1year old work. • Misperception: Sexual harassment affects women only. • Reality: Men are about 15% of sexual harassment targets, but men who complain are often not taken seriously.

23. Sexual Orientation • Misperception: Gay males and lesbians have the same rights to non-discrimination as heterosexuals. • Reality: No federal laws prohibit sexual orientation discrimination in private workplaces. In many states, one can be fired for being gay or lesbian. • Misperception: Same-sex partner benefits add considerable health insurance costs to employers. • Reality: Adding same-sex benefits increases costs to employers between 1% and 3%; costs are proportionate to any increase in plan participants.

24. Mosaic Hindus White Women African Americans White Men Blacks Mixed Race Hispanics/ Latinos People With Disabilities Jews Christians Immigrants Buddhists Asians GLBT Arab Americans Native Americans 42% Muslims

25. Inclusion and Cultural Flexibility Hindus White Women African Americans White Men Blacks Mixed Race “Us” Hispanics/ Latinos People With Disabilities Jews Christians Immigrants Buddhists Asians GLBT Arab Americans Native Americans Muslims

26. How Do We Get There When WE don’t Know Where “There” IS • An organization’s success or failure depends on its ability to attract, retain, and maximize contributions of people from all backgrounds. • Discrimination, harassment, and exclusion are and will continue to be increasingly unwise, unprofitable, and unacceptable. • In business, while diversity is partly a means of gaining competitive advantage, it is also the willingness to pursue societal changes that reduce widespread inequity among people.

27. Organizational Foci

28. Discrimination Types According to the U.S Equal Employment Opportunity Commission (EEOC) • Age • Disability • Equal Pay • National Origin • Pregnancy • Race • Religion • Retaliation • Sex • Sexual Harassment

29. Concluding Thoughts To remain competitive in a global market, we cannot afford to have potential contributors prevented from or limited in their contributions in an increasingly competitive world.

30. YOU ARE IN CHARGE. WHAT DECISIONS DO YOU MAKE?

31. Scenario 1 Your workplace has what it considers to be “company observed holidays” around Christmas, but those days do not account for other religious denominations. How do you uphold your traditions but at the same time respect other expression of faith?

32. Scenario 2 Walter is in charge of a department of approximately fifty people. Three of the employees in the department represent the minority areas. There is a job opening. Jeannie, a white candidate, Mitch, a minority candidate, and John, who represents other all apply for the position. On paper, all candidates have equal qualifications and experience. In the interview process, all came across well, but Walter feels more comfortable with the white candidate. What would you advise Walter to do?

33. Scenario 3 As Director of Human Resources, you are in charge of overseeing the downsizing of the company. The easiest ways to save the company money is to lay-off those individuals with the largest salaries first and then proceed to those who were last hired. Are there any issues you need to consider before you move forward?

34. Scenario 4 You are an executive in the company and while you are having lunch in the company cafeteria one of your colleagues uses what would be considered discriminatory language by all accounts. You are not sure if someone over heard the comments. How do you handle the situation?