Diversity Journal - Jul/Aug 2008 by Diversity Journal

Also Featuring…Front-Runner Susan Chambers—Wal-Mart • Corporate Philanthropy • 2008 International Innovation in Diversity Awards

Volume 10, Number 4 JULY / AUGUST 2008 $ 12.95 U.S.

PROFILES IN DIVERSITY JOURNAL July / auGust 2008 • VOLUME 10 NUMBER 4 www.diversityjournal.com

Our company is global. Our passion is local. As a premier supplier to the motor vehicle industry, ArvinMeritor is passionate about investing in the communities where we live and work. We proudly support this cause, along with many others that are close to our hearts. And close to our homes.

www.arvinmeritor.com

ArvinMeritor,

Diversity at Starts the toP

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notebook editor’s notebook editors notebook

Companies Share How They Navigate

Rough Waters

James R. Rector PUBLISHER

John Murphy

MANAGING EDITOR

In this issue, I want to draw your attention to a few significant features. The first is our cover story about ArvinMeritor, a global automotive and commercial vehicle supplier. Charles G. (Chip) McClure, the company’s chairman, CEO, and president, has a long history in the automotive sector. We all know how difficult the environment has been for the manufacturing sector. It would be easy, maybe even understandable, for companies like ArvinMeritor to focus on operations before diversity. But under McClure’s leadership, the company continues to move forward with a solid commitment to diversity and inclusion, unfazed by a sluggish economy. Others should follow ArvinMeritor’s lead. We are also featuring the winners of this year’s International Innovation in Diversity Awards. Again, we were delighted and impressed by the efforts of those companies who chose to share with us the best of what’s working in their organizations. Take a close look at the creativity and imagination shown by these diversity drivers. You’ll be impressed! We also present a capsule look at corporate philanthropy. Frankly, this feature is bound to pick up your day. Each of the companies featured in this report have a big heart. How they go about improving the lives of people in their communities is inspiring. These are prime examples of selfless giving. Philanthropy is, indeed, alive and well in the boardrooms of some of our finest companies. Finally, we’d like to introduce you to Wal-Mart’s Susan Chambers. We’re featuring her in our Front-Runner in Diversity Leadership Series for her work leading a raft of diversity initiatives at the giant retailer. You can find her story on page 81. Enjoy the issue!

Cheri Morabito

CREATIVE DIRECTOR

Damian Johnson

MARKETING DIRECTOR

Laurel L. Fumic

CONTRIBUTING EDITOR

Alina Dunaeva

O verseas C orrespondent

Jason Bice

WEB MASTER

LETTERS TO THE EDITOR

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edit@diversityjournal.com Photos & Artwork:

art@diversityjournal.com On the Cover: ArvinMeritor Executives (clockwise from front): Rhonda Brooks, Rakesh Sachdev, Victoria Jackson, Lin Cummins, Vernon G. Baker II, Chip McClure, Joe Anderson, and Mary Lehmann. 2

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Goodstein

At UnitedHealth Group, unique is everywhere. In our approach to health care. In each segment of our business. In every professional. In the career opportunities we offer. As a global leader in health care, UnitedHealth Group is committed to creating a workforce of unique individuals. Their unique perspectives bring about innovative ideas. It is the unique backgrounds, lifestyles and beliefs our professionals bring to their work that fuels innovation, creates a healthy environment and drives us towards our goal of creating a better health care system. Founded in 1974, UnitedHealth Group has since grown into a Fortune 100 company. Our family of businesses work tirelessly to advance the quality and access to care while making services more affordable and easier to use for everyone. Our work impacts the lives of nearly 55 million people and helps coordinate care for more than 20 million more. As unique as the many businesses that unite to form UnitedHealth Group, are the career opportunities they offer. From accounting to marketing, clinical to claims, the employment experience at UnitedHealth Group is second to none. Regardless of their unique talents, our professionals are united to improve health care for everyone.

Let us hear your unique voice in these careers available nationwide throughout our family of businesses.

• Business Analysts • Customer Care Professionals • Financial Analysts • Information Technology • Inside & Field Sales • Product Associates • Underwriting Analysts Through innovative leadership in health care, UnitedHealth Group provides ongoing career opportunities for diverse individuals, enriching the employment experience and creating a healthier atmosphere for all. UnitedHealth Group is an equal opportunity employer and employs individuals based on job-related qualifications regardless of race, religion, sex, national origin, age, or other protected characteristics. M/F/D/V.

To view current career opportunities, and to apply online, visit our CAREERS page at www.unitedhealthgroup.com.

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Volume 10 • Number 4

features

Corporate Philanthropy

16 Special Focus:

Corporate Philanthropy Corporate philanthropy is alive and well. The examples in this feature prove it. Compassion is its own action item in the boardrooms of the largest companies.

On the Cover / ArvinMeritor, Inc. Charles G. (Chip) McClure, ArvinMeritor’s chairman, CEO, and president since 2004, has become well respected in the industry for his financial and strategic acumen and for building strong business. Under his leadership, ArvinMeritor not only delivers on aggressive costreduction and sales targets, but also maintains a diverse organizational culture with a positive outlook on future growth and opportunity.

Front-Runner / Susan Chambers Meet Susan Chambers, Executive Vice President, Wal-Mart Stores, Inc., Global People Division. She’s only been on the job for two years, but she’s already making a big impact at Wal-Mart.

89 89 Special Focus:

Innovations In Diversity Here are this year’s winners of the Profiles in Diversity Journal 2008 International Innovation in Diversity Awards. Some of the ideas you’ll find here are simply brilliant. We’re proud to introduce this year’s winners.

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July / August 2008

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Volume 10 â&#x20AC;˘ Number 4

departments

8 Momentum Diversity Who, What, Where and When

44 Catalyst W omen of Color in Accounting: Exploring the Intersection of Race/Ethnicity and Gender 78 Special Report R ohm and Haas A look at how Rohm & Haas shares its culture change process 108 MicroTriggers Inclusiveness Education for Work Team Leaders

perspectives 12 T houghts Through the Office Door â&#x20AC;Ś by Carlton Yearwood, Waste Management, Inc. 14 From My Perspective by Linda Jimenez, WellPoint, Inc. 74 My Turn by Shirley A. Davis, PhD, SHRM 76 Viewpoint by Melanie Harrington, AIMD 112 Last Word by Marie Y. Philippe, PhD

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July / August 2008

CHEVRON and HUMAN ENERGY are registered trademarks of Chevron Intellectual Property LLC. The CHEVRON HALLMARK is a trademark of Chevron Intellectual Property LLC. ÂŠ2008 Chevron Corporation. All rights reserved.

Our people are as diverse as their ideas.

tplace, rldwide marke To work in a wo at th e workforc Chevron has a rld. In the over wo e th represents siness, where we do bu 100 countries ial for ersity is essent we believe div ke. and partners ali our employees w, our ore points of vie Because with m stronger. becomes even human energy om. visit chevron.c To learn more,

momentum momentum who…what…where…when

Brooks Kushman P.C. Names Phyllis Golden Morey Chief Diversity Officer SOUTHFIELD, Mich.—Brooks Kushman P.C. has named Phyllis Golden Morey its first chief diversity officer (CDO), MOREY focused on implementing and growing the diversity initiatives of the intellectual property (IP) and commercial law firm. The announcement was made by James Kushman, chairman and chief executive officer, and Mark Cantor, president, of Brooks Kushman. In this new role, Morey will be responsible for recruiting, retaining and mentoring the firm’s minority attorneys. Additionally, she will work to foster alliances and networks with minority organizations, attend relevant seminars and events, and work with clients on diversity issues. Since Brooks Kushman specializes in providing counsel on IP and technology-related matters, its lawyers need to be trained in a broad range of scientific disciplines so they can respond creatively to the IP challenges its clients face. This provides a unique challenge in talent acquisition efforts, as technical or engineering degrees are often prerequisites of employment at Brooks Kushman. Morey earned her juris doctor degree from the University of Tennessee College of Law in Knoxville, Tennessee, and her bachelor’s degree from Memphis State University in Tennessee. After law school, she served as a judicial law clerk to judges on the Sixth Circuit Court of 8

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Appeals and the U.S. District Court in Memphis.  Morey is a member of the State Bar of Michigan, the American Bar Association, the Federal Bar Association and is admitted to practice before the Sixth Circuit and the Federal Circuit Court of Appeals. She has previously served on the board of directors for various non-profit organizations and currently serves as a board member for Music Hall Center for the Performing Arts in Detroit.

Godwin Pappas & Ronquillo Managing Partner Among 2008 Legal Diversity Award Recipients DALLAS— Attorney Marcos Ronquillo, of the Texas-based law firm of Godwin Pappas & Ronquillo PC, ronquillo recently was honored as one of four recipients of the 2008 Legal Diversity Award presented by the Texas Diversity Council. The Legal Diversity Award recognizes individuals who have demonstrated a commitment to the values of diversity, inclusion, and cultural understanding. This year’s honorees were recognized for their role in the hiring, retention, and promotion of diverse attorneys, as well as for their efforts to ensure equal opportunities for all persons involved in the legal profession. The Legal Diversity Award is the latest honor for Ronquillo, who is a former president of the Dallas Mexican American Bar Association and chairman of the Dallas Hispanic Chamber of Commerce. He is a

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past recipient of the national Spirit of Excellence Award presented by the American Bar Association’s National Commission on Minority Lawyers. Ronquillo also is a past recipient of the State Bar of Texas President’s Special Citation Award and Outstanding Lawyer of the Year Award from the Texas Mexican American Bar Association. “Marcos is a leader in every sense of the word. He is an exceptional lawyer who has helped start and nurture the careers of countless attorneys,” says Donald E. Godwin, firm chairman and CEO. “The Texas Diversity Council could not have made a better selection.”

Union Bank’s McNeely Receives Community Reinvestment Act Award

SAN DIEGO— In recognition of his longtime commitment to disadvantaged communities throughout Mcneely California, the Greenlining Institute recently honored Robert A. McNeely, executive vice president and manager of corporate community development for Union Bank of California, with its first Community Reinvestment Act award. The honor coincides with the 30th anniversary of the implementation of the CRA, a federal law that requires banks to provide credit to underserved populations and small businesses. Under McNeely’s leadership, Union Bank’s management has partnered with the Greenlining Institute and the California Reinvestment

Coalition as part of the bank’s commitment to the CRA, and most recently in the development of Union Bank’s community reinvestment pledge. From 2006 to 2016, the bank will reinvest 6.5 percent of its assets, more than $3 billion a year, into communities throughout California and will contribute 2 percent of its net profits annually to charities and nonprofit organizations. The Greenlining Institute is a multi-ethnic, nonprofit public policy and advocacy organization that promotes economic development in California’s low-income and minority communities.

Citi Names Deborah Hopkins Chief Innovation Officer NEW YORK— Citi has announced the appointment of Deborah Hopkins to the new position of Chief Innovation hopkins Officer, effective immediately. Since joining Citi in 2002, Hopkins has held several senior roles at the company, including chief operations and technology officer and head of corporate strategy, mergers and acquisitions. This new role will bring together the strategy, information technology, and research and development to drive cross-business, client-focused innovation across the company. Hopkins will report to Don Callahan, Citi’s chief administrative officer. Hopkins will be responsible for developing and leading Citi’s approach to creative, forward-looking collaboration with external constituencies,

including current and prospective clients, venture capital firms, government agencies, and academic institutions. She also will create and direct methods to maximize the internal creativity of Citi’s newly reorganized corporate structure with the goal of creating operating efficiencies across global products and regions. Hopkins also will retain her current role of managing director and senior advisor in Citi’s Institutional Clients Group, where she will continue to support and advise investment banking clients. Hopkins also has held senior level positions at several global companies, including the Boeing Company, Lucent Technologies, and General Motors Europe.

Bingham Names First Manager of Diversity and Inclusion BOSTON— Bingham McCutchen LLP has announced that Minita Shah has joined the firm as its first manager of shah diversity and inclusion, a position dedicated to fostering diversity and implementing the goals of Bingham’s Diversity Action Plan. Although based in Boston, Shah manages Bingham’s diversity and inclusion agenda throughout the firm. Believed to be the first large-firm position of its kind in Boston, the manager of diversity and inclusion will work with the firm’s diversity committee, lawyers, and staff in each office to develop programming and implement long-term diversity goals.

The firm’s diversity plan aims to promote Bingham’s continuing dedication to recruit, retain and advance lawyers and staff who will contribute to the diversity of the firm and the legal profession. Bingham has been recognized nationally for its diversity efforts. Accolades include being named for four straight years to Fortune magazine’s 100 Best Companies to Work For list, as well as one of Multicultural Law’s Top 25 Law Firms for Diversity, and Working Mother’s Best Law Firms for Women. Bingham also received a perfect score of 100 on the Human Rights Campaign’s Corporate Equality Index in 2007. Shah, who received a master’s in social work from Boston University, began focusing on diversity issues while working in legal recruiting and human resources for law firms in California. Bingham McCutchen LLP is a national law firm with global capabilities, with nearly 1,000 attorneys in 13 offices. For more information, go to www.bingham.com.

Jodi Pulice of JRT Realty Group, Inc., Named Among Women of Power Impacting Diversity NEW YORK— Jodi Pulice, founder and president of JRT Realty Group, Inc., the nation’s largest minority-/ woman-owned pulice business enterprise (M/WBE) in the commercial real estate industry, has been named as one of the

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momentum momentum who…what…where…when

top 25 Women of Power Impacting Diversity by DiversityPlus Magazine. The award recognizes outstanding women who exemplify excellence in advancing supplier diversity practices. Pulice established JRT in 1996 when supplier diversity initiatives were first being implemented, and there was a shortfall of M/WBEs in the commercial real estate industry. Today, JRT assists corporations, government entities, and institutional clients in achieving their aggressive, multi-million dollar supplier diversity initiatives and goals through commercial real estate assignments. In addition to being recognized for her efforts to hire other M/WBEs, Pulice was acknowledged for her industry-unique strategic alliance with Cushman & Wakefield, the global leader in commercial real estate services. Formed in 2003, the alliance enables both firms to retain complete autonomy while pooling their resources to fulfill M/WBE requests for proposals. Just last year, the JRT/Cushman & Wakefield alliance brokered more than 140 deals nationwide. This accounted for an overall joint portfolio increase of more than 400 percent during the course of the last four years. Recognized as a trailblazer, Pulice is one of the industry’s most vocal advocates for inclusion and diversity. She is a sought-after guest lecturer and panelist whose speaking engagements range from industry-sponsored programs to global diversity events. A graduate of Wagner College, Pulice has handled transactions totaling more than $2 billion.

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Tisa W. Jackson Named Vice President of Diversity and Inclusion for Union Bank of California SAN FRANCISCO— Union Bank of California, N.A., has announced that Tisa W. Jackson has joined the bank jackson as vice president of diversity and inclusion. Jackson is responsible for developing and executing diversity and inclusion strategies, initiatives, and programs for the bank. Prior to joining Union Bank, Jackson was the vice president of the diversity and inclusion strategies group at Countrywide Financial. She also served as the human resources administrator for Deloitte & Touche Tax Technologies and human resources manager for InfoNXX. Jackson began her career with Advanced Micro Devices, where she served as the human resources program manager for the workforce planning and development division, and was responsible for creating and implementing the diversity work-life balance programs and initiatives. Jackson is the founder of the Professional & Technical Diversity Network and is the program chair of the Young African American Women’s Conference. She also is a leadership council member of the Global Organization for Leadership and Diversity and is a member of the Asian Pacific American Dispute Resolution Center Dinner Committee. Jackson is a past recipient of the Urban Financial Services

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Coalition’s Philanthropist Award. She holds a bachelor’s degree from Emerson College.

Teresa L. White Named Executive Vice President, Chief Administrative Officer Teresa White has been named executive vice president and chief administrative officer for Aflac US. She will oversee administrative white functions in a variety of departments, including client services, claims, Aflac New York administration, administrative services, and corporate communications. She also oversees Aflac’s sales technology, sales administration, and sales financial management departments. White began her career with Aflac in 1998 as second vice president of policy/payroll account services, and in 2000 was promoted to vice president of client services. She was appointed senior vice president of sales support and administration in 2004 and deputy chief administrative officer in 2007. Before joining Aflac, she held leadership positions with AT&T Universal Card Services. White holds a master’s degree in management from Troy University and a bachelor’s degree in business administration from the University of Texas at Arlington. She is married with two children. PDJ

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thoughts through the office door…

Co-mingling Diversity Management and Business Ethics By Carlton Yearwood

Chief Ethics and Diversity Officer Waste Management, Inc.

I was smiling a bunch, and couldn’t help it. Dave Steiner, the CEO of my company, Waste Management, was about midway through his speech to the Ethisphere Institute, acknowledging our new ranking on the institute’s “Most Ethical Companies” list. Sitting comfortably distant in the audience, I gazed across the wide representation of U.S. companies, every person listening raptly to what Waste Management’s leader was saying about our commitment to and practice of the highest business ethical practices. Yes, I smiled. A decade ago, in 1998 and 1999, Waste Management was the poster child for corporate fraud. The back-to-back scandalous write-offs ravaged investors and employees alike, with the management team ultimately tarred and feathered in full public humiliation. It occasioned the start of a national re-examination of accountability for business, with results still playing out in corporate boardrooms today. The situation also opened the door for me at Waste Management. The turnaround team was committed to building a new company, to creating a new corporate culture framed by untarnished ethical practices and standards at every level. That expectation appealed to me greatly. Almost coincidentally, in time I found myself critiquing my own approach to diversity more frequently and with more seriousness. What surfaced within me, as headlines of fraud swirled in more public forums, was a growing strength to the notion that discrimination in any way was inherently unethical. Business ethics, I thought, should be transparent, whether the situation involved people or financials, gender or market performance, inclusion or stock options. Combining diversity and business ethics under one corporate office made much

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sense in my way of thinking. To my pleasant surprise, Waste Management agreed. Now, some years later, we’ve learned that business ethics and diversity can indeed share the same organizational home. At best, both disciplines not only grow better, but the overall corporate entity assumes new desirable traits. Respect for people and all that they do fills the halls; honesty in all relationships becomes a hallmark of doing business; and openness becomes the expected norm for communication among and between all levels of people.

But behavior trumps compliance every day. And that, in my mind, is what the joining of ethics and diversity delivers.

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Co-mingling the management of diversity and ethics, I know, still seems too far a bridge to cross for many organizations. There the functions remain discretely housed and addressed. And, I’ll concede that the separation may be appropriate for some company cultures. But behavior trumps compliance every day. And that, in my mind, is what the joining of ethics and diversity delivers. What’s clear, too, is that this co-mingling nurtures principled leaders, individuals whose commitment and action drive solid improvements in organizational vitality and business results. That’s the kind of person Dave Steiner has grown to be, a leader who can say: “We have to make sure our causes are ones our people believe in and value… we have to explain what our motivations are… we have to focus on our people… and listen to what they are telling us.” That kind of talk brings a smile to my face any day. PDJ Waste Management, Inc. is the leading provider of comprehensive waste and environmental services in North America. The company is strongly committed to a foundation of financial strength, operating excellence, and professionalism.

Raytheon People

Innovation. Driven by Diversity. As one of the world’s foremost technology leaders, Raytheon takes on some of the most difficult challenges imaginable. Meeting those challenges requires a diversity of talent, ideas, backgrounds, opinions and beliefs. Diversity helps our teams make better decisions, build stronger customer relationships and feel more inspired, supported and empowered. It is both a catalyst and an essential advantage to everything we do.

We’re proud to feature Raytheon employees in our ads. To join them in a rewarding career, visit

www.rayjobs.com © 2008 Raytheon Company. All rights reserved. “Customer Success Is Our Mission” is a registered trademark of Raytheon Company. Raytheon is an equal opportunity, affirmative action employer and welcomes a wide diversity of applicants. U.S. citizenship and security clearance may be required.

from my perspective…

How Far Has America Come? By Linda Jimenez Chief Diversity Officer & Staff Vice President—Diversity & Culture WellPoint, Inc.

On July 26, 2008, this country celebrated the enactment of the Americans with Disabilities Act, one of the great civil rights laws in the nation’s history. Eighteen years ago, Congress acted on the fundamental principle that people should be measured by what they can do, not what they can’t do. The anniversary of this landmark legislation is a time to reflect on how far America has come in improving the real life possibilities for the nation’s 56 million people with disabilities. The 1940s and the 1950s introduced the nation to a new class of Americans with disabilities—wounded and disabled veterans returning from war. They found a society grateful for their courage and sacrifice, but one that relegated them to the sideline of the American Dream. Even before the war ended, however, rehabilitation medicine had been born. Disability benefits were added to Social Security. Each decade since then has brought significant new progress and more change. In the 1960s, Congress responded with new architectural standards, so we could have a society everyone could be a part of. In the 1970s, Congress responded with a range of steps to improve the lives of people with mental disabilities as well. The country supported the right of children with disabilities to attend public schools and guaranteed the right of people with disabilities to vote in elections. The 1980s brought a new realization, however, that in helping people with disabilities, we can’t rely solely on government programs. Thus, the private sector became involved. Fair housing opportunities for people with

disabilities, fair access to air travel, and advances in technology for people hard of hearing or deaf, were guaranteed. The crowning achievement of these decades of progress was passage of the Americans with Disabilities Act of 1990. How far have we come? Today, in this country, we see many signs of the progress that means so much in our efforts to include persons with disabilities in every aspect of life—the ramps beside the steps, the sidewalks with curb-cuts to accommodate wheelchairs, the lifts for helping disabled people to take a bus to work or the store or a movie. We still face many challenges, especially in areas such as health care and in home-based and community-based services

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...when people are excluded from the social fabric of a community, it creates a hole, and when there is a hole, the entire fabric is weaker.

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and support. Today, about one in six Medicare beneficiaries, more than six million people, are persons with disabilities under aged 65. Over the next 10 years, that number is expected to increase to eight million. As the saying goes, when people are excluded from the social fabric of a community, it creates a hole, and when there is a hole, the entire fabric is weaker. How far has America come? The fabric of our nation is stronger today than it was 18 years ago, because people with disabilities are no longer left out and left behind. And because of that, America is a greater nation. PDJ Linda Jimenez is a native of San Antonio, Texas, and attended the University of Texas at Austin where she received her BA with honors. She is also a graduate of the University of Texas School of Law and has spent 20 years specializing in labor and employment law.

C o r p o r at e

PhilanthropY

Major League Baseballâ&#x20AC;&#x2122;s Reviving Baseball in Inner Cities (RBI) is a worldwide outreach program that touches more than 125,000 boys and girls. In June 2007, KPMG became the sole corporate sponsor of the program.

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Is Alive and Well We recently invited our readers to share the ways their companies make a difference in their communities and the world. Of those who responded, the depth of their commitment, the diversity of their reach, and the quality of their programs astonished us. Corporate philanthropy is alive and well. The examples in this feature prove it. Compassion is its own action item in the boardrooms of the largest companies. Measured in dollars, the value of donations, goods, and services of the featured companies surpasses the million-dollar mark several times over. But counting up the money is only part of the story. The intangible benefits of corporate philanthropy are countless. While some corporations fund research into pediatric cancer, other companies seek out and support the scholars who may one day eradicate it. While corporations donate the necessary dollars for supplies and equipment, their employees deliver boxes of food to elderly citizens, coach inner-city youth, and teach reading. Other employees provide job training to recovering substance abusers and involve themselves and their families in the lives of children with severe disabilities. One on one, face to face, hand to hand, and heart to heart are the characteristics of todayâ&#x20AC;&#x2122;s volunteerism. Hope, nourishment, second chances, better health, and happiness are its gifts. The rewards of volunteering are equally important. The personal nature of todayâ&#x20AC;&#x2122;s volunteerism makes the experience as rich for those who give as those who gain. We are honored to share these examples of corporate generosity and employee volunteerism with our larger universe of readers.

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Corporate Philanthropy

Victoria Dinges Assistant Vice President, Public Social Responsibility Allstate Insurance Company

“Good Hands” Remake Inner-city Gymnasium More than 40 Allstate Insurance Company volunteers used their “Good Hands” to complete a $50,000 makeover of a decadesold gymnasium at the Martin Luther King Jr. Boys and Girls Club in Chicago this past April. Allstate volunteers painted locker rooms, hung wall safety mats, built a “tower of toys,” and cleaned the gymnasium. In addition, Allstate refinished the floor and provided new exercise equipment, basketball hoops, scoreboards, and bleachers. Upon completion of the makeover, the new gym and toys were unveiled to nearly 100 club members. The celebration continued with a visit from Chicago Bulls player Thabo Sefolosha, who led the kids in a basketball mini-clinic. “We had a blast making over the gym, and seeing the impact the makeover had on the club and kids was priceless,” said volunteer Bruce Brown, senior division manager of Allstate’s Print Communications Center and president of the MLK Jr. Club’s Board of Directors. “This project and celebration demonstrated the amazing culture of caring we have at Allstate and the power that culture can have outside the walls of our company.”

Allstate Insurance Company Headquarters: Northbrook, Illinois Web site: www.allstate.com Primary Business: Insurance and financial services Employees: More than 70,000 professionals, including 14,900 exclusive agencies and financial representatives in the United States and Canada

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Allstate has a history of supporting the club through its ongoing partnership with the Boys and Girls Clubs of Chicago. The club’s gymnasium also has its own storied history, as several basketball players, including former NBA stars Isaiah Thomas and Mark Aguirre, grew up playing there. When Allstate learned the gym needed renovating, but the club lacked the finances and volunteers to make the repairs, the company jumped at the chance to help. “This center means everything to the kids and this community,” said Sidney Johnson, director of the MLK Jr. Club. “What they’ve done is restore the pride to this community and this facility.” The MLK Jr. Club is located in an area of Chicago with a 32 percent unemployment rate and high secondary school dropout rates. Every day the club serves more than 200 youth, the majority of whom come from low-income, single-parent homes. Ninety-six percent of the club’s members are African American. The restoration of the gym and other facilities at the club is part of Allstate’s ongoing work to create safety and security for individuals and communities across the United States.

Corporate Philanthropy

Mark Walker Managing Director, Global Community Affairs Applied Materials

Applied Materials Education Initiative Strategy In 2001, Applied Materials commissioned a study focusing on student achievement in southern Bay Area public schools. The results identified highneed, low socio-economic communities with a high percentage of school-age children and low student achievement. Shifting strategies to address the study’s findings, in 2002 Applied Materials launched an education initiative to serve the needs of these disadvantaged children in two specific, targeted communities—the downtown and parts of the east side in San Jose. The Applied Materials Education Initiative is engaging deeply in these two geographic areas over a sustained period of time to support the entire educational pathway—from pre-school to college enrollment. The company’s strategy is to identify barriers to educational success and then support programs to overcome them. Applied Materials is engaging partners and making investments to intervene at critical leverage points along the education pathway: entering kindergarten ready to learn, exiting third grade reading on grade level, navigating the transition from middle school to high school, providing

a diversity of programs at the high school level to meet the needs of more adolescent students, and increasing access to college. An example of the success of Applied’s education initiative is its work with the nationally acclaimed Breakthrough program in downtown San Jose since 2002. Breakthrough provides a tuition-free, sixweek, intensive summer program for talented, low income, middle school students with the ultimate goal of college completion. As a result of Applied’s involvement with the organization, the program has grown from serving 24 students in 2002 to serving 100 middle school students from two middle schools and 71 high school students in 2007. Applied Materials’ Education Initiative is a long-range project, which is yielding significant results. The company has focused its philanthropy, marshaled its resources, and is standing behind two entire communities and their children. Applied Materials’ Education Initiative has obtained commitments and forged effective partnerships with schools and districts, supporting multiple educational programs and organizations to achieve the common goal of enabling all children to have a bright future in an increasingly knowledgebased economy.

Applied Materials Headquarters: Santa Clara, California Web site: www.appliedmaterials.com Primary Business: Special industry machinery Employees: 14,500

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Corporate Philanthropy

Andrew Plepler President, Bank of America Charitable Foundation Bank of America

Building Community Leaders of Today and Tomorrow Since 2004, Bank of America has funded more than 10,000 nonprofit organizations that address critical issues in the communities we serve across the country. Our philanthropic approach centers on a strategy we call neighborhood excellence. Through that strategy, we identify critical issues in our local communities and direct resources to address them. Increasingly, our nonprofit partners’ ability to deliver services had become hampered by a convergence of challenges. These included donors choosing to invest in specific programs rather than organizational infrastructure, the proliferation of nonprofit organizations, and the pending leadership gap facing the nonprofit community. The Bank of America Charitable Foundation set out to develop a solution to address these issues and created the Neighborhood Excellence Initiative (NEI) in 2004. NEI provides unrestricted funding to nonprofit organizations to strengthen their infrastructure, foster innovation, expand programs, renovate facilities, and other efforts. The program develops and nurtures nonprofit leadership, from high school students, to involved citizens, to existing nonprofit leaders, through paid internships, mentoring, and innovative leadership development forums. Through the Neighborhood Builder award for nonprofits, NEI’s leadership program plays an integral role in our commitment to strengthening the communities we serve by investing in the continued growth of nonprofit leaders and their organizations.

“Bank of America’s Neighborhood Builder award allowed our organization to think differently about our role in the community,” notes Jesus Garcia, president of Little Village Community Development Corporation (LVCDC) in Southwest Chicago. “Through exposure to the leadership training, the network of nonprofit leaders, and new possibilities of how to carry out our mission to serve Hispanic individuals and families, we have managed and sustained tremendous growth.” LVCDC is a nonprofit corporation that serves Hispanic individuals and families through educational programs, economic development projects, and violence prevention initiatives. Since receiving the award, LVCDC has developed its communications strategy and has upgraded its technology to better serve the community. Bank of America has committed more than $90 million through NEI to provide support, training, and encouragement to our community leaders of today and tomorrow. In 45 markets across the United States and in London, we are proud to recognize, nurture, and reward the organizations, local heroes, and student leaders who are improving our neighborhoods.

Bank of America Headquarters: Charlotte, North Carolina Web site: www.bankofamerica.com www.bankofamerica.com/foundation Primary Business: Financial services Employees: 200,000

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Pictured (l to r) Carmen Velasquez (Alivio Medical Center), Omar Sierra (Venezuelan Embassy), Linda Sarate (LVCDC Board Member), Jesus “Chuy” Garcia (LVCDC President)

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In a time of rapid change for our company and for our industry, we believe that the unique perspective of each Pfizer employee is vital. Why? Because the tough health care challenges people are facing today call for new, different, and diverse ways of thinking. That’s why we’re implementing a global strategy to ensure Pfizer’s culture not only respects, but also leverages each individual employee’s background, character, and life experiences. We’re putting those unique perspectives to

work to find new, innovative solutions for patients, and better ways of working with our customers, our partners, and the communities we serve. At Pfizer, we believe diversity means an inclusive and empowering work environment. The result? A happier, healthier tomorrow for us all.

www.pfizer.com

Corporate Philanthropy

Andy Corley Corporate Vice President and Global President, Surgical Products Bausch & Lomb

Unique Initiative Perfects Vision and Enhances Life On April 9, the 100th day of 2008, Bausch & Lomb sponsored a unique program called Changing 100 Lives in 100 Minutes. The program was developed to mark the implantation of B&L’s 100,000th crystalens®. Bausch & Lomb’s crystalens is the only FDA-approved intraocular lens (IOL) to use the eye’s natural muscles to help postsurgery cataract patients regain the ability to focus at all distances—near, intermediate, and far. The program was a major success thanks to the collaborative efforts of the more than 100 ophthalmologists from coast to coast who donated their surgical services to implant 100 lenses, free of charge, in low-income patients within a 100-minute time frame. Changing 100 Lives

in 100 Minutes resulted in nearly $1 million in lenses and surgical services being donated to people who otherwise wouldn’t have been able to afford the lenses or surgery. We couldn’t think of a better way to show our appreciation for the success of crystalens than to share the gift of sight with people who struggle with cataracts. We’re confident that our contribution and the contributions of the generous surgeons across the country made a difference in the lives of people in need. Visit www.crystalens.info for a complete list of the participating surgeons and more information about the Changing 100 Lives in 100 Minutes program.

Bausch & Lomb Headquarters: Rochester, New York Web site: www.bausch.com Primary Business: Eye health through the manufacture and production of soft and rigid gas permeable contact lenses, lens care products, and ophthalmic surgical and pharmaceutical products. Employees: 13,000 worldwide

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Dr. Steven B. Siepser of Siepser Laser Eyecare in Wayne, and Plymouth Meeting, PA, with a patient who received treatment during Changing 100 Lives in 100 Minutes.

BETWEEN THE CHALLENGE AND THE SOLUTION, T H E R E I S O N E I M P O R TA N T W O R D : H O W.

Diversity. It’s not a goal. It’s a necessity. When facing down the most important projects in the world, you need fresh ideas. And unique perspectives. Delivering the most complete answers to solve complex problems is all a question of how. And it is the how that makes all the difference.

Corporate Philanthropy

Debra Hettleman Plant Executive Director Building STEPS, Inc.

Building STEPS to Careers in Science Matthew Weinberg prides himself on hiring the most qualified and capable individuals to work with him at his scientific consulting firm, the Weinberg Group, headquartered in Washington, D.C. As chief executive officer, it is his job to surround himself with professionals who can effectively serve clients needs. However, although he consistently interviewed candidates for open positions, he noticed that he wasn’t hiring minority staff members. He realized that the problem was due to a lack of qualified minority professionals.

environment and acquire knowledge and skills for future application. The program offers students paid internship opportunities in the science and technology industries during the summer. Building STEPS accepts up to 460 high school juniors each year, beginning in September. Students participate in nine monthly seminars that expose them to technology- and science-based careers and education. During their senior year, students receive intensive assistance with the college and scholarship application process.

Weinberg decided to do something about it. In 1995, he founded Building STEPS (Science, Technology, Education, Partnerships), a nonprofit organization that provides underserved high school students exposure to career opportunities in science and technology.

The Building STEPS program has been extremely successful, with 94 percent of the students advancing to college. Collectively, students have been accepted at 62 colleges and universities and have earned nearly $3 million in scholarship funds.

“Your business ought to reflect society,” he said. “For diversity of opinion, you want to have a varied work force because, as a consultant, you want to give your clients the best views you can.”

Matthew Weinberg believes programs such as Building STEPS are essential to providing opportunities for underprivileged children and that such programs allow children to achieve their full potential and turn their dreams into reality.

The program was founded in Washington, D.C., and moved to Baltimore, Maryland, in 2000. The goal of the program is to help students become acclimated to the workplace

Building STEPS, Inc. Headquarters: Baltimore, Maryland Web site: www.buildingSTEPS.org Primary Business: Matthew Weinberg is the founder of the STEPS program and he is the CEO of The Weinberg Group.

Matthew Weinberg with STEPS students.

Employees: 2 Full Time, 6 Volunteers, 5 Board Members, 3 Advisory Board Members

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Matthew Weinberg, CEO and Founder of the STEPS program. J u ly / A u g u s t 2 0 0 8

Corporate Philanthropy

Anne Marie Agnelli Vice President, Communications and Community Affairs CA, Inc

Connecting Nonprofits to the IT World Many challenges are faced in connecting nonprofit entities to today’s fast-paced, complicated, and often costly world of information technology (IT). With hopes of breaking down this barrier, CA Inc., through the company’s CA Together IT program, entered into a strategic partnership with the Boys and Girls Clubs of America (BGCA). The CA Together IT program works with nonprofits around the globe, providing them with a full range of IT management services. Through this program, CA is equipping nonprofits with the technological capacity necessary to be successful in the 21st century. Serving as BGCA’s official national information security partner, CA has committed to $4.6 million in financial and in-kind contributions over three years. CA’s donation of Unicenter infrastructure management and eTrust security management will enable BGCA to increase information technology security significantly at its national headquarters in Atlanta, Georgia, and in more than 3,900 Boys and Girls Clubs nationwide. “We are extremely pleased that CA is our national information technology security partner,”

(Back row, l to r): Bill Hughes, senior vice president, Global Communications, CA Inc; Alex Rodriguez-Roig, Miami/Dade Boys & Girls Club; and Eddie Carbone, executive director, CA Championship with members of the Miami/Dade Boys & Girls Club (front row).

said John Goslin, BGCA’s vice president of information technology operations. “CA’s support helps us protect our club members from spam, deliver software more quickly to a complex network, and secure 56,000 workstations from the ever-increasing threat of virus attacks. This supports Boys and Girls Clubs of America’s efforts to reduce costs and provide more efficient services to our clubs.” CA not only supports the BGCA through its IT initiative, but also gets involved through employee volunteerism at many local clubs. Volunteers assist with after-school mentoring programs, paint club houses, and help kids with homework, sports, and computer projects. Another very exciting component of the partnership involved BGCA members in playing golf, including lessons from CA-sponsored golf pro, Retief Goosen, and other pros. The CA Together IT program further CA employees helped the kids at the Boys and Girls Club of Bellport, New York, with homework, builds on CA’s long computer lab work, and a Thanksgiving craft. history of giving to the communities it serves. By providing IT management software that meets the infrastructure and security manCA, Inc agement needs of nonprofit organiHeadquarters: zations and by extending the comIslandia, New York pany’s partnership out to the local Web site: clubs, CA is better able to serve the www.ca.com greater good of our communities. Primary Business: IT solutions Employees: 14,000 worldwide

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Corporate Philanthropy

Pamela Flaherty Director of Corporate Citizenship, Citi; and President and CEO, Citi Foundation Citi

Building Bridges to College and Career By all accounts, the odds were against

American Indian College Fund (AICF), headquar-

Trivia Afraid of Lightning graduating from high

tered in Denver, Colorado, to establish the Citi

school, let alone college. The 30-year-old Native

Scholarship and Career Exploration Program in

American and single mother of two in Rapid City,

2002. The goal is to help Native American students

South Dakota, recalled overhearing a grade school

like Afraid of Lightning make the dream of college

teacher denounce her as “stupid,” in part because

education a reality. The program provides annual

she was raised speaking Lakota, not English, and

$4,000 scholarships to 20 students attending South

struggled mightily in class. On top of that, Afraid

Dakota’s three tribal colleges.

of Lightning had acted as head of the family house-

hold since she was 11, when her grandmother died,

ents collaborate annually with employees at Citi’s

leaving the girl to cook and clean for her siblings

credit card business in Sioux Falls, South Dakota, to

and cousins and ensure they went to school and did

develop a career exploration day at one of the par-

their homework.

ticipating schools. The career fair program is open to

Fast-forward two decades. Afraid of Lightning

the entire tribal college community and leverages the

will graduate this winter from Oglala Lakota

diverse resources of Citi as well as Native American

College with a bachelor’s degree in literature and

small business owners and community leaders.

communication. She plans to earn a master’s degree

Together, they work to expose students to the lead-

in public health at Southern Methodist University

ership skills, education, and commitment necessary

and continue her work mentoring young Native

to succeed in business. The program is an integral

American girls, encouraging them to get a college

part of the Citi Foundation’s new education initia-

degree and to avoid the pitfalls of teen pregnancy,

tive, Building Bridges to College and Career, which

drugs, and alcohol.

emphasizes increasing college access and building

awareness of career opportunities.

Afraid of Lightning, a member of the Cheyenne

River Sioux tribe, attributes much of her success to a scholarship she received from the Citi Foundation. “You have no idea how much this helps someone like me,” she said.

CITI Headquarters: New York City Web site: www.citi.com www.citigroup.com www.citigroupfoundation.com Primary Business: Financial services

The New York-based Citi

Foundation partnered with the

Scholarship recipient Trivia Afraid of Lightning with Rick Williams, executive director of the American Indian College Fund.

Employees: 370,000

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In addition, AICF staff and scholarship recipi-

Corporate Philanthropy

Evan Hochberg National Director of Community Involvement Deloitte llp

Creating a College-going Culture A college education is a determining

operational and has cut production time on critical

factor in professional success and one of the most ef-

reports by 75 percent, enabling College Summit

fective ways to break the cycle of poverty. Annually,

to spend more time helping individual students,

nearly 200,000 college-capable high school gradu-

instead of crunching numbers. The cutting-edge

ates from low-income families do not enroll in

technology also provides analysis of what encour-

college or even submit a college application. For

ages more students to go to college so that College

many students, high school is a destination—with a

Summit and its school partners can use the data to

diploma and graduation being the end goal.

improve their programs.

College Summit views high school as a launching

Deloitte’s integrated support is valued at more

pad for college and career success. It is the largest

than $2 million. In addition to the data services,

schoolwide college-access provider in the country,

other commitments include:

working with 200 high schools that serve 17,000

graduates and 80,000 total students. At the core of

Awards for College Enrollment Achievement

the organization is the belief that high schools should

and Innovation being awarded in communities

use research-based indicators to track college enrollment rates. Such a practice creates a college-going culture that can dramatically increase the number

across the country.

lege enrollment preparation (most volunteers

school districts have the ability to track those rates

of any company).

reliably, but College Summit and Deloitte are work

• Board service, nationally and locally, to contribute leadership.

Given Deloitte’s deep knowledge and experience

in developing complex measurement systems, a

• Skills-based volunteering at College Summit summer workshops to jump-start students’ col-

of students enrolling in college. Only a handful of

ing together to change that.

• Creation and sponsorship of the Deloitte

• Capacity-building philanthropy.

major focus of our relationship with College Summit is to meet this national challenge by contributing pro bono services to develop a database capable of efficiently and effectively measuring college enrollment rates across entire cities. At the conclusion of our first year working together, the database is fully

Deloitte LLP Headquarters: New York City Web site: www.deloitte.com Primary Business: Professional services Employees: 41,000

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Corporate Philanthropy

Jim Vella President, Ford Fund Ford Motor Company

Althea Gibson Scholarship, Jackie Robinson Foundation Ford Motor Company Fund has been a committed supporter of educational programs designed to help youth of all ethnicities achieve their academic potential. Since its founding in 1903, Ford Motor Company has recognized the importance of providing educational opportunities and their impact on local communities. For more than five years, Ford Motor Company Fund has been a supporter of the Jackie Robinson Foundation. In tribute to tennis great Althea Gibson, the first African American to win at Wimbledon, Ford Motor Company Fund endowed a scholarship in her name in 2003. The first recipient, Carolyn M. Wright, class of 2008, is an international affairs major at Harvard University. In a recent conversation with Ms. Wright, she mentioned that the Althea Gibson Scholarship had created opportunities that she never thought possible. Ms. Wright recently returned from Cairo, Egypt, where she studied Arabic and taught English to Sudanese refugees. “It’s not enough to be an individual; it takes a community to raise awareness and make a difference,” she said. Her experience in Cairo has sparked her interest in public service. Consequently, she is spending her summer in an internship with Washington, D.C.-based Whitman-Walker Clinic, a nonprofit community-based health organization serving the gay and lesbian community.

Ford Motor Company Headquarters: Dearborn, Michigan Web site: www.ford.com Primary Business: Automotive manufacturing and distribution Employees: 228,000 in about 90 plants worldwide

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“Ford strongly believes in the power of education and the importance of equipping all young adults with the necessary skills to achieve their full potential,” said Bill Ford, executive chairman of Ford Motor Company. “We are thrilled to support the foundation and particularly pleased to support the Althea Gibson Scholarship fund as we know financial resources are a key factor in helping young people obtain a college education.” Founded in 1973, the Jackie Robinson Foundation (JRF) is the nation’s premier education and leadership development program. It provides four-year college scholarships to minority students who demonstrate academic distinction, leadership capacity, and financial need. Transcending financial assistance, JRF equips its scholarship recipients with a comprehensive set of support services including mentoring, career guidance, and practical life skills, resulting in a 97 percent graduation rate, more than twice the national average for minority students. JRF has provided $16 million in support to nearly 1,200 scholars since its inception. JRF alumni are both leaders in their professional fields and consummate ambassadors of Jackie Robinson’s legacy of public service.

Simply stated, diversity means difference.

> AT ROHM AND HAAS,

WWW.ROHMHAAS.COM

we believe that understanding, valuing and managing diversity will result in a dynamic, more enriched workforce, maximized profitable growth and sustained competitive advantage. Leading the way since 1909, Rohm and Haas is a global pioneer in the creation and development of innovative technologies and solutions for the specialty materials industry. We pair creativity with sound knowledge, making it possible for our customers to meet ever-changing market demands. With operations in 27 countries on five continents, Rohm and Haas’ 16,500 employees are proud to offer specialty and performance materials that help our customers succeed. The company, which is based in Philadelphia, PA, generated annual sales of approximately $8.9 billion in 2007 and is dedicated to helping customers, communities and partners imagine the possibilities™ around the world.

imagine the possibilities™

Corporate Philanthropy

Cathy Mann Director of Communications Halliburton

Volunteers Help Interfaith Ministries in Houston Halliburton’s community involvement is based in large part on the interests of its employees. By supporting the organizations that are important to employees, the company helps to improve the quality of life in the many places where Halliburton employees work and live. Halliburton’s support of the Interfaith Ministries’ Food for Seniors program in Houston is one of many examples. In 2007, Halliburton donated $50,000 to the nonprofit organization for the purchase of a van after one of its Meals on Wheels trucks was stolen and later found vandalized. Interfaith Ministries is the largest Meals on Wheels provider in the city of Houston, delivering more than 3,000 hot, nutritious meals to homebound senior citizens daily. The new van was only the beginning of a continuing relationship between Halliburton employees and Interfaith Ministries. In addition to providing the Meals on Wheels service, the Food for Seniors program counted on volunteers to deliver 35-pound boxes of groceries to seniors’ homes on the third Saturday of every month. When the organization experienced a shortage of volunteers to deliver those monthly groceries, Larry Hicks, a Halliburton employee, organized a group of volunteers. As a result, several Halliburton employees have adopted monthly routes of their own. One

Halliburton Headquarters: Houston, Texas and Dubai, United Arab Emirates Web site: www.halliburton.com Primary Business: One of the world’s largest providers of products and services to the energy industry.

Halliburton’s Cathy Mann and Mabel Menefee, left, present a company donation to Lou Keels of Interfaith Ministries.

Employees: More than 50,000 in approximately 70 countries

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of them, Annie White, said, “It’s really gratifying to participate in this program and know that you are bringing a little sunshine to these seniors. I’ve been volunteering with the Food for Seniors program since last year, and I’ve developed a bond with the seniors on my route. We enjoy visiting with each other.” Annie’s route usually takes her about an hour and a half to complete, depending on how long she stays at each place and chats. At Halliburton, we believe in giving back as a way to strengthen individuals and the communities where our employees live and work. We give back to our communities by supporting a wide variety of charitable organizations, with an emphasis on those that are most important to our employees and customers. Halliburton’s total corporate giving for 2007, including cash and in-kind donations, was nearly $353 million, and our employees volunteered more than 30,000 hours during the year.

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AT BANK OF THE WEST, WE BELIEVE OUR CUSTOMERS ARE WELL SERVED BY EMPLOYEES WHO ARE WELL SERVED. Different perspectives generate fresh ideas. That’s why at Bank of the West, we value diversity and equal opportunity for all our employees. Year after year, we continue to grow stronger thanks to our unique blend of people. After all, in today’s competitive banking environment, it is our employees with innovative ideas that keep us a step ahead of the rest.

www.bankofthewest.com

Bank of the West and its subsidiaries are equal opportunity/affirmative action employers. M/F/D/V

Corporate Philanthropy

Timothy P. Flynn Chairman and Chief Executive Officer KPMG llp

Reviving Baseball in Inner Cities program At KPMG, serving our communities is part of our firm’s culture. Our focus is on youth and education. We recognize that children from underserved communities may be disadvantaged in acquiring basic reading, writing, and math skills or lack role models to mentor them academically or personally. To further underscore our firm’s commitment to youth and education, KPMG began a multiyear relationship with Major League Baseball (MLB) in 2007, becoming the sole corporate sponsor of MLB’s Reviving Baseball in Inner Cities (RBI) program. RBI’s worldwide outreach program touches more than 125,000 boys and girls. RBI increases participation and inclusion of minorities in the game, while encouraging academic achievement, developing self-esteem, and teaching the value of teamwork. RBI is more than a sponsorship opportunity. It helps KPMG increase opportunities for inner-city youth and make a difference in their lives. RBI also provides rewarding, hands-on volunteer opportunities for our partners and employees that are consistent with our firm’s core values and aligned with our strategic goals as responsible corporate citizens. RBI helps

KPMG LLP Headquarters: New York City Web site: www.us.kpmg.com Primary Business: Audit, tax, and advisory services Employees: 23,000

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us change lives while supporting our commitment to diversity and our profession, both of which are integral to so many of the firm’s philanthropic and volunteer programs. Working through RBI, more than 900 KPMG volunteers help RBI’s children learn how to play baseball and softball and acquire the skills they will need to excel throughout their lives—off the field, in school, and, later on, in business. It is our belief that the dedication of our people will continue to be our most valuable contribution to RBI—the direct and long-lasting impact they will have on the children whose lives they touch through a simple game of baseball and softball. Thanks to KPMG volunteers, thousands of children will graduate from high school, attend college, and build successful careers. Through RBI, KPMG is able to reach inner-city youth and encourage these children to look toward their futures. Together we impact our most valuable resource—our children.

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L I V E Y O U R PA S S I O N L O V E Y O U R W O R K

TO LE AR N M ORE AB OU T C A RE ERS I N W R I T I N G E D I TOR IA L DE SIG N IL LUST R AT ION SC UL P T ING PH OTO G R A PHY OR LET TER I N G

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Corporate Philanthropy

Merlinda Gallegos Vice President of Corporate Philanthropy MGM MIRAGE

Executives Leading Philanthropy Efforts Paul E. Culley Empowerment School In 2006, MGM MIRAGE “adopted” Paul E. Culley Elementary School, one of four empowerment schools in the Clark County School District in Las Vegas. Empowerment schools allow school staff to have more control over budget, curriculum, and scheduling. Through the partnership, MGM MIRAGE contributes $50,000 annually in addition to providing support such as job assistance for parents, school supplies, mentors, teacher training, and professional development. Over the past two years, MGM MIRAGE: • Provided backpacks filled with school supplies to more than 2,000 students. • Contributed new socks and shoes for every child through the Shoes That Fit program. • Allowed students to tour the world-renowned conservatory at the Bellagio Resort & Casino to learn about horticulture. • Provided leadership training to staff and administration. • Leveraged its relationships with other youthserving organizations to deliver additional services and resources to the Culley campus. MGM MIRAGE’s leadership in the empowerment program has yielded significant results. Students at Culley have increased achievement significantly across all grades, all subjects, all student MGM MIRAGE demographics, and subgroups. Headquarters: Student achievement in math and Las Vegas, Nevada reading increased more than 20 Web site: www.mgmmirage.com percent in each area. Primary Business: Hospitality

Employees: 66,000

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Three Square MGM MIRAGE joined several other business and community leaders to create Three Square, a nonprofit organization dedicated to eradicating hunger in Southern Nevada. Seeded by a $50,000 contribution from MGM MIRAGE and other donations, the group aims to build a model facility, designed by leading hospitality industry chefs, that will provide fresh, nutritionally balanced meals to nonprofit food distribution centers such as shelters, churches, and social service outlets. Already, Three Square has garnered local and national support and achieved significant milestones that include: • A $2 million investment by America’s Second Harvest, the national organization addressing hunger. • A multiyear, multimillion-dollar investment by the Conrad H. Hilton Foundation. • More than $1 million in corporate and individual donations. Beyond its financial contribution, MGM MIRAGE executives from across the company, including community affairs, philanthropy, and food and beverage, are spearheading the efforts of Three Square. Company employees have worked tirelessly in every aspect of developing this vital community organization, from leadership, to menu design, to food preparation and technology, to galvanizing support from the Nevada restaurant community.

Join us in Atlanta. Registration open now!

Leading, Changing, Transforming SHRM Diversity Conference & Exposition

Keynote Speakers Oct. 27-29, 2008 Atlanta, Ga.

Atlanta Marriott Marquis Frans Johansson

Bill Strickland

Host, National Geographic Channelâ&#x20AC;&#x2122;s Explorer

Author, The Medici Effect

President and CEO, Manchester Bidwell Corporation

Early bird price until 8/1/08

Global Diversity and Inclusion Issues in the 21st Century Panel

SHRM Member: $1,025

Chief Diversity Officer Speakers:

Nonmember: $1,270 08-0514

Lisa Ling

Steve Bucherati

Deborah Dagit

Dr. Rohini Anand

The Coca-Cola Company

Merck & Co. Inc.

Sodexho USA

Moderator:

Dr. Shirley Davis Director of Diversity & Inclusion Initiatives Society for Human Resource Management

Please visit www.shrm.org/conferences/diversity for more information or to register.

Corporate Philanthropy

Chris Park President, New York Life Foundation New York Life

Fostering Healthy Connections The New York Life Foundation awarded a three-year, $748,000 grant to the Child Welfare League of America (CWLA) to expand its mentoring program, Fostering Healthy Connections, to eight CWLA member agencies in Schenectady and Stony Brook, New York; Des Moines, Iowa; Peoria, Illinois; Melbourne, Florida; Holmes, Pennsylvania; Columbus, Ohio; and East Providence, Rhode Island. The curriculum of the mentoring program is the only one developed specifically to involve former foster youth as mentors for those who are currently in the foster care system. The curriculum was created in collaboration with FosterClub, a nonprofit organization with expertise working with foster care youth, the result of New York Life Foundation’s $199,200 grant to CWLA in 2005. The FosterClub program was piloted at Boys’ Haven, a CWLA member agency in Louisville, Kentucky. Boys’ Haven provides residential and foster care services to children who have been victims of abuse and neglect. The program has proven successful with nearly 100 percent participation in all activities by all mentor/mentee matches.

New York Life Headquarters: New York City Web site: www.newyorklife.com Primary Business: Life insurance, retirement income, long-term care insurance, institutional asset management, and retirement plan services

Peer mentor Sophia (left) shares a special moment with her mentor, Andrea.

Employees: 8,689 (domestic)

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Based on the success of the pilot program, CWLA requested funding to offer Fostering Healthy Connections training, ongoing technical assistance, and a “toolkit” of activities and resources to additional agencies. FosterClub will again collaborate with CWLA and use the curriculum to develop the trainers for each new agency. The curriculum and program materials will also be available to all CWLA members at the conclusion of the grant. “With this significant, ongoing support from the New York Life Foundation, CWLA can expand this important program. Now even more youth in foster care will benefit from the relationships with their mentors at a critical time in their lives,” said Christine James-Brown, CWLA’s president and chief executive officer. “The New York Life Foundation is proud to build on the success of our initial grant and provide additional support to a program that has already proven to be successful. Through our partnership with CWLA, additional children in foster care, who desperately need strong connections in their lives, will benefit from the insight of mentors who uniquely understand their needs,” said Chris Park, president, New York Life Foundation.

Corporate Philanthropy

Kathleen Ryan-Mufson Director of Corporate Citizenship and Philanthropy Pitney Bowes Inc.

Reading Is Fundamental Training Program Since 2005, the Pitney Bowes Literacy and Education Fund (PB L&EF) has supported the programs and activities of Reading Is Fundamental (RIF), the nation’s oldest and largest nonprofit literacy organization for children and families. Juanita James, chief communications officer, Pitney Bowes Inc., has served on its board since June 2004. In 2007, the PB L&EF provided a $50,000 grant in support of RIF’s “Care to Read” early literacy training program. This program supports children’s emergent literacy skills through training and resources for childcare staff in center and homebased programs. Six workshops cover topics in early literacy development and use children’s literature to actively engage childcare staff and illustrate literacy development concepts. The workshops are designed to “train the trainer,” preparing participants to return to their programs and deliver the six workshops to their colleagues. The six workshops cover the following topics:

• Understanding Early Language and Literacy Development

• Creating Literacy-rich Environments

• Where Conversation Leads

• Reading Aloud

• Making My Mark

Pitney Bowes Inc. Headquarters: Stamford, Connecticut Web site: www.pb.com Primary Business: Mailstream hardware, software and services Employees: 36,000 worldwide

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• Supporting Language and Literacy Development Every Day.

The PB L&EF’s 2007 grant went toward two training sessions in Spokane, Washington, and Appleton, Wisconsin, that trained a total of 120 education and childcare professionals. Each participant was also provided with a Trainer’s Resource Kit which contains approximately 20 children’s books, teacher resource books, three literacy-themed full color posters, RIF’s “Read with Me” videos and guide, and a trainer’s manual which includes the training activities for each workshop, handout masters, and other resource materials a trainer needs to deliver the workshops for groups of participants. RIF officials expect that each “Care to Read” program participant will go back to his or her educational or childcare institution and train five or more people. The Pitney Bowes Literacy and Education Fund is proud to support the “Care to Read” program, a tremendously successful model for how to cascade high-impact literacy training skills to educational and childcare professionals.

RIF Training Workshop

We all have distinct perspectives and individual talents that make each of us unique. Recognizing and celebrating those differences is integral to Bank of America commitment to diversity and inclusion. From our boardrooms to our banking centers to our offices abroad, we continue to build powerful alliances throughout our company and in the communities we serve. And our commitment to diversity and inclusion has helped foster a rich, rewarding environment that offers each of our associates unlimited opportunity. To learn more about starting a career with Bank of America and about our associate diversity programs, visit www.bankofamerica.com/careers.

ÂŠ2008 Bank of America Corporation

Corporate Philanthropy

Kevin Bott Chief Information Officer Ryder System Inc

Making a Difference for Special Needs Students For almost 10 years, Ryder System has helped Neva King Cooper Educational Center, a school for profoundly mentally handicapped children and adults, ages 3 to 22, in Homestead, Florida. The school, located in southern MiamiDade County, has 106 students, half of whom are confined to wheelchairs and need assistance with basic daily functions. The majority of the parents of Neva King Cooper students face difficult financial situations. Many lack the resources to obtain the food, clothing, and medical supplies they need to provide a comfortable life for their children. Over the years, Ryder has developed a close relationship with Neva King Cooper. The company organizes an annual Thanksgiving celebration, donating turkeys to every family and additional food supplies to dozens of the poorest families. Ryder also organizes a Holiday Extravaganza in December, delivering toys to the students from their Christmas wish lists. The children, their families, and Ryder officers attend the daylong celebration, which includes games and entertainment. For many families, Ryder’s holiday meals are their only holiday dinner. Throughout the year, Ryder also lends Neva King support on a needs basis, providing everything from basic toiletries and diapers to funds for hearing aids and wheelchairs. Additionally, the company has contributed bathing suits and towels for the children

Ryder System Inc Headquarters: Miami, Florida Web site: www.ryder.com Primary Business: Transportation and supply chain management solutions

Ryder employees and officers attend the annual Holiday Extravaganza, a day of food, entertainment, and fun for students and their families.

Employees: More than 28,000 globally

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who receive therapy in the school’s swimming pool. Recently, company volunteers attended a school beautification day, planting a butterfly garden and painting colorful murals. Assistant Principal Henny Cristobal explained that Ryder’s assistance has done an extraordinary job of improving the students’ quality of life. “Most of our parents’ energy is focused on solving problems,” he said. “Because of their health challenges and weakened immune systems, our students are constantly getting sick, and their parents are focused on meeting their basic health needs. They don’t have time to focus on the simple pleasures of life, and that’s where Ryder’s assistance has been so crucial. Ryder’s support has helped improve our students’ overall enjoyment of life.”

Ryder System Chief Information Officer Kevin Bott gives a Christmas present to a student of the Neva King Cooper Educational Center.

Corporate Philanthropy

Steve Brady Senior Vice President of Corporate Communications Sodexo

Training Chefs, Turning Lives Around, Relieving Hunger DC Central Kitchen (DCCK) is one of the nation’s largest and most successful hunger relief organizations. From its busy, state-of-the-art central kitchen, the organization recovers unused food, prepares and delivers meals to partner social service agencies, trains and employs homeless men and women for the food service industry, and intellectually engages volunteers. Every day DCCK prepares and delivers 5,000 meals to nine shelters and more than 60 partner agencies across the District of Columbia. The man behind the hectic daily kitchen operations is Jerald Thomas, a seasoned chef who almost lost it all to substance abuse—his job, his family, and his home. Today Jerald has his life back thanks to his hard work, the help of Sodexo, and the DC Central Kitchen. While in recovery at a residential treatment center, Jerald first learned about DCCK’s Community Kitchen, a 12-week Culinary Job Training Program. He completed the program, was recertified in kitchen sanitation, and was hired by Sodexo as a cook.

Jerald Thomas, Kitchen Director of DC Central Kitchen and Community Kitchen success story.

“Sodexo took a chance on me and gave me a great start back on my life,” Jerald recalled. “They saw my potential and promoted me from cook to junior chef in just one week.” Sodexo and the Sodexo Foundation are longtime supporters of the DCCK and the national Community Kitchen program. Sodexo supports local program efforts and funds individual Community Kitchens with grants. Since 2000, Sodexo has hired 200 Community Kitchen graduates, placed more than 250 Community Kitchen students in internships, and helped train close to 950 students. Jerald Thomas is one of the shining stars of the Community Kitchen-Sodexo collaboration. After a one-year stint with Sodexo, Jerald returned to DCCK—not as a student, but as a leader. He began as a sous chef and was soon promoted to kitchen director, a position he has held for nearly four years. While managing a staff of 15 and producing 5,000 meals a day, Jerald earned his associate degree in culinary arts from Stratford University in Virginia. Jerald has turned his life around, and the Sodexo Foundation is proud to have played a role in his recovery. Sodexo Headquarters: Gaithersburg, Maryland Web site: www.sodexoUSA.com Primary Business: Food and facilities management services Employees: 110,000

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Corporate Philanthropy

Caroline “Caz” S. Matthews President, WellPoint Foundation; Vice President of Social Responsibility WellPoint Inc.

Community Service Day Every year WellPoint Inc. associates give generously to more than 9,000 not-for-profit organizations across the country. The WellPoint Foundation LLC matches 50 percent of those dollars to provide even greater financial support to these organizations. During the 2007-2008 campaign, associates pledged more than $15 million, and the WellPoint Foundation provided a $7.5 million match to these pledges. To further connect associates to the communities and people they serve through their pledging, WellPoint’s Community Service Day was created by Angela Braly, WellPoint president and CEO, and Caroline Matthews, WellPoint Foundation president. The initiative brought together associates nationwide to volunteer in April 2008. In its inaugural year, approximately 3,000 people volunteered time to more than 220 projects in 140 cities spanning 30 states and the District of Columbia. Projects were developed in partnership with the March of Dimes, United Way and many other nonprofit organizations and included the March for Babies events, efforts to reduce obesity in children with the Boys and Girls Clubs, and community health clinics that served the uninsured. Community Service Day was designed to address direct needs in WellPoint’s communities. The founders wanted to provide a meaningful experience for associates and their families and friends and to show that time, talent, muscle, and money are necessary to support WellPoint’s communities.

Through these charitable projects, the WellPoint Foundation is able to promote the company’s commitment to enhance the health and well-being of those in the communities WellPoint serves. More than 70 percent of the projects included an element of improving community and population health. The remaining programs targeted areas of need such as environmental renovations, basic needs support, and disaster preparedness. The initiative was a resounding success, involving more than 5 percent of associates, and the project team has already started planning for next year. In 2007, including the campaign match of associates’ giving, the WellPoint Foundation committed $23 million to community organizations nationwide, and WellPoint Inc. gifted $4.9 million to civic and charitable organizations through its community relations support.

WellPoint Inc. Headquarters: Indianapolis, Indiana Web site: www.wellpoint.com Primary Business: Health benefits Employees: 42,000

Pro f i les i n Di ve rsit y Journal

Top to bottom: • An associate plants new grass in a clearing. • The team works to clear a hiking path through the woods for campers. • A large group of volunteers fills in holes and gaps for new grass.

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And that may be the one true link that brings us all together, regardless of race, creed or color. Boeing proudly supports those courageous enough to make discrimination, history.

www.catalyst.org

Women of Color in Accounting: Exploring the Intersection of Race/Ethnicity and Gender

By Catalyst

According to the Occupational Outlook Handbook, employment of accountants and auditors is expected to grow faster than average for all occupations through the year 2014.1 With women and people of color receiving certification in accounting2 and joining the accounting industry at an increasing rate,3 firms are faced with the job of creating more inclusive environments in a traditionally white, male-dominated, “up-or-out” culture. Although a certain amount of attrition is built into the business model for professional services firms, to stay competitive, accounting firms can no longer afford high turnover among talented professionals whom they train only to become regretted losses. In Women of Color in Accounting, Catalyst continues its investigation of the experiences of women of color in professional services firms, which are characterized by a client-service focus and firmly entrenched “old boys’” networks. In the report Catalyst benchmarks the experiences of women of color against other demographic groups in the workforce. This examination lets us understand better the “intersectionality” that women of color experience: that is, how a person’s different attributes and characteristics interact with one another and inform personal and professional identities, experiences, and expectations about privilege and disadvantage in the workplace.

Findings Women of color had more in common with men of color than with white women in their attitudes regarding exclusivity of the work environment and their perceptions that practices intended to support inclusion were not as effective as they could be. • People of color felt less included in the accounting firm work environment than did whites. For example, they were more likely to perceive low expectations from their managers and double standards regarding performance evaluation. They felt less connected with influential mentors who could help advance their careers; even those people of color with mentors were likely to feel that their mentors lacked influence as compared with those of their white colleagues. Perhaps because of this, people of color felt more challenged than whites in understanding organizational politics. • In judging the firms’ responses to diversity and inclusion challenges, people of color were less likely than whites to perceive accountability and commitment. This is consistent with earlier Catalyst research that found that people of color tended to perceive diversity practices at their firms as wellintentioned but suffering from “imperfect execution.”4

1Bureau of Labor Statistics, “Accountants and Auditors,” Occupational Outlook Handbook (December 20, 2005). http://www.bls.gov/oco/ocos001.htm 2According to The National Center for Education Statistics (Integrated Postsecondary Datasystem, 2007), in the 2005-2006 school year, people of color

(African Americans, Latinos, Asian-Pacific Islanders, and American Indians) earned 26.2 percent of all accounting bachelor’s degrees, 19.0 percent of all accounting master’s degrees, and 19.0 percent of all accounting PhDs. 3Beatrice Sanders, The Supply of Accounting Graduates and the Demand for Public Accounting Recruits: 2005 (New York: AICPA, 2005). 4Deepali Bagati, Retaining People of Color: What Accounting Firms Need to Know (Catalyst, 2007): p. 4.

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“

...firms are faced with the job of creating more inclusive environments in a traditionally white, male-dominated, “up-or-out” culture.

”

• Some people of color believed that work-life practices at their firms lack racial sensitivity. There were a few areas in which women of color and white women had similar experiences and perceptions. For example, they both perceived some level of social exclusion from the “old boys’” network and also perceived a lack of support from firms for their family responsibilities. Most importantly, women of color experienced “intersectionality” in that they faced many barriers to a greater extent than did white women or men of color. Many of these barriers relate to difficulty in navigating a client-based environment, and include lack of similar role models, stereotyping, a greater level of exclusion from networks, and difficulty in accessing high-visibility assignments and business development opportunities.

employees at participating firms. For the quantitative portion of the study, a web survey was distributed to a sample of employees at some of the 20 largest (by revenue) accounting firms in the United States. One-half of the firms in the sample were from the top four accounting firms and the remainder came from the rest of the top 20. Participating organizations fielded the survey between December 2006 and May 2007. The survey was sent to a total of 3,918 individuals, and 1,424 of them responded, for an overall response rate of 36.3 percent. PDJ

About Catalyst Founded in 1962, Catalyst is the leading nonprofit corporate membership research and advisory organization working globally with businesses and the professions to build inclusive workplaces and Methodology expand opportunities for women and business. This study consisted of both qualitative (interviews To download free copies of this and other Catalyst and focus groups) and quantitative (survey) data reports, visit www.catalyst.org. You may also sign up collection. We conducted six interviews with senior to receive our monthly email updates at partners and nine focus groups of professional news@catalyst.org.

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Thanks to you, Peter feels the support he needs to become a stronger, more independent individual.

At WellPoint, we are addressing tomorrow’s health care issues today. Our Associate Giving Campaign offers associates the opportunity to contribute dollars to a number of qualifying nonprofit organizations. What’s more, WellPoint’s 50 percent match of employee contributions is making everyday goals a reality for many individuals in our communities. Commitment like this has had an immediate impact on people like Tom, who’s doing more for himself than he ever thought possible. Working to better people’s lives is not something you do every day. But it can be – at WellPoint.

Better health care, thanks to you. Visit us online at wellpoint.com/careers and wellpoint.com/diversity Contact us at diversityrecruiting@wellpoint.com EOE

at ArvinMeritor,

Special Feature

Diversity at Starts the top

ArvinMeritor Executives clockwise from front: Rhonda Brooks, Rakesh Sachdev, Victoria Jackson, Lin Cummins, Vernon G. Baker II, Chip McClure, Joe Anderson, and Mary Lehmann.

48 CEO Leadership 57 Leadership Profiles 66 A Culture of Opportunity and Success

CEO Leadership

Special Feature :: ArvinMeritor

ArvinMeritor—a leading global automotive and commercial vehicle supplier—is not alone in the number of challenges facing the entire manufacturing sector. Among them is building and maintaining a motivated, productive workforce. Perhaps even more important, however, is creating a positive team culture in which talented men and women from all over the world and from diverse backgrounds can reach their full potential while helping the company to thrive in today’s tough business climate.

Getting to Know ArvinMeritor’s

Chip McClure Charles G. (Chip) McClure, ArvinMeritor’s chairman, CEO, and president since 2004, has become well respected in the industry for his financial and strategic acumen and for building strong business. Under his leadership, ArvinMeritor not only delivers on aggressive cost-reduction and sales targets, but also maintains a diverse organizational culture with a positive outlook on future growth and opportunity. Prior to joining ArvinMeritor, McClure served as CEO, president, and board member of Federal Mogul Corp., a $5.5 billion global supplier of automotive components. In this role, he was instrumental in creating an aggressive plan to resolve difficult issues related to Federal Mogul’s reorganization and planned emergence from Chapter 11 bankruptcy. Prior to that, McClure held senior positions at Detroit Diesel, a major designer and manufacturer of diesel engines and related products; Johnson Controls, a Milwaukee-based global automotive supplier; and Ford Motor Company.

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CEO Leadership

Special Feature :: ArvinMeritor

Corporate Profile You’ve faced human resource issues at a number of automotive companies. Now that you’re in the top spot at ArvinMeritor, how do you define diversity for the organization?

Diversity is about recognizing, respecting, and valuing the uniqueness of each individual. By identifying and appreciating each individual’s personal and professional abilities, talents, and experiences, we can make the most of these valuable human resources to drive superior business performance. Tapping into each person’s ideas, problem-solving skills and perspective on each project nourishes the creative power that is our strongest and most sustainable competitive advantage. That creativity, in turn, helps drive us toward our goal to deliver innovative solutions to our customers around the world. ArvinMeritor appears to have an exceedingly motivated workforce. How do you create a high level of commitment in the organization?

I have been in business for nearly 30 years. The most important thing I have learned is that only by fully embracing diversity and maximizing the contributions of our people can we completely realize the strength and competitiveness of our company. We must also encourage individuals to reach their full potential and reward them for their contributions. In the auto industry, we continually work through up and down cycles. So we must keep our business flexible enough to adapt to change. At the same time, we must maintain our ability to provide strong value to our shareholders. That flexibility calls for a very talented and motivated workforce. Our success requires that we strengthen our balance sheet, grow globally, create and invest in viable core competencies, recruit and retain a technically advanced workforce, and, of course, continue to reduce costs. All of our employees must be engaged in order for ArvinMeritor to meet these aggressive commitments. Our people are motivated to contribute not only because they are rewarded for their contributions, but also because they are recognized for sharing new ideas. In an industry in which companies thrive on innovation, our workforce—from the executive offices

Company Name ArvinMeritor, Inc. Headquarters: 2135 W. Maple Rd., Troy, Michigan, 48084 Web Site: www.arvinmeritor.com Primary Business: Premier global supplier of a broad range of integrated systems, modules and components to the motor vehicle industry. Industry Rank: 301 on the Fortune 500 Number of Employees: 19,000 employees

Annual Revenues: $6.4 billion

to the plant floor engineers and everyone in between—is constantly challenged to develop viable solutions to recurring and new complex problems. That is exciting and highly motivating. People want more than a job and a paycheck. They want inclusion, understanding, and to be part of a culture that respects their differences. We work hard at creating that kind of environment at ArvinMeritor, and I think we have done a good job. How do you believe diversity impacts your workforce and, ultimately, your company’s bottom line?

At ArvinMeritor, workforce diversity is viewed as a competitive advantage and business opportunity. The ultimate success of our company depends on our ability to hire, train, retain, and promote a diverse workforce and supplier base across the global organization. For a long time in the automotive sector—especially in manufacturing—a very homogenous group led us. Not enough effort was made to recruit qualified women or minorities with innovative ideas, and the industry suffered for it. In a business driven by creativity—whether in new technology, new products, or new processes—it goes without saying that you will get improved results with varied and diverse input. Men and women from different cultures perceive problems and solutions differently, and those fresh opinions can produce powerful results. It’s not enough that we develop our products on time and under budget. In today’s competitive environment, our Prof iles in Div er s it y Jou r na l

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CEO Leadership

Special Feature :: ArvinMeritor

solutions must be focused on building lighter and enhanced products at a lower cost than ever before. Having the advantage of a diverse workforce with a variety of strengths and points of view is key to helping ArvinMeritor create smart, breakthrough products for the future. Before we move on, I’d like to take a moment to say that ArvinMeritor is privileged to have talented men and women from diverse backgrounds and with varied experiences at virtually every level of the organization—many more than we have space to mention in this company profile. Their valuable individual contributions factor heavily into our long-term success every day. As I said earlier, they are perhaps ArvinMeritor’s most important sustainable competitive advantage. How have you changed your recruitment efforts at ArvinMeritor to be more inclusive?

A major concentration in our diversity efforts has been on recruitment. This is an issue that starts, literally, at the top of the organization with a very involved board of directors. On our board, we have an Environmental and Social Responsibility Committee that has instilled metrics to

By the numbers… ArvinMeritor employs approximately

19,000 employees in 24 countries.

monitor success and areas of improvement in our recruiting and retention efforts. Also, it is part of our culture to recruit and develop a strong talent pool. For example, our finance department has long had a Financial Development Program (FDP), an initiative to proactively recruit 15 to 20 of the best and brightest MBA and BBA graduates to the company each year. In addition, we realized several years ago that we had historically been recruiting from schools that provided a limited number of diverse potential candidates. Since then, we have greatly expanded our recruitment efforts at universities with more diverse student bodies, such as Howard University, Morehouse College, Georgia Tech University, and many others. Since we’ve reached out to the men and women attending a broader spectrum of campuses, more than half of our FDP candidates now represent a variety of cultures, backgrounds, and ethnicities. Now that we’re building a strong, inclusive entry-level pool of talent, we are also making strides in our retention efforts. We realize the importance of supporting these skilled new team members and giving them the opportunities they need to grow with the company. I know that you’re active in Washington, D.C., with the Executive Leadership Council (ELC). What type of diversity issues is that organization dealing with, and how are you incorporating your work in Washington at your own offices?

Our chief legal counsel, Vernon Baker, is a member of the ELC, and he got me involved four years ago. Every year, I attend a day-long CEO summit where 30 to 40 of my peers gather to have an open dialogue on embracing diversity. These sessions have been a real revelation, and allowed me to see the world through the eyes of people with different backgrounds and different points of view.

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“

ArvinMeritor is privileged to have talented men and women from diverse backgrounds and with varied experiences at virtually every level of the organization—many more than we have space to

”

mention in this company profile.

During that day, the ELC members and the CEO participants candidly discuss how people of dissimilar races view issues, problems, and solutions differently. The summit offers a priceless insight I can bring back to the office that helps me to stay more open-minded and committed to diversity. Another aspect of our involvement in the ELC is that we bring several young minority professionals from ArvinMeritor with us to the ELC fundraiser. Those who have attended have told me that it has been extremely motivating to see the successful role models that the ELC honors at the event. They also appreciate seeing the efforts ArvinMeritor is making to embrace diversity. I’m also heavily involved in the National Association of Manufacturers (NAM) led by former Michigan Governor John Engler. I serve on the executive committee, and I am chair of the HR council, where we develop and recommend actions on various HR public policy issues. Healthcare has obviously been a big issue, as has immigration. Our role is to offer and recommend fair and just immigration reform policy for consideration by Congress. We also presented an important paper on the subject of women in manufacturing and made several recommendations for best practices in increasing the number of women professionals in the industry. I believe it is the responsibility of leaders like me to be active on issues that will drive our industries forward, and I pledge to maintain that level of commitment. Has this involvement led to specific policy changes at your company?

Here’s one good example: Being more involved in examining healthcare policy has underscored for me how much employees rely on their organizations for support. I have also come to better understand how those needs change

based on the life needs of a diverse workforce. — Chip McClure To address those unique situations, traditional staffing, leadership, and succession planning are not enough. At ArvinMeritor, we also have programs and policies such as Adoption Financial Assistance and the Family and Medical Leave Act. To support the various needs of our people, we also encourage flexible work options, such as compressed workweeks, flextime, job sharing, part-time positions, and telecommuting.

ArvinMeritor has been recognized by Catalyst, one of the leading professional women’s organizations, and inforum, your own local women’s economic club, for the number of women you have in senior-level positions. How did that happen?

We are very proud of the fact that ArvinMeritor has more women in board and officer positions than many of our peers in the automotive industry. So, I was very pleased to be recognized for our commitment to promoting women. We are lucky to have found many strong female leaders. These women are highly skilled professionals who have more than proven themselves in a largely male-dominated industry. A great deal has changed since I graduated from Cornell University with an engineering degree. And at that time, there were very, very few women in the program. I continue to be an active alumnus, and both my son and daughter attend Cornell. Obviously then, I remain close to the program. There are now more women than ever in the engineering program, and I believe that is true across the country. Fortunately, there is a much greater pipeline of female engineering talent than there was, so that’s a big gain for the manufacturing and engineering profession. That having been said, however, there’s still a long way to go in encouraging young women to enter the fields of science and engineering. When those young women look for role models, I want them to find them here at ArvinMeritor. And that’s not just here at our U.S. headquarters. ArvinMeritor employs

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CEO Leadership

Special Feature :: ArvinMeritor

a large number of highly successful women in AsiaPacific, Europe, and many other regions of the world. The bottom line is, our country is becoming more diverse. The diversity and character of the American workforce has undergone tremendous changes over the last few years. Companies that do not actively embrace and foster diversity are going to be at a loss if they do not recruit and retain more talented men and women from diverse cultures who can bring fresh ideas and a different perspective to the table. That is one of the new business realities. What are some actions you are taking to measure accountability in your diversity efforts?

Final accountability for diversity is held at the board level. As I mentioned earlier, we have an Environmental and Social Responsibility Committee that is responsible for quality, safety, ethics, community, and environment issues. The committee also applies metrics to our recruiting and retention efforts. While the board regularly reviews high-level executive appointments, we also spend a great deal of time discussing minority candidates at all levels of the orga-

nization. We do this to ensure that we remain aware of the diverse management potential we have within the organization, and where we might find qualified candidates for advancement. Above all, the board holds all of the officers accountable for improving diversity initiatives in each of their areas of responsibility. This solid, top-level commitment is going to make this organization better. We also have an annual, rigorous, two-day Succession Development Program where all of the company officers participate to review and discuss the future leaders of the company. In these sessions we also measure the current state of diversity of our organization. In addition, although this action is not diversity-specific, we do whatever is necessary to encourage employee retention. As a result of those efforts, we currently fill 70 percent of our positions with internal candidates. Our target is to reach 80 percent. What qualities do you look for when hiring management? How do you quantify attitudes?

Depending on the position and level, the candidate must first be technically capable. Next, we carefully consider the individualâ&#x20AC;&#x2122;s personal and professional

Pictured (l to r), Terry Barclay, President and CEO, inforum; Anthony Earley, Chairman and CEO, DTE Energy; Stan Smith, National Director, Deloitte; Charles â&#x20AC;&#x2DC;Chipâ&#x20AC;&#x2122; McClure, Chairman of the Board, CEO and President, ArvinMeritor, Inc.; Daniel Loepp, President and CEO, Blue Cross Blue Shield of Michigan; panel moderator Ann Thomas, WJR radio; and Kathy Oswald, President, Right Management.

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CEO Leadership

Special Feature :: ArvinMeritor

ethics. I want people who, at any time, can publicly share whatever they are doing with the rest of us without hesitation or question. Finally, we have a unique culture here, and look for men and women who will add to that culture, benefit from it and make it even stronger. We are in the transportation industry—both automobiles and commercial trucks. Fifty percent of our business is outside of the United States. We must have people who are not only comfortable in dealing with global business environments, but thrive in them. ArvinMeritor has been in countries like China and India for a long time, and we are fortunate to have a good core of people in the management team that have been developed from both the local population and our expat community. It comes down to having a good balance.

What kind of human resource challenges do you face in your industry?

This is a tough industry going through a rough time. When you are operating in an industry that is contracting rather than expanding, recruitment and retention is all the more challenging. So, we go out of our way to put our best candidates and our best people in situations where they will not only be recognized, but be able to make real, meaningful contributions to the success of this company. The best and the brightest often crave challenges and want to be leaders. So, we try to give them that opportunity whenever we can. For example, we recently took close to 100 of our best people away from their regular roles and created a group designed to develop and drive our transformational Performance Plus Program. It was the group’s complete responsibility to lead one of the biggest and

Closing the Gap Award ArvinMeritor received the Closing the Gap Award from New Detroit in recognition of its efforts in southwest Detroit to promote economic development and educational initiatives, and reduce racial tensions in the city of Detroit. The award was presented to ArvinMeritor’s Chairman, CEO and President Chip McClure before approximately 650 civic and community leaders at the Detroit Opera House. ArvinMeritor’s Detroit operations were specifically cited for the hiring of Detroit citizens, collaboration with neighboring Southwestern High School, support for human services in the city and for efforts to feed the needy. New Detroit was formed in 1967 and is a coalition of leaders from civil rights advocacy, health and community organizations, business, labor, foundations, education, media and clergy. Pictured with the Closing the Gap Award are: (l to r) Chip McClure; Shirley Stancato, President and CEO of New Detroit; and John Rakolta, Jr., Chairman of New Detroit.

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CEO Leadership

Special Feature :: ArvinMeritor

An avid runner, Chip McClure has made physical fitness a part of his life. To encourage fitness at work, employees are invited, twice a month, to “Walk and Talk with the Chairman.” These 30-minute walking sessions use the outdoor, ArvinMeritor 1-mile heart-healthy track. The track was created in 2007 to encourage employee exercise, and includes signage describing heart-healthy facts and tips.

most dramatic cost-reduction and growth initiatives in our company’s history. They literally were charged with transforming the company. And that experience has given them just one of the kind of incredible opportunities we have to offer to potential recruits anywhere in the world. Where does your personal belief in diversity and inclusion come from? Who were the role models who shaped your point of view on diversity?

I come from a family of engineers, one of whom was my mother. She studied engineering for two and half years before going on to teach. I have a tremendous respect for her contributions to the workforce. I found the same inspiration in my wife, who was a stockbroker and then a teacher. I see the same drive and commitment passed down through them to my daughter. I learn something from them every day. In my business career, I was fortunate to have an expat assignment in Germany. I know first hand that, no matter how well traveled you are, you cannot gain true respect for a culture and its language until you’ve actually lived among its people. Upon my return to the States, I found that I was much more sensitive to people from other cultures, and realized (among other things) the challenge that language barriers can present. As a result of that experience, I can better understand the difficulty for anyone to adjust to living in a foreign country. I have also found that I have a great deal more patience and understanding in dealing with diversity and inclusion. In the business community, I have been privileged to work with senior management and leadership who could talk very candidly about diversity programs. Board member Joe Anderson and Vernon Baker, my head legal counsel, have had tremendous influence on my viewpoint on diversity. Vernon is the individual who helped us develop our supplier diversity efforts so that they did not become a failed “program of the month.” Moreover, I have learned first hand that having women and minorities in senior roles has a tremendous positive effect on corporate morale as well as

on encouraging mentorship. It gives employees throughout the organization an informal affinity group where they can discuss issues that relate to them. It’s all about increasing understanding. How would you describe your leadership style?

I continually share my commitment to ethical standards. I make a point to tell people that, if I cannot post something I have done on the front of this building and be proud of it, it isn’t the right thing to do. I cannot share my values with people, however, unless I make a connection with them. So, I make sure I am out there talking and listening to our people on a regular basis. I am a big fan of the power of “walkabouts,” which I have enjoyed for years. I’m an engineer by education, so I am comfortable on the technical side, I am still amazed, however, by what our engineers are doing in the research and development centers. And then, when I walk into our simulation lab to see what is going on, I am even more amazed. I also make it a point to visit the garage, and see what trucks our technicians have up on the lift and what they are learning from it. You will also see me walking around various non-technical departments, getting to know the people and finding out what they do to support the company every day. You’d be surprised how much I learn about our business that way. In addition, I make a point to visit our plants around the world frequently. In fact, I visit almost every continent over the course of a few months. I do this on a regular basis

“Measure results, not activity.” 54

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— Chip McClure

CEO Leadership

Special Feature :: ArvinMeritor

Chip and Sarah McClure (waving) at the 2008 American Heart Association Start! Heart Walk.

to meet people, find out how their individual operations are doing and what we can do to make improvements. As their leader, it’s important to me for people to know who I am, what I stand for, what they can expect from me and what I expect from them. For example, the last time I went to our facility in Sao Paolo, Brazil, I did not simply want a plant tour. I wanted to go into the neighborhoods near the plants and see how ArvinMeritor employees are getting involved in their community. During this visit, the plant leaders introduced me to a group of ArvinMeritor employees, who were instrumental in supporting their community by developing and offering a unique 16 week mentoring program for local area students. ArvinMeritor employees mentored these students, who spent half of their time on academics subjects like math and science and the other half learning a job skill. I met with these kids, and was tremendously impressed with their appreciation and commitment for the mentor program. I was equally proud of our employees who were making this happen. A lot of my style is about relating to people, no matter what office I’m visiting. I am 6’ 3”, and I realize my height can be intimidating to some people. So, rather that standing or sitting behind a desk during meetings, we sit around a table where we can all be comfortable and feel like we’re all on the same level. It’s a small way to demonstrate that we are indeed a team in which everyone’s opinion counts. I encourage lively discussion, and encourage others to make their own informed decisions, rather than asking me what they should do. Have you any “mottos” to rally your team regarding diversity and inclusion?

I have a few, but the one I probably use most often is related to accountability. The motto is “Measure results, not activity.” This applies to any person or any initiative we have. Whether we are talking about technology development, manufacturing efficiencies, cost reductions, diversity programs, or community relations efforts, I’m interested in the results of our actions. That’s how I measure success.

Were there any experiences that discouraged you or taught you a hard lesson about implementing diversity and inclusion?

I’ve never been discouraged by any of our efforts, other than realizing that we can always do more. But I have learned a great deal on how to improve some of our efforts and how to deal with people more effectively. Often, it is necessary for me to make quick decisions without having all of the information or data I would prefer. When it comes to making decisions about people, however, you cannot make snap judgments. I have learned to institute a 24-hour rule. That means that when a decision involves someone’s career, I take an additional 24 hours to assess the individual’s contribution to the organization (or lack thereof ), as well as the specific circumstances involved, before I make my decision. What has been your proudest moment as leader at ArvinMeritor?

Every day is my proudest moment. I like what I do. That is largely because I enjoy spending time with the people. I have made it a priority to get to know every person in our building; I want to know what they’re working on; I want to know their kids’ names. Do we share a hobby? I have made it part of my job to not only know what they do, but to understand who they are as individuals. Just the other day, I received a letter from one of our team members who had been deployed to Iraq. I sent him a personal note back, thanking him for all he’s done for us and for the sacrifices he is making for our country. I was surprised to get a lengthy letter in return. In the letter, he generously thanked us for taking care of his employee benefits and other necessities for his family while he’s on active duty. I am extremely proud to be a leader of a company that takes care of its people, and I am extremely pleased to see the commitment we receive in return. Prof iles in Div er s it y Jou r na l

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CEO Leadership

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What is your advice to others just entering the business world?

Aside from receiving a solid education, some of the most important things I walked out of college with are a strong work ethic, a love of technology, an interest in innovation, and an appreciation and understanding of engineering that has been the building block of my career. In my opinion, those are the price of entry for those joining manufacturing today. I knew I was headed to the U.S. Navy right after graduation. However, after fulfilling my military commitment, I was determined to be an engineer. Even then I knew that

there were other parts of the business world that interested me, such as manufacturing, sales, and finance. Right then, I made a personal commitment to explore those areas that were outside my engineering and personal comfort zone, both here and abroad. The point is, I ventured out and took risks, which have made a dramatic difference in my career and my life. When we challenge ourselves with a wide range of experiences, we can open our minds to different ideas, different people and different ways of doing things. It all adds up to realizing your professional potential and living life to the fullest. PDJ

Motor City Makeover ArvinMeritor participates annually in the Motor City Makeover, a City of Detroit urban beautification effort. Together, Southwestern Detroit High School and ArvinMeritor rally over 100 volunteers to pick up litter, paint over graffiti, and plant flowers and shrubs. The partnership has resulted in the largest concentration of Motor City Makeover volunteerism in the city. These pictures show ArvinMeritor Chairman, CEO and President, Chip McClure, and his wife, Sarah, working with Southwestern Detroit High School students and ArvinMeritor employees to clean-up the neighborhood.

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Leadership Profiles

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Profile Victoria Jackson

A rvinMeritor Board of Directors; President, Victoria Belle, Inc.

Victoria Jackson, a director at ArvinMeritor since July 2000 and a director of its predecessor, Meritor Automotive, is one of two women on the eight-member board of directors. She serves on both the Audit Committee and on the Environmental and Social Responsibility Committee. Jackson, who currently serves as president of Victoria Belle, Inc.—a designer, manufacturer, and marketer of specialty retail products—is no stranger to the automotive industry. In fact, she grew up in it. Jackson took over her father’s aftermarket parts business, ProDiesel, after his death and just after she graduated from college. She managed the business through a leveraged buyout, patented the ProDiesel line of aftermarket parts, and tripled revenues before selling the business 22 years later. As a young woman in the auto industry, Jackson often had to overcome stereotyping and misunderstanding, but a strong work ethic and open-mindedness led her to success. Where does your personal belief in diversity and inclusion come from? Were there any particular role models or experiences that helped shape your point of view?

My personal belief in diversity and inclusion comes from my father and the way I was raised as a child. My father insisted that I attend a public school system that had a diverse composition of students. While in school, I was active in cheerleading and intramural sports with diverse team members. That gave me an early understanding and appreciation of working with others who have very different backgrounds from my own. Also, my religious upbringing and family beliefs were cornerstones in the development of my own belief in and support of diversity and inclusion.

Who has shaped your thinking as a business leader? What about their business skill or style influenced you?

There were few female role models within my sphere of manufacturing in the late ’70s. However, I was extremely fortunate to have three male mentors—each of whom had daughters—who made significant contributions to my professional development. Two of the three men became directors in the ProDiesel company that I led for 22 years. One had an engineering and manufacturing background, and the other was an educator from my graduate school. The third mentor served on another public company board with me in the early ’80s. He was an “old soul” and perhaps the wisest individual I have ever known. I was extremely fortunate to have the support of these mentors to advise and guide me after my father’s death. Most company leaders say diversity drives business results. What part does diversity and inclusion play in your company’s growth and earnings?

Diversity is enlightenment! We all learned early in life that “two heads are better than one.” It just follows that if we have the insight and thoughts from a broader group of individuals who bring different experiences to the company, it should and will make us a better and stronger organization. We are fortunate that we experience a culture of inclusion at ArvinMeritor that gives us a much broader perspective. As a member of the board of directors, what is your role in ensuring diversity and other social responsibility efforts within the company? How is this different from other boards in your industry?

At ArvinMeritor, we have an Environmental and Social Responsibility Committee at the board level that oversees our performance in the areas of diversity within our company. The committee also benchmarks our industry peers. In my prior service on other public company boards—with the exception of one other company—I have not seen as significant board level attention to diversity as I have experienced at ArvinMeritor. PDJ

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Leadership Profiles

Special Feature :: ArvinMeritor

Profile Joe Anderson

A rvinMeritor Board of Directors; Chairman and CEO of TAG Holdings, LLC

Joe Anderson is one of the original members of the ArvinMeritor Board of Directors, and is chairman and CEO of TAG Holdings, LLC. Throughout his remarkable career, Anderson has achieved an impressive number of “firsts” in opening doors for diversity in this country. Anderson was the first African American from Kansas to attend the United States Military Academy at West Point and later became one of the first African American professors there. Serving two tours of duty in Vietnam, he was not only the first African American aide-de-camp (assistant) to an Army general, but was also highly decorated and the subject of an Oscar-winning documentary. Anderson’s business career has been equally outstanding. He was among the first African American plant managers at General Motors, and now owns a business that has made him a driving force in minority supplier programs in the auto industry. In addition, Anderson was the first African American to become a member of the prestigious Oakland Hills (Mich.) Country Club. Anderson shares how his ground-breaking accomplishments have influenced his own corporate mission with Profiles in Diversity Journal. Because you were often a “first,” we could assume that you didn’t have many African American role models in your career. Who were your mentors?

There were only six African American colonels and no generals in the Army when I graduated from West Point. Fortunately, I had white mentors in both the Army and at General Motors who were willing and able to be responsive to my need for counsel, mentoring, and support. By the time I became an automotive supplier in 1994, there were a few other black-owned supplier companies out there—Dave Bing, George Hill, and others—who I could turn to for support and guidance.

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As a frequent pioneer in minority advancement, was there a pivotal experience that shaped your point of view on diversity?

I grew up in Topeka, Kansas, and was part of the landmark legal case of Brown versus the Board of Education of Topeka, Kansas. I went to segregated grade schools—one of the final vestiges of overt segregation, and I received a wonderful education. Along with that education, I learned that I must live the concept of embracing diversity every day. In my lifetime, more often than not, I have either been the only African American in a given group or one of just a few. And, while I did not have many black role models, I have been able to be a mentor for other African Americans who aspire to greater things. Are there unique opportunities in the automotive industry for implementing supplier diversity programs?

As president of the National Association of Black Auto Suppliers, I have been on the Chrysler Diversity Council for Suppliers. At ArvinMeritor, I am on the Social Responsibility Committee, working with the company to develop its supplier diversity program. In the automotive industry, the importance of having strong diversity programs is well recognized, and the automakers encourage diversity in their supply base. However, having a diverse supply base doesn’t just happen naturally. It takes the leadership of an organization to put that vision in place and implement it every day, the same way they implement the vision for quality, sales, and other areas that affect the bottom line. At ArvinMeritor, the board of directors helped put a supplier diversity program in place, encouraging the company to set specific goals. Today, our customers expect such programs, and we made a commitment to the federal government more than ten years ago to make five percent of their purchases from minority suppliers. As a board, we continue to challenge ArvinMeritor management to help them meet that ongoing commitment.

Leadership Profiles

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As competition increases between businesses, and benchmarking becomes critical, it will be increasingly evident that those organizations winning in the marketplace are those with diverse workforces. Diversity is repeatedly going to be one of the pivotal

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business advantages in the future.

As a board member, how do you encourage diversity development throughout the organization?

As the only ethnic minority on the board, I am very comfortable taking on diversity development along with other areas of importance to the board and shareholders. We’re seeing a natural transformation of the workforce profile, with more and more women and minorities being considered for management positions. As competition increases between businesses, and benchmarking becomes critical, it will be increasingly evident that those organizations winning in the marketplace are those with diverse workforces. Diversity is repeatedly going to be one of the pivotal business advantages in the future. If you want optimal performance out of a workforce, that workforce must be confident that management is respectful of individual differences, and that diverse individuals are reflected in the management profile. A segment of the workforce that believes it is not accepted and included will not be motivated to perform to its potential. In my opinion, corporate boards must provide management oversight of diversity development programs. We have seen the board involvement at ArvinMeritor add a focus and accountability aspect to diversity programs that did not exist previously, and we are confident that these changes will drive success in diversity development and business success across the global organization. If a company does not have an extremely strong employee development and succession plan, successful recruitment and retention of top minority talent becomes vulnerable and weakened. If there isn’t a strong succession and development program in place as other companies become more diverse, those competitors will identify your most talented diverse employees and recruit them away from you. That’s why senior management must remain focused on diversity issues. As the competition increases, finding and keeping the best and brightest—regardless of gender, race, or cultural differences—are key to any organization’s long-term success. PDJ

Anderson had a military career of many firsts. He was the first African American from Kansas to attend the United States Military Academy at West Point, and later became one of the first African American professors there. While serving two tours of duty in Vietnam, he was the first African American aide-de-camp (assistant) to an Army general.

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Leadership Profiles

Special Feature :: ArvinMeritor

Profile Rhonda Brooks

A rvinMeritor Board of Directors; President, R. Brooks Advisors, Inc.

Rhonda Brooks has held senior positions at major manufacturing companies for more than 30 years. As one of the early female leaders in an industrial workforce traditionally domi-nated by men, Brooks understands the meaning of breaking new ground. When she joined the board of Meritor in 1999, Brooks played an important role when that automotive supplier merged with Arvin. Following the merger in July 2000, she became a member of the new ArvinMeritor board, and serves as chair of the Environmental and Social Responsibility Committee. Brooks is also the president of R. Brooks Advisors, Inc., a consultant for start-up firms and an advisor for a private equity company. She previously held several top-level positions at Owens Corning, PlyGem Industries, Warner Lambert, and General Electric (GE). Where does your personal belief in diversity and inclusion come from? Were there any particular role models or experiences that helped shape your point of view?

Having joined the business world in the 1970s as a 24-year old, my personal belief in diversity and inclusion comes from my many years of experience being the only woman in whatever business or group of which I was a part—especially as an executive. Fortunately, the extra effort to be heard and to perform to my potential was something I was able to do. However, I always thought it was a waste of energy and talent that people from different backgrounds and different cultures couldn’t be heard and judged based on their individual performance rather than simply being discounted as “different.” Who has shaped your thinking as a business leader? What about their business skill or style influenced you?

My first job was with General Electric, and I stayed with that company for 14 years. It was a very demanding, at times macho culture, but I found that, despite the negatives, people like Jack Welch valued performance above all. If he saw results, that was

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what counted with him first, not the color of your skin or your nationality or your gender. Performing at GE gave me the confidence in my skills and abilities that empowered me to move on and take on bigger leadership roles. Most company leaders say diversity drives business results. What part does diversity and inclusion play in your company’s growth and earnings?

In today’s tough competitive environment, diverse approaches and thought processes are needed to find the niche or unique feature that will differentiate your products and services from those of your competition. As our population becomes more diverse, the importance of differentiation is clearer, especially when you are marketing products directly to consumers who understand that respecting different nationalities and cultures is critical. But it is also important when marketing industrial products such as ArvinMeritor’s to be able to find new ideas and new services that support the company’s product offerings. Even new ways to package or deliver products can make a difference. Having a company culture that values diversity and inclusion pays off in new ideas, but also in how people deal with their customers, who will increasingly reflect our changing demographics. As a member of the board of directors, what is your role in ensuring diversity and other social responsibility efforts within the company? How is this different from other boards in your industry?

ArvinMeritor has an Environmental and Social Responsibility Committee, which is one of four standing committees of the board. I have been a member of this committee since I joined the board, and am now the chairperson. Our charter is to review the company’s goals and results in these areas. We cannot do it for the company. However, we can set the standards and define our expectations. Some items, such as environmental emissions and safety standards, are mandated by regulatory agencies around the world. It is the committee’s responsibility to check not only for compliance, but also for ways in which ArvinMeritor can be considered best in class.

Leadership Profiles

Special Feature :: ArvinMeritor

Providing Aid to Earthquake Victims As chair of the ArvinMeritor Environmental and Social Responsibility Committee, Rhonda Brooks ensures ArvinMeritor is in the right place at the right time. Through the ArvinMeritor Charitable Trust Fund and employee fundraising worldwide, ArvinMeritor donated nearly $90,000 to the American Red Cross International Response Fund in support of disaster relief efforts in China.

(Above) ArvinMeritor employees from the Xuzhou, China facility volunteer to support earthquake disaster relief efforts.

Many of the other issues, however, fall in the realm of “doing what’s right.” I am proud of what ArvinMeritor has done in the area of community involvement, including its many fine examples of good corporate citizenship in the cities where it has plants and facilities. The leadership has also done an excellent job in setting the tone to support diversity of all types. Chairman, CEO, and President Chip McClure personally makes certain that the people of ArvinMeritor know his values in this area. For example, he recently approved a top-level executive and an additional hire in the area of supplier diversity to ensure the company was doing its part to support minority development. In today’s marketplace, are there any particular challenges in your industry to hire and retain good people?

Currently, Detroit’s automotive industry is struggling with its image across the country. As an automotive supplier based in Detroit, ArvinMeritor is not immune to public opinion. One way to overcome negative perceptions is by simply going the extra mile to attract good people—regardless of race, ethnicity or gender. In addition, make sure your corporate reputation is spotless, be honorable in your dealings, promote your leadership, and support their values. In the end, the day-to-day work environment is what

counts. Will your contributions be valued? Will you be heard? Are you in an environment where you can grow and learn? Only the management and leadership of a company can make that happen. The industry in which your company operates cannot. How does a company in a fast-changing industry like the automotive industry keep up with diversity development throughout the organization?

When Chip McClure or his key staff talk about diversity and discuss the progress or lack thereof, the rest of the company takes notice. Above all, we make sure that we have communication vehicles in place to spread the word. Do international issues ever get in the way of corporate support for diversity objectives and processes? What kinds of strategies does the company employ in dealing with them?

To the contrary, an international company has a mandate for diversity. The different cultures and nationalities in a global company require respect for diversity from the start. The movement of people and products across national borders requires flexibility, respect, and stepping out of your comfort zone. PDJ

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Leadership Profiles

Special Feature :: ArvinMeritor

Profile Vernon G. Baker, II

A rvinMeritor Senior Vice President and General Counsel

Vernon G. Baker II, ArvinMeritor’s senior vice president and general counsel, has overall legal responsibility for all of the company’s global operations and subsidiaries. In addition, Baker has functional oversight responsibility for human resources as well as for environmental, health, and safety. However, as a senior officer and ethnic minority, the role about which Baker may be most passionate is as the company’s champion for diversity efforts in recruiting and retaining talented men and women of all races, as well as for providing opportunities for minority-owned suppliers. Over the course of his career, Baker has encountered those who have resisted the need for diversity programs. He responds to that kind of thinking by explaining, “If you’re a law firm with 110 partners, and only two of them are African American, the firm is not taking advantage of the tremendous pool of talent available today in the minority community. Furthermore,” Baker said, “if you have no plans to recruit more qualified people of color, your business is going to suffer over the long term. Potential clients value a diverse workforce and the wide range of insight it offers. Those are the facts.” “ArvinMeritor has continuously been a proponent of diversity in the workplace,” Baker added. “The leadership is completely on board, whether it’s to sponsor professional associations—primarily focused on African Americans—to strengthen recruitment and retention efforts, or to simply encourage robust discussions about majority perceptions concerning minorities.”

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When it comes to succession development planning, Baker is proud of his company’s commitment to supporting diverse candidates. “Twice a year, as part of our overall process, the officer group devotes two full days discussing high-potential minority employees and establishing plans for their development,” Baker said. “We give tremendous visibility to these employees, because we recognize that in order to be successful, we have to ensure that we have a diverse workforce. We have found it to be a tremendous opportunity for ‘checks-and-balances’ when looking at the whole HR picture as it relates to women and minorities. “When it comes to supplier diversity, ArvinMeritor has set aggressive targets for money spent with minority suppliers. However, while we’re making progress, we still have a long way to go,” said Baker. “To reach our goals we must have a significant pipeline of opportunity for our minority supply base.” To fill that pipeline, Baker and his team set up regular meetings with all internal purchasing directors to identify potential opportunities to source business with minority suppliers. The company has also launched a Supplier Diversity Awareness Training Program for ArvinMeritor personnel, to increase their understanding of the importance of supplier diversity and provide awareness of the initiatives in place to expand spending with minority suppliers. ArvinMeritor intends to lead the industry in its commitment to supplier diversity. As a Tier One supplier, the company is working toward creating a benchmark that will become a model throughout the supply chain.

Leadership Profiles

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ArvinMeritor intends to lead the industry in

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its commitment to supplier diversity.

“If we’re going to set a standard, we have to get our customers involved as well,” said Baker. “Meeting with diversity managers at Volvo/ Mack Trucks, Chrysler, GM, Ford, Toyota, and International Truck provides an opportunity for tremendous feedback and support of our diversity supplier efforts. These open discussions on expectations and successes further solidify our customer relationships.”

draws many other Tier One suppliers, is designed to encourage business relationships and sourcing opportunities for certified minority companies.

In addition to one-on-one meetings, the company participates in many of the auto and truck manufacturers’ supplier diversity events. For example, ArvinMeritor participates in Ford Motor Company’s Matchmaker Event. The event, which

“Our most successful initiatives become reality when we proactively develop minority sourcing strategies upfront. Then, we basically work the plan,” said Baker. PDJ

ArvinMeritor is also active in the Michigan Minority Business Development office, and participates in many of that office’s initiatives to grow minority suppliers. The development office also creates an interface between purchasing decisionmakers and minority suppliers.

Diversity: Every Day at ArvinMeritor

This Employee Involvement team consisting of 11 members, and representing five different countries is working together in close harmony on continuous improvement initiatives.

Trying to investigate a returned part, Jesse Laycock (r) tapped into ArvinMeritor diversity and asked Julio Montoya (l), a bilingual coworker, to translate some of the Spanish words on the part. Prof iles in Div er s it y Jou r na l

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Leadership Profiles

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Profile Rakesh Sachdev

A rvinMeritor Senior Vice President and President, Asia-Pacific International Diversity

Globalization is the reality of business today, which places a much greater emphasis on international teams. While building a workforce made up of different cultures, different backgrounds, and different values and beliefs is new territory for many businesses, Rakesh Sachdev, ArvinMeritor senior vice president and president, Asia-Pacific, has dealt with this reality for many years. Sachdev moved to the United States from India in 1978 to attend Indiana University. He got his start at Cummins, a leading global engine manufacturer. During his 18 years at Cummins, Sachdev held management positions in both the Mexico and Brazil operations, as well as in the United States. When he discovered a new opportunity to grow Meritor—a new company spun off from Rockwell Automotive—into a global operation, the challenge was too exciting to pass up. So Sachdev joined the organization as a general manager of one of the global Commercial Vehicle Systems business units.

After serving in several key corporate finance positions, Sachdev moved into his most challenging position yet—heading up ArvinMeritor’s Asia-Pacific business, located in Shanghai, China. “The biggest human resource issues today are in Asia,” said Sachdev. “The economy is so strong there, and China hasn’t been open all that long. There isn’t a huge pool of professional talent, so, hiring people is a challenge. Keeping them is even harder, however.” The ArvinMeritor Shanghai office is a microcosm of what it means to be a global company. Sachdev’s staff includes technical experts who have moved from the States to help transfer knowledge; local professionals who understand the local markets and can interact with customers, government, and suppliers; and a number of Chinese from different regions within the country, who speak different dialects and languages. Most recently, engineers have moved from ArvinMeritor’s India office to China. According to Sachdev, “That will be very helpful, because as big as India and China are, they are just beginning to learn about each other’s culture.” Sachdev finds all of the cultural interplay very enriching and sees a big benefit from all of the different viewpoints.

Rakesh Sachdev speaks at the 2008 Automotive News China Rakesh Sachdev, president of Asia-Pacific, delivered a speech on issues China is facing: mobility, safety and environment. China’s issues are related to a rapid economic growth due to increasing consumer demands for commercial and passenger vehicles.

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Women’s Day Activity at ArvinMeritor’s Shanghai, China facility.

“This is a global business,” said Sachdev. “For those in the United States who have global responsibility, having a clear understanding of the business and the cultural environment in those countries is very important. That understanding doesn’t always happen, however. Quite often, you can look at someone who was successful in the States, but put them in a global business situation, and it doesn’t always work. We have found that it’s best to develop people through expat assignments. If you want to groom people for global assignments, they should live in the country for a couple of years. It makes them far more effective later. “We are becoming so dependent as a company to stakeholders all over the world. Today, we bring in about 20 percent of our products from Asia. Our goal is to increase that to more than 50 percent. Imagine the interaction we must have between our people, suppliers and factories in that region to be successful. Having people who have worked in the States and gone back into the region or vice versa is immensely helpful.” While this strategy has been used in the engineering function for many years to fulfill the need for interchange in product design and sourcing, the practice is now becoming more common on the business side. Sachdev explains, “As our customers become more global, so does their need for strategy, planning, and global interface with their suppliers. Having people understand customers in India, Africa, or Brazil is now a critical component of our success. “The automotive industry is receiving a tremendous amount of attention in Asia-Pacific, which leads to a growing sense of excitement. The industry is being redefined. As more manufacturing moves overseas, the staffing will need to move with it. It is a fascinating, complex, and growing industry that is ripe for innovation, new thinking, and creativity. It’s going to be an exhilarating time for all of us.”

China: Focusing on Women in the Workforce

Lilian Wu, manager, human resources, for ArvinMeritor’s Asia-Pacific region, is on the front line when it comes to staffing its growing operations overseas. Wu is responsible for recruiting much of the local workforce, as well as for integrating the U.S. expats into the region. “My job is to make sure that people don’t feel like different parts of the elephant,” said Wu. “Communication is important to ensure that we all have the same goals, and that people can see all components of the equation, whether they are working on that particular part or not.” Women make up a large part of the ArvinMeritor workforce in China. These women represent their own challenges, as they increasingly play critical roles in filling the job needs of the exploding automotive market there. One way to help attract and retain talented employees in this competitive market is to allow for the training and support system that many women in China’s workforce need. To that end, ArvinMeritor conducts extensive diversity training programs in conjunction with China’s International Women’s Day every year. This past year, ArvinMeritor focused its Women’s Day programs on training, mentoring, and open discussion. Several female leaders led panel discussions on a number of diversity awareness issues, including topics such as how to balance work and family life. “Our goal was to motivate and increase our female workforce’s self-awareness as individual people, to celebrate strong personalities as a foundation of success,” said Wu. “Life is about choices and constant learning, and we want to help these women make good choices that work for their unique situations. “Events like this give me a chance to be more interactive with the team, and to hear what they’re thinking and facing. It’s a tremendous growth opportunity for us all.” PDJ

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A Culture of Opportunity and Success Special Feature :: ArvinMeritor

Finance Development Program Offers Fast-track Opportunity to New Recruits

Like many companies, ArvinMeritor faces the challenge of attracting and retaining the best and the brightest talent available. According to Chairman, CEO, and President Chip McClure, succession planning is a critical element in retention. However, in order to meet its goal of filling 70 percent to 80 percent of positions internally, the company must have a strong base of entry-level talent ready and able to climb the ladder. One key program to meet that goal is the company’s Finance Development Program (FDP). ArvinMeritor launched the FDP in 2005 to improve the bench strength of the finance organization by developing high-potential candidates. Each year, approximately 20 MBA graduates begin the three-year rotational program with 12-month assignments in various functional areas. This unique experience offers extensive exposure to senior finance and business leaders, while providing a formal mentoring program and career development planning.

“This is an opportunity not only to gain broad experience in the company, but also it is a fast-track program that can have an immediate impact on our business,” said McClure. “This is an industry that employs millions of people, touches a billion consumers each year, and generates trillions in economic growth. That’s something worth having an impact on.” According to Vernon Baker, senior vice president and general counsel, and a corporate champion for diversity, the FDP has come a long way in targeting minority candidates. By expanding the roster of schools from which ArvinMeritor recruits, the company now benefits by having access to the very best talent available. “Minority candidates are highly sought after; they get a lot of attractive offers,” said Baker. “Our recruiting effort is designed to showcase everything the auto industry has to offer. At ArvinMeritor, for example, we’re not just about axles and brakes, we’re about innovation and technology.” PDJ

ArvinMeritor and Universities ArvinMeritor supports several programs with universities throughout the country. At the University of Michigan’s Ross School of Business, Chip McClure participated in the “Visiting CEO Program” on February 12, 2008. Business students and faculty had a chance to personally

get

know

McClure, and discuss the challenges and opportunities in today’s business world.

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A Culture of Opportunity and Success Special Feature :: ArvinMeritor

Through the FDP, Junnifa is relocating to ArvinMeritor’s Cwmbran, United Kingdom, facility as a Senior Financial Analyst.

FDP Valedictorian Junnifa Echefu Being number one in her Finance Development Program (FDP) class is not an unusual accomplishment for Junnifa Echefu. Echefu, who was recruited for ArvinMeritor’s FDP from Clark Atlanta University in 2007, has always done well in school. However, now that she is out in the business world, Echefu is demonstrating the same drive and initiative that has helped her achieve a great deal in a very short time. Echefu, who was born and raised in Nigeria, came to the United States by herself the day after her seventeenth birthday to attend school at Edinboro University of Pennsylvania. Needless to say, it was a rough start adjusting to a new country and an unfamiliar environment. “I had never been to this country, but I have an aunt and uncle who live in Maryland. So initially, we thought they could take me to school,” said Echefu. “But the university turned out to be six hours away. So, I got on a bus with all my things from Nigeria and headed off to school. On the way, I ran into one problem after another, delays and misunderstandings, but once I finally got there, it was all worth it.” After graduation, Echefu went to Clark Atlanta University for grad school on a full scholarship. That was where ArvinMeritor recruited her. “I was really impressed with the FDP program,” she said. “The company really wants to see young professionals progress, and they put all the pieces in place to help us do that. “When people move to a new place, one of the things that makes them leave and go back home is that they don’t have a support network. FDP provides us with a network of people that we can talk to, interact with and even volunteer with.” Echefu advises others to do well in school so that they have options when choosing their first

career step. “You need to find the perfect company to get off to the right start.” “I get a lot of my inspiration from a Ngozi Okonjo-Iweala, who was the minister of finance for Nigeria,” said Echefu. “She started out like I did, going out on her own at a very young age to school in America. Since then, she has worked in many countries. Okonjo-Iweala has broken down a lot of barriers for women in Nigeria. Moreover, she’s done so much to help develop countries, reduce debt, and improve their way of life. Even with that kind of responsibility, Okonjo-Iweala has been able to balance her work, family and personal life, and is a good person all around. That’s what I strive to be.” Echefu has adjusted well to her new life in the United States, although it’s not been without its challenges. “People are always interested in my background, and in the fact that I’m from Nigeria. However, I don’t think it’s a really important part of how to deal with me as an individual. There have been some cultural differences, but those are things I have had to adjust to. I’m focused on harnessing the exciting opportunities that have been offered to me. I look forward to a great future.” ArvinMeritor recruits from several leading universities and colleges for FDP candidates, including many academic institutions that celebrate diversity. Some of ArvinMeritor’s educational partners include Clark Atlanta University, Georgia Tech University, Michigan State University, Morehouse College, Ohio State University, Purdue University, Spellman College, Tuskegee University, University of Michigan, University of Notre Dame, Vanderbilt University, and Brigham Young University. PDJ

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A Culture of Opportunity and Success Special Feature :: ArvinMeritor

According to the U.S. Department of Labor’s Bureau of Labor Statistics, women make up 31 percent of the manufacturing workforce. While those numbers have slowly risen over the last few years, organizational cultures in manufacturing industries, such as the automotive sector, have been heavily dominated by men.

Women in Manufacturing Find Opportunities Abound at ArvinMeritor

The 100-year-old automotive industry is an especially tough environment for females. At Tier One automotive supplier ArvinMeritor, however, women have become an integral part of the leadership team. In fact, ArvinMeritor was recently recognized by Inforum, an influential women’s industry group in southeast Michigan, for having more females in senior-level positions than most other automotive suppliers and an even greater representation of females across the organization than many of the largest automotive OEMs. “It’s long-term, top-down leadership support that drives diversity throughout an organization,” said Lin Cummins, ArvinMeritor senior vice president of communications. “Having so many women in leadership positions here has had a direct impact on the company’s employment culture. From the board of directors to the executive committees and from vice presidents to directors and senior managers, there are strong, diverse role models at every level. This environment confirms that it is possible to be rewarded and respected for the contributions individuals bring to an organization, regardless of gender, race, or ethnicity. “My generation of women were a distinct minority in maledominated industries such as ours,” said Cummins. “A great deal has changed, however. Today, more women are seeking educations related to business and manufacturing, so the playing field is becoming more level. If you have the skills and are the best at what you do, you will be recognized and rewarded. Performance and results are all that matters.” “ArvinMeritor’s success in recruiting and retaining talented female executives is exemplary, considering the relatively small number of women in the industry, particularly in operational positions,” said Mary Lehmann, ArvinMeritor senior vice president, strategic initiatives, and treasurer. “Women tend to bring a slightly different perspective and a natural problem-solving ability to the workplace. And, while women can be highly competitive, they can clearly see the longterm value of creating a positive, interactive work environment across the organization. Women also tend to be efficient, organized, and able to successfully prioritize operational tasks which are valuable capabilities to an organization.” “ArvinMeritor puts a lot of focus on performance manage 68

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ment, including succession development, diversity, and global involvement,” said Deborah Henderson, ArvinMeritor vice president and chief information officer. “As a result, there are tremendous opportunities for qualified individuals who show real interest and aptitude.” Henderson knows this first hand, having held a number of operational positions in the United States, Asia-Pacific, and Europe. She was relocated to ArvinMeritor’s facility in France, for example, as the first female vice president in a general manager role. “It was an amazing experience. I was responsible for 22 plants in 13 countries, but I loved the challenge. “In many cases, women do need to work a little harder to demonstrate their capabilities,” added Henderson. “The only way to gain respect and credibility from our male colleagues is to consistently deliver strong results.” In Henderson’s case, results come through effective team building. Like many successful female executives, she sees this as one of her best skills. “To build a strong team you must be a leader and supporter, as well as a mentor and coach,” said Henderson. “Good communications is the starting point—making objectives and goals clear, so everyone understands your expectations of them. If your people know where they’re going and see the value in that goal, they will support and move with you toward that goal. “I’m proudest of my ability to build strong teams,” said Henderson. “I’m also gratified to see former members of my teams and discover how they have developed their careers.” Cummins echoes that sentiment. “As female executives, I think it’s our responsibility to be enthusiastic mentors as well as role models for the next generation of women in the workplace. In doing so, we can help them reach their full potential. “As a member of the minority in most leadership teams, it’s essential for females to remember that the key to a successful career is to make sure you are adding value and making a meaningful contribution to the company every day. Women also need to network and make the professional relationships that will help them advance their careers,” said Cummins. Professional business associations can play a key role in providing the support that female executives need for networking. Lehmann, who serves on the board and is the treasurer for the

A Culture of Opportunity and Success Special Feature :: ArvinMeritor

women’s organization, Inforum, believes that a great deal can be accomplished by building alliances and forming relationships through networking. “It can be very rewarding, and provides an opportunity to extend your professional circle by connecting with a congenial group of talented peers,” she said. “Getting involved in professional organizations broadens your perspective,” Lehmann added. “You can see what the rest of the business community is doing as well as learn how other companies are dealing with issues such as community relations or diversity. It also provides a forum for new ideas, where I can have a voice on important issues.” “While networking is a skill that men perfected years ago, women are beginning to realize its potential as a business tool,” said Cummins. Chairperson of the American Heart Association’s annual “Go Red for Women” luncheon, Cummins recognizes the importance of an extended network. “If I intend to raise awareness about heart disease, the number one killer of women today, by helping raise a half-million dollars for research and development for the Heart Association—I know that I can’t do it alone. I need to draw upon my network and pull together other strong women to achieve the expected results.” “I believe women are stepping up, getting more involved and supporting causes that impact their gender,” said Lehmann. “We understand the struggles women face at home and in the workplace, and see the need to give back.” Lehmann is also on the board of Vista Maria, a nonprofit organization that aids severely neglected adolescent girls. She is also on the organization’s planning committee, which hopes to raise $11 million to expand their services to assist children and families in crisis. “Although the manufacturing industry is still primarily male, women have come a long way in gaining respect for their knowledge and skill set, and for what they can bring to the team,” said Lehmann. “Being industry trailblazers for most of their careers, these women have been able to overcome obstacles and challenges to succeed in their careers. There is greater opportunity in the industry than ever before for every minority to succeed, including women.” Cummins added, “One of the most important things we can do as senior leaders is to keep an open-door policy. It is imperative

to reach out and provide minorities an opportunity to talk to someone who can understand some of the challenges and tough issues that they might be dealing with and encourage them to persevere.” “This is a stronger organization because of ArvinMeritor women all over the world,” said Henderson. “This strength is a result of our genuCummins ine efforts to bring more women into the skilled technology positions in operations and manufacturing. Women bring a tremendous skill set in facilitating teams. That’s a critical element to continuous improvement and being lean—things that we strive for in manufacturing. “I’m very proud to be associated with a company that has done for women and minorities what ArvinMeritor has done and continues to do,” said Henderson. “It’s not just talk, it’s real progress.” Lin Cummins, senior vice president, communications, directs the global marketing, communications, media relations and governmental affairs Lehmann efforts of ArvinMeritor, Inc. Lin joined ArvinMeritor in 1999 after serving as vice president of advanced marketing and communications at United Technologies Automotive, and in senior level positions at Ford Motor Company. Why she came to ArvinMeritor: “I joined the company soon after Meritor spun-off from Rockwell. I saw it as an opportunity to make a difference and be part of launching a new company to the world.” Mary Lehmann, senior vice president, strategic initiatives, and treasurer, came to ArvinMeritor in Henderson 2004 after 19 years in the finance group at Ford Motor Company. “I came to ArvinMeritor because of its size; it was big enough to be global and have all the benefits of a large company, but small enough that you can feel your influence.” Deborah Henderson, vice president and chief information officer, came to ArvinMeritor in 2002 after serving as a multi-site plant manager for Allied Signal. Why she came to ArvinMeritor: “I was intrigued by the operational leadership role in Detroit. There was a new technology center being planned that had a real community interface. The combination of technology and community relations was very interesting.” PDJ Prof iles in Div er s it y Jou r na l

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A Culture of Opportunity and Success Special Feature :: ArvinMeritor

ArvinMeritor Diversity Councils Engage Employees All Over the Globe Every year, ArvinMeritor employees around the world celebrate Diversity Week—five days spent enhancing employee awareness of the company’s efforts to promote a diverse workforce.

The event also promotes the need to have a diverse employee base, and the positive effects it has on the global organization.

“Each day of that week is centered on a different activity,” said Agnes Handayani, senior financial analyst, of the ArvinMeritor Diversity Council. “We’ve had everything from guest speakers, to talent shows, to international food days. The week builds camaraderie, teamwork, and respect for each other. All that positive energy means we can harvest fresh ideas and new concepts that can be put into place in a global business environment.”

The activities are planned by regional diversity councils, of which there are nearly 50 worldwide. These councils provide a unique way to guide the company’s efforts in addressing diversity at all levels in the organization. Councils, which include employees from the United States, Canada, Brazil, Mexico, and Asia-Pacific, have several areas of focus including: • Awareness training • Inclusive leadership training for managers • Cultural awareness events and education • Employee resource groups and networks • Community relations • Employee and team development • Diversity communications and surveys • Work-life practices and programs • Talent attraction and retention • Customer satisfaction and supplier relationships. The first Worldwide Diversity Week in 2006 featured teambuilding and educational events in locations from Frankfurt, Germany, to Zurich, Switzerland, to Spartanburg, North Carolina. Every activity was designed to promote innovation and collaboration. In Zurich, for example, the ArvinMeritor facility celebrated diversity with 16 different nationalities represented in their Commercial Vehicle Aftermarket group. Meanwhile, in Augsburg, Germany, the engineering leadership held a multi-continent videoconference to discuss diversity among the company’s sites, and examine how it impacts work and business results. Their goal was to increase awareness of working across multiple cultures and to establish best practices for future endeavors. Comprised of more than 700 employees, ArvinMeritor’s worldwide diversity councils are leading the charge in improving understanding of cultural differences. By improving how international groups can better work together by recognizing and respecting diverse values and contributions, everybody wins. PDJ 70

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A Culture of Opportunity and Success Special Feature :: ArvinMeritor

Age Diversity Is Valued at ArvinMeritor: Just Ask Loraine Simler Like many automotive suppliers, ArvinMeritor has been through several workforce reductions over the years, but the company continues to recognize the benefit of retaining the institutional knowledge and historical perspective of older employees. In an age of buyouts and early retirement, Loraine Simler, now 80 years old and on the job at ArvinMeritor for 62 years, says “no thank you.” What have been some of the biggest changes you’ve seen in the female workforce in your tenure here?

Sixty years ago, most women were not placed in an administrative role. We weren’t even considered for a management position. Many women left when they got married. If you stayed and became pregnant, you were expected to leave. Now, we have lots of women in senior roles, and many of them juggle their career with a family. You’ve seen a lot of bosses come and go. What’s your take on the current leadership?

Simler‘s sights are not set on retirement. In fact, much to her chagrin, she was recognized at the ArvinMeritor annual meeting, as well as at the board of directors meeting, on her sixtieth anniversary. Simler now has her own parking spot in the company’s management parking lot. Simler started at ArvinMeritor as a file clerk in 1946. Fresh out of high school, she made an immediate impact with her conscientious work ethic. That’s why over the years, Simler has made a number of upward moves on the administrative ladder. In 1973, she earned a position with the new Commercial Vehicle Aftermarket group, and has been there ever since. In her current role as inside sales coordinator, Lorraine shared her thoughts after six decades on the job. Most people put in 30 or 40 years of work and retire. You’ve put in more than 60. Do you ever plan to retire?

Not really. I enjoy working. I enjoy the people. I like what I’m doing. It keeps me active, keeps my brain going and gives me something to look forward to every day. I can’t imagine not working. You know, all of my friends are retired. They say it’s really not all of what it’s cracked up to be.

I met Chip McClure his first day on the job. He still comes by to say “hi” and shake hands. I like that. It’s really obvious that he has a genuine respect for people. What do you admire most about this company?

The people. This is a great bunch of people to work with. When you’re here, you’re part of a team. It’s also about the friends you make, the concern we have for one another, and the willingness to help each other any way we can. Another thing I admire is that the company has a goal. Management has its eyes set on where the company should go, and we are all a team that will work together to get there. There’s a clear vision to work toward. What is your advice for younger employees?

Be a good worker. Be determined. Know where you’re headed with your position and follow through. When someone asks you to do something, do it. There’s no such thing as saying “it’s not my job.” PDJ

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A Culture of Opportunity and Success Special Feature :: ArvinMeritor

ArvinMeritor is a strong supporter of the American Heart Association, helping to raise over $1.4 million for the annual Metro-Detroit Start! Heart Walk.

A Culture of Social Responsibility

As a major automotive supplier with a large and growing global footprint, ArvinMeritor is in more than 100 communities. From Detroit to Sao Paulo to Shanghai, ArvinMeritor takes social responsibility seriously. In fact, social responsibility is included as one of the company’s core values and receives oversight from its board of directors. Each site in the ArvinMeritor network has its own local strategy and plan of action for volunteerism and community support that receives strong encouragement from its global headquarters. The ArvinMeritor Charitable Trust Fund and International Giving Program supports education, arts and culture, civic, and human services initiatives. The trust committee provides oversight of strategies and budgets at the local level, and the board’s Environmental and Social Responsibility Committee participates in an annual review of the company’s community involvement activities around the world. “Our employees are the foundation of our company’s culture of giving. ArvinMeritor team members have a real commitment to action,” said Chip McClure, chairman, CEO, and president of ArvinMeritor. “Our business model is to encourage local passion for the community and to do what we can to support employee involvement.”

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A Global Perspective on Community Service

ArvinMeritor employees have changed lives all over the world. Here are only a few examples: • Sao Paulo, Brazil—Employees opened a day care and school that was planned originally for their own children. It has now been opened to the community, and serves 200 to 300 children in grades K-6. This is just one project on which the ArvinMeritor Charitable Trust Fund spends its money. The trust fund contributes more than half its annual budget to support education efforts worldwide. • Detroit, Michigan—Four years ago, ArvinMeritor broke ground on its new Detroit Technology Center located next door to Southwestern Detroit High School. At the same time the company began a relationship with the school that’s still healthy. When the school asked for ArvinMeritor’s help in building students’ self-esteem and confidence, the company helped to do that by building a new football field and track, as well as by making several other significant improvements to the school. ArvinMeritor has also sponsored the school’s robotics club, provides classrooms with ArvinMeritor volunteers and mentors and offers co-op training, among other activities.

A Culture of Opportunity and Success Special Feature :: ArvinMeritor

ArvinMeritor’s Chip McClure (right) and Rakesh Sachdev (left) at the Metro Detroit Start! Heart Walk.

“These students have also become an integral part of our recruitment pool,” said Jerry Rush, senior director of Government and Community Affairs at ArvinMeritor. “We’re seeing a transformation in this often overlooked community, and we’re happy to be a driving force in that change.” • China Earthquake Relief—The ArvinMeritor Charitable Trust Fund provided a $30,000 contribution to the American Red Cross International Response Fund in support of disaster relief efforts in China resulting from the recent earthquakes. The Red Cross Fund provides immediate relief and long-term support through providing supplies, technical assistance, and other services for those in needs. ArvinMeritor is also assisting employee efforts at our China-based facilities in organizing, funding, and implementing local relief efforts. “Pound for pound, this is an organization that more than carries its weight in the community,” said Rush. “Our employees appreciate and respect the fact that social responsibility is such a big part of the company’s culture. Chip McClure underscores our responsibility to the community and acknowledges employee involvement every chance he gets. ArvinMeritor is just a very cool place to be.” PDJ

Employees at Troy headquarters participated in a Food Drive, benefiting Gleaners Community Food Bank of Southeastern Michigan, the region’s largest emergency food provider. Thousands of hungry families in southeastern Michigan are served by Gleaners each month. Pictured (from l to r): Jerry Rush, senior director of Community Relations; John Kastler, Gleaners Food Bank; Bridget Lomax, Gleaners Food Bank; Chip McClure, chairman, CEO and president; Augie Fernandes, Gleaners Food Bank; Lin Cummins, senior vice president of Communications; and employee volunteers Loraine Simler, Julie Garrisi and Judi Stefani.

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my turn

What Keeps Diversity Professionals Up at Night, Part 3 By Shirley A. Davis, PhD

Director of Diversity and Inclusion Initiatives Society for Human Resource Management

In the last issue of Profiles in Diversity Journal, I focused on two issues that were keeping diversity professionals up at night: aligning diversity and inclusion with business objectives and the need for practitioners to become more strategic and less transactional. In this issue I will address two more topics that need to be effectively managed: recruiting top talent and building a pipeline with leadership capabilities, and establishing an inclusive culture. Sourcing, recruiting, and hiring the best talent have always been key success factors for organizations. However, with demographics changing, that talent is no longer arriving at our doorstep in the same, familiar packages of the past. These days, recruiting top talent and building a pipeline with leadership capabilities requires a new set of knowledge, skills, and abilities. Most of us are aware of the compelling statistics that show how our workforces, workplaces, and marketplaces are changing because of shifts in the population. While baby boomers (born between 1946 and 1964) were the largest population cohort in the US (there are 78 million of them), they have now been outnumbered by the millennial generation, also known as Gen Y (born after 1983), who are nearing 80 million strong. Additionally, according to 2007 estimates, 30 percent of the current labor force is comprised of people of color, while women make up almost half of the labor pool. While baby boomers are reaching retirement age in record numbers, they are also being rehired in large numbers. In 2005, one in two jobs was filled by a person over 55. There is a 10-20 million worker shortage projected for the United States over the next decade. The result is that

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we have four different generations in the workplace with very different perspectives, expectations, and world views. Globally, it is estimated that only three percent of our future workforce will come from North America and Europe, and about 75 percent will come from Asia. About 3.3 million white collar jobs will be transferred to Asia. Simply put, if your organization is one where only white, heterosexual, married, Christian, middle-to-upper-class, able-bodied men in their forties and fifties feel accepted, included, and valued, then you’re missing out on a wealth of highly prized talent that comes in a different package from your traditional worker. To attract and retain these new talented workers, those charged with recruiting and leading will have to have diversity competence, understanding how to recognize cultural patterns which may seem different or even inappropriate to them on first blush. The most common example is the use of eye-contact. While direct eye-contact is preferred in many western cultures, it may be a sign of disrespect in Eastern cultures. Baby-boom era recruiters may perceive millennial applicants who have had four jobs in four years to be disloyal and/or incompetent for not being able to hold a job; whereas such candidates perceive that they have valuable experiences to bring to the new assignment. We have to develop competence among our leaders so that they: • understand the differences they will confront and address as each situation as unique; • be comfortable with difference which means first understanding their own cultural lens and world view and how it differs from others; • welcome different approaches, styles, personalities to facilitate creativity, innovation, and greater engagement and productivity;

“

Given the considerations outlined in this issue, it is not difficult to see why so many practitioners are losing sleep.

• perpetuate a more open culture that not only embraces workers with these new ideas and backgrounds but enables them to want to stay and be engaged and productive while there. When there is a critical mass of leaders who are culturally competent, retention, engagement, and productivity increase. Establishing an Inclusive Culture At SHRM, inclusion is defined as the state where all individuals can contribute fully towards an organization’s success, where they are treated fairly and respectfully and have equal access to opportunities and resources. To get there, we need a disciplined, systems approach to cultural and behavioral change. The following elements encompass such an approach. Top down and bottom up at the same time: Diversity management and inclusion both need leadership commitment to succeed, but it also needs grass roots efforts such as diversity councils, learning communities, mentoring, crossfunctional development assignments, job rotations, special assignment, and other forms of empowerment at the very entry levels. To reach that critical mass everyone must feel that they are included, that their voice counts. Accountability: Holding leaders accountable for diversity outcomes is critical, because what gets measured gets done. Some organizations tie leaders’ compensation to diversity management outcomes and/or include diversity questions on employee surveys that link back to the leaders’ performance. Remember, diversity management is every leader’s responsibility. If the sole accountability diversity management efforts rests on one person, those efforts may not be sustained, valued, or even supported.

”

Integrating Diversity and Inclusion with the core business strategies: Last time, I wrote about aligning with key business objectives. We must then integrate and diversity and inclusion into a seamless process where they are a part of the fabric of the organization. Only diversity competent leaders will be able to recognize these links and leverage them for greater business success. According to a 2005 study by Gallup, when an employee perceives that a company and its leadership are committed to a diverse and fair workplace, they are more likely to stay with that company, more likely to recommend their company to others, less likely to have experienced discrimination, less likely to have missed days at work, and more engaged in their work. Given the considerations outlined in this issue, it is not difficult to see why so many practitioners are losing sleep. These are very complex and critical business issues that are not only keeping HR and diversity professionals up at night, but have seeped into the bedrooms of many CEOs who worry about where they will source talent, how they will attract, select, and retain that talent. However, it’s better to be aware of the changing world in which we live and work and to make strategic changes, than to sleep peacefully in blissful ignorance, only to be shaken awake by reality after it’s too late to adapt. These issues have become the cornerstone of not only building competitive, but sustainable, organizations. PDJ

Shirley A. Davis, PhD, is Director of Diversity and Inclusion Initiatives for the Society for Human Resource Management in Alexandria, Virginia. She can be reached at sadavis@shrm.org.

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viewpoint

At a Crossroads: The Diversity Practitioner Profession By Melanie Harrington

President American Institute for Managing Diversity, Inc.

Diversity practitioners are talking about the norms, standards, and competencies of the diversity management professional. These discussions seem to be occurring with greater frequency. I raised these issues with members of the American Institute for Managing Diversity, Inc. (AIMD) Advisory Council to obtain their input.1 The prevailing view among council members is that the diversity management profession is at a crossroads. A recent Conference Board report, “Creating a Competency Model for Diversity and Inclusion Practitioners” by Indra Lahiri, proclaims that the diversity practitioner role is a “fledgling discipline.” A joint study by AIMD and SHRM noted that there was little unanimity around diversity language and little consensus as to the future direction of the field.2 A discipline is generally born out of a conceptual framework that represents a set of theoretical and philosophical structures to which the practitioners of the discipline subscribe. The achievement of common agreement around the frameworks and structures increases the credibility of the discipline. Without these commonly held views, there are no standards against which to measure a practitioner’s performance, effectiveness or consistency. Therefore, without a common understanding of the concepts undergirding diversity management practices, a fledgling discipline is difficult to develop. AIMD research has found that diversity practitioners often espouse a need to develop new approaches but resort to old tactics and practices instead. At AIMD, we believe that an understanding of the concepts undergirding diversity work will lead to advancements in the profession. This does not mean that corporate diversity practitioners need to become academic scholars, but it does mean that the next generation of diversity practices is not the current set of best practices. Practitioners will need to include in their arsenal of KSAs (knowledge, skills and abilities) more than benchmarking and best practices data.

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Here are steps that diversity practitioners can take to advance their work while also advancing the discipline: 1. Bridge the gap among diversity practitioners, academic researchers, and theoreticians. 2. Learn about the conceptual models that undergird diversity representation and compliance, cultural competency, and intercultural communications, organizational behavior, and organizational culture. 3. Define the scope of the field by the opportunities available to leverage diversity in the workforce, workplace, and marketplace. 4. Perfect teambuilding and collaboration skills. 5. Read more and look for associations and unlikely pairings that spark innovative ideas and approaches. 6. Challenge long held beliefs. 7. Constantly develop business acumen skills. The fact that academics, practitioners, professional associations and others are engaged in global dialogues on the future of the diversity practitioner profession is encouraging. It signals a desire for progress and an intent to advance to the next phase along the diversity journey. PDJ 1I

would like to thank those members of the AIMD Advisory Council who contributed their thoughts and ideas to this article: David Casey, vice president of talent management, WellPoint, Inc.; Dr. Deborah Plummer, chief diversity officer and executive director, Cleveland Clinic; Bridgette N. Driver, senior manager, HR diversity, FedEx Ground; Mark King, former director of diversity, Brinker International; Josie Thomas, senior vice president of diversity, CBS Television; Muriel Watkins, director of human resources, New York Times; and Ron Whitely, chief diversity officer, Cushman & Wakefield. 2“2007

State of Workplace Diversity Management Report” by SHRM conducted in collaboration with the American Institute for Managing Diversity, Inc. (AIMD).

Melanie Harrington is president of the American Institute for Managing Diversity, Inc., a 501(c)(3) public interest organization dedicated to advancing diversity thought leadership through research, education, and public outreach. AIMD works to strengthen our communities and institutions through effective diversity management. For more information, please visit www.aimd.org.

PepsiCo Celebrates the Life of Edward F. Boyd 1914 – 2007 Edward F. Boyd helped place Pepsi in the hearts and hands of many Americans. And in doing so, he became an innovative leader and true pioneer in marketing. It’s been 60 years since Ed was hired to form the very first team of African-American marketers, opening up African-American communities across the nation. He defined target marketing — the way many businesses today meet consumer needs with products and services. Brave, distinguished and endearing, Ed Boyd helped move America and business to greater racial equality. Today, his spirit still inspires us. To learn more about Ed Boyd and all his accomplishments, read The Real Pepsi Challenge by Stephanie Capparell or visit careerjournal.com, go to the left column under Article Search and type in: Ed Boyd.

special report

Rohm and Haas Shares Its Culture Change Process

Culture change, engaging and motivating middle management, leveraging employee networks, creating accountability for senior leaders: these issues were the main focus of a two-day meeting that recently took place at the headquarters of the Rohm and Haas Company in Philadelphia, Pennsylvania. Fortune 500 companies, including Corning, Inc., Hallmark Cards, Inc., Michelin North America, and BlueCross BlueShield of Florida,™ all members of the Diversity Strategy Consortium (DSC),™ convened to share challenges and barriers and process improvements, practical tools, and solutions for integrating diversity and advancing corporate diversity initiatives. “This meeting was helpful, because we got to converse with colleagues and learn different approaches to challenges we are all facing as we lead and support diversity initiatives in our respective organizations,” shared Linda Marks of Corning, Inc. Her sentiment was repeated throughout the course of the two-day event, themed: Diversity: A Culture Change Process. “Being able to host an event like this is important to Rohm and Haas, as it provides an opportunity to showcase our strategies in the area of diversity and inclusion and to get feedback from my peers,” said Stacey Adams, director of the office of global diversity at Rohm and Haas. The DSC, consisting of professionals at top companies from non-competitive businesses, provides a confidential forum for its member companies to share strategies and lessons learned in managing workforce diversity. This open exchange, which is a critical success factor for benchmarking, provides members with two primary benefits. First, it provides timely and practical support for those in attendance. Second, it allows members to explore key questions and future scenarios within

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their companies that relate to their own diversity and inclusion strategies. When asked about the benefits, a representative from Hanesbrands, Inc., said, “I very much value being in a group where we can do our own development work around diversity as well as get support for developing strategies for our organizations.” DSC topics discussed include diversity and business integration, retention, diversity councils, talent management and succession planning, global initiatives, use of Six Sigma and other assessment tools, leadership initiatives, and much more. Venues for these discussions include conference calls, one-on-one sessions, surveys, and site-based diversity leadership sessions that take place throughout the year. Rohm and Haas hosted the 2008 Diversity Leadership Session and provided two days of dynamic discussion and opportunities for member companies to network, share proven strategies, and interact with Rohm and Haas executives. During the two-day event, a Diversity Roundtable took place that was webcast to all participating company locations and engaged employees across the globe in a live exchange of questions and answers. Additionally, an exchange of ideas and information about Rohm and Haas’ organizational diversity journey was shared, including an in-depth discussion with Stacey Adams, global diversity director; Dr. David Greenley, interim chief technology officer; and Jim Ryan, Six Sigma Black Belt; on the use of Six Sigma in the diversity process. Unfortunately, as significant as the need is, diversity practitioners seldom devote sufficient time to their own emotional, mental and spiritual growth and development. During this meeting, however, Rohm and Haas’ external diversity consultant partners, Prime Directive, took DSC members through self-renewing exercises to help them sustain the momentum and drive necessary to continue moving

their organizations forward in the midst of resistance and change. “The opportunity to pause and reflect is not one that readily comes for me. These exercises reminded me that I need to take care of myself and get refueled in order to give my all to the organization and the work I do,” says Kristie King, diversity manager for Rohm and Haas.

“We are very proud of the progress we have made in the last several years, but we also know that the work of diversity, inclusion, and culture change is a marathon, not a sprint, and that there is much left to do to,” said Stacey Adams. “The future still holds challenges with organizations addressing the changing generational workforce and globalization of jobs.” “We are planning for and executing the next evolution in Rohm and Haas’ For the past five years, the Rohm and Haas Company has been going through a transjourney and are focusing formation process. It began with identifying the needs of the company and internal diversity on leading the creation of a advocates. Next, the company positioned diversity as a culture-change process that was workplace culture that can embusiness-driven rather than HR-driven. This reinforced the connection between diversity and brace new faces, new ideas, and business results and drove home the message that diversity is a business imperative. ways of working that will lead us Guillermo Novo, vice president and business director at Rohm and Haas, said, “The forward,” she added. PDJ success of my business is directly impacted by the diversity of my team and innovative ideas that come from them. This is critical in an industry that relies on creativity and novel ideas to move us ahead of our competitors.” The company formed a Diversity Council, led by the Chairman and CEO Raj Gupta, which included five other business leaders. The council was key to the success of diversity

Rohm and Haas, celebrating its 100th year in 2009, is a global leader and pioneer in the creation because I know that all that we are, and will become, can be attributed to the creative and and development of innovative diverse minds, ideas, and perspectives of the employees of Rohm and Haas,” said Gupta. technologies and solutions for the specialty materials industry. The office of diversity is currently focusing on The company’s technologies are found in a wide range of recruitment, retention, development, education and industries, including building and construction, electronawareness. It is successfully building a diverse work- ics, household goods, packaging and paper, industrial force within professional ranks and creating a work process and much more. Located in 27 countries across environment where innovative ideas and new ways of the globe, Rohm and Haas is based in Philadelphia, Pennsylvania and generated sales of approximately $8.9 working abound. All senior leaders at Rohm and Haas were taken billion in 2007. For more information on the Diversity Strategy through an intense diversity and leadership training, which was followed by the implementation of Consortium, contact Chandra Irvin, executive direcformal diversity objectives directly linked to per- tor, by e-mail at Chandra@irvingoforth.com or call formance and accountability. This level of account- (502) 742-7712. For more information on Rohm and Haas, visit the ability reflected a shift from organizational awareness to organizational impact that had far reaching company’s Web site at www.rohmhaas.com or contact Stacey Adams at staceyadams@rohmhaas.com. implications for all business and individual leaders. efforts, because the accountability for the overall process belongs to this group.

“Leading our diversity journey has and continues to be a rewarding path for me,

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I AM Virda Rhem, SPHR

Director, Human Resources Texas Property & Casualty Insurance Guaranty Association Member since 1992 “SHRM has consistently delivered the resources and professional development opportunities I have needed as I’ve progressed through my career.”

Leading People. Leading Organizations.

www.shrm.org

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Susan Chambers Susan Chambers, executive vice president,

COMPANY Name: Wal-Mart Stores, Inc. Headquarters: 702 SW 8th St. Bentonville, AR 72716

global people division, of Wal-Mart Stores, Inc., brings ‘em to their feet with an enthusiasm not often seen in corporate America.

Web site: www.walmartstores.com

Throughout her career, Susan has taken on challenges and

Primary Business or Industry: Retail

turned them into opportunities, with both courage and

Annual RevenueS: Wal-Mart is the world’s largest retailer with $374.5 billion in sales for the fiscal year ending Jan. 31, 2008

drive. Now, she’s leading a host of programs and initiatives at the world’s largest retailer, and doing it with flair. Prof iles in Div er s it y Jou r na l

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GLOBAL / MARKET / INDUSTRY ISSUES Please describe Wal-Mart’s global presence: numbers of employees, international businesses, branches, marketshare, potential, etc. Describe the scope and scale of your company to a reader who may not be familiar with it.

Over the course of 46 years, Wal-Mart has grown from a single discount store in a small town in Arkansas to become the world’s largest retailer with more than 4,000 discount stores, supercenters, neighborhood markets and Sam’s Club locations in the United States. We also operate more than 3,000 facilities in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, and the United Kingdom. Wal-Mart employs a global workforce of more than 2 million associates, with 1.4 million in the United States. With that growth comes a tremendous opportunity—and responsibility—to make a difference in the lives of our customers and communities. We believe we can and should be part of the solution to some of the biggest challenges facing the world today, like the environment, economic opportunity, and health care. Please give us your definition of diversity and inclusion, as it relates to the efforts within your organization.

At Wal-Mart we have a very clear purpose: we save people money so they can live better. And that purpose begins in the heart of the

company—by creating real career opportunities for our associates so that they can live better lives. Wal-Mart’s success depends on our ability to build a global workforce where everyone has the opportunity to go as far as their hard work and talent will take them. Diversity and inclusion have always been a part of our culture and our heritage. Respect for people…helping people grow with us…is a part of who we are and what has made us the company we are today. We believe that a commitment to diversity is what allows us to better serve the millions of customers who shop with us each week; it allows us to create an inclusive workplace for our associates; and it allows us to cast the broadest possible net when looking for talent, suppliers, and partners. It helps us learn and grow, and come up with the new thinking and innovative partnerships that move our business and our world forward. In today’s marketplace, does your company have any particular cultural, socioeconomic, or demographic challenges to selling, producing, or delivering services? What particular challenges do you face in hiring and retaining good people?

Because of our global footprint, we recognize that our customers, associates, and suppliers will want different things from us. There can be no one-size-fits-all approach to how we operate. That’s why we work very hard to make sure every one of our stores reflects the needs and wants of the community surrounding it. We call this the “Store of the Community” approach, and we have a dedicated team of associates who help us make sure we’re building the right kinds of stores with the right mix of products to best serve a community. Our Associate Resource Groups (ARGs), based in our home office, make a big difference, too. They help us reach out to multicultural markets and stay relevant to our customers. For example, they’ve assisted the store and club operations with dual language signage in locations with a large multicultural presence.

Susan speaking at a management meeting. 82

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“

Wal-Mart’s success depends on our ability to build a global workforce where everyone has the opportunity to

”

go as far as their hard work and talent will take them.

Wal-Mart is defined by a set of fundamental and enduring values going back to when Sam Walton founded the company, but we also know that how we engage and nurture people has to evolve with changes in the workforce. The ARGs help us understand the concerns and needs of all of our associates and how we can ensure that everyone shares in our company’s success.

—Susan Chambers months and celebrated cultural holidays, so that stores and clubs can ensure they are supplying customers with the right merchandise at the right times throughout the year. The ARGs also participate in focus groups that elicit honest and candid feedback about new products headed to stores and clubs.

This same thinking also applies to our recruiting efforts. Like corporations around the world, we want to attract and retain talent wherever we do business. This is an especially important challenge in an industry like retail, where turnover is very high.

CORPORATE LEADERSHIP

At Wal-Mart, we place a special emphasis on recruiting college students as summer interns, and working diligently to bring those individuals back as permanent associates once they graduate. In addition, throughout the year, our Campus Relations recruiting team stays connected with colleges and universities across the nation. Many of the institutions we have relationships with are affiliated with organizations like the Hispanic Scholarship Fund, United Negro College Fund, Thurgood Marshall College Fund, American Indian College Fund, and the Asian & Pacific Islander Scholarship Fund.

Our Office of Diversity is one of the largest in the nation, and we’ve built a team of top diversity professionals to staff it. Under their leadership, we’ve created internal diversity initiatives to engage our associates and help them see, understand and feel the priority our company places on diversity. Managers are required to have at least three mentees through the “Mentor Me” program, and they are required to attend at least one diversity event throughout the year. Additionally, company officers’ bonuses are tied to diversity goals, and those who do not meet them can see their bonuses reduced by up to 15 percent.

We understand that, while attracting talent is a challenge, retaining it is equally challenging. That’s why we create numerous opportunities for our associates to advance within the organization. The Wal-Mart Leadership University, for example, gives home office and field associates access to the classes, certifications, and institutional learning programs that contribute to both their personal and professional development. Do you have any examples of how tapping employee diversity has yielded significant product or profit breakthroughs? Inter-business synergies?

We know that our commitment to diversity makes us a better company and a better place to work and shop. As I mentioned, the Wal-Mart Associate Resource Groups (ARGs) help us stay close to our customers. The Asian Pacific Islander Resource Group and the Hispanic Latino Associate Resource Group, for example, have raised awareness about the importance of their cultural heritage

What resources (financial and manpower) are allocated on diversity? How do these reflect Wal-Mart’s leadership commitment to diversity?

Externally, our commitment to reaching out to diverse markets allows us to build national and local partnerships with professional, civic, and nonprofit organizations. Every year, the Diversity Relations Department partners with more than 400 organizations that support programs on health and wellness, financial independence, economic empowerment, leadership development, education, and sustainability. Does Wal-Mart address diversity in its annual report? Is it important to talk about diversity with shareholders?

Yes. Information about diversity is included in our annual report and our annual sustainability report. In addition, we publish a separate annual diversity report with a detailed perspective of our diversity programs and progress. You’ll find detailed diversity information on our web site—www.walmartstores.com/diversity— which includes EEO-1 data.

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Do you have any programs in place to increase the cross-cultural competence of your senior management team? Can mid-level managers acquire similar training?

Wal-Mart’s Leadership University offers a diversity and inclusion seminar for all salaried associates. In addition, all associates can attend and participate in the Wal-Mart Diversity Development series. The series includes an interactive workshop covering various topics, behaviors, and trends in diversity. In 2007, Wal-Mart retained Dr. Price Cobbs, a respected diversity consultant, to help enhance diversity programs with our company officers and management associates. These small workshops gave our associates the opportunity to share stories and feedback about their experience with diversity at Wal-Mart. In addition, Dr. Cobbs and other diversity industry leaders hosted a diversity panel discussion and all home office associates were encouraged to participate. How are decisions about diversity made at Wal-Mart? Is there a diversity council and who heads it up? Who participates?

Decisions on a corporate diversity strategy are primarily made through a collaborative process with the Office of Diversity and the Global People Division (Human Resources). The strategy is then reviewed by the Wal-Mart executive committee for further enhancements before company-wide implementation. Wal-Mart also relies on the counsel of two external committees to provide guidance on diversity and employment practices. The Employment Practices Advisory Panel and the External Advisory Council serve as essential resources for the company as we advance our mission for diversity and inclusion.

EMPLOYEE INCLUSIVENESS How does your company gauge inclusion of employees? What are the tests, measurements and benchmarks (metrics) that indicate where the company is on the inclusion graph?

The annual Associate Opinion Survey measures how our associates feel about diversity at Wal-Mart and other employment prac84

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tices within our company. Feedback from the survey is discussed with each individual department. During the feedback discussions, teams develop action plans to address key issues, to improve the associate engagement level, and to foster associate camaraderie. Externally, we measure our success in diversity by benchmarking with other Fortune 500 companies and participating in national diversity surveys that use various diversity metrics systems. We’re proud when we’re recognized with diversity awards, such as being named a Top Company for Latinas or Asian Americans, to mention two recent examples. And we look to our associates, suppliers, and customers as the barometers of our progress in creating diverse and inclusive stores, a broad merchandise mix that is reflective of what our customers want, and a network of diverse and multicultural business partners. Are employees more involved in the company than they were two years ago? In what ways?

Since the establishment of the Office of Diversity in 2004, our associates—at all levels and from all backgrounds—have access to additional opportunities to be engaged within our company. Outlets like the Diversity Development Series, the “Mentor Me” program, diversity and inclusion training, as well as our Associate Resource Groups all encourage our associates to contribute their ideas and learnings. In turn, their feedback and involvement help us create an even better Wal-Mart—today and in the future.

personal profile Susan Chambers Company

Wal-Mart Stores, Inc. Title

Executive Vice President, Wal-Mart Stores, Inc., Global People Division Years in current position How are their opinions solicited and valued? Do you have an employee ‘suggestion box’ or other system, and who monitors and responds?

Sam Walton always believed that some of the best ideas for the business came from our associates. And we’ve certainly seen that with our environmental sustainability efforts, for example, where associates have provided some amazingly innovative ideas to help us become a more sustainable company. Each month, we also host town hall meetings for associates to learn more about what’s going on with the business, as well as ask questions and give feedback. After each meeting, associates have the opportunity to submit additional feedback through the Wal-Mart intranet site.

2 years Education

Bachelor’s degree in systems and data processing from William Jewell College, in Liberty, Missouri First job

Administrative Assistant and tour guide at Hallmark Family

My husband Chip and I are celebrating our 30th wedding anniversary this year. We have three children: a daughter, 27, and two sons, 23 and 14. Interests

I love music. I studied vocal performance and classical piano for many years. I’m a mezzo soprano.

Something we are very proud of at Wal-Mart is our open door policy. This means that any associate can share feedback or concerns with any manager or any executive at any time. We take our associates’ input, involvement, and pushback very seriously, because we know they will help us build a better company. We also know that our associates appreciate this policy and use it. Can you name specific ways your company supports upward development toward management positions?

Our associates have a number of development opportunities within our company. Wal-Mart Leadership University is the corporate education arm that offers hundreds of classes and seminars each year to meet our associates’ professional and personal development. The program includes nationally recognized courses such as Dale Carnegie, Advanced Leadership Development, Lead First, and Walton Institute. Additionally, we work very hard to develop business-critical talent and to create the kinds of learning experiences within our company that contribute to professional development and longevity with Wal-Mart. One clear measure of that is the fact that more than 3/4 of our store managers started out as hourly associates.

How did you get to your present position? What was your career path?

It’s been a serendipitous—and often surprising—journey. And while I couldn’t have foreseen the career path I’ve taken, I also couldn’t have asked for a better one. I started out as an administrative assistant and part-time tour guide at Hallmark. Over the years I’ve worked in manufacturing and retail, on the technology side, and the people side. One constant has been that whenever I had an opportunity to take on something that needed changing or something that needed to be done, however unglamorous the task may have been, I was willing to do it to the best of my abilities. I don’t think there’s any magic formula. Just hard work and an openness to change. Who were/are your mentors? What about their business skill or style influenced you? How did they help in your professional and personal life? Are you mentoring anyone today?

I’ve always sought out multiple mentors—situational mentors as I like to think of them. If I was puzzled by something, culturally or functionally, I would look to different people that I respected. I’ve learned that whenever I sought the counsel of many people Prof iles in Div er s it y Jou r na l

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with many perspectives, I ended up with a better solution than I could’ve come up with on my own. At the same time, I try to impart to my mentees the importance of knowing who you are and what you stand for. You should always seek out trusted advisors, but in the end leadership is about making your own decisions based on your own inner compass. There’s no substitute for that. I mentor seven people right now. Mentoring is big part of our company. We want to widen the leadership circle.

Right now we’re developing a global diversity and inclusion strategy, focusing on four key areas: our people, external stakeholder management and community involvement, supplier diversity, and multicultural marketing. This five-year strategic plan is our roadmap to integrate Diversity & Inclusion into every aspect of our business. Some of our ongoing diversity initiatives:

• The Diversity Development Series brings together our associates, business leaders, and community partners in a classroom-facilitated discussion to break new ground and create solutions to diversity challenges affecting our marketplace and workforce. Nearly 300 Diversity Development Series seminars were conducted for more than 15,000 associates across the United States in 2007.

• The Employment Practices Advisory Panel helps us establish benchmarks and strategies related to our workforce, diversity leadership competencies, and workplace environment.

• The “Mentor Me” program is about, as Sam Walton put it, ordinary people doing extraordinary things. But informal mentoring has always been part of our culture, part of “striving for excellence.” Generation after generation, leaders

What are your specific responsibilities for advancing diversity and inclusion at Wal-Mart? What are the strategies you employ to move inclusion forward?

My job is to help Wal-Mart build a global and diverse workforce that will allow us to succeed in the 21st century. And that starts with creating opportunities so that all of our associates can live better and grow with us. My team and I ensure that our diversity and inclusion initiatives are woven into our business, through team building, engagement, and creating a culture of peak performance throughout the company. We want to create an atmosphere where associates are empowered to redefine and extend the boundaries of excellence.

Susan chatting with associates before a management meeting.

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Wal-Mart’s annual diversity report contains a detailed perspective of its diversity programs and progress.

and associates have helped each other become better people and better workers, and to transform from “students to leaders.” The “Mentor Me” program is designed to carry on this mentoring culture among all associates at all levels. Associates are encouraged to be creative and purposeful in leveraging the power of mentoring, including traditional, group, peer, and reverse mentorships, as well as cross-functional and cross divisional mentorships. How are you (as a manager) measured in terms of performance? Is your compensation related to diversity performance?

We deployed a Diversity Tracker system to manage and report the progress of diversity goals at all levels within the company. By accessing the system, everyone knows, real time, what their expectations are, how they’re doing, where their direct reports are, and what the next step is. We launched the Diversity Goals program in 2004 to help us measure and drive our diversity performance.

Of the more than 50,000 members of management who have a diversity goals requirement, we’re proud to report that achievement of diversity goals in 2007 was over 99 percent. As I mentioned earlier, our expectations are high—key senior field managers and officers have 15 percent of their incentive bonus tied to the completion of their diversity goals requirements. And yes, my compensation, as well as our CEO’s, is tied to our diversity performance. Are there particular areas/employee sectors you feel still need improvement?

In business, much as in life, diversity is a journey—a neverending process of learning and growth. There always will be areas where we can improve and stretch ourselves. The beauty of the journey is that as we reach milestones, we mature, we evolve and we come to better understand how to achieve them and even set new ones. That’s why we’re never done. We’re always becoming a better company. PDJ

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Diversity is only part of the story We realize that a commitment to diversity and inclusion makes us stronger, smarter and better able to help people save money and live better. This commitment causes us to look beyond our company walls to support and pair with other organizations that share the same vision. To find out more about what drives our commitment to diversity and inclusion, visit us at walmartstores.com/diversity.

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1. BD 2. Georgia Power 3. WellPoint, Inc. 4. CVS Caremark 5. KPMG LLP

6. Burger King Corporation 7. Sodexo 8. New York Life 9. Credit Suisse 10. Borders Group, Inc.

Awards of Excellence Alegent Health • Excellus BCBS • Freescale Semiconductor • Interpublic Group • MGM MIRAGE • New Jersey Department of Environmental Protection Ottawa Police Service

The companies above have distinguished themselves by virtue of the innovative approach they have taken to advance diversity in the workplace and in the communities they serve. In almost all cases, their efforts can be imitated and implemented by others who are still searching for the spark to ignite their own programs. We like the fact that there is so much, well, diversity, among the initiatives described here. You’ll find programs that address generational differences, underserved youth, education, persons with disabilities, and a host of other topics. We sincerely hope you’ll read them carefully, and then try to identify what you can do at your own business, regardless of its size. We congratulate these companies for their unwavering and creative commitment to diversity and inclusion. They are making the world a better place to live for all of us. 90

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Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

BD (Becton, Dickinson and Company)

Network XYZ

BD’s Network XYZ strives to bridge generation gaps, dispel age-related stereotypes, and embrace positive differences. The X, Y and Z in the network’s name represent three generations in the BD workforce. The X and Y are obviously Generations X and Y. The Z, less obvious, represents everyone that is part of neither Generation X nor Y. Why Z? Because “Network X/Y/Baby Boomers/ Traditionalists” seemed too cumbersome! If the Network’s motivation does not scream innovation, the vehicles used to achieve its goals might. They include: • Speed Networking. A twist on speed-dating; associates are invited to participate in a fastpaced, structured “meet and greet.” • XYZ Book Club. The book club meets monthly and is an opportunity for associates to meet colleagues with whom they might not otherwise interact and share perspectives on books they’ve read. • Onsite Events. XYZ seeks to identify topics that effectively engage all three generations and host on-site educational events. The first onsite event was a seminar on personal finance. Whether Generation X, Y, or Z, we all share the challenges of managing our finances. Associates of all generations found themselves commiserating with each other and sharing knowledge during this event. • XYZ Offsite Events and Happy Hours. These fun after-hours outings have included events such as bowling and rock climbing. Events are intentionally active in nature so that they will prompt conversation among participants. XYZ also organizes monthly happy hours at restaurants near the office.

Network XYZ began as a grass-roots effort, envisioned by BD associates who identified a need to bridge the generation gap. This group garnered support from Karen Graham, BD’s global diversity inclusion leader, and Executive Vice President William Kozy. With their endorsement and counsel, Network XYZ was launched. Team XYZ, the associates who organize and execute events, is led by the Network’s founder, Sien Mittiga. Team XYZ is composed entirely of volunteers. Nearly all work associated with hosting and launching events takes place either during lunch or after hours. The Network was awarded a modest first-year budget. Nearly all of the Network’s onsite events are produced at low or no cost. Offsite activities are funded by associates themselves. Promotion of the initiative is achieved largely through digital (free) media and promotional materials. Network XYZ has a website on BD’s intranet which includes a current calendar of events. Team XYZ also has several members with talent in graphic/web design, allowing the Network to produce eye-catching promotional e-mails and digital displays. The Network’s kick-off events attracted nearly 300 associates (from a total population of 2000), prompting more than 150 associates (of all generations) to sign up for the XYZ mailing list, and an additional 50 volunteered to help plan and execute events. The Speed Networking reached maximum capacity (75 associates) the first day the event was advertised. Heavy demand for a regular schedule of speed networking opportunities prompted Team XYZ to explore scheduling repeat events. Offsite activities have routinely attracted 20-100 associates, despite the fact that BD does not subsidize any portion of the cost. Prof iles in Div er s it y Jou r na l

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Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

Georgia Power

Retaliation Awareness and Skill Building to Create a Better Workplace

Georgia Power is the largest subsidiary of Southern Company, one of the nation’s largest generators of electricity. The company is an investor-owned, tax-paying utility with rates well below the national average. Georgia Power serves 2.3 million customers in all but four of Georgia’s 159 counties. The company has approximately 9,000 employees. As one component of a broad-based leadership and culture change initiative to build trust and sustain a culture of excellence through inclusion, Georgia Power developed the Retaliation Awareness and Skill Building innovation in 2006, launching the program in 2007. The company has a voluntary turnover rate of less than 4.5 percent. It also has extremely high favorability ratings from employee surveys in the areas of corporate values, job safety, engagement/commitment, and value of diversity and inclusion. Despite these positive aspects of a family culture, the fear of retaliation has been a recurring theme not adequately addressed. It was beginning to negatively affect leadership credibility and employee trust. Knowing the company is in compliance with the law and is bound to address formal, legal standards of retaliation such as discrimination, harassment or intimidation, top leadership focused on the subtle forms of behavior that do not rise to legal standards yet reduce trust, engagement and, ultimately, employee performance. The creation of the training objectives and course was done in-house, developed by the company’s diversity action organization. The CEOs of both Georgia Power and Southern Company personally scrutinized the program design and provided critical input required to achieve the training objectives and create management accountability. The company used a train-the-trainer concept to facilitate the training sessions. Operational managers and supervisors became the trainers, which significantly added to the effectiveness of the sessions. For managers, the goal was to stop judging their personal leadership and employee trust based on good intentions. It is critical that leaders realize employees are judging them by their behavior. In the workshops, participants identify and discuss 10 specific behaviors that employees perceive as retaliatory. Instructors then facilitate a process with managers to break down denial that the behaviors occur and to understand the business impacts of continuing current patterns. The course also introduces three management skills that, if applied, will build trust and reduce the fear of retaliation. 92

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The foundational, empirical data to drive the research came from McKinsey and Company. The company previously asked them to do an assessment of how well it was implementing its diversity and inclusion initiatives, identify gaps, and forward recommendations. Next, Navigant Consulting developed a first-of-its-kind methodology to analyze four years of data from 10 different sources and 110,000 data points. Using cross analysis and GAP matrix, the team identified the 10 behaviors seen as retaliatory and the three management skills to build trust and reduce the fear of retaliation. Benefits and positive changes achieved During 2007, the diversity action organization coordinated and conducted 51 sessions with 1,233 attendees. Every officer, manager, supervisor, and HR representative attended the 8-hour session. The 10 behaviors and three management skills were taught by creating four video vignettes using professional actors to demonstrate commonly occurring work situations that create mistrust and fear of retaliation. The response from participants has been overwhelmingly positive. In fact, 96.8 percent of participants surveyed indicated that the workshop was an effective method for getting issues out in the open and learning from other managers how to handle those issues. Additionally, they said that the workshop was valuable in helping leaders at all levels understand the perceptions of retaliation and the negative effect it has on employee productivity and engagement. This session has become one of four mandatory leadership development programs for supervisors to better manage the mix of employees in the workplace and build higher levels of performance and trust. The ultimate outcome is for employees to feel valued, respected and productive, through a trusting relationship with their immediate supervisor. The true benefit of an effort like this will be realized several years from now. The initial reaction from managers has been resolve…resolve to make a difference and create a legacy that will ensure Georgia Power’s success for many years to come. Another indicator of effectiveness was the candid, companywide webcast on the subject by four senior executives, including the CEOs of Georgia Power and Southern Company. That they were willing to tackle this elusive and sensitive issue so openly was unique. These executives were building trust in real time, a fact embraced by employees who viewed the broadcast.

Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

WellPoint, Inc.

Corporate Cultural Change —One Person at a Time

WellPoint Health Networks and Anthem, Inc. merged in 2004 to form the largest health benefits company in the United States. Instead of allowing a culture to evolve by default in this new company, CEO and President Larry Glasscock designed a culture with his new executive leadership team…a team comprised of members from both legacy organizations. The executive leadership team developed a mission, vision, and five core values upon which the culture would rely. The five core values are Customer First, Leading Through Innovation, One Company One team, Personal Accountability for Excellence and Integrity. Each of the values has guiding behaviors which act as guideposts for all 42,000 of our associates. WellPoint’s innovation in culture is threefold: including all 42,000 of our associates in our culture rollout, demonstrating the value of applying our culture concepts, and valuing ultimate diversity, the diversity of thought. Immediately after the merger we contracted with SennDelaney Leadership to design and cascade our culture throughout the organization. Our leadership team understood the importance of touching each one of our associates personally. This has created the opportunity for each associate to understand how they individually influence the new desired culture, which greatly increases the potential for this new culture to be imbedded and sustained. The rollout to our associates was scheduled in five waves, based on geography. WellPoint operates primarily in 14 states, but we have associates in a total of 31 states. Currently, we have reached 82% of our associate population. The associate experience consists of a full day workshop. They practice the culture concepts first hand and hear from local leaders which of the concepts were most meaningful to them and how they are using them in their own lives at work and/or at home. The workshops are co-facilitated by two WellPoint associates who also apply the concepts personally and throughout the day share personal stories, conveying the impact these concepts have had on them, and can have on their fellow associates. Associate Culture Workshop facilitators must pass a rigorous certification process which is overseen by Senn-Delaney Leadership. This ensures the facilitators are grounded in the

culture concepts and are appropriate role models for other associates by actively living WellPoint’s core values. One key component of the workshop is delving into our own operating system, as human beings. Each associate discovers for themselves what types of thoughts they are having that are influencing them to behave in a certain way, which determines the results they are getting. If there are areas in their lives where they are not getting desired results, they are encouraged to identify their behaviors and examine the thinking/beliefs that are driving them. We also explore the different preferences and tendencies individuals have in communicating and relating to others. Using a framework developed by Senn-Delaney, we identify four different behavioral styles and associates discover what their own preferences and tendencies are, and what others prefer. Associates experience how each of them get results, and discuss that all four types are needed for us to be a high performing organization. The secret to success is not mastering one behavioral style, but to recognize the strengths and challenges of each type and how to flex your own style to work effectively with the other styles. At the end of the one-day workshop each associate creates an “I will” statement. They commit to taking action on one or two insights they have had that day to increase their personal effectiveness and fulfillment. There are several indicators of the success of this initiative. WellPoint has surveyed workshop participants 90 days after going through the workshop. Positive feedback has been received from our associates. In addition to tapping into recent culture workshop participants, WellPoint also conducts an annual, all associate engagement survey, to assess our progress on living the core values and reaching our desired culture. Our survey results indicate positive progress, despite significant organizational change and turbulence within the U.S. economy. Ultimately, as humans, we are all just a group of thinkers. WellPoint understands that valuing the differences and similarities in our thoughts, and tapping into that diversity to create a culture of competitive distinction, is what is going to help us achieve our vision to “transform health care and become the most valued company in our industry.”

Prof iles in Div er s it y Jou r na l

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Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

CVS Caremark

A Partnership for a Diverse Workforce

CVS Caremark is the largest provider of prescriptions and related health care services in the nation. The company’s goal is to lead in the cutting-edge development of diverse employment, training, and education programs, and to establish CVS Caremark as the distinguished model for innovative workforce initiatives. In order to help realize this vision, CVS Caremark has established partnerships with local, state, and federal agencies, educational institutions, nonprofits, and faith-based organizations. Recognizing a national trend that sees only 56 percent of working-age people with a disability in a job, CVS Caremark has maintained a commitment to hire and train people with disabilities. CVS Caremark tailors its physical workplaces and job duties to make the company more friendly and accessible to workers with disabilities. One particularly innovative partnership that formed in 2006 was with the Developmental Disabilities Institute (DDI), a not-for-profit agency headquartered in Smithtown, New York, with more than 30 locations throughout Suffolk and Nassau Counties. Serving nearly 1,000 children and adults with a diagnosis of an Autism Spectrum Disorder (ASD), DDI is the largest provider of services for individuals with autism on Long Island. It provides educational, vocational, and residential programs, as well as medical and dental services, for over 1,500 children and adults with autism or other developmental disabilities. CVS/pharmacy’s Long Island Regional office, Human Resources, as well as district and store managers, worked with DDI’s vocational department to ensure the placements were successful and employees with disabilities were properly trained and effective in a store setting. The DDI partnership has proven to be incredibly successful for both CVS and the employees the company has hired through the program. Since the start of the program two years ago, CVS has hired 12 employees with autism. Of the 12, nine are still employed. One of the reasons this partnership has been so successful is because CVS store managers have been open to carving out a relatively small job with a small number of hours for employees with autism. One success story is that of George Hanna, an employee with autism who has worked at a CVS/pharmacy in Long Island for the past two years after coming through the DDI program. Hanna

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works four days a week at CVS and his main job responsibilities include spacing (making sure products are aligned properly on shelves), cleaning, helping customers, and paging co-workers and managers. His favorite parts of the job are helping customers and cleaning, and he is especially proud of a certificate he was awarded for his great work. Hanna’s grandmother says that she’s seen a significant positive attitude change in her grandson since he started his job at CVS, and he has really learned about responsibility at his job. Hanna saw an opportunity to get training and build a career; the company looked beyond his disability to see the capable and committed employee he has turned out to be. DDI feels that employment opportunities for individuals with developmental disabilities are rare, and recently honored CVS for its willingness to hire and support employees with autism and developmental disabilities. The New York State Rehabilitation Association (NYSRA) presented CVS of Suffolk County with its “2007 Employer Recognition Award” at a breakfast celebration. Members of DDI’s Adult Vocational program nominated CVS of Suffolk County for the award in appreciation of their commitment to employ over a dozen adults served by DDI in their stores. The award recognized the collaborative effort put forth every day by CVS’s Long Island Regional office, the Human Resources department, as well as district and store managers to help place DDI individuals. Inclusion of employees with disabilities in the workplace is an important part of CVS’ diversity initiatives. In 2006, CVS received the New Freedom Initiative Award from U.S. Secretary of Labor Elaine L. Chao. The award recognized CVS for demonstrating exemplary and innovative efforts to recruit, hire, and promote people with disabilities, incorporating the principles of President George W. Bush’s New Freedom Initiative to give people with disabilities the opportunity to fully participate in all aspects of community life. Committed to building an outstanding workforce through the hiring, training, and retention of quality and diverse colleagues from all backgrounds and walks of life, CVS Caremark and DDI have worked together to unlock the potential of people with disabilities—which not only benefits the employees but is good business for CVS Caremark.

Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

KPMG LLP

Major League Baseball Is Reviving Baseball in Inner Cities

As a firm, KPMG’s particular focus is on youth and education. We recognize that all too often, children from poorer communities may be disadvantaged when it comes to acquiring basic reading, writing, and math skills. Or they may lack a strong adult role model in their lives to mentor and encourage them. Either way, the result is a gap in skills that affects their future. In June 2007, KPMG became the sole corporate sponsor of Major League Baseball’s Reviving Baseball in Inner Cities (RBI) program. The multi-year, multi-million dollar relationship with Major League Baseball helps to further underscore our firm’s commitment to diversity and provides our people with a compelling and personally rewarding new way to give back to others. Established by Major League Baseball (MLB) player John Young in 1989, today RBI is a worldwide outreach program for inner city boys and girls designed to increase participation in baseball and softball and promote the inclusion of minorities in the mainstream of the game, while encouraging academic achievement, developing self-esteem, and teaching the value of teamwork. Why RBI is Unique Our partnership with RBI enables us to provide volunteer opportunities to our partners and employees that are consistent with our strategic goals as responsible corporate citizens. RBI helps us change lives while supporting our commitment to diversity and our profession. Working through RBI, KPMG volunteers help inner-city children learn how to play baseball and softball, and acquire the skills they will need to excel throughout their lives. We believe the dedication of our people will continue to be our most valuable contribution to RBI—the direct and long-lasting impact they will have on the children whose lives they touch through a simple game of baseball or softball. Our support of RBI has had immediate results, with farreaching impact. We’re especially proud that: • Working with MLB, KPMG helped launch RBI in six cities in 2007 and helped create a National Board of Directors. • With preparations for RBI’s 2008 season now underway, KPMG has helped nine more cities to launch programs—for a total of 15—and is facilitating launches in six additional cities, including in Hawaii and Puerto Rico. KPMG and Major League Baseball Charities established the “RBI for RBI” Scholarship Fund, a new initiative that will provide RBI high school seniors with financial support to pursue a postsecondary education. More importantly, each scholarship recipi-

ent will be assigned a KPMG mentor who will provide encouragement as the student makes this life transition. In addition to the initial endowment of $500,000, KPMG and MLB will donate $1 for each run batted in throughout the major league baseball season. More than 900 KPMG partners and employees volunteered for RBI activities across the United States. They served as on-field coaches and scorekeepers, field maintenance, and site management personnel, and off-field volunteers working in classrooms to help provide various academic and mentoring programs to RBI’s boys and girls. KPMG has developed two educational courses for RBI youth—“Skills that Pay the Bills” and “Fair Ball”—to be delivered by KPMG volunteers. Each course will help kids see business as an exciting career opportunity and educate them on the ethical issues that transcend sportsmanship and life. We established a permanent Community Sponsorships team within KPMG that’s focused on expanding our RBI initiatives and activities, as well as RBI Core Teams and volunteer networks in KPMG offices in each of the original RBI cities. Chairman and CEO Tim Flynn presented a donation of $1 million to MLB during the 2007 World Series, representing KPMG’s initial financial support. Since our involvement with RBI began in June 2007, KPMG partners and employees have had many opportunities to volunteer, including during MLB’s 2007 All Star Week. Those opportunities will continue throughout the 2008 season as our people volunteer at RBI tournaments and clinics, and again during All Star Week. Measuring—and Sustaining—Success According to Major League Baseball, in 2007, 17 RBI alumni were selected in Major League Baseball’s draft. And in the years since RBI began, 30 Major League ball clubs have drafted more than 150 RBI graduates. But even more importantly, thousands of girls and boys have graduated high school, attended college, and are building successful careers. RBI enables KPMG to reach out to inner city youth and encourage them to look toward their own futures. We are extremely proud to have the opportunity to team with MLB. Our involvement reaffirms our commitment to diversity and our communities, and inspiring boys and girls as they reach higher, strive for a brighter future, and achieve goals they thought were otherwise unattainable.

Prof iles in Div er s it y Jou r na l

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Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

Burger King Corporation

Women’s Leadership Forum (WLF) Mentor Program

The Women’s Leadership Forum (WLF) was founded at Burger King Corporation (BKC) in 1998. This organization was formed by a group of BKC women in the corporate headquarters who had a vision to enhance the leadership potential of women within the company by providing opportunities for continuous learning and networking, both inside and outside of the organization. Today, the WLF consists of more than 300 BKC employees worldwide—20 percent of whom are men— who have the opportunity to participate in an array of mentoring, community outreach, and professional development programs. The WLF began offering a structured mentoring program in 2001 with the support of BKC, with great results. In 2007, BKC support led to its expansion both financially and organizationally to become a linchpin of the corporate workforce self-development goals, as all officers and directors are required to participate, enabling BKC to extend the benefits of the WLF Mentoring Program to a broader audience. The program pairs a senior level professional with a more junior level person from a cross-functional part of the business. It is primarily a mentee-driven program in which all of the mentees are self-nominated so the dedication to results is based on each mentee’s commitment. While the program is flexible in order to meet the specific objective of the mentee, there also are business objectives of the mentoring program. They are to: • Enhance employee effectiveness and results by establishing supportive relationships with senior individuals outside their immediate work group. • Assist employees in advancing their career opportunity potential and complement additional current training opportunities offered at BKC.

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• Motivate employees by providing additional supportive individuals that encourage development and performance results through proven leadership and experience. • Provide resources for demonstrating and modeling leadership. • Provide an opportunity for employees to engage in professional networking. • Support employees in adjusting to and providing leadership in a changing corporate culture. The keys to the success of the program are the dedicated 9-member Steering Committee and 26-member Implementation Team (I-Team). The chair of the Mentorship program rotates among WLF members. These volunteers facilitate several aspects of the mentor program: applications, interviews of mentors and mentees, and the training. They also provide a resource to aid the mentor/mentee relationships throughout the year—devoting significant man-hours. Impact of the Program

The WLF mentoring program has grown in its impact each program year. The number of participants has grown, and the participants have confirmed its benefit in addressing their personal objectives. Several members have participated each of the years as a mentee, mentor and/or I-Team member. This year’s mentor program is the largest to date with over 250 people involved in 115 pairings. This includes a few dual mentors/mentees and two executive team members who have volunteered to become mentors to more than one mentee. The expansion of field participation to almost 50 percent of the program further magnifies the impact of the program. Female participation has increased over 240 percent, and there is increased participation from ethnic minorities as well.

Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

Sodexo

Ten Key Elements

At Sodexo, we employ more than 120,000 employees at more than 6,000 locations across North America. Increasing diversity and inclusion is one of our strategic imperatives, as we firmly believe that this helps us fulfill our mission “to contribute to a more pleasant way of life for people…” Sodexo’s Ten Key Elements model, which can be replicated in other organizations, underpins our systemic culture change efforts and has been an organizing framework to keep us focused and helped us get traction in a relatively short period of time. Through the Ten Key Elements, we have enhanced employee engagement and client retention, and provided added value for business development. Here is a description of the Ten Key Elements: 1. Commitment from the top. Our chief diversity officer reports directly to the CEO, who chairs the diversity leadership council. The executive team demonstrates commitment and personal involvement through executive sponsorship, mentoring, ongoing diversity education, and connecting with diverse communities. 2. Strong business case. Sodexo’s leaders understand how critical D & I is to our success, making it one of our six strategic imperatives. We recognize its role in recruiting and retaining the best talent. It is a key differentiator for Sodexo with our clients, customers, and employees, and is helping to grow the business. 3. Clearly articulated diversity strategy. Our “top down-bottom up” strategy includes the workplace, stakeholders, and the communities in which we do business. The strategy continually evolves as we drive initiatives through four strategic levels including leadership at all levels, awareness and skills to manage diverse teams, recruitment and retention of the best talent, and internal and external communication.

4. Resources and structure. Three senior directors report directly to our market presidents acting as CDOs in their respective business lines. In addition to the close to 20 content experts who work within the diversity office, we trained and manage a pool of 20 external consultants who provide interventions for our teams. 5. Grass roots involvement. Our six “best in class” employee network groups drive engagement at the grass roots level, while our market segment diversity councils focus on operational engagement. 6. Measurement system. Sodexo’s innovative Diversity Scorecard Index evaluates progress in recruitment, promotion, and retention of minority and female exempt employees. This measurement system has proven to be key to our culture change. 7. Accountability. A significant portion of the bonus is tied to our Diversity Scorecard Index. It is noteworthy that the CEO has opted to pay out these bonuses, independent of profitability. 8. Supplier diversity and partnerships. Sodexo nurtures over 60 partnerships in diverse communities as a part of our external relations strategy. We use our diverse vendor program as a selling point of differentiation and build equity in communities that grow both businesses. 9. Recognition. Sodexo’s formal and informal recognition programs, including “Champions of Diversity” and “Spirit of Sodexo,” acknowledge exceptional efforts and reinforce role model behaviors. 10. Diversity integrated into core of business. Through the Ten Key Elements, we are making diversity and inclusion an inherent part of our culture and business growth, domestically and globally. With diversity and inclusion as a competitive advantage, Sodexo is an employer of choice and the benchmark for customers, clients, and communities. Prof iles in Div er s it y Jou r na l

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Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

New York Life

Finding Work Through The Web New York Life’s Women’s Market

used as well as web analysis tools to gauge what visitors

unit created a user-friendly Web site to

are most interested, in such as the on-line videos featuring

provide information about the benefits of a career as a life insurance agent at New York Life. The Web site for women—www.nylcareersforwomen.com—provides easy access to information about the rewards a career in life insurance can offer women at all stages of their professional development.

Many departments and individuals at New York Life

were involved with the implementation of the project. The corporate Internet department (CID) worked closely with the Women’s Market to create content, incorporate interactive tools, and design the look of the site. After CID

The benefits, which many women seek, include the

performed tests, management and communicators in the

ability to have a flexible work schedule, the opportunity

company analyzed and approved these elements. Many

for unlimited income potential, and a career that offers

agents and managers regularly participate by sharing their

lifelong training and support from a company of experts.

real life success stories and providing ongoing feedback

In essence, as a life insurance agent at New York Life one

and content and suggestions.

has the opportunity to be an entrepreneur while being supported by a Fortune 100 company that offers additional benefits including health insurance, participation in a retirement plan, and residual compensation.

The Web site is reaching people who might not have been aware of the career opportunities at New York Life. The Women’s Market and New York Life in general have benefited from the increase in the pool of potential agents.

In addition, life insurance agents build lasting relation-

The number and quality of applications that have already

ships in their community as they help families achieve

come through the site have far surpassed initial expec-

financial security. Surveys show that more than 70 percent

tations. An unexpected benefit was that this pool also

of women agents feel making a difference in people’s lives

includes men.

is their main reason to become an agent.

In addition, nearly a third of the Women’s Market

The purpose of the Web site is to recruit women to

newly-hired agents in 2007 originally researched the

become life insurance agents and managers. The site

company and a career in insurance over the Web before

allows visitors to take a step towards a career in life insur-

applying. The Web site was one of the factors in the suc-

ance. It also serves as a method for New York Life to gain

cess of the Women’s Market surpassing their 2007 hiring

insight that can be used in the future for various Women’s

objective.

initiatives both online and off. Online surveys are regularly

successful agents and managers.

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Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

Credit Suisse

Credit Suisse Family Network

At Credit Suisse, developing and promoting an inclusive workplace is of utmost importance. Credit Suisse’s innovation and drive stem from the diverse backgrounds, ideas, and experiences of our employees. Therefore, the optimal work environment is one in which all employees are accepted and treated with dignity and respect. The end goal is clear: promoting diversity within Credit Suisse is not only beneficial for our employees, but for our clients and the bank as well. The high value Credit Suisse places on diversity spurred the creation of our four Employee Networks: Americas Women’s Network, the Open Network, the Multicultural Resource Network, and the Family Network (USFN). These global networks are open to all employees and serve as forums through which employees can share their experiences, ideas, and knowledge. These diverse organizations facilitate career growth through informal mentoring and networking, offer further access to senior management, help employees maintain a balance between work and personal life, and enable employees to engage in and drive diversity efforts. The Credit Suisse Family Network’s mission is to create an information network that supports working families utilizing practical tips and shared personal experiences from members, research from external resources, and experts with a strong focus on child and elder care issues. The USFN acts as a channel for Credit Suisse’s family-related activities, provides additional opportunities to network across divisions, offers feedback to the bank regarding existing and proposed policies, and positively influences corporate culture to embrace work/life balance. With over 1,200 active members, the Family Network is able to provide a wide range of programming concerning the parenting lifecycle and caring for children, parents, and grandparents. These programs correspond with the network’s commitment to address, among other issues, children with special needs, alternative family structures, elder care, family building, parenting of children from kindergarten through high school, and college/ education planning.

Every month the USFN hosts a lecture event featuring a guest speaker on a topic of relevance to families. The Credit Suisse Family Network also sponsors a series of programs and workshops such as: • CPR Courses for infants, children and adults taught by experienced paramedics • “Ask the Pediatrician”—a regularly offered program • “The Parent Equation: The Art and Science of Parenting”—a six part series • First Aid Workshops for medical and traumatic emergencies • “Thriving Teens: Parenting for Positive Growth”—a six part lunch series • Childproofing Classes—a frequently offered and highly popular seminar. Additionally, members of the Family Network have organized monthly discussions to further explore the broad range of interests within the organization. In support of all Credit Suisse employees with children in high school, the Family Network also coordinates a yearly College Expo in which 400 employees and their college bound children participated. The positive feedback was overwhelming and the success of the College Expo enabled the Family Network to partner with Credit Suisse to establish a Scholarship for Children of Employees. At Credit Suisse, we determine success in terms of impact. With an annual event attendance of approximately 3,000 (roughly 30 percent of our New York employee population), we regard the Credit Suisse Family Network as an overwhelming success. The USFN has truly made an impact not only within its membership, but also throughout the entire bank. The Credit Suisse Family Network is an outstanding organization that has done an incredible amount of work to increase diversity and inclusion in the workplace. Through its innovative programs, the USFN has provided a necessary support system for employee parents and caregivers, and, more importantly, has helped to mold Credit Suisse into a larger, more accepting family. Prof iles in Div er s it y Jou r na l

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Profiles in Diversity Journal

2008 International Innovation in Diversity Awards

Borders Group, Inc.

Age 50+ Job Seeker Workshops

Borders Group established a diversity initiative more than six years ago to support the business imperative of diversity in the workplace. Through the work of an internal Diversity Task Force and related subcommittees and advisory councils, the initiative focuses on four strategic cornerstones of diversity: reflecting the communities Borders Group serves; anticipating and surpassing the expectations of diverse customers; formalizing a supplier diversity program; and building internal and external awareness of Borders Group’s commitment to diversity. As an extension of our commitment to diversity—and more specifically, our belief that older workers are a valuable part of America’s workforce—Borders Group teamed with RetirementJobs.com and AARP to launch a series of free Age 50+ Job Seeker Workshops in four Boston-area Borders stores. The 90-minute workshops were targeted at job seekers, age 50-plus, and were intended to enable them to plan and complete a successful job search. A total of 175 job seekers attended the sessions. The workshops were led by Bob Skladany, VP Research & Services for RetirementJobs.com, and Ed Redfern of the AARP Workforce Issues Team. The sessions, though small in scale, were a great example of the positive things that result when different companies, which share at least one goal, come together at the local level to provide trusted and valuable information to a specific population segment. Expenses for these sessions were kept at a minimum: the sessions were conducted at Borders stores; attendees were provided with simple handouts; and marketing was limited to traditional in-store promotions and local media outreach via a press release. Planning for these sessions was coordinated at the corporate office level, but store staff was integrally involved in ensuring the sessions were executed properly.

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Participant feedback, personal observations and subsequent participant follow up confirms that the Age 50+ Job Seeker Workshops had a significant and positive influence on the mindset and job searching capabilities of those attending. Borders is currently looking at conducting more of these sessions in major markets around the country. The personal reactions have been consistently favorable and strongly confirm the value and effectiveness of the workshop venue, material and presentation. Representative written comments include: • “This was an excellent high-level presentation with just so much detail.” • “This is a very important issue at this time when there are so many of us beyond 50. Thank you all for this information.” • “Excellent presentation – good mix of detail and humor. I learned a lot.”

PrOFiLes in Diversity JOUrnAL

2008 iNTerNaTioNal iNNovaTioN iN DiverSiTy AwardS

Awards of Excellence Profiles in Diversity Journal is proud to honor the following companies with our Award of Excellence for their innovations in diversity. They are presented here in alphabetical order.

Alegent Health

Five-level Diversity Training

Award of Excellence As tHe second LArGest employer

in Nebraska, Alegent Health, a healthcare system in Iowa and Nebraska with over 8,700 employees, felt the need to foster diversity by strengthening employee and community relationships. In october 2007, the Alegent diversity department launched a new, five-level training program series that has been rolled out to over 6000 employees. The new training modules are created to increase diversity awareness among employees as they provide care in a Healthcare environment. Monthly “Cultural Food Days” were implemented in January 2008 to bring cultural awareness to each hospital campus by delivering historical, geographical, cultural, religious, and nutritional information to employees. we collaborated with our three Child Development Centers to develop an educational program around each culture which would allow the children, grandchildren, or family members of Alegent employees to learn about our many diverse cultures. Employees and their families made the decorations for the displays. other training modules included the following: • A free semi-annual Health Care Career Camp was offered to 50 diverse high school students in an effort to breech the gap between generational diversity. • Four Diversity Healthcare Scholarships were created for graduating high school seniors or current college students who are pursuing healthcare related fields. These scholarships give the non-typical, non-traditional student the opportunity to pursue a post high school education. • Four Community Diversity Awards were created to strengthen and recognize community relationships. 102

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The awards honor individuals or nonprofit organizations that advocate and protect civil and human rights; lead the fight against discrimination and prejudice; foster positive communication; and promote relations among persons of different backgrounds or physical and mental abilities. A Scholarship Banquet will be held in July of every year where both the Diversity Healthcare Scholarship and Diversity Awards will be given. Recipients are selected by the Alegent Diversity Council. The purpose of all of our initiatives is to live out our mission: “Faithful to the healing ministry of Jesus Christ, our mission to provide high quality care for the body mind and spirit of every person…To achieve this mission we pledge to be creative, visionary leaders committed to the most holistic healthcare in the region.”

Excellus BCBS

Cornerstone Poster and Newsletters Series Award of Excellence “It GiVes Me GreAt PLeAsUre

to introduce the inaugural issue of ‘Cornerstone.’ This monthly newsletter is designed to inform you about national monthly diversity themes, showcase the talents of our regional Diversity Network groups and highlight [Excellus BlueCross BlueShield’s] community outreach programs and partnerships. The office of Diversity is dedicated to fostering an environment where the contributions of all employees are valued.” These were the words used by David klein, president and CEo of Excellus BlueCross BlueShield, to introduce the office of Diversity Cornerstone newsletter and posters.

PrOFiLes in Diversity JOUrnAL

2008 iNTerNaTioNal iNNovaTioN iN DiverSiTy AwardS

Excellus BCBS (continued)

The Cornerstone newsletter and posters seek to inform and educate employees by highlighting diversity issues. The newsletter features information pertaining to diversity in our workplace and the world around us. Each edition highlights a monthly theme, Diversity Network (D-NET) activities, Champions for Diversity spotlights, diversity quizzes, as well as a “Lest we Forget” topic, which generally relates to a historical event or topic related to the monthly theme. The National Diversity Calendar determines the theme for each month. The Diversity Networks are volunteer employee groups designed to support and sustain diversity efforts in the company by planning activities, speakers, and fairs centered on diverse topics. Champions for Diversity highlight employees within the company who uphold the mission and philosophy of the office of Diversity. Cornerstone posters precede the newsletter and are meant to serve as a teaser to spark the interest of employees as well as create conversation pieces especially in common, yet “awkward” gathering areas such as the elevator, the lobby, or the restroom. The posters include intricate graphics, quotes, and quick blurbs relating to the topics in the upcoming newsletter. The posters are designed so they can be displayed in a variety of ways and in various locations, even as framed art. The posters are distributed in hard copy format and are mailed throughout our upstate New York region, from Buffalo to Utica. Excellus BCBS employs 7,000 workers throughout upstate New York, covering a service area that spans about 380 miles. The newsletter is distributed both electronically and in hardcopy format. Employees may visit the Diversity web site and click on the link to find not only the most current Cornerstone newsletter, but to also access prior editions. Launching Cornerstone was a collaborative effort between the diversity office, human resources, corporate communications, corporate administration, and mail services. Because this was a new initiative, budgets and line items had to be shifted and reallocated. with the support of the CEo and our financial offices, all of this was

done with great ease. To ensure that we had the right look for our venture, we purchased new computer software packages and conducted training sessions to create the Cornerstone Poster. The benefits and observed positive feedback have been overwhelmingly positive. The feedback from employees has only served to strengthen our efforts to select executive-level diversity champions and identifying diversity related themes that speak to the lives of our employees.

Freescale Semiconductor

Inclusion Training Award of Excellence IncLUsion trAininG at Freescale

was launched in 2006 as the result of diversity-related conversations that took place over the course of the last few years. The first phase of this training was titled, “winning Culture & Inclusion.” This was the first training of its kind at Freescale in an effort to build awareness around diversity. Freescale had a strong desire to define inclusion in meaningful terms, especially with the arrival and creation of a new winning culture and inclusion director and team. As the conversations continued, Freescale became convinced that launching an e-learning course was the most effective and innovative way to build understanding and a global definition of inclusion that would resonate with every employee. The “winning Culture and Inclusion” training module is an online course that is for all levels of employees and embedded into the onboarding processes for new hires. The course was designed specifically to deliver effective winning culture and inclusion content, with examples, utilizing communication, coordination, and teamwork. There were several obstacles that had to be overcome: The company would not settle for off-the-shelf Prof iles in Div er s it y Jou r na l

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Freescale (continued)

content; the learning had to be delivered in five languages; the launch of the training had to be in real time for all employees; and finally, the content had to include business conduct and inclusion examples for working across borders, not just U.S.-based diversity issues. To manage these expectations, the e-learning project manager worked with his counterparts in all regions to solicit input from employees on what inclusion meant to them, how inclusion plays out in real scenarios, and the variety of anticipated outcomes. It was important for employees to relate to the content and actually put themselves into the scenarios that were created. They defined what inclusion genuinely meant to them in their primary languages, including Mandarin, Spanish, French and English. The same individuals led a Q&A session for the course student to close the training module. The objectives of the training were to increase diversity/inclusion awareness among employees and provide a visual metric behind diversity/inclusion and its impact on talent and culture. To meet these goals, the team tapped several resources that grew this initiative into a truly global and collaborative effort. Some of these included the information technology department, legal, corporate communication, HR, and creative services. As a result of Freescale’s diversity training, positive changes are underway including an overall shared understanding of what inclusion and diversity mean at Freescale, enabling the company to grow every day. So far, 21,000 of 24,000 Freescale employees have taken the winning Culture and Inclusion training. The launch of diversity training has been a milestone for Freescale and has contributed to the elevation of inclusion as a key, global business imperative. The team continues to encourage and drive more and more conversations every day that will undoubtedly shape its future training offerings. These conversations facilitate employee solutions and empower employees to be the best ambassadors possible to customers and to one another; they will serve as the bridge between ongoing innovation and long-term sustainability. 104

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Interpublic Group

Leadership for Progress Initiative Award of InterPUbLic GroUP (IPG) is a Excellence global provider of advertising and marketing services. Through our 43,000 employees in all major world markets, our companies specialize in consumer advertising, interactive marketing, media planning and buying, public relations, and specialized disciplines. our clients include many of the world’s best-known companies and bestloved brands. IPG began a formal Diversity and Inclusion effort in 2004, with the hiring of the first director of diversity in our industry. Since then, the company has implemented a number of new initiatives to complement recruitment and hiring efforts. These initiatives included a two-year fellowship program, employee Business Resource Groups, education and training, an active supplier diversity program and a menu of metrics to gauge progress. In 2006, IPG launched an initiative that would serve as a catalyst for deeper and more enduring change through a cohesive strategic approach. The IPG Leadership for Progress Initiative is breaking new ground and building a foundation for success. For us, this effort represents an innovation in governance and leadership, a foundation for sustainability and institutional commitment, a commitment of appropriate resources, an effort that is delivering clear benefits to the organization, and a strategy that has taken hold and demonstrated results. Because of the initiative, which began in 2006, the IPG board of directors, the CEo, and the company’s agency CEos are now formally aligned to make progress against an important business strategy. The IPG Board of Directors holds annual Diversity and Inclusion reviews. IPG’s chairman and CEo, Michael

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IPG (continued)

I. Roth, personally leads the IPG Network Diversity Council. The Council, which meets as many as three times each year, consists of his direct reports, the CEos of IPG agencies and the leaders of new employee Business Resource Groups. Compensation is linked to progress with workforce diversity at all levels, including supplier diversity and the implementation of best practices within each organization. The Leadership for Progress Initiative is establishing an enduring, institutionalized foundation to bring about sustainable diversity and inclusion. The initiative addresses long-term commitment, leadership involvement and governance, and accountability for measurable results. Substantial resources are invested to ensure the effectiveness of The IPG Leadership for Progress Initiative. Funding has been made available, and the initiative is supported by the board and top management on a continuing basis. Now in its second year, the IPG Leadership for Progress Initiative has benefited our network at the corporate and agency levels in many ways including the following: • Diversity and Inclusion are being worked into IPG’s cultural and corporate DNA. • CEOs and other C-Suite stakeholders are becoming partners with human resources leaders, diversity managers and supplier diversity officers. • The initiative is promoting more credibility with employees and talent markets. • Workforce diversity, supplier diversity and inclusion programs are beginning to take hold. • More agencies have begun to implement similar approaches, including many of our largest subsidiaries such as McCann-Erikson, Draftfcb, Initiative, Deutsch, and Universal McCann, among others. • In the U.S., the network’s representation of people of color has doubled!

MGM MIRAGE

Women of Color Conference Award of Excellence MGM MIRAGE is a presenting sponsor

of the women of Color Conference. Last year’s inaugural event was the first of its kind in Las Vegas. Members of the corporate diversity department were catalysts in creating the event along with the four ethnic chambers of commerce—American Indian, Asian, Latin, and Urban. This historic event attracted more than 500 minority women and men who gathered to participate in workshops ranging from health and wellness to personal finance, beauty and self-esteem, career development, and leadership skills. The conference attracted local and national leaders including Marilyn Johnson, vice president of market development for IBM; Juana Bordas, author and president of Mestiza Leadership International; Terrie williams, entrepreneur and motivational speaker; Sachi koto, president and CEo of Sachi koto Communications; Brenda Perryman, author and performance poet; Nevada First Lady Dawn Gibbons; and Nevada Attorney General Catherine Cortez Masto. Debra Nelson, MGM MIRAGE vice president for corporate diversity, communications and community affairs, saw a need for dialogue among minority women in the Las Vegas community. She approached the chambers of commerce with the idea, and they overwhelmingly agreed. From there, a day-long event was created to bring women together from across Southern Nevada and beyond. The goal of the event was to provide leadership, networking, and learning opportunities through a variety of workshops. As a presenting sponsor last year, MGM MIRAGE contributed in-kind donations to the conference. Additionally, the company had six executives on the planning committee and enlisted the department’s three summer interns to work on the conference. Prof iles in Div er s it y Jou r na l

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MGM MIRAGE (continued)

For the upcoming 2008 women of Color Conference, MGM MIRAGE has committed to a leading role as a presenting sponsor in addition to hosting the event at its Mandalay Bay Resort & Casino. Debra Nelson serves as chair of this year’s planning committee and several executives are again playing key roles in the success of the event. The women of Color Conference benefits women of all ethnicities, professions, and social backgrounds. Conference attendees include students, young professionals, seasoned executives, and business owners in numerous fields. Perhaps the biggest beneficiary, however, is the Las Vegas community, as the conference is a demonstration of the collective power of the local minority chambers of commerce to enact a program that benefits women across the country. The inaugural conference also raised $20,000 which was donated as scholarship funds to the four chambers. The inaugural women of Color Conference received a tremendous amount of positive response. Surveys were filled out by conference attendees, rating the conference on quality of speakers, timing of events, relevance of discussion topics, etc. overall, attendees felt informed, inspired, and looked forward to future events. The conference attracted participants from around the country, and several attendees have created similar events in their local communities. Additionally, the success of the inaugural conference led to it becoming an annual event.

New Jersey DEP

Beyond Diversity Training Award of THe New Jersey Department of Excellence Environmental Protection (DEP) is an agency that provides environmental services and information to the residents of New Jersey. By 2010 the population of New Jersey is expected to reach 106

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50 percent minority classified groups, making New Jersey one of the most diverse states. According to the DEP’s office of Environmental Justice, DEP is now looking at the impact its decisions and services have on its minority population. As such, diversity competence is a critical component for DEP’s effective and productive operation. As communities become more diverse, there is a need to assist individuals in learning ways to better communicate with one another across difference. The Diversity Training workgroup (DTwG) sought to bring together a dialogue with managers about issues such as race, sexual orientation, workplace, and education, in a way that is safe, constructive, and leads to growth for the organization. The training prepares individuals to participate in the creation of a respectful, multicultural society that honors the background and experience of all individuals. The training focuses on making participants aware of how racism is connected to both conscious and unconscious attitudes and behaviors. It moves beyond the notions of superficial politeness and political correctness to teach a way to talk about race in a culture that offers few opportunities for honest, open communication across racial, ethnic, and other differences. Diversity as defined in DEP Policy #2.02 means the mosaic of people who bring a variety of backgrounds, styles, perspectives, values, beliefs, and differences as assets to the groups and organizations with which they interact regardless of race, color, gender, national origin, religion, age, disability, sexual orientation, or marital status. key indicators that further define Diversity include: • Creates harmony among individuals and enables the department to use everyone’s abilities more effectively; • Enables the Department to have a workforce, including management, that is reflective if its stakeholders; • Encourages a climate of inclusion and involvement, which minimizes tension; • Cultural competence skill building through effective communication, training, and hands on experience. Thus far the training program has only been provided to DEP managers (Section Chiefs and above). To date,

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New Jersey DEP (continued)

there have been several noticeable benefits. Managers are articulating the organization’s diversity goals and can identify common stereotypes and realize their negative impact. They are demonstrating the skills needed to manage a diverse workforce and have a better understanding of the business case for diversity. DEP’s Diversity Training workgroup (DTwG) evaluated three of five training sessions. The evaluation assessed the level of knowledge or competency of the training on a scale of 1 to 5, with five being excellent. The results clearly demonstrated that the participant’s knowledge and competence of diversity management increased significantly as a result of taking the course. The evaluation also asked the participants if the training met their expectations. over 95 percent of the participants said that it exceeded their expectations. over 98 percent said that they would implement the course content in their managerial roles.

Ottawa Police Service

The Workforce Census Award of In 2003, the ottawa Police Service recogExcellence nized that making the organization more diverse would enable it to better serve the diverse community at large. The outreach Recruitment Project was born. one of the main principles of the outreach Recruitment Project was fact-based decision making. The police service needed to know who made up its ranks before it could establish where as an organization it wanted to go. work on devising a way to collect that information started mid-2004 with the idea of a census. In March 2006, the ottawa Police released the results of its census. The census has fundamentally changed the way the police operate and significantly fuelled progress on ottawa Police Service’s quest to become employer of choice for all. The results provided the police service with the ability to identify the demographic characteristics of its employee population. This information was in turn used to develop

and implement specific programs, policies, and practices that support its employees. Prior to the census, the police service was simply guessing when the community asked ‘Does anyone at the Police speak my language?’ or when human resources wondered if there was a need for employee support in a particular area, such as elder care. The workforce census helped answer those questions and more. The census consisted of 28 questions involving age, marital status, gender, sexual orientation, education, skills, ethnic/cultural group, citizenship, visible minority status, aboriginal ancestry, disability, religion, and language. More than 640 pieces of information were gathered. The resulting report became the baseline instrument that managers rely on to this day to develop their plans, policies, and procedural recommendations. This was the first time a police service in Canada conducted a voluntary census of this scope. An outside consulting agency was used and tabulated the results. Communications efforts before, during and after the census demonstrated the organization’s commitment to promote transparency through the entire process. From the start, the very decision to model the quest for data around a Census—something recognizable, trustworthy, voluntary—lent the effort legitimacy. The census findings revealed a rich and varied organization in terms of skills, demographics, and experience. Census information directly helped establish the business case to expand programs and services, like dependent care, language training, changes in subsidies for education training, and the curriculum for diversity awareness training. It was also used to identify gaps in workforce characteristics such as language, religion, and culture to steer recruiting efforts. Best of all, for the first time, the police service can now speak openly and factually about how it does or doesn’t represent some segments of the community. The census has helped open doors and establish clear lines of communication, a critical factor in building successful partnerships and fostering trust between the community and the ottawa Police Service. PDJ Prof iles in Div er s it y Jou r na l

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stories microtrigger stories editors notebook

Can you guess what triggers professional trainers?

I recently attended a conference where training and development professionals from around the world assembled to learn best practices. I held a MicroTrigger workshop for a small group of trainers and networked with hundreds more to discuss subtle behaviors and their impact in the workplace. My, oh my, did I hear an earful! The workshop was predominantly composed of females, and this was reflected both in the Triggers that received the most votes for being particularly annoying, and in how this audience interpreted the implications behind those MicroTriggers. Keep in mind that these are trainers—people who by their choice of profession have developed tough skins, exposing themselves to the masses on a regular basis. So, can you guess what triggers the trainers? The top MicroTrigger was #15: Asking someone else the same question that you just answered for the questioner. “I work in an environment where we brainstorm a lot. So I expect to hear different thoughts about approaches and layouts because it is part of the job. But when my director asks a question that is about a fact, not an opinion, then it burns me up when I give the answer and then he asks someone else to verify it. You either trust my answer or you don’t. And if you don’t trust me, then why waste my time and yours having me go to get the answer in the first place?” Which MicroTrigger came in as a close second place? Interestingly enough it was #52: Shaking your hand too softly, or much too hard! Your typical trainer shakes more hands than a politician, often greeting twenty-five participants at the door! So it’s

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amusing that they have their own rating system for a “good handshake” versus a bad one. Here’s what one person said about this MicroTrigger: “Shaking my hand too softly is bothersome, because many men regard women as weak or delicate, and are more cautious when greeting them. So when I get the soft handshake and the bland smile, I feel like there is a sexist undertone. He has sized me up as the weaker sex.” Interrupting the speaker and asking others about their experiences or opinions were also high on the list, along with referring to women as girls or gals. You might be thinking, “Are people still doing that?” Absolutely! When sharing these stories in groups, it is useful to encourage people to express why certain MicroTriggers really impact them—the implications and undertones behind certain actions or phrases. These trainers had interesting perspectives that others had never thought about and feelings that some had never considered. Let me know what you think about them. PDJ

Janet Crenshaw Smith is president of Ivy Planning Group LLC, a consulting and training firm that specializes in diversity strategy and leadership. Her book is titled, MicroTriggers: 58 Little Things That Have a BIG Impact. Have a MicroTrigger story to share? Send it to: JSmith@ivygroupllc.com.

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last word

Innovation and Diversity: The Corporate Link By Marie Y. Philippe, PhD

There is no magic formula for corporate innovation through diversity. The idea that creativity with a purpose emerges from collaborative—yet, at times divergent—viewpoints is not new. What is worth the spotlight today is a corporate environment that stimulates innovation by adopting diversity as a first premise. Most business leaders understand the business case for diversity. They understand demographics and the need to mirror customers. They understand economics and the need for global market insights. They understand political interactions and the need for broader stakeholder representation. They understand that the difference between surviving and thriving is due to innovation, whether from technology, product, or service. Competition in any given industry crosses national boundaries. The American way is competing against the Japanese way, which is competing against the Australian way, which is competing against the African way, which is competing against the German way and so on. Imagine a single company that has the advantage of these various “ways” in its own midst. Many facets of an organization must exist in order to foster these various ways. Most basic is the embrace of differences —from visible differences to less obvious differences. Within a culture of inclusion, the term “risk” must always evoke “reward” regardless of actual success in the traditional sense. Permitting employees to experience failure when seeking well-thought-out solutions is indeed a reward, for the culture of innovation. The culture that is conducive to innovation nurtures an attitude of acceptance. Acceptance as a lived value extends to failure. There is a practice of failure that breeds success. Burt Rutan, renowned aircraft designer, says, “I’ve got to develop nine prototypes that go nowhere to make one that goes to

“

production for big money. Only the place that tolerates failure gives rise to the thinking that results in success.” Only when combining the diverse approaches to a common challenge does the probability of an optimum solution increase. Employees must feel that being curious and being experimental is welcome. The reward system must reflect such desired behavior. A number of studies have proven that leaders who encourage team members to discover solutions to their own operational or process problems enjoy the highest rate of employee satisfaction and highest productivity. Many may have heard the following joke: When faced with the dilemma of having a writing instrument in the spacecraft under zero gravity, the homogenous American team at NASA designed the prototype of a

The culture that is conducive to innovation nurtures an attitude of acceptance.

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”

$50,000 pen. When a Soviet astronaut heard of the dilemma, without a beat, he presented the solution his point of reference (a smaller budget) and culture (no control overall) had to offer: “Why don’t you use a pencil?” The lessons about the value and benefits of diversity are virtually countless. As competition becomes tighter, we will increasingly witness innovation from successful companies that have embedded diversity in their daily business practices. PDJ Marie Y. Philippe, PhD, is corporate vice president, culture and organizational effectiveness, at Lifetime Healthcare Companies. Dr. Philippe is well known for her leadership contribution in corporate culture transformation through strategic diversity initiatives and organizational change management. She can be reached at marie.philippe@lifethc.com.

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