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Appendix C Corporate Benchmarks In preparation for the workshop on Best Practices in Managing Diversity, the NAE Committee on Diversity in the Engineering Workforce compiled a list of 71 companies that employ significant numbers of engineers and have been recognized for their handling of diversity issues in the workplace. All of these organizations either appeared in the Fortune list of the top 50 companies for minorities or the Working Woman list of the best companies for women, have been recognized by Catalyst or the Women in Engineering Programs and Advo- cates Network for their diversity programs, are represented on the Board of Directors of the National Action Council for Minorities in Engineering, or were recommended by a member of the committee. Two UCLA students, Jill Bernardy and Jennifer Sommers, under the direc- tion of committee member David Porter, collected available information about these companiesâ diversity management practices as benchmarks for the work- shop participants. The information was collected from the World Wide Web and analystâs reports, supplemented by phone calls to the companies. Follow up phone calls were made by Professor Porterâs research assistant Gina Kong to verify the accuracy of the information for each company. This data provided a starting point for discussions of diversity issues in the workplace. The information was organized around the three stages of diversity program development described by David Thomas and Robin Ely in their article, âMaking Differences Matter: A New Paradigm for Managing Diversityâ (Harvard Busi- ness Review 74(5): 79â90). The three stages are described as (1) discrimination and fairness, (2) access and legitimacy, and (3) learning and effectiveness. The discrimination and fairness paradigm focuses on equal opportunity, fair treatment, and compliance with legal requirements. The emphasis in this stage is 149
150 APPENDIX C on respecting differences and treating all employees equally but not on encourag- ing employees to apply their personal perspectives to their work. Programs at this stage seem to operate on the assumption that everyone is fundamentally the same. The access and legitimacy paradigm recognizes and celebrates differences as a competitive advantage in reaching new markets. Companies operating un- der this paradigm are faced with increasing diversity among their customers, clients, or labor pool, and thus see diversity as a business opportunity or threat. This approach can lead to employees being pigeonholed into career paths that serve a particular market but do not lead to advancement in the companyâs mainstream operations. Companies that go beyond the access and legitimacy paradigm to the learn- ing and effectiveness paradigm begin to connect diversity to work perspectives. Companies with programs at the learning and effectiveness stage incorporate diverse outlooks of their employees into their work and take advantage of em- ployeesâ different points of view to rethink and redesign their products and pro- cesses. More than just treating everyone fairly and celebrating differences, orga- nizations operating under the learning and effectiveness paradigm are able to apply diverse perspectives to their fundamental business operations and improve performance. The accompanying tables presents the diversity practices of the 71 companies classified into Thomas and Elyâs three stages of diversity program development.
APPENDIX C 151 Table C-1
Table C-1 Best Practices Corporate Benchmark s 152 3M Abbott Labs Accenture American Electric Power Amgen AOL Applied Materials AT&T Baxter Healthcare BE&K Bechtel Bell Atlantic Bell South Boeing Bristol Meyers Squibb British Petroleum CH2MHill Chevron CISCO Colgate Palmolive Con Ed Corning Cummins Engine Dow DTE Energy A-1 Regulatory Compliance - EEO, Affirmative Action A-2 Successful at recruiting a diverse workforce (gender, race); Maintains an activity calendar of diversity recruiting events A-3 Race & Gender Awareness Program A-4 Benchmark within or outside of industry A-5 Individual Growth-Horizontal: Access to experiences that yield personal and professional growth A-6 Individual Growth-Vertical: Equal representation among groups at all levels evident in business, functions, geographic areas A-7 Mentoring Program A-8 Diversity Mission or Value Statement A-9 Training on cultural awareness/diversity A-10 Sexual harassment training A-11 Employee handbook refers to diversity issues; may require employee signatures B-1 Internal leadership committee (i.e., Executive Council on Diversity) B-2 Educational partnerships and/or scholarships (i.e. to encourage women & minorities to study math & science) B-3 Internships for women and minorities
B-4 Community outreach B-5 Focus on competence based credentials rather than past experience B-6 Teambuilding training B-7 Encourage & support partnerships with minority affinity or network groups B-8 Celebrate multicultural events B-9 Diverse Supplier Program B-10 Company groups/clubs for minority employees C-1 Diversity is integral & valued part of culture C-2 Tool to measure success of diversity programs C-3 Diverse Management Team(s)/Board of Directors reflect diversity of current and future business environments C-4 Full-time diversity staff C-5 Diversity objectives are tied to corporate objectives C-6 Policies/ benefits to support diverse needs (i.e. flex time, job-sharing, eldercare, daycare, seniority pay, etc.) C-7 Administer regular attitudinal surveys (include diversity opinion surveys) C-8 Monitor and report progress to staff C-9 Evaluate business units and managers performance with regard to diversity; tie to bonus compensation C-10 Awards for managers advancing companies diversity initiatives C-11 Regular organization newsletter featuring all staff and highlighting internal & external diversity best practices C-12 Formalized succession/career development planning Contacted by phone for verification Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes No Yes Yes Yes No Yes No 153
Table C-1 continued 154 Duke Power Dupont EDS Eli Lilly Exxon Mobil Ford General Electric General Motors Goodyear Hewlett Packard Hoechst Celanese Hughes IBM Idaho Nat l EE Lab Intel Kodak KPMG Kraft Lockheed Martin Los Alamos Nat l Lab Lucent Merck Microsoft Motorola A-1 Regulatory Compliance - EEO, Affirmative Action A-2 Successful at recruiting a diverse workforce (gender, race); Maintains an activity calendar of diversity recruiting events A-3 Race & Gender Awareness Program A-4 Benchmark within or outside of industry A-5 Individual Growth-Horizontal: Access to experiences that yield personal and professional growth A-6 Individual Growth-Vertical: Equal representation among groups at all levels evident in business, functions, geographic areas A-7 Mentoring Program A-8 Diversity Mission or Value Statement A-9 Training on cultural awareness/diversity A-10 Sexual harassment training A-11 Employee handbook refers to diversity issues; may require employee signatures B-1 Internal leadership committee (i.e., Executive Council on Diversity) B-2 Educational partnerships and/or scholarships (i.e. to encourage women & minorities to study math & science) B-3 Internships for women and minorities
B-4 Community outreach B-5 Focus on competence based credentials rather than past experience B-6 Teambuilding training B-7 Encourage & support partnerships with minority affinity or network groups B-8 Celebrate multicultural events B-9 Diverse Supplier Program B-10 Company groups/clubs for minority employees C-1 Diversity is integral & valued part of culture C-2 Tool to measure success of diversity programs C-3 Diverse Management Team(s)/Board of Directors reflect diversity of current and future business environments C-4 Full-time diversity staff C-5 Diversity objectives are tied to corporate objectives C-6 Policies/ benefits to support diverse needs (i.e. flex time, job-sharing, eldercare, daycare, seniority pay, etc.) C-7 Administer regular attitudinal surveys (include diversity opinion surveys) C-8 Monitor and report progress to staff C-9 Evaluate business units and managers performance with regard to diversity; tie to bonus compensation C-10 Awards for managers advancing companies diversity initiatives C-11 Regular organization newsletter featuring all staff and highlighting internal & external diversity best practices C-12 Formalized succession/career development planning Contacted by phone for verification No Yes Yes Yes Yes No No No No Yes No Yes Yes No No No No Yes Yes No Yes No No No No 155
Table C-1 continued 156 Oak Ridge Nat l Lab Parsons Brinkerhof PG&E Proctor & Gamble Public Service of NM Qualcomm Raytheon Sandia Nat l Lab SBC Schering-Plough Sempra Energy Shell Silicon Graphics Sony Southern Cal Edison Southern Company Sun Microsystems Texaco Texas Instruments Texas Utilities US West/Quest World Com Xerox A-1 Regulatory Compliance - EEO, Affirmative Action A-2 Successful at recruiting a diverse workforce (gender, race); Maintains an activity calendar of diversity recruiting events A-3 Race & Gender Awareness Program A-4 Benchmark within or outside of industry A-5 Individual Growth-Horizontal: Access to experiences that yield personal and professional growth A-6 Individual Growth-Vertical: Equal representation among groups at all levels evident in business, functions, geographic areas A-7 Mentoring Program A-8 Diversity Mission or Value Statement A-9 Training on cultural awareness/diversity A-10 Sexual harassment training A-11 Employee handbook refers to diversity issues; may require employee signatures B-1 Internal leadership committee (i.e., Executive Council on Diversity) B-2 Educational partnerships and/or scholarships (i.e. to encourage women & minorities to study math & science) B-3 Internships for women and minorities
B-4 Community outreach B-5 Focus on competence based credentials rather than past experience B-6 Teambuilding training B-7 Encourage & support partnerships with minority affinity or network groups B-8 Celebrate multicultural events B-9 Diverse Supplier Program B-10 Company groups/clubs for minority employees C-1 Diversity is integral & valued part of culture C-2 Tool to measure success of diversity programs C-3 Diverse Management Team(s)/Board of Directors reflect diversity of current and future business environments C-4 Full-time diversity staff C-5 Diversity objectives are tied to corporate objectives C-6 Policies/ benefits to support diverse needs (i.e. flex time, job-sharing, eldercare, daycare, seniority pay, etc.) C-7 Administer regular attitudinal surveys (include diversity opinion surveys) C-8 Monitor and report progress to staff C-9 Evaluate business units and managers performance with regard to diversity; tie to bonus compensation C-10 Awards for managers advancing companies diversity initiatives C-11 Regular organization newsletter featuring all staff and highlighting internal & external diversity best practices C-12 Formalized succession/career development planning Contacted by phone for verification No No No No No No No Yes No No Yes No No No Yes No No No No No No No No 157