Diversity programs: a strategic business initiative that helps U.S. corporations compete globally

When one door shuts, another frequently opens. Such is the case with diversity programs which are now flourishing and expanding at U.S. corporations as affirmative action programs languish under a cloud of suspicion and doubt.

The reason for the difference is simple. Diversity is a more global, all-encompassing concept, going beyond affirmative action while still embracing some of its fundamental tenets.

The more you have diversity procedures and processes that work for everybody...the less you need affirmative action," says Dr. R. Roosevelt Thomas Jr., founder and president of The American Institute for Managing Diversity at Morehouse College in Atlanta. Dr. Roosevelt's vision may be radical. In fact, most large corporations remain very serious about both programs.

Diversity Programs Flourish

But diversity has definitely taken the lead when it comes to fulfilling human development needs within corporations. "Diversity deals with developing the full potential of everybody-African Americans and other minorities, women and white men-in pursuit of an organization's overall objectives," Dr. Roosevelt explains.

This bottom-line impact gives diversity its strength. Today, many Fortune 500 corporations, and even smaller companies, are making diversity programs part of their strategic planning process. At NYNEX Robyn Phillips, director of Corporate Culture Initiatives, explains that "Diversity is not just a matter of meeting goals. Its a little more strategic. Our diversity targets are our business goals." What has turned diversity into a business issue for American corporations? The need to become more competitive globally; downsizing, which creates the need to get more work and vision out of a smaller workforce; and, above all, demographics. The Hudson Institute and the Glass Ceiling Commission have issued wake-up calls, predicting major changes in America's demographics. By the year 2050, minorities are expected to make up over 50% of the U.S. population.

The Globalization of Consumer Markets

The consequences of all these forces for corporations are enormous. In the U.S., new opportunities are developing in almost every consumer market. Abroad, there is a globalization of consumer goods. To deal with this, American companies need new ways of attracting customers and selling products. This means a wider range of ideas and perspectives that can only be found in a more diverse workforce where every individual is valued.

Companies like Xerox believe that diversity fosters greater creativity and innovation. "When you try to be more open, as opposed to using the ideas of one group limited by their experiences, you get a chance to tap into the total spectrum of creativity," explains William Castle, vice president of human resources for strategic services.

The Popularity of Diversity Councils

Today, diversity initiatives come in all sizes and shapes, just like the people in them. These programs include traditional avenues for encouraging diversity: training and development, new promotion review policies, recruiting at historically black colleges and universities and minority purchasing programs. Then there are newer trends like affinity groups and internal job fairs. In addition, many companies today are forming diversity councils. Some of these are a top-down phenomenon, chaired by the top executives and aimed at getting out the company's commitment to diversity. Other councils are set up on a department-wide level, to deal with diversity issues on a grass-roots basis.

Already, there are signs that diversity training is working. When General Motors discovered that 55% of GM truck buyers were women, they invited women employees to give advice on how to make the GM trucks more user-friendly to these buyers. The women employees came up with several ideas, such as a different placement for vanity mirrors. General Motor's action seems to reflect a new mind-set, which is hard to imagine without greater executive openmindedness and diversity training.

A Key to Greater Competitiveness

Despite this type of success, all diversity programs take time to create, put in place and work. Most require major changes in corporate thinking, admits Joy Leache and her three co-authors in A Practical Guide to Working with Diversity. Success in diversity programs "requires looking at the ways in which we conduct business to ensure that the best structures, practices, and processes are in place to support the organization becoming enriched by its diversity."

Today, many U.S. corporations are taking these steps. And their employees, as well as customers, will be the beneficiaries. The following pages contain descriptions of a number of the initiatives underway at the U.S. companies that are generally leaders in this field.

It is their commitment to diversity programs and training that will make these initiatives work. And that, in turn, will enable these corporations to become more competitive and profitable in their home markets, as well as in the global marketplace.