Top 50 Companies for Diversity

Altria

Kraft Foods · Philip Morris International Philip Morris USA

1. Altria Group 29. Wal-Mart 2. TurnerBroadcasting System 30, IKONOffice Solutions 3. Citigroup 31. Wachovia 4. PepsiCo 32, PrudentialFinancial 5. AbbottLaboratories 33. Bausch& Lomb 6. TheCoca-Cola Co. 34. ComericaBank 1. Xerox 35. UnileverFoods N.A. 8. AllstateInsurance 36. MetLife 9. VerizonCommunications 37. SprintCorp. 10. Kraft Foods 38. SunTrustBanks 11. FordMotor Co. 39. Colgate-Palmolive 12. MarriottInternational 40. WellsFargo 13. KeyBank 41, Staples 14. PepsiBottling Group 42. BellSouth 15. SBCCommunications 43. VisteonCorp. 16. Sears,Roebuck & Co. 44. EastmanKodak 11. HealthCare Service Corp. 45. CingularWireless 18. TribuneCo. 46. NielsenMedia Research 19, PitneyBowes 47. TheChubb Corp. 20. HSBCNorth America 48. GeneralMotors 21. NewYork Life 49. MasterCard 22. AmericanExpress 50, SCJohnson 23, GeneralMills 24, Merck& Co. 25, JPMorganChase 26. Bankof America 21. Procter& Gamble 28. KnightRidder

72 I DlversltylncJun e 200s ~pecialtqLists 10 All theseTop 1 0 require Top Companies mandatorydiversity trainingfor managers, forRecruitment &Retention comparedwith 80 percent his list emphasized work-force numbers, particularly of TheTop 50 and45 Tfor management, but as in all human-capital lists, percentof companies demonstrable CEO commitment and corporate commu rankedafter 90. nications were critical to success.This year, for the first time, we asked companies for their retention numbers TheseTop 1 O also have broken down by race/ethnicity and gender. We also higherretention rates in all divided management into three levels and studied all categoriesofemployees. demographics on women by their race/ethnicity as well. Forexample, their We looked at programs to recruit people with disabilities retentionof whitesis and GLBT people, whether diversity was factored into 13percent higher than succession planning, and recruitment methods. We also TheTop 50 and25 percent measured work/life benefits, mentoring programs, higherthan companies employee-resource groups and domestic-partner benefits rankedafter 90. for same-sex couples.

1. AltriaGroup 2. PepsiCo 3. AbbottLaboratories 4. TurnerBroadcasting System s. Xerox MarriottInternational s. AllstateInsurance Co. 1. TheCoca-Cola Co. a. Citigroup 9. Marriott International .., 10. TribuneCo .

74 I DlversitylncJun e 2005 Companiesfor Diversity 7, IOP~O ~-----~-

Top10 (ompaniej forHfrican Hmericanj his list was determined by examininghuman -capital TheseTop 10 havea 17 Tdemographics and the factors that lead to them, percenthigher retention including recruitment, retention, CEO commitment and ratefor black employees diversity-management strategies. In the demographic thanThe Top 50 and a area, we looked at companies' percentage of African 37percent higher rate Americansin their total work forces, new hires, manage thanthe companies ment in three levels, the top 10 percent highest-paid rankedafter 90. employees and boards of directors. All demographics on African Americans also were broken down by gender. Theyare strong in supplierdiversity . 1. PepsiCo Thepercent of their 2. AltriaGroup procurementbudget going J. Colgate-Palmolive towomen-and minority 4. Xerox ownedcompanies issix s. Citigroup timesthe national &. AllstateInsurance average(12.4 percent vs.2 percent).* 1. HealthCare Service Corp. *Private industryaverages a. FordMotor Co. 9. KaiserPermanente 10. TurnerBroadcasting System TurnerBroadcasting System

78 I DiversltylncJ une 2005 .TOP~O Co~ .i.~~$·for Diversity':

~pecialtqLists Top10 (ompaniej forOji an Hmericanj his list was determined by examining human-capital Tdemographics and the factors that lead to them, including recruitment, retention, CEO commitment and diversity-management strategies.In the demographic TheseTop 1 havean o area, we looked at companies' percentageof Asian 18.5percent higher Americansin their total work forces, new hires, manage retentionrate for Asian ment in three levels,the top 10 percent highest-paid Americansthan The Top 50 employeesa nd boards of directors. All demographics on anda 41.7percent higher Asian Americans also were broken down by gender. ratethan companies rankedafter 90. 1. Cummins 2. AltriaGroup Theyhave almost four timesthe number of 3. Citigroup Asian-Americanwomen 4. PepsiCo inthe highest level of s. FordMotor Co. managementthan The Top &. AbbottLabo ratories 50 andalmost five times 1. Marriott International morethan companies a. VisteonCorp. rankedafter 90. 9. StarwoodHotels & Resorts 1o. NewYo rk Life

82 I Diversitylnc June 200s Colili'paniesfor Diversify · TOP~O------

SpecialtqLists Top10 Companies forExecutive UJomen his list was determined by examining human-capital Tdemographics and the factors that lead to them, including recruitment, retention, CEO commitment and TheseTop 10 have diversity-management strategies. In the demographic 11percent more women area, we looked at companies' percentage of women in intop management than management in three levels, the top 10 percent highest TheTop 50 and38 percent paid employees and boards of directors. We also exam morethan companies ined work/life policies. All demographics on women also rankedafter 90. were broken down by race.

Theyare more than 200 1. AbbottLaboratories timesmore likely to offer 2. Staples onsitechildcare as 3. AltriaGroup othercorporations 4. TurnerBroadcasting System (70percent vs. 3 percent).* s. TheNew York Times Co. *Family & WorkInst itute,Society of HumanR esource Management &. Sears,Roebuck & Co. 1. MarriottInternational a. KnightRidder s. PepsiBottling Group 10. MasterCard

MarriottInternation al

84 I Oiversltylnc June 2005 Corinpan ies ]t~ Div,e~si ti TOP~O------~------#1Altria Group No.1 - Top10 Companies for Recruitment& Retention Top10 Companies No. 6 - Top1 0 Companiesfor SupplierDiversity No.2 - Top10 Companies for African Americans No.2 - Top10 Companies for Asian Americans UJhatffiakes Them SoStronv No.3 - Top10 Companies for ExecutiveWomen BusinessType: Consumer Products CorporateHeadquarters: New York, N.Y. ttainin g the No. 1 rank on T he Diversity Inc Top 50 Companie s Numberof U.S . Employees:59,000 for Diversity list means a company 's diversity excellence tran AnnualWorldwide Revenue: $64 billion scend s all four areas of the survey: human capital, CEO commit Amen t, corpor ate communications and suppli er diversity. Altria Many departme nts condu ct organ iza Group achieved that recognition chis year. tional reviews where directors share progress Altria, which includ es Ph ilip Morri s USA and Kraft Foods- No. reports. Thi s opens up the evaluation 10 on The Diversitylnc Top 50 Co mpani es for Diversity list- is bene process so peer directo rs, in addition to ficing from years of recru iting at universiti es and colleges and amo ng managers, can say who is performin g well. professional organizations. Th e company's cont inuous focus on feed "Ir levels the field and ensures that qual ing the pipeline with qualified recruits of color has allowed it to devel ity cand idates are being seen," says Che n. op a diverse senio r-managem ent pool and a deep bench. Of Alrria's "Philip Morri s USA has a training program new hires, 31 percent were people of char talks about whe n you get your first color: 13.25 percent black, 9 percent management job , you are accountable and Asian Amer ican and 9 percent Latino. responsible as a manager for creating a cul "Advancement plan nin g is mature ture that's inviting." at Altria ," says Edith Chen , senior Ph ilip Morris, in 2003, changed its director, leadership developm ent and name to Altria Group to distance Kraft diversity for Altria . and ocher holdin gs from ongoing tobacco Investing in diversity recruitment litigation. Th e three compan ies- Kraft, reveals char Altria's senior leadership Philip Morris USA and Altria- now uti believes in diversity. Further proof is lize their close relationships to build their char Chen is only one direct report suppli er-diversity initiatives. Supp lier removed from the com pany's CEO, diversity is the area in which Chen expects Louis Camilleri, who, upon taking the to see Alcria's effort increase mo st throu gh Louis C. Camilleri, reigns in 2002 (when Altr ia still was out the next year. Currently, 7 percent of called Philip Morris), instructed execu Altria's procurement budg et goes to more Chairman and CEO tives to learn why the compa ny did not than 65 1 diverse suppliers, and the com place higher on chat year's Diversityln c pany is a member of the Billion Dollar Top 50 Co mpanies for Diversity list. Round rable, a group of compan ies char That year, Philip Morris placed fifth. spend more than $1 billion with min ority Cami lleri persona lly reviews diver and women-owned supp liers annually. sity metrics and programs, signs off Supp lier-diversity executives at the on executive comp ensation tied to three compa nies are mem bers of their diversity, chairs the company's diversi respective company's proc urement divi ty council and makes sure Altria's cor sions, says Chen. "That's key because that's pora te-vision statement incorporates where the work of lookin g for and qualify diversity. His vigilance sets the tone ing suppl iers is," she says. for Alcria's leaders, who are expected T he three compa nies formed a Supplie r to create an environm ent chat invites Diversity Task Force that includes mem people to contribut e, says Chen. bers of each operating comp any. Task EdithChen, "Performance evaluations ... talk force memb ers share information on their Senior Director,Leadership about [a leader's) ability to run a group respective sup pliers, which enab les an Development & Diversity and build an organization that has Altria supplier to develop busin ess with inclusive aspects," says Chen. Philip Morris USA and Kraft. - YojiCole

92 I DlversltylncJune 200s