Corporate Diversity and Board Diversity Go Hand in Hand - Leadership Starts at the Top
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Corporate Diversity and Board Diversity Go Hand in Hand - Leadership Starts at the Top Teneo Insights / September 10, 2020 Ursula Burns, former Chairman and CEO of Xerox Ursula Burns Former Chairman and CEO of Xerox and Teneo and Teneo Senior Advisor, Crystal Ashby, CEO of The Senior Advisor Executive Leadership Council (ELC), and Roy Swan, [email protected] Director, Mission Investments of the Ford Foundation, Crystal Ashby CEO of The Executive join Kevin Kajiwara for an important discussion on the Leadership Council and member of The Ford Board Diversity Action Alliance (BDAA), a business- Foundation [email protected] led initiative taking action to increase the representation Roy Swan of racially and ethnically diverse directors on corporate Director, Mission Investments, Ford Foundation boards of directors, beginning with Black directors. [email protected] Kevin Kajiwara (KK): Well, good day, everyone. Welcome and thank Kevin Kajiwara Co-President, you for joining today’s Teneo Insights webinar following our brief Political Risk Advisory late summer hiatus. I hope that everyone had a chance to enjoy [email protected] the Labor Day holiday. I’m Kevin Kajiwara, Co-President of Teneo Political Risk Advisory in New York. Corporate Diversity and Board Diversity Go Hand in Hand - Leadership Starts at the Top On Tuesday of this week, Teneo, in And, back by popular demand, we’ve partnership with Ursula Burns, Gabrielle got Ursula Burns. She is a Teneo Senior Sulzberger, the Ford Foundation and the Advisor. She serves on the boards of Executive Leadership Council, announced ExxonMobil, Uber and Nestle, as well as MIT, the launch of the Board Diversity Action the Mayo Clinic, the New York City Ballet Alliance. This, which is initiative is business and the Ford Foundation. She served as led, has an objective of increasing the the Chairman and CEO of the international representation of a racially and ethnically communications firm VEON. And in 1980, diverse directors on corporate boards, and she joined Xerox as an intern, and where, in the starting point is with Black directors, as 2009, she became the first Black woman to well as an additional focus on disclosure. serve as the CEO of a Fortune 500 company. The founding signatories of the Alliance Ursula, congratulations on the launch on include Dow, Macy’s, MasterCard, PNC, Tuesday, maybe you can tell us a little bit Uber, UPS, and WW, among many others. about the genesis of the BDAA. Obviously, I’m joined today by three of the founding this is not the first or only initiative in partners to discuss this important alliance, pursuit of these goals. So why this vehicle, its objectives, and how it fits into the how did it come about, and how did you and overall, and overdue, movement to foster the other partners arrive at the objective that equity and equality of opportunity. has been laid out? Crystal Ashby is the Interim President and Ursula Burns (UB): So where did it start? This CEO of the Executive Leadership Council, idea came to mind after the murder of George which is the preeminent membership Floyd. Typically, companies stay away from organization for Black CEOs, board really open and broad discussions around racial directors and senior executives. She’s the justice. They just really don’t get involved. But council’s first woman CEO and is herself this was a different moment where CEOs and someone who went through its Leadership boards were trying to figure out what they could Development Program. She’s a lawyer by do. They saw the nation and large parts of the background and she spent 22 years with BP. world in a level of unrest. My phone was ringing nonstop with companies looking for advice, Roy Swan is the Director of Mission “How do I diversify my company? What is the Investments at the Ford Foundation, problem? I think I get it, but can you give me managing its portfolio of mission and more insight?” program-related investments. He also is a lawyer by background. Roy was Co- The companies were doing the right thing Head of Global Sustainable Finance at and I wanted to help. I was a little frustrated Morgan Stanley. He was the founding CIO because the best way to get engaged is to of the Upper Manhattan Empowerment engage before there’s a problem, but I’ll accept Zone, which played a really key role in the anything that moves the ball forward. So, I economic renaissance of Harlem. And he touched base with some other people who were was the CFO at Carver Bancorp, which in the same situation, Darren Walker, who’s is the nation’s largest African American the CEO of the Ford Foundation, was getting managed bank. calls as well. A lot of the African American leadership were getting calls from their peers asking for help. 2 Corporate Diversity and Board Diversity Go Hand in Hand - Leadership Starts at the Top And I realized that this onslaught would about making sure that there is some additional continue, and if we didn’t grab the opportunity, accountability. So seasoning people as they we would lose the opportunity. If we did not come on board, educating their own board grab the chance to turn this curiosity, desire to about diversity and inclusion. So, it’s not just help, into something more proactive than just, about getting the numbers and then counting, “Here’s a name, here’s a name. You want a but it’s also about putting a process in place to board? Here’s a name,” and just kind of throw ensure we do not fall behind in the future. it over there, that we would be missing a big opportunity. And most of you know that I’ve long We’re interested in all diversity and we’re been against quotas, but I also have looked at ultimately focused on all diversity, but we the results of activities in California and in UK thought it was important to put our initial focus where quotas have literally helped to transform on Black directors. the complexion and the gender of boards. And then the last thing I’ll say. There are other So I reached out to the network that I had and initiatives. We talked to them. There’s another anybody who would talk to me Gabby, Darren, one that just launched called The Board Crystal from the ELC, some brothers from the Challenge. Absolutely love it. If there could be Boule, it’s a black fraternity, male fraternity, a hundred initiatives that would drive results, and of course to the place where I’m a senior fine. So, there’s not a competition here. I advisor, Teneo (and they actually assigned think this is one where one plus one will make some people to help us think about how we more than two. And so, we are very happy proceed). And the simple goal was to just try to for other meaningful structured efforts in this increase the numbers of Black directors. That’s area. The Board Challenge is a little different it; if you have five, get six; if you have one, get in that they’re focused on the numbers. We are two; if you have a zero, get one. focused on the numbers plus an infrastructure behind it that allows us to keep track of how But that initial goal was a bit simplistic and not we’re doing to assure that we can improve how necessarily realistic, and it was definitely not we’re working and how companies are working. a mature approach to the problem. So, we And so, it’s not just about getting a personal got some help to formulate this into a more one and done, it’s one or two or three, and data structured approach. and assistance with progressing and maturing their boardrooms and hopefully their companies Before we did that though, we tried to do some around diversity, equity and inclusion. benchmarking, looking to see how companies are performing today when it comes to board KK: You talk about the genesis of this diversity. And surprise, surprise, there’s no being this series of calls and you received place to go for this data. There’s literally not a in the wake of the George Floyd murder. central place where you could say, ‘How many Tell us a little bit about the conversations African Americans directors are there on boards that you’ve been having with your peers in and who doesn’t have any?’ Basically, there is a the C-suites and boards, and what struck dearth of reporting. And we realized it’s just not you about the take-up? And, what are the about asking to increase the numbers, it’s also challenges that you’re having in some of about tracking, first starting to track, and then these conversations? Where are companies tracking to see how we’re progressing. getting stuck when it comes to joining this, or for that matter, any of the other initiatives So, we actually put that in the commitment as out there that you’ve just mentioned? well. And then we also added a whole piece 3 Corporate Diversity and Board Diversity Go Hand in Hand - Leadership Starts at the Top UB: I think the biggest (if there are three big literally, the vast majority of people who I talk groupings) the biggest sticking point is the fear to say, “Can you find me a director, a diverse of failing, the ramifications of failing and how director?” And I say, “Okay, what’s the spec?” the public, whatever you want to call it, will They say, “Well, we need a sitting or past perceive that.