S p e c i a l A d v e r t i s i n g Fe a t u r e
DIVERSITY
UNLOCKING AMERICA’S GREATNESS
INNER CITY DEVELOPMENT – THE KEY TO ECONOMIC AND SOCIAL EQUALITY Marc Morial, President and CEO, National Urban League
T
he current economic situation has business, labor, and the American public clamoring for macroeconomic policies to spur job growth and get more Americans working again. Remarkably within the current discussion, the future of our inner cities continues to be sidelined. Yet one solution, among many, that has much to offer is the development of our inner cities. Overlooked, economically disadvantaged neighborhoods remain at the heart of our nation’s greatest metropolitan areas. Lack of access to jobs and opportunities reverberates loudly throughout these communities, diminishing the quality of life and individuals’ abilities to feed and clothe their families. Targeted business development in our forgotten urban areas can change this. It can promote economic revitalization, both locally and nationally, bringing with it improved living standards and opportunities for these citizens. SEIZING THE POTENTIAL A few smart companies understand this, finding communities like Harlem, Jersey City, and East L.A. to be vast repositories of untapped labor and land resources. These cities offer a significant labor pool brimming with the energy and potential of thousands of individuals who are hungry to work and gain skills. The development of these resources through combined publicprivate partnerships benefits not only large companies and local businesses but also residents. Interestingly, the last decade has witnessed greater outsourcing of jobs to other nations. The rationale for this has included the increased competitiveness of skilled workers outside the United States, many of whom are available at lower wages. Whether the ultimate outcome of the debate is increased outsourcing or a reformed fair trade policy, it is clear that the greatest threat to America’s global competitiveness is the continuing failure to educate and train Americans. The inner cities represent a tremendous untapped resource for training a young and vibrant work force. HELPING THE BOTTOM LINE Inner city retail sales totaled more than $85 billion in 2002— more than the gross national product of a small nation and accounting for 7% of the entire U.S. retail market. More companies have understood that responding to the needs of communities
long passed over by others through miscalculation or fear is good for their bottom line. Here are some examples: Typically, inner city grocery retailers outperform their suburban counterparts. In fact, grocery stores in Boston and New York’s inner cities netted 40% higher sales per square foot than the regional average. In the early 1990s, NBA Hall of Famer turned entrepreneur Magic Johnson started a chain of movie theatres in Los Angeles, Atlanta, and Houston. By 2003, Magic Johnson Enterprises, which today extends beyond a successful theatre chain to other businesses, has assets under control of approximately $650 million. Another example of targeted small-business development is Jersey City’s Lafayette neighborhood where a 10-year development project culminated in the Martin Luther King Jr. Drive shopping center. The shopping plaza is a six-square-block oasis of stores and restaurants anchored by the immaculate 50,000square-foot Citimarkets supermarket. DOING GOOD PAYS OFF Not only did the Jersey City community benefit from improvements in the quality of businesses and services, but minority entrepreneurship increased as a result of this investment project. Seventy-seven percent of the businesses within the shopping plaza are minority-owned. And the new businesses within the Jersey City neighborhood created approximately 156 jobs for inner city residents. Business ventures such as quality supermarkets, banks, family restaurants, and other services can provide a much-needed boost to an inner city neighborhood. Increased hiring of local residents has a powerful ripple effect as spending and business activity increases within the local neighborhood and the greater metropolitan area. Ancillary benefits include greater community stability, increased homeownership, and an expanded tax base. But the greatest payoff for investing in inner cities is to society as a whole. The development of our inner cities—by empowering a community and providing its residents with economic opportunities—helps to create a more diverse and equitable society where all within our nation can partake of its bounty. Marc H. Morial is president and CEO of the National Urban League. He is a former President of the United States Conference of Mayors and two-term mayor of New Orleans. For more information see www.nul.org.
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Client: Inc magazine Project title: Diversity - right hand page Issue: ? 2004 Size: Bleed:8.25 x 10.125 Trim: 8 x 10.875 Safety:7.5 x 10.375
S p e c i a l A d v e r t i s i n g Fe a t u r e
DIVERSITY UNLOCKING AMERICA’S GREATNESS THE BUSINESS CASE FOR DIVERSITY AND INCLUSION Michael C. Hyter
Any business, large or small, that can continually increase the skills and contributions of its work force will enjoy a true advantage over its competitors. Yet many organizations operate consciously or unconsciously on principles that limit the development of talent in ways that detrimentally affect the bottom line. The words inclusion and diversity are often used interchangeably, but they do not mean the same thing. Diversity is any dimension or quality that differentiates people or groups from one another. Inclusion is an ideal state in which a company’s culture, management practices, and interpersonal relationships all work together to support the full utilization of talent toward achieving its business objectives. Inclusion means involving as many of your company’s people as possible in significant work—and providing them with the training and development necessary for success. BOTTOM-LINE BENEFITS From this perspective, the motivation for creating an inclusive environment isn’t only that it is the “right thing to do” or that a proactive approach to diversity is the best defense against biasrelated litigation. Understanding diversity and working to create inclusion will increase profits and productivity by maximizing and utilizing your company’s pool of talent. Inclusion initiatives focused on supporting employee development improve employee performance, reduce turnover, and make the organization more attractive to potential employees and customers. The pursuit of diversity and inclusion gives all employees the opportunity to stretch their skills and capabilities. When an organization practices inclusion in a meaningful way—creating a work environment that inspires everyone to contribute his or her best efforts—the ideas that spring from each unique perspective and life experience are mobilized, greatly increasing the organization’s power and its ability to respond to an ever-changing environment.
FOUR STEPS YOU CAN TAKE RIGHT NOW 1. Examine your assumptions and the assumptions of your business about the nature of talent. Do you believe talent is innate—or can it be developed in most employees? 2. Work toward ensuring that development opportunities in your company are available to all employees. Explore what you can do to increase the breadth of employees who take advantage of these opportunities. 3. Learn as much as you can about your employees’ strengths and areas for improvement, so that you can provide meaningful opportunities and support. 4. Get to know the people who work for you as individuals. The better you know them, the less likely you are to have your actions affected by generalizations, biases, and assumptions.
AETNA: WE WANT YOU TO KNOW … Aetna’s commitment to diversity is long-standing and deep. Aetna is widely recognized for the overall quality of our work environment and the policies and programs in place that assure all employees have the opportunity for professional growth and advancement. In addition to our internal programs, much of our philanthropic activity targets the issue of disparity of health care, particularly as it affects people of color and women. To address the issue, we have embarked on an aggressive program of “cultural competence” education for the physicians within Aetna’s networks. Aetna continues to honor the memory of our first minority board member via the Arthur Ashe Voice of Conscience Award, which includes a $50,000 grant to the nonprofit organization selected by the winner. The 2004 winner is former U.S. Surgeon General Dr. David Satcher, who heads the Morehouse University Center of Excellence on Health Disparities. Among the publications and organizations recognizing Aetna’s diversity efforts are: Hispanic Magazine, Latina Style, The Advocate, Equal Opportunity Magazine, Black Enterprise, Working Mother, Girlfriends, Diversity Inc., National Association for Female Executives, and the Human Rights Campaign Foundation, which awarded Aetna a perfect 100 score on its Corporate Equality Index.
INCLUSION LEVERAGES DIVERSITY Demographic statistics show rapidly increasing diversity of our work force and marketplace. As they become more diverse, organizations look for diverse representation in their business partners. And, as consumer diversity increases, customers expect to see this reflected in the employees who serve them. Inclusion is the means by which organizations and individuals can mobilize and leverage diversity. To be employers of choice, attracting and retaining outstanding performers, businesses must earn a reputation for valuing and supporting all employees. Companies that fail to acknowledge and prepare for this reality will have a difficulty competing with those that respond proactively. INCLUSION IS LEARNABLE The skills to create and manage inclusion are learnable but they are not automatic. Creating an inclusive environment in your company requires awareness, commitment, and knowledge. It may require examining some of the underlying beliefs that influence the way decisions are made. Ultimately, it requires a belief in the capability—and a dedication to the development—of all employees. Michael C. Hyter is president and CEO of Novations/J. Howard & Associates, a leading diversity/inclusion consulting and training firm. For more information see www.jhoward.com.
Client: Inc magazine Project title: Diversity - left hand page Issue: ? 2004 Size: Bleed:8.25 x 10.125 Trim: 8 x 10.875 Safety:7.5 x 10.375