Responding to Say on Pay
February 4, 2019
The following is evidence of the progress yet to be made on diversity: the continuing dialogue on how to “manage millennials” at the same time that seasoned professionals in Fortune 500 companies are complaining that they are experiencing ageism, the US travel ban for those from predominantly Muslim countries, the representation of women on corporate boards in North America (the numbers are better in Europe), even the black, gray, and blue suits that predominate Wall Street. If you consider the last item to be weak evidence of a lack of diversity, contrast this with business meetings in Mumbai or Delhi where executive women in positions with considerable responsibility may be dressed in saris while conducting business. Their feminine dress does not detract from their reputation or impact if they are intelligent, collaborative, capable leaders.
Leveraging diversity is not about altruism or corporate social responsibility. It is a wise financial decision. Companies that encourage diversity of thought, who foster debate, which employ professionals with a breadth of functional and social experiences, enjoy better customer relationships, lower employee turnover, and greater profitability. Some of the US companies that have been recognized for employing a diverse workforce include: Aetna, Aramark Corp., Burger King, FedEx, Marriott, Starwood Hotels, and McDonalds.
Creating diversity in the organization should not be delegated to Human Resources or Corporate Services. The responsibility starts with the CEO and the board. The executive of TransCanada was fairly homogeneous. The directors of the TransCanada board asked management to prioritize addressing this imbalance and they have made active strides in doing so. This cannot be addressed in a single year and requires a sustained commitment to talent management and succession planning—the third trait of the new giants.
