The top US companies putting women on their boards, promoting minorities, and proving their diversity efforts aren't all just talk

  • There is an index that ranks the most diverse and inclusive companies based on data such as diversity of the board and whether the company provides childcare. 
  • Companies that are more diverse are more likely to see higher productivity and profitability, MIT research has found.
  • Here are the seven most diverse and inclusive companies headquartered in the US, including HP and Merck.
  • Visit Business Insider's homepage for more stories.

Nationwide protests in the wake of the killing of George Floyd have forced some executives to take a hard look at why their diversity and inclusion efforts have struggled.

In a recent investigation, Business Insider found that a major reason diversity and inclusion efforts are ineffective is that companies continue to invest in one-off trainings, instead of complementing them with companywide diversity initiatives. To dismantle systemic racism in the office, employers need to promote people of color internally, listen to stories about discrimination, and collect workforce data, among many other things.

Keeping companies accountable is also key. To help with that effort, the financial-data provider Refinitiv keeps track of efforts in this space through a Diversity & Inclusion Index.

The global index, which was formerly run by Thomson Reuters, looks at metrics such as board gender diversity, who gets internal promotions, and whether a company offers day-care services. To calculate each company's score for diversity and inclusion, or D&I, Refinitiv's team assigns each metric a number of possible points. Companies are then given a score out of 100% based on how many points they have.

Refinitiv pulls data for 7,000 companies and then identifies the top 100 publicly traded companies in a country, which is how we arrived at our US list. 

So who made the cut? Here are the seven US-headquartered companies that scored highest on the index for the second quarter of 2020.

What they have in common:

All top seven companies listed have at least one female board member and at least one female executive member, are transparent about how much diversity they have at different levels of the organization, and all, except for HP, provide day-care services for employees, according to Refinitiv.

They also rank at the top of the Human Rights Council's Corporate Equality Index, which ranks companies on their LGBTQ policies and practices. For example, all seven companies have equal health coverage for transgender people, without exclusion, for medically necessary care. 

It pays to be at the top of the list. Researchers from McKinsey and MIT have found that diverse workplaces are more productive and more profitable.

7. Merck & Co. Inc.

Example: The pharmaceutical company is part of the Billion Dollar Roundtable, which recognizes businesses that spend at least $1 billion with suppliers that are run by women or minorities.

D&I score: 73%

Global ranking: 33

6. Hewlett Packard Enterprise

Example: The financial technology company has over 13,600 employees across 46 countries in employee resource groups. In addition, the company is listed on the 2020 Best Places to Work for LGBTQ Equality.

D&I score: 73.5%

Global ranking: 30

 

 

5. Marriott International Inc.

Example: Marriott partners with multiple nonprofits worldwide to increase diversity. In Mexico, the hospitality chain partners with the economic nonprofit Vital Voices to give career mentorship to women. And in its multinational Bridges From School to Work program, the company is training and employing young people with disabilities, according to the company's website.

D&I score: 73.5%

Global ranking: 29

4. Estée Lauder

Example: In June, Estée Lauder's leadership responded to a letter from a group of its employees calling for more diversity within the company by pledging to hire more Black, Indigenous, people of color (BIPOC) employees, as well as increase diversity among leadership.

At the company, unconcious bias training is mandatory, and there are over 30 employee resource groups, per the company's website. Estée Lauder is part of the CEO Action for Diversity and Inclusion initiative that seeks to promote diversity and inclusion among top companies. 

D&I score: 75.25%

Global ranking: 18

3. HP Inc.

Example: The majority of HP's board of directors are minorities, according to the company's website, and 42% are women, which is nearly double the national average of 20%. In addition, some 65% of new hires at HP, according to the company's most recent data, were women, minorities, veterans, or people with disabilities. 

D&I score: 75.75%

Global ranking: 16

2. Owens Corning

Example: For the past several years, the company earned a perfect score by the Human Rights Campaign for its LGBTQ inclusiveness, including its "fully-inclusive equal employment opportunity policies and equal employment benefits."

Owens Corning also has a Strategic Supplier Partners program, where it partners with minority-owned and women-owned businesses, a commitment to hiring military veterans, and a track record of ethical, sustainable practices. 

D&I score: 76%

Global ranking: 15

1. BlackRock Inc.

Example: The company's leadership team has been outspoken when it comes to diversity and inclusion. Larry Fink, BlackRock's CEO, is a founding member of the US 30% Club, a group that hopes to achieve gender balance on company boards. In addition, leaders from the company publicly supported the Gay and Lesbian Advocates and Defenders' Defense of Marriage Act by signing an amicus brief in 2013. 

Today BlackRock continues to work on diversifying its workforce. About 51% of new hires in 2019 were "ethnic minorities" and 49% were women, according to the company's website.

D&I score: 81%

Global ranking: 1

Source: Read Full Article