Workplace Diversity: A Global Necessity and an Ongoing Commitment

The Career Advancement Subcommittee of the FCC's Advisory Committee on
Diversity for Communications in the Digital Age

June 14, 2004

> The FCC's Federal Advisory Committee on Diversity for Communications
> in the Digital Age ("Diversity Committee") was created by Chairman
> Michael K. Powell in September of 2003. As part of its objectives, the
> Committee manifests that it will "provide guidance to the Commission
> on policies and practices that could increase the diversity of
> ownership and could create opportunities for minorities and women to
> advance to managerial positions in the communications sector as well
> as other related sectors of the economy." The Committee is also
> charged with developing a description of best practices within the
> communications sector for promoting diversity of participation.
>
> The Career Advancement Subcommittee (\"Subcommittee\") of the FCC\'s
> Diversity Committee first sent an inquiry letter in December 2003 to a
> broad range of industry-related trade associations and foundations
> regarding their respective member companies\' hiring, promotion and
> retention practices. The responses were not as in-depth as the
> Subcommittee had anticipated. In order to get a more accurate picture
> of best practices, the Subcommittee submitted letters in March 2004 to
> thirty-three communications and a few non-communications related
> companies seeking narrative and documentation regarding each company's
> hiring, promotion, retention and procurement practices. Specifically,
> the Subcommittee sought to identify workplace diversity "best
> practices" that would be worthy of widespread acceptance throughout
> the broadcast, telecommunications (wireless and wireline), cable,
> satellite, Internet, and broadband industries.
>
> The Subcommittee has commissioned the Law Offices of Fatima Fofana &
> Associates to compile data on "best practice" solutions in the
> workforce based on the survey responses.[^1]. This report is intended
> to serve as a guide for the Subcommittee to develop a universal set of
> best practices for the communications industry.
>
> \...

FCC Federal Advisory Committee on Diversity for Communications in the
Digital Age

Julia Johnson

Chair, Federal Advisory Committee on Diversity for

Communications in the Digital Age

CAREER ADVANCEMENT SUBCOMMITTEE MEMBERS:

Jenny Alonzo

Chair, Career Advancement Subcommitte

President, NAMIC, Inc.

Vice President Production & Operations

Advertising & Promotions

Lifetime Entertainment Services

Henry Rivera

Former FCC Commissioner

Partner

Vinson & Elkins

Decker Anstrom

President, COO

Landmark Communications

Matthew Blank

Chairman, CEO

Showtime Networks

Maria Brennan

Executive Director

American Women in Radio and Television

Benita Fitzgerald-Moseley

President

Women in Cable and Telecommunications

Joan Gerberding

Immediate Past President, AWRT

Former President, Nassau Media Partners

Priscilla Hill-Ardoin

Senior Vice President

Regulatory Compliance

SBC Telecommunications, Inc.

David E. Honig

Executive Director

Minority Media & Telecommunications Council

Vonya McCann

Senior Vice President

Federal External Affairs

Sprint

FCC Federal Advisory Committee on Diversity for Communications in the
Digital Age

SUBJECT MATTER EXPERTS:

Weldon H. Latham

Partner

Holland & Knight, LLP

George Herrera

Former President, USHCC

President, Herrera-Cristina Group, LTD

Sylvia James

Associate

Holland & Knight , LLP

Dan Mason

President

Dan Mason, LLC

Putnam Mathur

Vice President

Corporate Diversity & Communications

MGM Grand/Mirage

S. Jenell Trigg

Of Counsel

Leventhal Senter & Lerman PLLC

Luke Visconti

Partner, Co-founder

DiversityInc.

Table of Contents

[[Acknowledgements 7]{.smallcaps}](#acknowledgements)

[Executive Summary 8](#executive-summary)

[Chapter 1: Introduction 13](#chapter-1-introduction)

[Chapter 2: The Role of the CEO in Promoting Diversity
15](#chapter-2-the-role-of-the-ceo-in-promoting-diversity)

[The Diversity Vision 15](#the-diversity-vision)

[Company Goals & Strategic Planning
16](#company-goals-strategic-planning)

[Chapter 3: Overall Diversity Structure
19](#chapter-3-overall-diversity-structure)

[The Role of Diversity Committees and Employee-Initiated Organizations
19](#the-role-of-diversity-committees-and-employee-initiated-organizations)

[The Role of Diversity Program Officers
21](#the-role-of-diversity-program-officers)

[Chapter 4: Achieving Workforce Diversity
23](#chapter-4-achieving-workforce-diversity)

[Recruitment & Post-Hiring Job Placement
23](#recruitment-post-hiring-job-placement)

[Building Partnerships with Organizations & the Community
24](#building-partnerships-with-organizations-the-community)

[Mentoring: Internally & Externally
25](#mentoring-internally-externally)

[Chapter 5: Professional Development Programs
27](#chapter-5-professional-development-programs)

[Fellowships & Internships 27](#fellowships-internships)

[Executive Development Programs 28](#executive-development-programs)

[Chapter 6: Managing Diversity 29](#chapter-6-managing-diversity)

[Employee Diversity Training 29](#employee-diversity-training)

[Management Training 30](#management-training)

[Employee Performance Evaluations 30](#employee-performance-evaluations)

[Compensation & Benefits 31](#compensation-benefits)

[Promotion of Family-Friendly Work Environment
32](#promotion-of-family-friendly-work-environment)

[Retention/Termination Criteria 33](#retentiontermination-criteria)

[Chapter 7: Diversity Accountability
35](#chapter-7-diversity-accountability)

[Diversity Metrics 35](#diversity-metrics)

[Management/Individual Accountability
36](#managementindividual-accountability)

[Incentives/Awards 36](#incentivesawards)

[Chapter 8: Diverse Contracting Opportunities:
38](#chapter-8-diverse-contracting-opportunities)

[Developing Supplier Relationships
38](#developing-supplier-relationships)

[Chapter 9: Successes of Diversity Initiatives:
40](#chapter-9-successes-of-diversity-initiatives)

[How Diverse Is The Workforce? 40](#how-diverse-is-the-workforce)

[Chapter 10: The Role of the FCC's Diversity Committee
42](#chapter-10-the-role-of-the-fccs-diversity-committee)

[Suggestions/Comments 42](#suggestionscomments)

[Appendix A 43](#appendix-a)

[Diversity Statistics 43](#diversity-statistics)

[Entrants to the Workforce: 43](#entrants-to-the-workforce)

[Net New Entrants to the workforce between 1994 and 2003
43](#net-new-entrants-to-the-workforce-between-1994-and-2003)

[Minority Labor Force Growth Outpaces Whites
44](#minority-labor-force-growth-outpaces-whites)

[Women Executives: 44](#women-executives)

[Barriers to Women's Advancement 45](#barriers-to-womens-advancement)

[Women of Color and the Glass Ceiling:
45](#women-of-color-and-the-glass-ceiling)

[Appendix B 46](#appendix-b)

[Appendix C 47](#appendix-c)

[Appendix D 48](#appendix-d)

[Sample Measuring Tool to Assess Diversity Benchmarks
48](#sample-measuring-tool-to-assess-diversity-benchmarks)

# Acknowledgements

The Subcommittee would like to thank the Law Offices of Fatima Fofana &
Associates, LLC for its assistance in preparing this report. The Law
Offices of Fatima Fofana & Associates is also grateful to Moxila
Upadhyaya, Esq., Gayle F. Williams, Esq. and Jeneba Ghatt, Esq. for
their helpful comments and edits. A special thank you to Rudy Duke and
the firm of Nextium Solutions for their assistance in designing this
paper.

# Executive Summary

"For us to win in the marketplace, we need the best employees possible.
To do that, we have to cast as wide a net as possible and bring in the
best. Throughout the country, diversity helps us get there." -An
Executive Vice President, Human Resources

T

he changing demographics of our nation has had a tremendous impact on
our country's economy and the way businesses approach their bottom
lines. Among Americans 70 and older, the ratio of majority to minority
is 5.3 to 1. For Americans below the age of 40, the ratio is 2 to 1. For
children under 10, the ratio is 1.5 to 1.[^2] Moreover, according to the
U.S. Department of Commerce in the year 2000, minority consumers spent
\$1.3 trillion in the marketplace. That number will nearly double to
\$2.5 trillion in the year 2020.[^3] To be competitive, businesses must
recognize this trend and take action to invest in and support the needs
of its most important resource-their workforces.

The businesses represented in this paper have developed best practices
that promote, achieve and value workforce diversity at the core of their
business structure. Diversity improves recruitment, retention and
morale; increases employee relations and productivity; improves customer
relations and brand loyalty; enhances relations with key community
leaders and external audiences; and increases minority and female market
share.

Companies are beginning to adopt a broader concept and definition of the
word "diversity" to include most characteristics that individuals
possess that affect the way they think and perform tasks. Traditionally,
diversity has been defined to include characteristics such as race,
ethnicity, gender, age, religion, and disability. Today, diversity also
includes less conventional traits such as cultural background, sexual
orientation, class and marital status.

The Career Advancement Subcommittee has compiled this report to serve as
a tool to later develop a universal set of guidelines detailing the
"best of the best practices" in achieving diversity in the workplace.
These guidelines will be designed to promote opportunities for
minorities and women to advance to managerial positions in the
communications sector as well as other related sectors of the economy.
Career advancement in this context means attracting, retaining,
mentoring, developing and promoting minorities and women in the
workplace.

The best practices highlighted in this report illustrate how companies
are much more strategic in their effort to achieve a diverse workforce.
Of the 18 respondent companies, there are some significant findings.

**The Role of the CEO in Promoting Diversity**

A company's diversity efforts must start at the top. As the company
head, the CEO must play an active and visible role in enforcing
diversity initiatives throughout the company. Twelve of the 18
respondent companies indicated that their CEO had a fairly significant
role in personally championing diversity efforts by actively
participating in the companies' diversity efforts through:

-   Presenting an annual report to the company's Diversity Committee and
    to the Board of Directors

-   Meeting with the Diversity Council quarterly to ensure that the
    company's diversity strategy is on track

Seven companies, however, did not clearly articulate their goals and
objectives on diversity initiatives. The remaining 11 companies either
had a formal written diversity plan or informal policies, such as:

-   A diversity mission that includes "...\[the\] creat\[ion\] of an
    environment of fairness and equality that appeals to \[our\]
    employees...and that will make us a more competitive, successful
    company."

-   A diversity strategic business plan that focuses on company profile
    improvement, managing and leveraging diversity, stakeholder
    relationships and supplier diversity.

**Evaluation Procedures and Incentives**

Accountability is a significant factor to ensure the success of any
business diversity plan. An effective assessment and evaluation system
is key to creating benchmarks to evaluate whether outcomes support
organizational diversity targets. One third of respondent companies
either held management accountable for diversity initiatives or created
a "diversity scorecard" or "report card" to monitor and assess diversity
goals. These initiatives include:

-   Three companies held their management executives accountable for
    promoting diversity through an employee performance appraisal
    process whereby a manager's level of diversity success is linked to
    his/her short-term compensation.

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-   Three other companies created a "diversity scorecard" as a means to
    track and measure their diversity progress. At least one of these
    companies submits quarterly diversity scorecards to the CEO for
    his/her review.

**Employment Diversity**

Diversity training is viewed by most companies as a significant factor
in maintaining a work environment that understands and celebrates
differences among its employees. Over fifty percent of businesses either
had management or employee diversity training programs in place, such
as:

-   Mandatory diversity training for management and staff.

-   Diversity training that is integrated into the regular training
    programs. Diversity training topics include sexual harassment,
    gender biases, social and cultural perceptions and disability
    understanding.

In addition to diversity training programs, nine of the respondent
companies also had executive development programs and 11 offered either
internship or fellowship programs to students, including:

-   A Diversity Fellowship Program to develop high potential minority
    graduates on a management level track.

-   A six-month supervisory training program designed to develop
    leadership skills and to expose highly talented employees to
    management best practices.

Many businesses understand that its recruitment efforts are a very
important aspect in achieving workplace diversity strategies. Over
eighty percent of the respondent companies have some type of recruitment
process in place. Typically, companies:

-   Attend career and college fairs.

-   Offer Internet and Intranet job websites.

-   Post advertisements in minority trade journals.

Recruiting qualified minorities and women is certainly a significant
step to achieving workforce diversity. However, maintaining an active
and supportive mentoring program is also key to retaining talented
minorities and women in a business.

Over fifty percent of respondent companies have established either
formal or informal mentoring programs, such as:

-   Participation in formal mentoring programs administered by
    organizations such as WICT and NAMIC.

Companies are beginning to understand that employee participation is a
necessary part of developing and maintaining effective diversity
initiatives. As such, employee resource groups are important in
fostering an environment of inclusion and providing a forum to
articulate and convey the needs and concerns of employees.

All but five companies created either an affinity group consisting of
employees, or some type of executive diversity committee, such as:

-   A Diversity Team composed of business unit division managers,
    including the national presidents of seven employee affinity groups
    called business resources groups, or "BRG." The BRG's represent
    African-Americans, Hispanics, Asian-Americans, women, lesbian/gay
    league, employees with disabilities and Native Americans.

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-   An Interdivisional Diversity Council composed of human resources,
    public relations and other diversity specialists.

Networking and building community partnerships is another important
aspect in developing diversity initiatives. Only one-third of the
companies have built partnerships with local and national organizations
that share the same diversity goals, such as:

-   National Association for Multi-ethnicity in Communications
    ("NAMIC\").

-   Women in Cable and Television ("WICT").

-   The Walter Kaitz Foundation.

-   And local chapters of the Urban League and the National Association
    for the Advancement of Colored People ("NAACP").

**Diverse Contracting Initiatives**

Supplier diversity initiatives are an important component to career
advancement opportunities in corporate America. By ensuring a diverse
pool of vendors, this will provide companies with:

-   A new network of diverse potential applicants.

-   A pipeline for managerial and senior level staffing.

-   And leveraging the expertise of the suppliers' networks to expand
    the company's profile among new markets.

**The Role of the FCC's Diversity Committee**

A few companies offered suggestions as to how the FCC's Diversity
Committee should assist companies in their diversity initiatives. The
suggestions include the following Diversity Committee action items:

-   Continue to document and share best practices with companies in the
    communications industry.

-   Prepare an annual diversity benchmark report for the communications
    industry.

-   Assist companies in the communication's field to better market their
    business in order to attract more diverse talent to the
    non-production side of the industry.

-   Create an annual follow-up of some type to share with interested
    businesses on continued best practices of other companies.

With the publication of this survey of a broad range of trade
organizations, foundations and companies for employment and procurement
best practices, the Subcommittee has completed Phase I. Our next steps
are outlined below.

**Subcommittee's Next Steps**

Phase II:

-   Develop additional recommendations from the Subcommittee to present
    to the full Committee regarding dissemination of best practices
    guidelines.

-   Develop recommendation action items or other voluntary policy
    initiatives for the communications industry.

-   Explore opportunities to conduct annual best practices benchmarking
    studies.

Phase III:

-   Propose legislative and regulatory recommendations for Congress, the
    Federal Communications Commission, and other federal, state and
    local administrative agencies to consider.

# Chapter 1: Introduction

The American melting pot as we knew it twenty years ago is changing. It
has evolved and now includes a new mix of people from various ethnic,
religious, social and cultural backgrounds. No successful company can
ignore how this nation's increasing diversity has and can affect its
bottom line, and the benefits of that diversity to individual employees,
local communities and the country as a whole.

The debate on the importance of diversity in the workplace begins with
the very definition of diversity. What exactly is diversity, and why is
it so important? Diversity can be defined as "...all characteristics and
experiences that define each of us as individuals."[^4] Traditionally,
the definition of diversity has included characteristics such as Race,
Ethnicity, Gender, Age, and Religion (more commonly known as
"REGARDS").[^5] Today, the definition can also encompass communication
style, work style, organizational role/level, economic status, and
geographic origin.

Studies indicate that a company that embraces and values diversity as an
integral part of its goals can have a positive impact on individual
productivity, organizational effectiveness and sustained
competitiveness.[^6] Valuing and recognizing the significance of
diversity is therefore imperative to maintaining a company's competitive
advantage. Companies must go beyond creating a more diverse workplace
based simply on numerical representation of certain groups.[^7] In order
to maximize the usage of their human capital, companies must not only
understand that diversity is an essential ingredient to a successful
operation, but must also adopt a systematic approach to apply diversity
concepts to core business practices.

From 1969 through 1998, companies were more focused on recruitment of
minorities and women for entry-level positions. However, once women and
minorities were hired, they were faced too often with a glass ceiling,
particularly at the upper management level.[^8] Although progress is
slow, corporations are now implementing specific strategies to help
attract and retain high-achieving minority and women employees *and*
executives.[^9]

These new approaches include, but are not limited to, the following:
ensuring internal corporate support to help advance minorities' career
goals; creating job duties and roles such that minorities and women have
the authority to impact the broader scheme of the firm and can make
valuable contributions to decisions, strategies, and policymaking;
building a workplace environment that encourages and supports open
dialogue to discuss diversity issues; establishing goals for all
departments at every level of the business with respect to hiring and
promoting minorities and women; exposing diverse employees that
demonstrate high potential to the same key career developmental
positions that have traditionally led to senior executive jobs for their
white, male counterparts; and finally, supporting women and minority
networks and organizations that promote the same diversity inclusion
goals in the workplace as the organization.[^10]

This paper identifies best practices employed by 20 leading companies,
including cable, broadcast, entertainment & media, hotel & restaurant,
telecommunications and computer businesses across the country. The
Subcommittee on Career Advancement hopes to use this study to develop a
universal set of best practices solutions to address the urgent need to
promote diversity and inclusion in the communications industries. To
this end, the Subcommittee has identified five major categories in which
to evaluate best practices:

1.  The role of the CEO in promoting diversity

2.  Evaluation procedures and incentives

3.  Employment diversity

4.  Diverse contracting initiatives

5.  The role of the FCC's Diversity Committee in promoting diversity

# Chapter 2: The Role of the CEO in Promoting Diversity

##  The Diversity Vision

A company's vision of diversity and the level of success in promoting
diversity initiatives must start from the top. The CEO of a company must
possess the vision and leadership to inspire his/her top managers and
all employees to embrace diversity as a tool for success in the
marketplace. As the company's head, the CEO must champion diversity by
infusing it into all of the company's processes to ensure that diversity
is integrated into the core values of the company at all levels. To
achieve workforce diversity, the CEO must set diversity as an important
goal and position the responsibility for diversity with senior
executives. In addition, as the visionary force, the CEO must play an
active and visible role in enforcing diversity throughout the company.

All of the respondent companies recognized diversity as an important
goal to achieving success in the marketplace. Some company heads took
more personal responsibility and had a larger role in championing
diversity efforts and in crafting a vision than others. Some endorsed
the concept of promoting a more diverse workforce but had less personal
involvement in their respective companies' efforts to communicate its
significance to top executives. Twelve out of 18 companies indicated
that the CEO was personally involved in their companies' diversity
strategies either by reviewing reports from diversity committees, by
discussing diversity plans at board meetings or by serving as an advisor
to the diversity officer or diversity team.

In one broadcast company, the CEO views diversity as fundamental to the
culture of the business, and considers it an essential component to the
success of the company in the marketplace. That business reports that
part of its vision is to offer its employees a distinct and welcoming
culture, as well as opportunities for career development and
self-expression. It expects that employees, in turn, will give the
company their best.

The head of a small broadcast company mandated not just to the company's
Human Resources department, but to every hiring manager, that diversity
in hiring is an absolute requirement. This company's mandate is
regularly communicated and reinforced through staff meetings and Human
Resources education sessions.

At one cable company, the CEO codified his commitment to diversity by
creating a "Diversity Credo." Under this philosophy, the company is
committed to setting an example of actively providing full opportunities
for all employees in order to reach their full potential. This
particular company's commitment to diversity is reflected in its
employment practices, purchasing decisions and overall programming.

The Diversity Council at one cable television company developed a
diversity mission. Its goal is to "create an environment of inclusion
through attracting and retaining top talent who engage in a healthy give
and take of ideas, who think, act and react to diverse consumer needs,
who foster creativity and innovation and who help achieve our
globalization objectives."

To lead the company's diversity efforts, the Chairperson at one
computer-based corporation is the executive sponsor of diversity
initiatives and serves as an advisor to the chair of the company's
Diversity Council. In the role of President, this CEO views the position
"as a way to play a more formal and integral role in the company's
diversity efforts." In addition, the company established a Diversity
Council and steering committee that report directly to the President.
The company asserts that it strongly believes that by developing a
stronger connection between the President and the Council, it will help
reinforce the business case for diversity and will also send a powerful
message to both managers and associates about the company's commitment
to ensuring that diversity receives the highest level of priority.

The multi-level diversity initiatives implemented at one
telecommunications company indicate that they place a high premium on
the importance of diversity and the difference it makes when the CEO and
top management are all personally involved in adopting a vision of
diversity. At other organizations, the CEO leads the diversity efforts
and utilizes several channels to communicate his commitment to
diversity. The CEO speaks at weekly management meetings, all employee
meetings and bi-annual leadership conferences and visits the company's
local operating units. In addition, the CEO presents an annual report to
the company's Diversity Council and to the Board of Directors. The
company's Diversity Council serves as an advisory group to the CEO. The
CEO and the senior team meet with the Council regularly to ensure that
the company's diversity strategy is on track.

At a communications company, the CEO has taken a similar hands-on
approach. As Chairman of the business' Executive Committee, he reviews a
quarterly diversity progress report card, as well as an in-depth
semi-annual review of each division head's progress toward meeting his
or her individual diversity goals.

"If it ain't broke, fix it anyway" is the motto of the CEO's diversity
mantra at one broadcast company. With this philosophy in mind, the CEO
recently established an internal diversity committee focused solely on
devising and implementing the company's diversity initiatives. Once a
plan of action is created, the CEO will unveil these proposals during
the company's monthly management meeting.

## Company Goals & Strategic Planning

Advancing a vision of diversity is certainly the first step that a CEO
and his/her executives must take to address diversity as a company-wide
priority. Diversity initiatives, however, should also be woven into the
very fabric of a company such that it becomes a vital part of the way
business is conducted on a daily basis. Any diversity strategy must
contain well-defined measures that are straightforward and unambiguous
so that management and employees clearly understand what is expected.

One study points out that when aligned with organizational objectives,
diversity can be a powerful contributor to the organization's
competitive advantage.[^11] In order to effectively execute a successful
diversity effort, a company's plans must focus on creating measurable
ways diversity can support the strategic direction, goals and objectives
of the business.[^12]

Nonetheless, at seven companies, neither the CEO nor top management was
able to articulate their goals and objectives on diversity initiatives.
The remaining 11 businesses had diversity teams, councils or committees
that were organized to guide the company's progress toward achieving its
diversity goals.

At one telecommunications company, management developed a diversity
mission "...to create an environment of fairness and equality that
appeals to our employees and the extraordinary people in our
marketplace, and that will make us a more competitive, successful
company."

To institutionalize diversity management at a small communications firm,
executives created a Diversity Strategy Committee with an overall goal
of increasing opportunities for women and minorities so that they may
then assume greater responsibility and opportunities in management. This
diversity strategy was designed to be a fundamental part of the business
practice with a mechanism to measure results. The company's ultimate
objective is to become the "employer of choice" for people entering
their industry.

The Workforce Diversity team at one communications company is charged
with the task of ensuring that the company's business practices and
processes incorporate diversity and support corporate compliance. The
Diversity team's goals include positioning diversity as a strategic
initiative that meets bottom line results and promotes inclusion for all
of the company's stakeholders. This particular firm went beyond setting
an internal plan to meet its diversity initiatives and established goals
to ensure compliance with federal and state employment laws and
regulations, as well as fair employment practices.

The Diversity Management Committee at one cable television company
focuses its diversity strategic plan on four visible elements of its
business: (1) the company's workforce; (2) the suppliers and vendors
with whom the company does business; (3) the programming that the
company provides to its customers; and (4) direct involvement with the
cities, towns and neighborhoods where the company's employees live, work
and do business.

The components of one communications company's diversity objectives
include "...to build diversity awareness within the organization,
educate associates on the differences and similarities of people and
find ways for associates to get involved." Additionally, the
organization created a Diversity Council that focuses its efforts on
planning and coordinating diversity events throughout the year for all
levels of the business in order to foster the accomplishment of its
diversity goals.

In November 2000, the CEO of a large broadcast company challenged Human
Resources and the general counsel on strategies to more fully integrate
diversity as a regular business practice. After months of researching
best practices in the company's industry, the CEO and top executives
developed a diversity strategy that includes increasing opportunities
for women and minorities so that they can assume greater responsibility
and prospects in management.

At another broadcast company, a Diversity Roundtable was formed to
develop and promote the business' diversity mission. The goal of the
Roundtable is to create an environment of fairness and equality that
appeals to all of the company's employees and to the marketplace, and
that will make the business a more competitive, successful company. This
company states that it wants to create an internal business structure
that will reflect the diverse audience and customer base it serves.

One large telecommunications company has four strategic business planks
that are designed to instill diversity at the core of the company's
business practices. The four planks concentrate on improving company
profile, managing and leveraging diversity, stakeholder relationships
and supplier diversity. Within each plank, there are also separate goals
and metrics.

For some companies, diversity planning is still in its infancy stage.
This year, a large entertainment company held its first Diversity
Roundtable, organized by the company's top corporate leaders. The
primary objectives across the business units were to: 1) share
diversity/multicultural knowledge; 2) coordinate resources and
information; 3) create standards across the company; and 4) discuss
role-alike support.

One of its first requirements was to define diversity and diversity
management. Once this was accomplished, it instituted a five-year
strategy. This year, the company plans to define its vision, establish
executive commitment and sponsorship and create awareness and dialogue.
Next year it plans to concentrate on education and cultural change. In
fiscal year 2006, the company will integrate diversity and inclusion
into all aspects of the business. Finally, in fiscal years 2007 and
2008, it will focus on maximizing benefits and sustaining momentum.

Of the responses received from the companies, seven did not express that
their organization had a well-defined set of goals and objectives
towards achieving diversity. Without the establishment of an explicit,
articulated diversity plan through either the CEO of the company or its
top executives, it becomes very difficult for a business to address
accountability for promoting and implementing diversity initiatives.
When a company's business practices fail to include a well-developed
diversity mission plan, it will have difficulty realizing a successful
diversity process because the business will lack the proper mechanisms
at the outset to assess and evaluate the status and accomplishments of
the process.

Although some businesses have not developed diversity goals, the topic
is included as a regular agenda item at bi-annual management meetings.
Other companies that do not have a designated diversity officer or
manager to develop a diversity initiative have directed their efforts
toward recruitment and diversity training through their human resources
heads.

# Chapter 3: Overall Diversity Structure

How Is The Company Structured to Promote Diversity?

## The Role of Diversity Committees and Employee-Initiated Organizations

The structure and organizational plan for promoting a diversity agenda
is an important means by which a company can successfully execute its
objectives. Most companies responding to the survey had created either
an affinity group, consisting of employees, or some type of executive
diversity committee organized solely to encourage and foster diversity
goals. Twelve companies had some type of diversity committee, and five
had employee affinity groups. The remaining businesses do not have a
formal diversity committee; however, the CEO or senior executives
generally serve as the unofficial Diversity Committee to ensure that the
company's vision is effectively communicated to the rest of the company.
Although they may take different forms, names and structures, such as
Diversity Roundtables, Diversity Teams or Diversity Councils, these
groups offer a forum to identify and articulate the varied needs and
interests of employees, and to serve as the structure through which the
company can put into operation its diversity programs.

A large communications company created a Workforce Diversity Team to
ensure that equal opportunity goals are met. The Team is responsible for
"designing and implementing workforce diversity strategies, positioning
diversity as a strategic initiative that seeks bottom line results and
promoting inclusion for all of its company's stakeholders, and creating,
producing and distributing Affirmative Action programs for specific
business units." In addition to a Diversity Team, this business
recognizes eight employee-initiated organizations that are open to all
of its employees. Each organization contributes to the diversity goals
of the company. HACEMOS, the Hispanic Association of Communications
Employees, sponsors a High Technology Day and links students across the
country via satellite to educate them about technology careers. ACCA,
Asians for Corporate and Community Actions, is another
employee-initiated group that holds a series of educational activities
during Asian-Pacific American Heritage Month. Finally, Community
NETwork, the African-American Telecommunications Professionals
organization, awards thousands of dollars in scholarships for minority
students every year.

One cable company established a Diversity Management Committee. Members
of the committee are composed of senior level executives who represent
the various business units and departments within the company. The
Management Committee is tasked with ensuring that the company's
diversity philosophy is a company-wide practice.

In addition to a Diversity Team, composed of business unit division
managers, one telecommunications company developed an expanded diversity
team, which includes the national presidents of seven employee affinity
groups called business resources groups or BRGs. The BRGs represent
African-Americans, Hispanics, Asian-Americans, women, a lesbian/gay
league, employees with disabilities and Native Americans. Although these
groups are independent and voluntary, the company contributes
financially to each organization. The Diversity Team, which is led by
the company's diversity director, develops and makes separate
recommendations and goals for senior level management on an annual
basis. These objectives and measures are sent to the executive committee
for approval. Additionally, the team produces goals and metrics that are
monitored regularly. Subsequently, the team prepares a quarterly
diversity report card. This progress report is presented to the CEO for
his review and evaluation. The CEO of a small telecommunications
business was approached by a group of employees several years ago about
creating a workforce diversity team. He quickly took action and
developed a team that is now part of the Human Resources department of
the company. The diversity team works directly with business unit
leaders throughout the company to implement comprehensive and
non-discriminatory diversity policies and practices.

Another small broadcast company established a Diversity Council that
serves as an advisory group to the President. The CEO and his senior
team meet with the council on a regular basis to ensure that their
diversity strategy is being met.

In 1995, the CEO of one worldwide computer-based corporation asked the
Vice President of Diversity to transform the business into an
organization that acts upon its stated commitment to diversity. As such,
the first step the VicePresident took was the establishment of eight
executive-level diversity task forces and a Work/Life Focus Team. Each
of the eight task forces represents a different constituency of the
company's employee. They include: Asian-Americans, Hispanics,
Gay/Lesbian/Bisexual/Transgender ("GLBT"), Men, Native Americans,
African-Americans, People with Disabilities and Women. The mission of
each task force is to increase the business's success in the global
marketplace by focusing on the various constituencies as customers. Each
task force is chaired and staffed by senior level executives from that
particular constituency. There is also an executive sponsor for each
task force who directly reports to the CEO and is a member of the
company's Worldwide Management Council. The sponsor educates senior
executives on significant diversity issues within the particular group.
Each task force also has subcommittees. Typically, task force members
serve on more than one subcommittee. Additionally, the corporation
established independent diversity groups beyond the executive level.
There are diversity councils that are more business-unit specific than
the task forces, and there are also employee-driven diversity network
groups that operate at a much broader scope than the task forces or
councils. The company currently operates 148 diversity network groups.

An Interdivisional Diversity Council, comprised of human resources,
public relations and other diversity specialists was created at a
communications company to implement key diversity programs. In addition,
a Business Advisory Board, which will be composed of senior executives
from each of the company's divisions, is being formed to work in
conjunction with the Diversity Council. Members of both the Council and
the Board are liable for achieving diversity-related goals within their
respective business units. The Council and the Board both report
directly to the President of the company.

Some businesses have a less formal structure in place. For example, in
2000, a cable company created a volunteer-based Diversity Council. The
Council plans and coordinates diversity events throughout the year to
give employees opportunities to gain awareness and exposure to different
speakers and topics. Some of the events that the Council has held from
this past year include a Black History Month lecture series, a Women's
History Month Panel and brown bag mentoring luncheon, a Gay Pride Panel
and a Work-Life Balance Panel.

Two businesses developed a Diversity Roundtable. In particular, one
broadcast company formed a Roundtable nearly two years ago. It consists
of a cross-section of employees representing different sexes, races,
numerous business divisions, job classes and mindsets. Through this
Roundtable, the company was able to develop its diversity mission and
goals. The Roundtable was first developed with a "core group" consisting
of key corporate leaders. This core group includes a Champion, an
Executive Sponsor and a Human Resources representative. Primarily, the
group is responsible for setting a diversity strategy for the larger
Diversity Roundtable and creating milestones and measures for the
implementation of diversity policies. The Diversity Roundtable has now
been divided into three committees: communications and measurement,
representation and continuing education. The role of the Roundtable is
to provide feedback and input on diversity strategies, to implement
diversity initiatives at each level and within each division of the
company; to assist in attracting a more diverse workforce and to
communicate messages regarding diversity initiatives and programs
offered by the company.

Overall, companies must recognize that whether the business forms a
diversity committee, diversity team/council, office of diversity,
diversity roundtable or employee-based affinity groups, there must be
some structure intact for employees and top management officials to
participate in diversity initiatives. Their role and involvement in the
process helps to better develop and maintain effective diversity
policies.

## The Role of Diversity Program Officers

Five companies that responded to the survey either had an executive who
was solely responsible for diversity programs or a head of human
resources that is charged with recruitment practices and enforcement of
diversity initiatives throughout the business. Four of those five
businesses had a diversity program officer and some type of diversity
committee intact. If, however, the organization had a diversity officer,
that individual worked with either hiring managers of a diversity
committee, if such a group existed within the company, or the company
established a separate Office of Diversity.

The CEO at one telecommunications company recently appointed a Chief
Diversity Officer. At the outset, this executive began a search for a
business tool that could be used within the company to foster diversity
and inclusion throughout the business. After months of in-depth
analysis, his department created a training intervention program
designed to help managers understand the value of an inclusive culture
and provide them with the tools to promote that culture within their
respective teams.

The human resources department at one entertainment business "partners"
with hiring managers to ensure the creation of diverse candidate pools
and to select the best candidates for vacant positions. At this company,
the Director of Recruiting and Human Resources is essentially the
"diversity officer," and therefore has the responsibility of developing
relationships with outside organizations in the company's industry in
order to attract the broadest range of talented candidates. The director
also works closely with the CEO and all the hiring managers to achieve
the company's diversity goals.

One computer-based company appointed a Vice President of Global
Workforce Diversity. In this capacity, he works closely with the
company's eight executive-level task forces, the Senior Vice President
of Human Resources and its Manager of Work/Life and Women's Initiatives.
On an annual basis, the diversity officer and the human resources
manager meet with the co-chairs of all of the task forces to evaluate
their groups' initiatives and activities and to address any concerns
their respective task forces may have.

# Chapter 4: Achieving Workforce Diversity

What Are Overall Diversity Strategies?

## Recruitment & Post-Hiring Job Placement

The CEO of a prominent company was once asked: Why is diversity key to
your company's success? He responded: "We know that people are more
inclined to do business with us if they see others like them in our
organization. For employees, their intellectual contribution and diverse
backgrounds is key to our success...."

Recruitment involves, to a great extent, networking and building
relationships with outside organizations. All of the respondent
companies have established some method to recruit diverse talent from
across the country. Typically, companies will recruit through campus
visits to colleges and universities. Nine businesses report recruiting
at colleges and universities, and eight companies attend traditional
local and regional job fairs such as National Hispanic Chamber of
Commerce, The National Urban League, The National Association for the
Advancement of Colored People (NAACP), the UNITY conference, The
National Association for Multi-ethnicity in Communications ("NAMIC") and
The Black College Radio Convention. Most companies work with these
diversity recruitment channels to form strategic partnerships that
assist the companies in hiring employees with diverse styles,
backgrounds and skill sets.

One telecommunications company's approach to recruitment involves
building relationships with the heads of various universities in
addition to attending the typical college campus job fairs. This
corporation created a program called "A Day With The Dean," designed to
acquaint deans from historically black colleges and universities
("HBCU") with how its business is operated and what job opportunities
exist within the company.

In addition to attending annual career fairs and special events at
HBCUs, one broadcast company sends representatives to attend various
industry conferences with minority journalists and broadcast groups to
develop ongoing relationships, so the company can directly identify
qualified candidates.

A College Recruitment Manager was hired at a hospitality company to
develop and implement a systematic strategy for the company's
recruitment of college and university graduates and to enhance the
appeal of the company as the "employer of choice."

Some companies have developed an "internal recruitment" process designed
especially for high- potential employees. Specifically, one
communications business recently implemented an internal recruitment
system and has proactively targeted minorities and women for high-level
positions that are vacant. The objectives of this program are to expand
on an employee's individual skill set, support retention and develop a
firm base of diverse employee talent.

With the widespread use of the Internet in promoting business
activities, many businesses have found on-line recruitment to be a very
valuable tool. For example, one small cable television company found
that posting notices of job openings to multiple diverse websites has
yielded the most positive result in terms of attracting diverse
recruits.

In addition to electronic postings, this cable company places
advertisements in targeted industry trade magazines and promotes an
"Associate Referral Bonus Program" that offers cash incentives to
employees who refer new recruits.

A broadcast company also views the Internet as a good source of
identifying diverse candidates for job vacancies. In particular, this
business uses Recruit USA, an on-line job board that represents over 100
sites, as well as America's Job Bank.

A recruitment council formed by one telecommunications company consists
of recruiters from all business units and shares information on a
variety of topics such as open positions, diversity job fairs and resume
exchanges from internal and external diversity candidates. The human
resources departments monitor applicant flow, turnover and exit
interview information, in addition to job promotions and transfers, to
make certain that diverse applicants and current employees are exposed
to the same opportunities.

A communications business found it very effective to use a combination
of Internet job postings and advertising in trade journals. The company
posts job vacancies on e-boards such as IMDiversity.com,
HireDiversity.com and DiversityInc.com. The trade journals include
*Careers and the Disabled, Black Enterprise Magazine and
African-American Career World.*

## Building Partnerships with Organizations & the Community

More and more, companies recognize that being competitive in a global
economy requires forming relationships with organizations and members of
the community who share the common goal of fostering diversity. As our
nation grows richer in cultural, social, racial and ethnic diversity,
businesses must learn to work with partners that understand the need for
diversity in the workforce.

The hiring managers at one cable company are encouraged to become
actively involved in local and national associations in order to assist
the company in identifying a diverse pool of talent. The business is
actively involved with numerous "cable-centric" organizations such as
NAMIC, Women in Cable and Telecommunications ("WICT") and the Walter
Kaitz Foundation. The company has also recently become actively involved
with other associations such as African-Americans in Advertising
("AAIA"), National Hispanic Media Coalition and American Women in Radio
and Television ("AWRT").

In 2003, one leading hotel and gaming company created an innovative
partnership with the University of Nevada, Las Vegas College of Hotel
Administration. This relationship was developed to attract and graduate
an increased number of qualified minority students to the company's
industry and to the company itself. To fortify its commitment, the
company donated \$500,000 for the establishment of a Minority
Recruitment Fund and a Minority Scholarship Fund at the college.

At one cable company, the recruiting strategy is implemented through
what the company calls a decentralized, "community-centric" process. The
business is organized into five divisions, each with a division
president. Each division works with community partners through a
company-wide outreach program to recruit as diverse a pool of candidates
as possible. Each division also collaborates with community partners (a
minimum of 10 partners per division) such as local chapters of the Urban
League, NAACP, local colleges, high schools and community centers, in
addition to national organizations such as the Foundation for Minority
Interests in Media and the Walter Kaitz Foundation. When there are job
vacancies at the company, these organizations are notified immediately.
In addition, many of the company's divisions host outreach luncheons
where community partners can hear directly from representatives at the
business's human resources department. These representatives are also
charged with the task of presenting seminars to outreach clients on
topics such as resume writing and interviewing techniques.

A broadcast business developed long-standing relationships with two
prominent HBUC's -- Howard and Hampton Universities, in an effort to
introduce students to the company and its industry. Specifically, the
company gives practical advice to students from Howard's and Hampton's
Business School and the School of Journalism respectively. In addition,
the organization has formed partnerships with the Emma Bowen Foundation,
the National Association of Hispanic Journalists, the National
Association of Minority Media Executives and the National Association of
Black Journalists.

One large computer-based business partners with local business resource
groups to solicit input on diversity recruitment strategies and to
assist the company during the recruitment process. There is also a
candidate referral process in place where the local business groups
refer potential hires to the company.

## Mentoring: Internally & Externally

Eleven of the respondent companies have established either formal or
informal voluntary mentoring programs. Some, in fact, have mentoring
programs not just within the business, but also for members of its
community that are interested in their particular profession. At some
companies, mentors are used to help assimilate new employees into the
new culture, while at other companies, mentoring is used to develop
potential leaders in the company.

One broadcast company views mentoring as a natural complement to their
diversity strategy. Managers select high-potential employees to develop
and grow the mentoring relationship throughout the maturity of the
mentee's career at the company. There is also an internal website
listing mentoring strategies that provides managers with materials and
information on implementing effective mentoring relationships. According
to this company, its mentoring program has yielded high dividends. The
company indicated that there is a marked increase in the number of women
and minorities that are assuming greater leadership roles within the
business.

Members of the Executive Diversity Team at one entertainment company
informally mentor employees not only internally, but also at other
companies within the company's industry. They also participate in formal
mentoring programs administered by organizations such as WICT and NAMIC.
Employees are strongly encouraged to participate in these voluntary
programs and to seek out mentorship opportunities throughout the
industry.

Two women executives at one media company serve on Radio Ink's "Most
Influential Women" mentoring program. In addition, the company
participates in a network affinity group that offers mentoring and
provides information on mentoring to its employees.

A one-year pilot program was recently launched at a small broadcast
company which included a small mentorship curriculum consisting of a
diverse group of 18 employees that represent each market at the company.
In its initial stages, the program is designed to increase developmental
opportunities for all employees.

Each year, one cable company selects several women to participate in the
Georgia 100 Mentoring Program that offers opportunities for upper-middle
management women to be mentored by female executives at other companies.
Internally, this business also created a program entitled "The Power of
Two" which matches interested individuals with mentors from within the
company to assist them in achieving their learning, developmental and
career objectives.

A Writers Mentoring Program is offered to employees at one large media
business as part of its ongoing commitment to expose workers to writers
from diverse backgrounds. The aim of this six-month program is to give
participants and network executives the opportunity to build
relationships with one another.

A broadcast company instituted a formal networking program for its
employees and senior level management. The program has 20 to 25 mentees,
who are paired with more senior level leaders within the company for a
12-month period. The goal is for the mentee to gain knowledge and skills
that may otherwise take years to acquire while in his/her current
position. Depending on the mentor/mentee relationship, the focus can be
to learn a specific leadership skill or set of skills, to better
understand the business and culture of the company, to broaden the
mentee's perspective beyond his/her functional area, to provide short-
or long-term career development or any combination of these goals.

# Chapter 5: Professional Development Programs

## Fellowships & Internships

When it comes to professional development, all but three companies have
an established fellowship, internship or informal executive training
program to ensure opportunities for diverse new talent and to build on
the existing skill sets of top management.

In 1988, one communications company began a two-and-a-half year
leadership development program designed for recent college graduates.
The program recruits high achievers and rotates them between two or
three different assignments and locations within the company. The
overall structure of the program enables each participant to develop
competent skills in his/her chosen position. What is unique about this
program is that its graduates have opportunities for upward mobility
within the company. Currently, the program has 304 participants, 45
percent of whom are women, and 47 percent are minorities. Since its
inception, one graduate has reached the officer level, six are in senior
management positions and 75 are general managers with significant
management responsibilities.

A broadcast company funds several diversity internship programs both
internally and externally. Participation in programs such as the Emma
Bowen Foundation and InRoads internship is one way in which the company
has widened avenues of opportunities for talented minority and women
candidates. Internally, the company rotates students throughout various
departments to allow for broader exposure and experience in the
industry. Through this company's successful relationship with InRoads, a
minority female student who interned with the company for four years
throughout college was hired as a project manager in the company's
technology division.

A Management Associate Program ("MAP") was developed at one hospitality
company to prepare recent college graduates for careers in management at
the company. Placement of the management associate within the business
depends on the type of degree earned. Upon successful completion of the
program, offers are made to associates for an assistant manager or
equivalent position. Some program components include, extensive company
orientations, management development courses and practical experience on
the job, guided by an executive. In 2003, there were 16 MAP associates
(31 percent minorities, 56 percent women) who completed the program and
were successfully placed in management positions company-wide.

While some businesses focus on developing high-potential students to be
on a management- level track, others concentrate on entry level
positions. At one large communications company, a Diversity Fellowship
Program was initiated particularly for new college graduates at the
entry level. The company sponsors one fellow for each of the company's
three divisions for a period of 18 months. Throughout the fellowship,
participants are mentored, trained and introduced to the overall
structure and business model of the company. Participants are then
placed in a position that best suits their career goals and the
workforce needs of the company. The selection criterion for the
fellowship program is competitive. The fellow must hold a bachelor's
degree, have a 3.0 cumulative grade point average and submit two letters
of recommendation from the head of the department within their academic
discipline. At the end of the 18-month period, fellows were often
offered permanent posts within the company.

The human resources department at a broadcast company provides both
fellowship and internship placement. The company participates in the
Emma Bowen Foundation internship program as well as a Radio Fellowship
program offering three paid fellowships per year to minority students
interested in careers in the broadcast industry.

## Executive Development Programs

At some organizations, part of the focus of their career-training
programs is on the development of candidates for executive-level
positions. A total of nine companies implemented some type of executive
leadership program, some designed especially for minorities and women.

In 2003, one hospitality business launched a "REACH" supervisory
training program---the first of its kind. The program is a joint
collaboration between a training academy and a private business
organization. This six-month training curriculum is designed to develop
leadership skills and to expose highly talented employees to management
best practices. The primary goal is to provide them with executive-level
training so that they may then be placed into a supervisory position
within the company. The first training class involved 24 leadership
development courses, job shadowing and one-on-one mentorship with a
manager.

Several years ago, one large cable company began a "University" program.
Its goal is to "develop and foster a dynamic culture of well-trained,
motivated individuals." The "University" has two innovative programs
geared especially toward development of supervisors. The "Introduction
to Leadership" class is specifically designed for supervisors with less
than one year of management experience. The program was created to equip
new supervisors with the necessary tools to manage their employees more
effectively. Another program, the "Frontline Leadership Program,"
focuses on supervisors with more than one year of experience. Emphasis
is placed on expanding and developing managerial skills and principles,
coaching and performance management and operations administration. The
company also created two other programs intended to retain senior
managers, with special emphasis on the development of minorities. One of
these programs, "Fundamentals of Leadership," is for executives with up
to three years of supervisory experience who have considerable
management potential. The program centers on leadership skills, personal
growth and community investment. The second program, "The Executive
Leadership Forum," identifies and nurtures high-level executives to
expand on the company's next generation of senior leaders. The
curriculum incorporates specialized classroom training and real-life
business case studies.

Although some businesses have more formal, internal management
development programs, others are involved in various external executive
training programs. For example, at a large media group, executives are
funded to participate in leadership seminars including the Betsy Magness
Leadership Institute, the CTAM Executive Management Program at Harvard
Business School and the NAMIC Executive Leadership Development Program.

# Chapter 6: Managing Diversity

What Mechanisms Are In Place To Maintain the Goals Of Diversity?

## Employee Diversity Training

Leaders are beginning to understand that diversity training within their
organizations is a key component to supporting diversity initiatives.
All employees and, in particular, management, must learn how to
effectively interact with others in a diverse workplace. Many companies
recognize that they should encourage employees to continue to learn new
skills in dealing with and managing a diverse workforce. Through
diversity training, a company can create a common frame of reference and
establish a solid foundation upon which employees can understand each
other and eliminate biases and barriers that often impede on the
companies' overall ability to effectively promote a culture of
inclusion. Twelve companies launched management or employee diversity
training programs. Of the 12, three were designed especially for
management.

Conducting diversity training for all employees is a priority at one
communications business. All employees must participate in an EEO
training course. The course helps employees recognize and understand the
importance of diversity in the workforce and how the definition of
diversity has evolved over time. In addition to formal training, the
business offers comprehensive literature to its employees on diversity.
Other sources of information include a video on diversity at the
company, a resource library that offers materials on diversity and an
Intranet website which features important facts on diversity at the
company, with additional information on related subjects.

One communications company offers a variety of flexible training
programs to meet the needs of all employees. For example, some courses
are taught on-line, some are off-site classes and others are "suitcased"
and tailored towards the specific requirements of a small unit or
division. The organization believes that by providing the right type of
diversity training to its employees, it can encourage better
understanding and appreciation of human differences and how those issues
can inhibit or enhance an individual's or a group's overall input to the
company's shared diversity goals.

At one large telecommunications company, diversity training is
integrated into regular training programs. The company formed a team
called "The Learning Organization" that is responsible for all training
efforts throughout the company. Diversity training topics include sexual
harassment, gender biases, social and cultural perceptions and
disability understanding.

The diversity training workshop at one entertainment company involves
not only general diversity training, but also covers a broad range of
specific diversity-related topics such as seminars on AIDS in the
workplace and sexual harassment awareness training. The objectives of
these workshops are to identify the business implications of valuing
diversity; to examine the effects that personal attitudes and
stereotypes have on behavior; to develop a communication model that
emphasizes cultural diversity and to develop personal as well as
professional strategies to help cultivate a climate that values
diversity. This company also instituted a Social Styles Roundtable which
examines how diverse communication styles affect business relationships.

## Management Training

Some companies focus their diversity training exclusively on
top-management personnel. By training supervisors and managers, these
companies believe that senior level executives are better equipped as
leaders to oversee the infusion of diversity understanding amongst all
employees.

A Diversity Champions Workshop was created in 2002 by a communications
company as a "Train-the-Trainer" program designed especially for
managers. This five-day leadership and diversity course is considered by
the company to be unlike any other diversity training program of its
kind. Highly trained diversity consultants facilitate the workshop. The
40-hour workshop focuses on diversity training geared specifically for
managers, education in leadership skills and development of personal
potential. The class is taught using various methods including lectures,
group activities, role-playing, journaling, guest speakers, videos and
reading assignments. Since 2002, 12 Diversity Champions Workshops have
been conducted and more than 200 Diversity Champions have been trained
company-wide.

One telecommunications company spent several months designing a training
intervention model that would assist managers in understanding the value
of an inclusive culture. Managing to Win ("M2W") is an interactive
workshop created to transform the challenge of diversity into an
opportunity for inclusion in the business. The course emphasizes, "It is
not the differences among people, but the emotional reactions to the
differences that can distract employees and reduce utilization."
Throughout the program, managers explore the benefits of a learning
environment that includes all employees and concentrates on developing
the necessary skills to eliminate barriers to learning opportunities.
The goal of the workshop is to help managers engage a higher percentage
of the workforce in core business activities and increase productivity.
The course was developed to train managers to foster an environment of
inclusion whereby all employees, regardless of their background,
ethnicity or sexual orientation, have the chance to be involved and
engaged in work that they feel adds value to the company's business
objectives. In addition, every executive's and manager's performance
review is linked to his/her role in supporting the company's diversity
policies and goals. As such, enrollment into the M2W workshop is
mandatory for all managers and supervisors. Lastly, after attending the
training workshop, all participants are required to conduct three staff
meetings within their departments to review the concepts of the M2W
workshop. Each manager is given a M2W "Toolkit" which contains
preparation materials, agenda, handouts and PowerPoint slides on the
program. The managers are responsible for exposing and implementing the
core concepts of the program to their staff members. Over 6,000 managers
will be trained by the end of this year.

Training opportunities are available for all levels of management at one
entertainment business. In the past year, supervisors and managers
attended over 30 external training classes and conferences sponsored by
organizations such as NAMIC, WICT and the White House Projects Women's
Leadership Summit.

## Employee Performance Evaluations

Maintaining a nondiscriminatory, objective performance evaluation system
is an important element of diversity that is often overlooked. Some
companies, however, do recognize that establishing impartial performance
criteria not tainted by the evaluator's personal prejudices promotes a
work environment that values every employee, regardless of his/her age,
gender, racial or ethnic background.

One communications company's performance evaluation system centers on
five core competencies: teamwork, leadership/vision, judgment,
creativity/innovation and accountability. This company focuses on this
five-core set of competency measures rather than experience or skill set
measures to help the business better support an objective assessment of
performance. The human resources department works closely with managers
to help them better assess an employee's performance in an unbiased
manner, and to appropriately document the employee's performance as part
of its review. In 2003, all employees were trained on how the
performance management system is operated. Managers, in particular,
learned how to offer constructive criticism and feedback.

Every employee at another communications business receives an annual
performance review based on goals and objectives developed and agreed
upon by the employee and his or her manager. An employee development
plan is also utilized as a mechanism for an employee and his/her manager
to monitor professional growth and to objectively evaluate job
performance on a regular basis.

Another small communications company also provides evaluation training
to its employees. Evaluations are conducted at least on an annual basis,
and in some division's, quarterly. Part of training includes emphasis on
a race/gender neutral evaluation method that more accurately reflects
the performance of the employee.

One broadcast company's annual performance review is designed so that
managers will have in-depth dialogue with their employees regarding
their strengths and weaknesses, in addition to identifying areas for
improvement and subsequently offering recommendations for improvement.
The manager must also design specific individual development objectives
for the continued growth of each employee.

The management compensation system at one communications company is
based, in part, on a leader's ability to create a diverse and inclusive
work environment. In addition, the annual performance evaluation is
structured to provide employees with constructive, objective and honest
feedback on many aspects of their performance, including the area of
diversity promotion.

## Compensation & Benefits

One venue for promoting diversity participation that is at times
undervalued is to focus on the link between diversity, equal pay and
company benefits. Measures to attract and maintain a diverse workforce
should include policies that ensure equal pay for equal work and
cultivate a work environment that offers flexible benefits that meet the
needs of its employees. Therefore, companies are increasingly offering
competitive programs and policies that are supportive of the
requirements of a diverse work population.

Industry benchmarking is used when determining competitive pay for
employees at one cable company. This company participates in annual
compensation surveys each year to make certain that its pay rates are up
to par within the industry and in the community. These surveys include
the CTHRA Survey of the Cable and Telecommunications Human Resources
Association and the Towers Perrin Entertainment Survey. In addition, the
company's Director of Employee Benefits is proactive in conducting
ongoing benefit education seminars to employees. The Director also works
with the company's Benefits Committee, composed of senior executives, to
devise various approaches to expand and adjust benefit services. The
Benefits Committee strives to offer creative benefits above and beyond
the baseline industry standards. For example, the company offers
employees 100% reimbursement for the cost of a mammogram. This includes
family members of the employee, whether or not the person is covered by
the company's group health plan. In addition, the business encourages
its employees to further their formal education by providing tuition
reimbursement up to the IRS deductibility maximum of \$5,250 per
calendar year. The company offers a flexible work schedule,
telecommuting options and job sharing where appropriate for employees
attending classes.

Recently, one cable company initiated a comprehensive pay equity audit
system to evaluate pay across scales throughout the company from various
points of view. This new auditing method will be conducted annually to
ensure that pay practices are enforced equitably across the board.

"VZ-LIFE" (Life Initiatives For Employees) is a program offered by one
telecommunications company as part of its commitment to meet the
changing needs of its employees. Employees can call a toll-free number
or access on-line information for guidance on many topics including
marital and family concerns, child and elder care issues, emotional
health, substance abuse, health topics and legal issues. Access to an
experienced counselor is available 24 hours a day, each day, at no
additional cost to an employee.

One broadcast company offers a very comprehensive benefits package that
ranges from traditional health and welfare benefits, including retiree
medical and financial security benefits. The less traditional benefits
plan includes adoption assistance, dependent and health care spending
accounts, a commuter reimbursement program, an Employee Assistance
Program and an on-line resource and referral service.

Another broadcast company's commitment to maintaining a diverse
workforce is evidenced by the wide range of innovative benefits offered
to its employees. These benefits include insurance coverage for same-sex
partners, eldercare assistance and flextime options. The company
believes that by offering these unique benefits, it can recruit and
retain a diverse group of talented employees who might otherwise not
join the company, or may otherwise be forced to leave the workforce due
to work-life balance issues.

## Promotion of Family-Friendly Work Environment

The growing demands of employees to balance work and family life is an
issue that companies grapple with as they try to create inventive
programs and policies that help employees more effectively manage their
commitments at work and at home. Generally, a company's benefits program
is linked to its obligation to support and advance a family-friendly
work environment that addresses the difficulties of balancing work-life
issues. By offering flexible programs, companies are in a better
position to attract and retain diverse employees.

Where possible, one broadcast company permits flexible work arrangements
such as flextime, part-time employment, job sharing, compressed
schedules and telecommuting. This organization also offers daycare
discount agreements with local childcare provider centers across the
nation.

To foster a family-friendly workplace, one entertainment business offers
a generous maternity and paternity leave, in addition to lactation rooms
for new mothers. Additionally, the company offers emergency back-up
childcare and a Weight Watchers at Work program.

One cable company requires 24 hours/7 days a week business operation in
some positions. As such, some employees must work nights, weekends
and/or holidays. Despite these operational requirements, this cable
company promotes a philosophy of flexibility with regard to scheduling
whenever possible. Examples include alternate work scheduling,
flexibility with business-related travel and generous leave policies.
Vacation time is accrued based on the number of years of service,
however, an employee may purchase three additional days of vacation. The
company also offers assistance with elderly care selection and provides
an emergency "Friends of the Family Program." In addition, the company
initiated a "summer hours" program last year to allow its employees more
scheduling flexibility in work hours throughout the summer.

At one large telecommunications corporation, management continually
researches opportunities and alternatives that best serve the work-life
challenges of its employees. This company believes that by promoting a
strong family-friendly workforce, employees are more likely to be
productive and successful at work. The human resources department has
forged partnerships with various organizations to offer a variety of
"family-oriented" options such as an in-home emergency child care
service; dependent day care flexible spending accounts that allow
employees to set aside pre-tax dollars in a fund to pay for child care
and access to work-life counselors through an Employee Assistance
Program. This company also has a longstanding commitment to provide a
professional environment that respects the dignity of every employee. To
this end, an anti-discrimination policy is regularly communicated and
enforced throughout the company. From time to time, the business
sponsors anti-harassment training to educate employees on how to solicit
the appropriate advice and support should it become necessary.

The senior management at a media company sponsors an inter-divisional
Work/Life Council which institutes policies that help to promote the
well-being of employees in terms of assisting them to achieve a
satisfactory balance between work and personal lives. Among its other
duties, the Council provides health updates on topics such as obesity,
cancer and depression. The Council also assists employees with domestic
violence issues, same-sex partner financial assistance, adoption
assistance and counseling for depression, addiction, bereavement and
other pertinent life issues. On the whole, the company recognizes that
its work-life policies are a key role in attracting and retaining
talented, diverse employees.

## Retention/Termination Criteria

Few companies that responded to the survey have a formal retention or
termination criteria. Many companies view retention as a business goal
that is linked to training and career development. As such,
organizations address the retention and professional growth of its
workforce but have less formal retention/termination policies in place.

In 2001, one telecommunications company commenced a Development and
Leadership Initiative ("DLI") program to address the retention and
professional expansion of its minority and women employees. The goal of
the program is "to ensure that \[the Company\] continues to be enriched
with talented employees from different walks of life, and that those
employees are prepared to take on new challenges and opportunities as
they arise."

Although one media company lacks a formal retention or termination
policy, it has developed a metrics system to monitor and evaluate its
recruitment and retention approach. Each quarter, the company calculates
the number of minorities as a percentage of new hires aggregated by
division. The same analysis is conducted for gender. Each unit is then
given statistics that cite its overall contribution to the company's
diversity objectives. The company also monitors referral sources to
determine the percentage of minorities recruited from each source. In
doing so, the company can better direct its recruitment efforts to draw
a broad and diverse candidate pool. Additionally, the company conducts a
quarterly turnover analysis on minority turnover. This permits the
company to scrutinize changes in employment ratios. It also examines
exit data to evaluate why employees leave the company either voluntarily
or involuntarily. This mechanism allows the company to track trends in
turnover related to race or gender.

Lastly, one broadcast company indicated that their termination criteria
was performance-based or conducted on an objective case-by-case basis.

# Chapter 7: Diversity Accountability

How Is Diversity Measured?

## Diversity Metrics

Accountability is certainly a key factor in ensuring that a business's
diversity plan is successfully executed. Slowly, companies are beginning
to establish objective indicators to assess diversity goals and
achievements. To make effective and productive assessments,
organizations must use some type of measurement tool to gauge company
policies and practices on diversity initiatives on a scale. A "diversity
metrics" is such a tool which companies can employ to measure not just
where they are, but how far they have come and how far they have to go
to move up to the next level. This type of benchmark therefore serves as
an important instrument to monitor diversity goals. Another mechanism is
the creation of a diversity "scorecard" that essentially grades a
company's diversity efforts on a scale. Seven respondent companies had
some type of diversity metrics such as a scorecard or a quarterly or
bi-annual review of the company's progress towards its diversity goals.

One broadcast company created such a diversity report card that is
scheduled to begin later this year. Each division within the company
will set its own objectives, develop local diversity councils and
utilize the report card as a measurement device irrespective of
government requirements. The report will include evaluation of each
business division based on creating a diverse workforce, valuing a
diverse workforce and leading a diverse workforce. Under the "creating a
diverse workforce" category, the company will look at how strategic
planning is enforced at all levels. It will also examine retention data
by demographic group. In the "valuing a diverse workforce" section, the
company will examine employee survey scores and diversity assessment
results. It will review how each business unit practices inclusive
workplace behaviors and incorporates inclusive team principles. In
addition, the organization will examine the effectiveness of diversity
councils and employee networks. In the third category, "leading a
diverse workforce," the company will report on the leadership
involvement in diversity initiatives. It will assess how managers and
teams are trained on diversity awareness, diversity skills and cultural
competence. In addition, the report will focus on how employee and
leadership development programs are effective in including diversity and
ensuring fuller representation.

A quarterly review process of all diversity and turnover data is
employed at a cable company to identify patterns or issues that may need
attention. The company also participates in the WICT annual PAR (Pay
Equity, Advancement Opportunities and Resources for Work/Life Support)
survey to gather industry information on diversity initiatives, which in
turn assists the company in measuring its diversity benchmarks.

A large broadcast company's Diversity Council adopted a diversity
scorecard to measure its progress. The report card identifies mid-level
and senior level positions in which people of color are
underrepresented. This helps the business to increase hires and
promotions in these positions. The goal is then to reflect at least 80%
of those qualified senior and mid-level positions available.

"Peoplesoft" is an in-house human resources information system used by
one communications business to monitor diversity related statistics. The
company is able to extract relevant data from this system to assist the
business in analyzing its performance in key diversity areas. The
company also utilizes its bi-annual associate survey to monitor employee
perceptions about the company's progress against its diversity
objectives.

Each quarter, a worldwide computer-based corporation submits a diversity
progress report card to its CEO for his/her review. Goals are evaluated
and monitored throughout the quarter and produced in the report. The
company's executive committee also conducts an in-depth semi-annual
report card review that is also submitted to the CEO.

At one communications company, workforce diversity accountability is a
top priority. The business established various measurements to evaluate
its initiatives, particularly in recruitment and retention. These
measurements include: a review of workforce profile against diversity
goals; analyses of any discrimination complaints; performance against
supplier diversity goals; including analysis of feedback and input from
an annual survey by suppliers; and a diversity index employed by
managers to compare the performances of organizational groups relative
to their affirmative-action goals.

## Management/Individual Accountability

Accountability is also achieved by making the appropriate leaders
responsible for diversity on some level, such as through performance
evaluation or merit pay increases.

The management executives at one broadcast company are held accountable
for promoting diversity in their individual divisions. Through a
Diversity Performance Incentive, the level of diversity success is
linked to the short-term compensation of directors and senior managers.
This success is measured in several areas, including employment,
economic development and diversity plan goals. These diversity plan
objectives also include leadership, partnerships and strategic
alliances.

One cable company incorporated the measurement of diversity behaviors
into the core characteristics and behaviors section of its employee
performance appraisal. All employees are evaluated on various aspects of
their work, including whether they are active in promoting diversity in
the workplace, how they treat others and respond to their opinions and
whether they embrace alternative thinking in problem solving.

At a communications corporation, management and staff are held
accountable for ensuring that the organization's environment promotes
inclusion. To this end, as part of each employee's annual performance
review, there is an assessment of how that individual promotes or
encourages diversity throughout his or her division. Also, bonuses are
awarded to senior level management based on their ability to create a
culture of inclusion.

## Incentives/Awards

Three businesses created incentives and/or awards to encourage employees
on every level to participate in the diversity process. A large
telecommunications company recently began awarding a Chairman's
Diversity Award presented to the individual and group that have made the
most exemplary contributions to their particular divisions and to the
overall company in its efforts to promote diversity.

Another large communications company hosts a Supplier Diversity
Achievement Awards program annually. The purpose is to honor individual
employees and teams for their innovative approaches to increasing
opportunities for diverse business enterprises.

One telecommunications company will host an Excellence Awards dinner
this year to give the company an opportunity to recognize individual and
group diversity successes within the business. The company believes that
by highlighting the accomplishments of its employees, others will be
motivated to promote diversity initiatives within as well as outside the
corporation.

# Chapter 8: Diverse Contracting Opportunities:

## Developing Supplier Relationships

Supplier diversity is a critical strategic component of any company's
goal to deliver the best products and services to its customers.
Companies have devised innovative programs and avenues to identify and
solicit diverse suppliers throughout the country. In some instances,
these efforts are also mandated by regulatory requirements. Businesses
are increasing their focus in this area by establishing guidelines and
operating principles surrounding the use of diverse suppliers.

Attracting diverse suppliers can provide a company with a pool of
qualified diverse talent, a pipeline for managerial and senior level
staffing and the opportunity to leverage the expertise of the suppliers'
networks to expand the company's profile in new markets. Additionally,
supplier diversity programs provide access to corporate lines of
business and an incubator opportunity that can generate a wealth of
experience for the transition into ownership of communications
companies.

A field-level Supplier Diversity Champions group was created to lead one
company's efforts to attract qualified minority suppliers from various
industry groups for business and networking opportunities. The group
works with the company's supplier diversity manager in developing steps
to ensure the organization's success. At some locations, the business
has organized Supplier Diversity Advisory Councils to facilitate
communication internally and externally about the company's commitment
to doing business with minority suppliers. The company is also a member
of the National Minority Supplier Diversity Council, which offers a vast
array of access to local minority supplier development councils and
minority vendors. The organization participates in local council
minority supplier functions such as Business Expos, Trade Fairs and
Business Opportunity Luncheons. In 2003, the company began its first
ever Minority Business-to-Business Expo. The company worked with the
local Minority Supplier Development Council to facilitate this event.
The expo attracted over 30 minority businesses.

At one communications company, the Supplier Diversity Program works to
create mutually beneficial business relationships with diverse suppliers
that both strengthen the communities the organization interacts with and
create value for its shareholders. The Supplier Diversity team develops
and manages business relationships with minority and women suppliers.
The company also works with primary suppliers who satisfy their
purchasing and contractual standards through the procurement process. In
2003, the organization purchased over \$1.7 billion dollars in goods and
services from minority and women-owned businesses. Additionally, a
portion of the company's pay plan is now directly tied to the
organization's success in reaching its supplier diversity objectives.

Recently, one cable company restructured its minority supplier program
by reclassifying all of its vendors according to federally recognized
diversity categories. The company's revised tracking system is comprised
of the following categories: small disadvantaged businesses,
minority-owned businesses, women-owned businesses, historically
underutilized business zones; veteran-owned businesses and
service-disabled-veteran-owned businesses. The reorganization has helped
the company to identify some of its top businesses by diversity
category.

When contracting with specialists, one entertainment company makes it a
priority to always include minority-and women-owned businesses in the
bidding process. In particular, for projects that exceed \$25,000, the
business seeks bids from a minimum of three vendors, including at least
one minority vendor.

For over 36 years, one communications company has been a pioneer in the
inclusion of minority-, women-, disabled-, and veteran-owned businesses.
Its supplier diversity team provides training, quality processes,
coaching, mentoring, methods and procedures that help to ensure that the
organization meets its supplier diversity goals. In 2003, the company
spent 15.4% of its total procurement, or \$1.4 billion, with diverse
vendors. The company led an effort in its industry to develop a
"Supplier Diversity Challenge" which rallied 14 industry companies to
pledge doing business with a minimum of 10% with diversity vendors. The
company also finances the Business Consortium Fund and the National
Development Lending Initiative ("CEDLI"), a \$50 million statewide loan
program created specifically for small business entrepreneurs. In
addition, the company developed several initiatives to ensure continued
supplier diversity. One such initiative is the Supply Diversity Programs
Sales and Marketing Consulting Program. Its goal is to create more
opportunities for its sales and marketing teams to partner with diverse
suppliers.

Building and maintaining a community of diverse suppliers is an
important goal to increase opportunities to receive new ideas, implement
various approaches and gain access to additional solutions that help
this large cable company to respond adequately to its customers' needs.
To this end, the company has a separate Global Supplier Diversity
department that provides functional guidance and support to all business
units and ensures commonality of purpose and direction toward achieving
the organization's supplier diversity objectives. The company invests
significant resources each year in its supplier diversity initiatives.
Funding is provided for supplier outreach events, mentor/mentee programs
and equipment loans.

One small broadcast company established a relationship with the Walter
Kaitz Foundation to provide its managers with access to a diversity
supplier database. The company continually encourages managers to
utilize this database as a means for locating and working with diverse
suppliers.

At another broadcast company , a National Procurement Council was
created to address diversity issues relating to the company's outside
suppliers. This Council has formed relationships with the National
Minority Supplier Development Council and Women Presidents Organization
of New York to enforce their equal opportunity policy for all qualified
suppliers. Annually, the company sends letters to vendors indicating
that it will only work with vendors that support equal opportunities.
The Director of Purchasing is a founder and co-chair of the National
Association of Purchasing Management of New York's supplier diversity
group. Through such organizations, the company is in the process of
developing an educational seminar this year for diverse vendors on how
to prepare and respond to Requests for Proposals.

# Chapter 9: Successes of Diversity Initiatives

## How Diverse Is The Workforce?

Many companies would agree that pursuing diversification as a business
management goal contributes greatly to their bottom line. How businesses
strategize, develop and implement a meaningful diversity plan, however,
varies from company to company. Although companies are focusing keener
efforts on diversity initiatives, overall progress in recruiting,
retaining and promoting minorities and women in the workforce is still
slow.

Experts estimate that women and people of color will represent
approximately 70 percent of net new entrants to the workforce by the
year 2008.[^13] Census information also shows that Latinos have
increased their presence in the U.S. population by 58 percent over the
last ten years, thus outnumbering African-Americans as the dominant
ethnic minority.[^14] A savvy company will get ahead of the curve and
lead the way by reaping the benefits of a diverse workforce.[^15] This
begs the question, "how diverse are companies and how can one measure if
a business values diversity?"

There are several key indicators that can be used to answer these
questions. These factors include, but are not limited to, the following:

-   Diversity in leadership positions such as at the officer, Board of
    Director and senior management levels

-   Diversity amongst the highest salaried employees in the company

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-   Diversity amongst the company's workforce as a whole

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-   Recruiting for new hires in ethnic American publications

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-   Recruiting at ethnic American cultural or professional events

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-   Membership in ethnic American professional organizations

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-   Charitable contributions to ethnic American organizations[^16]

Generally, these indicators are merely a guide to assess whether an
employer will value its employee's contributions, grant promotions where
appropriate, train its employees to take more responsibilites and pay
each worker accordingly. In evaluating the level of diversity in the
workforce, several companies earned bragging rights.

Since 2001, one telecommunications company has hired more than 1,100
college students, 54% of which were diverse hires. One entertainment
company indicated that 33% of all its employees are ethnically diverse,
and 62% of its employees are women. In addition, over 50% of this
company's production staff are women, with minorities representing 44%
of all roles in front of the camera.

The internship program at a broadcast company recently hired 25 interns,
with 50% minority and 20% female students participating. At this media
company, over 72% of its workforce is comprised of women, including five
women on the company's Executive Committee.

In 2003, 51% of this communications company's new hires were women, and
46% were people of color. One hotel and gaming company noted that in a
class of 20 graduates from a supervisory training program, 70% were
minorities, 60% of who were women.

Finally, one broadcast company created an Account Executive Boot Camp
program designed primarily for new account executives. Over 80% of the
graduates were people of color. One year after completion of the boot
camp, over 70% of the graduates are still employed at the company.

# Chapter 10: The Role of the FCC's Diversity Committee

## Suggestions/Comments

Several companies offered suggestions as to how the FCC's Federal
Advisory Committee on Diversity for Communications in the Digital Age,
in its capacity, could assist businesses in their diversity initiatives.

One suggestion was that the Diversity Committee should continue to
document and share best practices with companies in the communications
industry. The Committee can do this either through more white papers or
by organizing local events where companies can share firsthand
experiences on diversity challenges and initiatives.

Another recommendation is that the Committee should prepare an annual
diversity benchmark report in the communications industry to help drive,
monitor and reinforce the importance of this effort.

One organization proposed that the Committee help companies in the
communications industry to better market their businesses in order to
attract more diverse talent to the non-production side of the industry.
This company believes that smaller businesses need macro-level education
on what the industry has to offer.

Lastly, it was suggested that the Committee create an annual follow-up
of some sort to share with interested businesses on continued best
practices of other organizations. Or in the alternative, an annual
report should be created to show monitoring of industry progress.

# Appendix A

## Diversity Statistics

### Entrants to the Workforce:

In the first decade of this century, 85% of new workers will be women,
minorities and immigrants.

Source: *Business Women's Network and Diversity Best Practices and The
U.S. Department of Labor*

Seventy percent (70%) of new jobs will be held by women and minorities
by 2008.

Source: *Business Women's Network and Diversity Best Practices and The
U.S. Department of Labor*

People from racial/cultural minority groups comprised 29% of the new
workforce in 2000, and twice the number of minorities in the workforce
in 1987.

Source: *Bureau of Labor Statistics*

Members of minority groups will make up 41.5% of all people entering the
U.S. workforce in the decade between 1998 and 2008.

Source: *Bureau of Labor Statistics*

### Net New Entrants to the workforce between 1994 and 2003

*Total Workforce:* 100%

All minorities, both sexes 51%

White, non-Hispanic, both sexes 49%

Women, all ethnic groups 62%

Source:
<http://www.diversityhotwire.com/business/diversity_statistics.html>.
(Last visited: May 14, 2004)

### Minority Labor Force Growth Outpaces Whites

  ------------------------------ --------------- --------------- ---------------
  ***Race***                     ***Percentage   ***Percentage   ***Percentage
                                 1995***         2005***         2020***

  ***Whites, non Hispanic***     76%             73%             68%

  ***Women***                    46%             48%             50%

  ***African-American***         11%             11%             11%

  ***Hispanic***                 9%              11%             11%

  ***Asian -American***          4%              5%              6%
  ------------------------------ --------------- --------------- ---------------

By 2006, Hispanics will be the largest minority group in the workforce,
therefore doubling their share of the workforce between 1986 and 2006.
In 1996, African-Americans and Asians-Americans represented nearly 11%
of the U.S. workforce. By 2006, African Americans and Asians will
represent 17% of the U.S. workforce.

Source:
<http://www.diversityhotwire.com/business/diversity_statistics.html>
(Last visited: May 14, 2004)

### Women Executives:

11.2% of corporate officers are women.

75% of Fortune 500 companies have at least one women officer.

Although women are moving up, men still dominate the earnings rate.
Nearly 95% or 2,141 of the top earning corporate officers are men,
compared to only 188 or 5.2% of women top earners in the Fortune 500
companies.

Top female executives with titles such as CEO, senior vice president and
vice chairman have increased from 7.3% in 2000 to 9.9% in 2002.

Source:
[http://ww.diversityhotwire.com/business/diversity_html](http://www.diversityhotwire.com/business/diversity_html)
(Last visited: May 14, 2004)

### Barriers to Women's Advancement

  --------------------------------------------------- --------- ---------
  Issue                                               Women     Men

  Lack of mentoring opportunities                     70%       38%

  Commitment to personal and family responsibilities  69%       53%

  Exclusion from informal networks of communications  67%       25%

  Lack of women role models                           65%       35%

  Failure of senior leadership to assume              62%       22%
  accountability for women's advancement                        

  Stereotyping and preconceptions of women's          61%       27%
  abilities                                                     

  Lack of opportunities to take on                    54%       12%
  visible/challenging assignments                               

  Lack of significant general management or line      51%       47%
  experience                                                    
  --------------------------------------------------- --------- ---------

Source: Catalyst Newsletter, July 2001,
[www.catalystwomen.org](http://www.catalystwomen.org/).

### Women of Color and the Glass Ceiling:

75% of the women in a survey indicated that they were aware of training
in their corporation to raise awareness about race and gender issues,
but only 22% noted that their managers receive adequate training in
managing a diverse workforce.

More than half (53%) of women of color believe that corporate diversity
programs are less than effective in dealing with issues of subtle
racism.

Only 26% of women of color say that career development is an important
part of their company's diversity initiatives.

Only 17% indicate that their managers are held accountable for
advancement of women in their own racial/ethnic group.

Source:
[www.catalystwomen.org/press_room/factsheets/factwoc3.htm](http://www.catalystwomen.org/press_room/factsheets/factwoc3.htm)
(Last visited: May 14, 2004)

## Appendix B

![](media/image1.png){width="4.104166666666667in" height="5.1875in"}

Source: US Department of Commerce: Minority Business Development Agency,
"Minority Purchasing Power, 2000 -- 2045."

Available at <http://www.mbda.gov/Emerging_Markets/Purchasing> (Last
visited: May 15, 2004)

## Appendix C

![](media/image2.png){width="3.5625in" height="2.6875in"}

Source: Bureau of Labor Statistics.

## Appendix D

### Sample Measuring Tool to Assess Diversity Benchmarks[^17]

As noted in Chapter 7, many companies did not have a diversity metrics
system to accurately and objectively measure their progress in achieving
workforce diversity. Author Trevor Wilson devised a measurement tool,
adapted from researcher Felice Schwartz's gender-based model, which
enables companies to evaluate their progress on diversity. Wilson
created a scale, called an "Equity Continuum," which categorizes
organizations into six categories. Essentially, the scale rates a
business on the effectiveness of its diversity practices and offers a
concrete, empirical tool to measure actual organizational policies,
attitudes, practices and corporate commitment at each point on the
scale. This benchmark is offered to simply serve as a guide for the
Subcommittee to use in reviewing a company's overall success rate.

Zero: This is a company that believes it rates a five, although there is
no strategic policy for managing diversity. Management and senior
executives do not believe that there is discrimination within the
organization. Further, employees are expected to adapt to existing
corporate culture norms.

One: A company that pursues diversity goals simply because it believes
it has to, if only to avoid the negative consequences of not
implementing diversity. This company merely recruits women and
minorities, but does not have any formal networks of communications or
retention and mentoring programs.

Two: A business that ranks at this level is considered a "do-gooder,"
which means that management is motivated by a sense of altruism and a
perceived desire to assist the disadvantaged. Although these firms may
have diversity initiatives for certain underrepresented groups, they do
not have an overall clear vision or strategy for achieving workforce
diversity. They do not have affinity groups, diversity committees or a
diversity officer to enforce its goals.

Three: At this level, an organization has apparent "business reasons"
for enforcing diversity plans, or the company may do so because there
are significant business or organizational reasons. It has a minimal
diversity plan in place, but it is not interwoven into the core of its
business practices. A company at level thee fails to foster an overall
environment of inclusion whereby all employees feel as though they count
and can participate in the business' diversity process.

Four: A company at level four is truly motivated to create and implement
a well-defined diversity strategy and is taking active steps to enforce
these goals. It strives to educate employees at all levels about the
importance of creating and sustaining an environment which supports and
values differences. It also has employee diversity training programs,
unbiased employee performance evaluations and adequate compensation and
flexible benefits plans. However, such a company does not have a
diversity metrics system, nor does it hold management or individuals
accountable for promoting diversity.

Five: An employer at level five has developed an
"equitable-employment-system" or one that has established itself as the
employer of choice. It has created a culture that values differences and
promotes ideals of inclusion in the work environment. It includes all of
the initiatives outlined under point four on the scale, as well as a
well- developed supplier relationship with minority-and women-owned
vendors and an effective diversity metrics system intact to measure its
goals.

[^1]: The practices that are included in this report are not identified
    by specific company in order to preserve the companies'
    confidentiality.

[^2]: *See* http://www.diversityinc.com. (Last visited: June 8, 2004).

[^3]: *See* Appendix A.

[^4]: This definition of diversity was developed and used by Vice
    President Al Gore's National Partnership for Reinventing Government
    (NPR) Diversity Task Force, and was based on a comprehensive review
    of diversity literature.

[^5]: Vice President Gore's Diversity Task Force created the acronym
    "REGARDS" as part of its definition of diversity.

[^6]: Ann Morrison, *The New Leaders: Guidelines on Leadership Diversity
    in America* (San Francisco: Josey Bass Publications), 1992, pp.
    18-28.

[^7]: *Ibid*. at 4

[^8]: *See* Appendix A, pg. 38 for a more in-depth analysis of "the
    glass ceiling."

[^9]: The Federal Glass Ceiling Commission identified Second Generation
    EEO issues to include: lack of mentoring; lack of management
    training; lack of opportunities for career development; little or no
    access to critical developmental assignments, including service on
    highly visible task forces and committees; different standards for
    performance evaluations; little or no access to informal networks of
    communication; and biased rating and testing systems. *See* Comments
    of EEO Supporters in MM Docket No. 98-204, Review of the
    Commission's Broadcast & Cable Equal Employment Opportunity Rules &
    Policies, filed March 19, 1999, pp 234-241.

[^10]: Council, W. Patrick, *Managing Multiculturalism: Valuing
    Diversity in the Workplace*, Journal of Property Management, No. 6,
    Vol. 66, pg.22 (Nov. 2001).

[^11]: Edward E. Hubbard, *Measuring Diversity Results* (Petaluma, CA:
    Global Insights Publishing), Ch. 7 1997.

[^12]: *Ibid*.

[^13]: Patrick W. Council, *Managing Multiculturalism: Valuing Diversity
    In The Workplace*, Journal of Property Management, No. 6, Vol. 66,
    p. 22, (Nov. 2001).

[^14]: *Ibid*.

[^15]: It is well established that over time, heterogeneous groups will
    outperform homogenous groups. They are better at problem-solving,
    decision-making and at generating creative ideas; it is well settled
    that different points of view engender better ideas as well as
    better approaches and methods. *See. e.g*., Wheeler, Roger D.,
    *Managing Workforce Diversity*, Tax Executive, No. 6, Vol. 49; pg.
    493 (Nov. 1997).

[^16]: For a more extensive discussion on how minorities should measure
    corporate diversity, *See generally*, Corporate Diversity for
    African, Hispanic (Latino), and Asian American, Ethnic Majority at
    <http://www.ethnicmajority.com/corporate_diversity.htm> (Last
    visited: May 14, 2004).

[^17]: Adapted from an article, Hayes, Victor, *The Business Case For
    Diversity*, which outlines a measurement tool that companies could
    use as a guide to objectively assess and benchmark their progress in
    achieving diversity goals, available at
    [www.diversityatwork.com/articles/article_ivey.html](http://www.diversityatwork.com/articles/article_ivey.html)..
    (Last visited: May 10, 2004)