1. Innovation and Diversity

2. Where hate rules, let us bring love; where sorrow, joy. Let us strive more to comfort others than to be comforted, to understand others, than to be understood, to love others more than to be loved. St. Francis of Assissi St. Francis of Assissi

3. I. Diversity Business IssueDiversity Factor Turnover CostsWomen and people of color turnover faster than others; Blacks rate is 40% higher than whites, Women 2 times men. Absenteeism CostsWomen 58% higher than men. Study showed that Organizational Support affects Commitment which affects Womens’ Absenteeism Recruiting NeedsLabor make-up more diverse

4. Business IssueDiversity Factor Legal CostsPlaintiffs win 2/3 of cases brought to trial. Texaco lost 176M race discrimination suit in 1996. Clothing retailer Abercrombie & Fitch agrees to pay $50 million to settle lawsuits claiming it discriminates against minorities and women. The company was accused of favoring white men in its hiring and branding. Abercrombie will create an office of diversity and has already hired a vice president for diversity (11/2004).

5. Business IssueDiversity Factor Productivity/RetentionWomen and minorities receive less feedback and are dissatisfied because of it. Lack of coaching, mentors, models. Marketplace UnderstandingAwareness of market (Mabelline example – 41% of 55M market) Competitive AdvantageSustaining competitive advantage depends on optimizing valuable human resources Fortune 500 HR Exec AdviceBetter utilization of talent, increased marketplace understanding, enhanced breadth of understanding in leadership positions, enhanced creativity, increased quality in team problem- solving

6. I. Diversity – What to do? 1. Allstate pursues “bottom line accountability” through an employee survey (50,000 employees quarterly- derives a diversity index). Results serve as feedback for managers. The company also uses 360 feedback to monitor and assess behavioral change, and merit pay is associated with improvements (25% of bonus). 2. Allstate identified a correlation between sales performance and scores on the diversity index. 3. “Anything that’s important has to be measured, and that’s how corporate programs work” (President and CEO of SHRM). 4. Examine recruiting, hiring, performance appraisal, and organziational culture for discrimination or “adverse impact.” 5. Develop mentors for diverse groups.