U.S. companies vow to fight racism but face critics on diversity

[snoop1130]

U.S. companies vow to fight racism but face critics on diversity

By Ross Kerber, Helen Coster, Arriana McLymore

 

FILE PHOTO: Demonstrators march across Brooklyn Bridge in protest against the death in Minneapolis police custody of George Floyd in the Brooklyn borough of New York City, New York, U.S., June 4, 2020. REUTERS/Andrew Kelly/File Photo

 

(Reuters) - In the past, U.S. corporations have largely remained silent as protests erupted over killings of African-Americans by police officers. That changed with the May 25 death of George Floyd in Minneapolis, which has set off a flurry of corporate statements of solidarity with the black community – along with pledges of more than $1.7 billion to advance racial justice and equity.

 

The unprecedented outpouring of support, however, has stirred up criticism along with praise. Many social justice advocates, corporate diversity experts and investors say companies also need to focus on equity in their own ranks, especially by hiring and promoting minority workers.

 

The tensions show the difficulty executives face in aligning their firms with popular social causes at a time of soaring wealth and inequality – and growing pressure from some investors to show leadership on societal problems. Activists, along with some business leaders, also see an opportunity amid global protests to push reform on social justice issues well beyond police brutality.

 

The rush of corporate concern belies the reality of workforce inequity, said Natasha Lamb, managing partner of Arjuna Capital. Arjuna is a Boston-based investment adviser and frequent filer of shareholder resolutions pressing companies - with mixed success - to disclose more data on pay equity.

 

“If you take an honest look at corporate America, outside their glossy diversity reports, structural bias for women and people of color remains as entrenched as ever,” she said.

 

Floyd’s death has sparked a movement with wide-ranging goals, said Fiona Ma, California state treasurer and a director for systems managing about $650 billion in state retirement assets. “It’s not just law enforcement” at issue, she said, calling the protests “a greater statement of today’s values and holding people and companies accountable.”

 

Leaders of major companies including Comcast Corp (CMCSA.O), Nike Inc (NKE.N) and Warner Music Group Corp WMG.O have announced major gifts to advance racial justice amid the protests over Floyd’s death. Bank of America pledged $1 billion over four years to address economic and racial inequality. At least a dozen other big companies announced gifts between $1 million and $100 million for similar efforts.

 

FACTBOX:

 

“Our Black community is hurting, and many of us are searching for ways to stand up for what we believe,” said Sundar Pichai, CEO of Google parent Alphabet Inc (GOOGL.O).

 

Companies’ willingness to take strong stands could signal a substantive shift in the attitudes of corporate leaders, said Jim Paulsen, chief investment strategist for Leuthold Group, a research and asset management firm. “Some is probably lip service, but I think it goes beyond that, and there’s a realization that something needs to change,” Paulsen said.

 

DIFFERENT THIS TIME

 

Companies were mostly silent during protests in 2014 following the death of Michael Brown, who was shot by a Ferguson, Missouri policeman, and Eric Garner, who died after being put in a chokehold by a New York City officer.

 

Today the demonstrations are bigger and more racially diverse. Companies also face increasing pressure from investors, consumers and workers to lead on issues from climate change to gun control to immigration policy and racial inequity.

 

“It’s good for their own employees to hear this, because especially their younger employees are part of a generational group that cares more about these issues,” said Francis Byrd, a corporate governance consultant in New York.

 

The growing corporate involvement may also reflect a shift in public attitudes on race, said R. Paul Herman, chief executive of sustainable ratings agency HIP Investor. In the past, he said, companies avoided weighing in on racial controversies for fear of alienating customers. A Monmouth University poll released on June 2 showed the proportion of Americans who consider racial discrimination to be a big problem has increased from about half in 2015 to about 3 in 4 now.

 

On June 1, Facebook Inc FB.N Chief Executive Officer Mark Zuckerberg wrote on his personal Facebook page: “To help in this fight, I know Facebook needs to do more to support equality and safety.”

 

Facebook committed $10 million to groups working on racial justice, and Zuckerberg’s private philanthropy has donated far more to the cause.

 

But the firm still faces pressure on workplace diversity. At its May 27 annual meeting, investors cast about 28% of votes, excluding shares held by insiders, in favor of a resolution sponsored by Arjuna that called for a breakdown of its median pay gaps by gender and race.

 

Facebook opposed the measure, saying it already discloses data showing that women and men are equally paid for similar work. A spokesman did not comment on whether it might add more pay disclosures but said the company is committed to workplace equity.

 

African-Americans make up less than 4% of Facebook’s workforce and about 3% of its senior leadership, compared to 13% of the U.S. populace, according to company disclosures. Other major technology firms, including Google, Twitter Inc (TWTR.N), Intel Corp (INTC.O) and Microsoft Corp (MSFT.O), have disclosed similarly low proportions of African-American workers and senior managers, relative to the population.

 

Twitter, Intel and Microsoft representatives said the firms have set ambitious goals to increase the proportion of underrepresented minorities in their ranks.

 

Google spokeswoman Jennifer Rodstrom said the company would need to “work to expand the talent pool externally, and improve our culture internally, if we want to create equitable outcomes and inclusion for everyone.”

 

Monica Hawkins, a Washington, D.C.-based management consultant, said many executives struggle to raise diversity in senior management because they know too few minorities. Leaders need to expand their social and business circles, she said, because referrals are a key source of important hires.

 

“They need to open their network,” she said. “That’s the work. You can’t cut a check for that.”

 

Proportions of African-American workers are much higher at firms with large numbers of relatively low-paid workers, such as retailers Walmart Inc (WMT.N) and Amazon.com Inc (AMZN.O), according to company disclosures. But the higher percentages don’t extend to the senior management ranks of either retailer and remain well below the level of the U.S. population, the disclosures show.

 

A Walmart spokeswoman cited recent comments from its CEO Doug McMillon that its recruiting and development of African-American employees and other people of color will be “even more of a priority” going forward. Amazon says in a workforce report that it strives “for better representation across our various businesses.”

 

When Amazon expressed its concern in a May 31 tweet over what it described as the “brutal” treatment of black Americans, it faced immediate blowback over facial-recognition technologies it sells to police agencies.

 

The American Civil Liberties Union (ACLU) responded to Amazon’s tweet by asking if it would stop selling technology it says “supercharges police abuse.” In a 2018 study of Amazon’s Rekognition technology, the ACLU found people of color were falsely matched at a high rate. Matt Cagle, an attorney for the ACLU of Northern California, called Amazon’s support for racial justice “utterly hypocritical.”

 

Amazon has defended Rekognition and said all users must follow laws limiting its use. An Amazon spokeswoman did not directly address the criticism and pointed to Amazon’s pledge of $10 million to social justice causes. Some of that money will go to the ACLU Foundation.

 

The ACLU welcomes the donation, said Ben Wizner, director of its Speech, Privacy, and Technology Project.

 

“Since it is an unrestricted gift, the irony is that some of this money will undoubtedly be used to hold Amazon accountable for its role in perpetuating police abuses,” he said.

 

FEW AFRICAN-AMERICANS IN MANAGEMENT

 

Reuters reviewed available data on workplace diversity from 27 large corporations that made statements about race in the wake of Floyd’s death. The data is spotty, however, because companies are not legally required to release it and their disclosures can be selective.

 

The percentage of black board members often mirrors or surpasses that of the broader U.S. population, the company disclosures showed. But the percentage of black employees in senior management is typically much lower. More than half of the 27 companies disclosed percentages of African-Americans in their top ranks that were less than half the percentage in the broader population, and many companies disclosed no racial breakdown for managers at all.

 

At the Walt Disney Co (DIS.N), none of the 15 senior executives listed on the company’s website are black; Disney’s recently-named treasurer is Hispanic. A Disney spokesman cited company diversity efforts including two programs announced last year that aim to attract and develop talent from underrepresented backgrounds.

 

The company on June 3 announced a $5 million pledge to support nonprofit organizations that advance social justice, including a $2 million donation to the National Association for the Advancement of Colored People (NAACP).

 

Jade Magnus Ogunnaike, Deputy Senior Campaign Director at social justice organization Color of Change – which promotes racial equity through online campaigns - said the donation was a start but that Disney and other firms need to reassess their approach. Ogunnaike said companies should conduct civil rights audits that examine workforce demographics, hiring practices and company culture.

 

“They’re going to have to look intensely and deeply at how racism is showing up,” she said.

 

James Page, Vice President of Diversity and Inclusion at General Assembly, a technology training firm, said companies looking to show leadership on issues of race need to do more than donate to social justice organizations.

 

“This crisis did not occur because the NAACP didn’t have enough money,” Page said, referring to one of oldest and best-known U.S. civil rights groups. “Corporations now need a clear plan on how they’re going to change the makeup of their organizations.”

 

-- © Copyright Reuters 2020-06-10

 

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[daoyai]

Interesting they have moved past equality to equity ...big difference,  let's see how this plays out.  I wanna be a token too !

[metisdead]

Some off topic posts and replies have been removed. 

[AlexRich]

So we put people in jobs they are not qualified for, but have the right skin pigmentation? Where will this end ... every Board in America must have a Ginger and a one-legged non-binary Asian?

 

Watch out the forthcoming release of Snow Black and the Seven Pimps.

Edited June 10, 2020 by AlexRich

[Mama Noodle]

8 hours ago, snoop1130 said:

James Page, Vice President of Diversity and Inclusion

 

You just know this person is going to be insufferable. 

[Mama Noodle]

9 hours ago, snoop1130 said:

Floyd’s death has sparked a movement with wide-ranging goals, said Fiona Ma, California state treasurer and a director for systems managing about $650 billion in state retirement assets. “It’s not just law enforcement” at issue, she said, calling the protests “a greater statement of today’s values and holding people and companies accountable.”

 

Im sorry, but the LAST people I want involved in my retirement funds are token people chosen not because of experience and education but because of a skin-color quota. 

[Mama Noodle]

9 hours ago, snoop1130 said:

“Our Black community is hurting, and many of us are searching for ways to stand up for what we believe,” said Sundar Pichai, CEO of Google parent Alphabet Inc (GOOGL.O).

Maybe stop bringing in cheap immigrant workers and outsourcing your coding to India? 

[ChrisY1]

Impossible to stop racism....it's almost the norm nowadays.

We have people in Australia, in the 20-50 year age group, that dislike asians....older generations dislike Australian aboriginals....and muslims, are largely detested by a majority......of course, most would claim to be non-racist.

Multi-cultural societies struggle.

Edited June 11, 2020 by ChrisY1

[simple1]

2 hours ago, Mama Noodle said:

Maybe stop bringing in cheap immigrant workers and outsourcing your coding to India? 

Considering there is roughly a shortfall of one million software developers in the US, no surprise companies outsourcing or bringing in qualified foreign nationals on work visas.

Edited June 11, 2020 by simple1

[simple1]

2 hours ago, AlexRich said:

So we put people in jobs they are not qualified for, but have the right skin pigmentation? Where will this end ... every Board in America must have a Ginger and a one-legged non-binary Asian?

 

Watch out the forthcoming release of Snow Black and the Seven Pimps.

Where does the OP state companies are hiring unqualified staff due to their colour?

[robblok]

2 hours ago, Mama Noodle said:

 

Im sorry, but the LAST people I want involved in my retirement funds are token people chosen not because of experience and education but because of a skin-color quota. 

https://www.gizmodo.com.au/2013/04/monkeys-make-better-stock-market-traders-than-people-study/

 

they should just outsource it to monkeys. 

[Geoffggi]

The blacks are the biggest racists in the world...

[Chomper Higgot]

27 minutes ago, ChrisY1 said:

Impossible to stop racism....it's almost the norm nowadays.

We have people in Australia, in the 20-50 year age group, that dislike asians....older generations dislike Australian aboriginals....and muslims, are largely detested by a majority......of course, most would claim to be non-racist.

Multi-cultural societies struggle.

You asset the existence of racist and negative stereotype views amongst whole sectors of society by stereotyping the same sectors of society to which you are attributing those views.

[Chomper Higgot]

3 minutes ago, Geoffggi said:

The blacks are the biggest racists in the world...

I see it’s going to be another one of those days.

[ChrisY1]

27 minutes ago, Chomper Higgot said:

You asset the existence of racist and negative stereotype views amongst whole sectors of society by stereotyping the same sectors of society to which you are attributing those views.

I don't quite understand your comment....I did use Australia as my example, but stereotyping??

[Chomper Higgot]

8 minutes ago, ChrisY1 said:

I don't quite understand your comment....I did use Australia as my example, but stereotyping??

You’ve defined groups of people and then attributed views to those groups of people.

[AlexRich]

5 hours ago, simple1 said:

Where does the OP state companies are hiring unqualified staff due to their colour?

If the best qualified candidate happens to be Caucasian they might find themselves looked over in the interests of “diversity” ... as an investor I want the best people in the job, and I couldn’t care less what their skin colour is.

[buick]

when i applied for university in the mid 80's, male caucasian's were passed over on purpose in order to admit minority candidates (which included female caucasians).  known as affirmative action at the time.

 

when i applied for a job after completing university, most large companies were hiring with diversity in mind (again, at the time female caucasions were part of the minority group).

 

the push for diversity has been going on for 30 years.  it might be new for companies that have only been around for a few years.  i saw it take hold with my own eyes.  an office environment that was all white males with all minorities in support positions completely changed.  in one job i had, there were 50 people on the floor (san francisco) and i was the only straight, white male out of the the 50.  if the numbers don't work now, the reason isn't racism or lack of trying on the part of the company and it's management. 

 

police brutality has been overlooked/masked, etc... but the corporate world in the USA has been on the diversity program for decades.

[Scott Tracy]

Ah, diversity. Such a small word with such big ramifications.

 

If someone is qualified for a position, there should be no reason for them not to be appointed. Whether black, white, asian, hispanic, male, female, non-binary, gay, lesbian etc...

 

Not a complete list of course, I'm not sure this forum has enough room for a complete !ist.

[robblok]

7 hours ago, Chomper Higgot said:

You’ve defined groups of people and then attributed views to those groups of people.

Yes that is stereotyping.. but is it always wrong. I mean most single guys that go to Pattaya are punters for instance. Does not mean everyone but a large portion. 

 

Stereotyping might be wrong but often its based on facts. I would guess more Dutch people do drugs then people from Singapore. Its stereotyping in a way (as i know Dutch that would not touch any drugs) but overall its still valid. 

 

 

[robblok]

2 minutes ago, Scott Tracy said:

Ah, diversity. Such a small word with such big ramifications.

 

If someone is qualified for a position, there should be no reason for them not to be appointed. Whether black, white, asian, hispanic, male, female, non-binary, gay, lesbian etc...

 

Not a complete list of course, I'm not sure this forum has enough room for a complete !ist.

Problems is that often people who are qualified and of an different color or group of friends don't get the job. When i worked at a stock trader firm you would often see that friends (who were of course qualified would get jobs) but others without the connection who were qualified too would not get the jobs. So if the original group was white it often meant that they would hire white friends. 

 

Not sure that its always racism because besides qualifications someone has to fit in the group too. Otherwise its creates a bad work environment. However it does shut people out. 

[phantomfiddler]

Possibly the ONE great advantage of wearing anti-virus masks is that it allows looters to really go to town without fear of recognition ????

[Baerboxer]

14 hours ago, AlexRich said:

So we put people in jobs they are not qualified for, but have the right skin pigmentation? Where will this end ... every Board in America must have a Ginger and a one-legged non-binary Asian?

 

Watch out the forthcoming release of Snow Black and the Seven Pimps.

 Social engineering to ensure society reflects the diverse make up is one of the dreams of the left liberals. All organizations should conform to social norms dictated by the elite politicians and their appointed bureaucrats.

 

The fact all attempts at states controlling people's lives, choices and thoughts doesn't deter them.

 

Some countries already have laws that enforce diversity.

 

All discrimination, be it racial, sexual, religious, political, etc is wrong. Their is no such thing as "positive discrimination". It's an invention of the left to facilitate their own agenda.

 

 

[Baerboxer]

3 hours ago, robblok said:

Yes that is stereotyping.. but is it always wrong. I mean most single guys that go to Pattaya are punters for instance. Does not mean everyone but a large portion. 

 

Stereotyping might be wrong but often its based on facts. I would guess more Dutch people do drugs then people from Singapore. Its stereotyping in a way (as i know Dutch that would not touch any drugs) but overall its still valid. 

 

 

 

Your example of drugs is more related to the legal differences in the two countries and attitudes. It doesn't necessarily reflect the attitudes, wishes and aspirations of the people.

[gunderhill]

11 hours ago, robblok said:

https://www.gizmodo.com.au/2013/04/monkeys-make-better-stock-market-traders-than-people-study/

 

they should just outsource it to monkeys. 

I'd  go ape if  they did  that!

[gunderhill]

23 hours ago, snoop1130 said:

Amazon says in a workforce report that it strives “for better representation across our various businesses.”

Rather than the best person for the  job.

[impulse]

22 minutes ago, gunderhill said:

23 hours ago, snoop1130 said:

Amazon says in a workforce report that it strives “for better representation across our various businesses.”

Rather than the best person for the  job.

 

Seeing how 98% of the population are qualified to put stuff in boxes and affix a label, Amazon is in a pretty good position in that respect.  That's the theme of their business model.  Dumb down the jobs with automation and you don't need an educated workforce that you have to pay a decent wage.  Just people who will show up reliably and not make waves.

 

[robblok]

56 minutes ago, Baerboxer said:

 

Your example of drugs is more related to the legal differences in the two countries and attitudes. It doesn't necessarily reflect the attitudes, wishes and aspirations of the people.

Good point if you get punished really hard for doing things then yes its likely less will use it.

[Roadman]

10 hours ago, robblok said:

Problems is that often people who are qualified and of an different color or group of friends don't get the job. When i worked at a stock trader firm you would often see that friends (who were of course qualified would get jobs) but others without the connection who were qualified too would not get the jobs. So if the original group was white it often meant that they would hire white friends. 

 

Not sure that its always racism because besides qualifications someone has to fit in the group too. Otherwise its creates a bad work environment. However it does shut people out. 

Correct. And if that one slight adjustment was made then it is another slight move to inclusiveness which over time will break down barriers. Interesting that a lot of it is driven by events in the US where the bad guy person is white. Interestingly here in NZ you see it in the service sector especially in service/petrol stations and pizza shops where a recent Kiwi greater Asian immigrant will get into the management position and then within short time because of the high turnover in those fields the entire staff is of the same ethnicity. We all have a long way to go.
And putting aside the negative comments as an American corporate citizen who received the new corporate direction email this week I don’t see any issues with it. I have been with this corporate for 25 years and seen it from then being a total white and male dominate operational and female dominate office structures move dramatically to a very mixed and diverse business on the basis of inclusiveness. I love lunch times in the corporate office where the aroma of foods from all corners of the world mingle.  And we have moved from a struggling sector of our business years ago to now to be the dominate and leader in our sector not only here in NZ but in the last few years into the Asian Pacific region. And that reflects on our ever increasing share value on the NYSE and the ever increasing returns our shareholders receive. 

[robblok]

4 hours ago, Roadman said:

Correct. And if that one slight adjustment was made then it is another slight move to inclusiveness which over time will break down barriers. Interesting that a lot of it is driven by events in the US where the bad guy person is white. Interestingly here in NZ you see it in the service sector especially in service/petrol stations and pizza shops where a recent Kiwi greater Asian immigrant will get into the management position and then within short time because of the high turnover in those fields the entire staff is of the same ethnicity. We all have a long way to go.
And putting aside the negative comments as an American corporate citizen who received the new corporate direction email this week I don’t see any issues with it. I have been with this corporate for 25 years and seen it from then being a total white and male dominate operational and female dominate office structures move dramatically to a very mixed and diverse business on the basis of inclusiveness. I love lunch times in the corporate office where the aroma of foods from all corners of the world mingle.  And we have moved from a struggling sector of our business years ago to now to be the dominate and leader in our sector not only here in NZ but in the last few years into the Asian Pacific region. And that reflects on our ever increasing share value on the NYSE and the ever increasing returns our shareholders receive. 

Yes it can work both ways racism works the other way around too. Those in charge often like their own "kind" better. But mixing it up if everyone is qualified is a great thing.

 

The only one protesting in general are older white guys or white guys who are just not qualified enough to compete with different eccentricities if they don't have an edge. 

 

Its so visible on this forum where a lot of older people post. Lot of nationalists too.