In the daytime sessions, influential leaders from BASF, PwC, Mastercard, KPMG, Toyota North America and other renowned companies took the stage. Topics included the evolving challenges of environmental, social and governance (ESG), economic empowerment through supplier diversity and the significance of self-identification.  

Visit the event recap page to view all articles, videos and photos from the 2023 Top 50 event.  

The evening segment commenced with Fair360 CEO Carolynn Johnson engaging in a conversation with Accenture North America CEO Jimmy Etheredge, emphasizing the importance of inclusion. Johnson also joined Karen S. Carter, President of Packaging & Specialty Plastics (P&SP) at Dow, Dr. Alveda Williams, Chief Inclusion Officer at Dow, and Cynthia Marshall, CEO of the Dallas Mavericks, for a session titled “Moments of Reflection: Sisterhood and the Importance of Support Systems for Women of Color.” The group delved into their experiences and highlighted the power of collaboration among women of color. 

Attendees also heard insights from industry leaders, including Hilton President and CEO Chris Nassetta, Southern Company President and CEO Chris Womack, Eli Lilly and Company Chair and CEO Dave Ricks, Centene Corporation CEO Sarah London and Northwell Health President and CEO Michael Dowling. 

An exciting announcement came from the event host as Johnson announced a strategic change: DiversityInc would now be known as Fair360. This move reflects the company’s commitment to holistic and comprehensive workplace fairness practices. The concept of Fair360 was originally developed by Johnson and DiversityInc Founder and Chairman Luke Visconti in 2016. 

“We embarked upon this journey in January where we were very intentional about how we were going to not only continue on with the DiversityInc Top 50 survey but also start to look at sentiment surveys. With that, we are returning to our parent company name of Fair360,” Johnson said. 

The evening concluded with the highly anticipated presentation of companies that made this year’s specialty lists and the prestigious Top 50 list. Mastercard secured the No.1 spot on the Top 50, having also ranked on an impressive 14 specialty lists, with Top Companies for Asian American Executives being its standout recognition.  

View the entire 2023 Top 50 and other specialty lists here.  

“A recognition like this is priceless. It reminds us as a company that we have a DEI strategy that’s on the right path and we have what it takes to move the needle. But there’s much more work to be done. Tomorrow we’ll jump back in the game to do what it takes to further strengthen our systems, our policies and practices so that everyone who touches our company feels valued and respected and reaches their greatest potential,” said Randall Tucker, Chief Inclusion Officer at Mastercard. 

The event celebrated the outstanding achievements of these companies and marked another successful edition of Fair360’s Top 50 event. 

PwC has set a goal to award 40% of its reportable spend to diverse suppliers by 2026 and 50% of its suppliers to have science-based targets to reduce their own climate impact by 2025.  

Schuyler emphasized the importance of trust in business and society and highlighted the Trust Leadership Institute that PwC has started to help executives build and maintain trust.  

“[The institute] looks to get 10,000 executives to help them to understand, how do they build trust? What are some of the common things you need to have and really learn? How do you keep it sustainable?” she said.  

The company has been working with Sandra Sucher, Professor of Management Practice at Harvard Business School, on the Trust Leadership Institute. Schuyler said Sucher focuses on four main areas to build and maintain trust:  

1. Competency: Home in on a skill you can consistently deliver. 
2. A mission: Why are you building trust? 
3. The means to do it: The method by which you will stimulate trust.  
4. Impact: How do you measure trust and how it correlates to supplier diversity? 

Schuyler related these competencies to supplier diversity, emphasizing that it is an incredible way to build trust but can also lead to a loss of trust, given the various stakeholders involved. 

Click here for more articles, videos and photos from the 2023 Top 50 event.    

During the fireside chat at Fair360’s Top 50 event in New York City on May 2 (Fair360 was formerly DiversityInc), Fair360 CEO Carolynn Johnson asked Heinz how his global perspective gained from working in various regions of the world has influenced his leadership and understanding of workplace fairness.  

Heinz discussed his upbringing, which included his grandfather, a World War II veteran, having a disability and a family member coming out as gay 30 years ago. Heinz detailed how those experiences shaped his values and made him an ally for marginalized groups.  

He also discussed the differences he observed in working environments between countries such as Germany, Ecuador, Mexico, Switzerland, and the U.S.  

BASF uses data to drive decision-making and ownership of its inclusion initiatives. Heinz explained that BASF, as a science-based company, focuses on selection and retention based on data and drivers, which the leadership team reviews monthly. 

Heinz said that creating a sense of belonging and ensuring equal opportunities in the workplace is crucial for modern organizations. 

“When you’re at the helm of a company, you can do something. You can make sure that there are certain policies and practices and procedures in place … set an example. Make sure there is more equality and there is more feeling of belonging … that is something that I experience with people all around the globe. They want to be themselves. They want to have a sense of belonging, and they certainly want to have equal types of opportunities.” 

Watch the video to hear more from the session. Click here for more articles, videos and photos from the 2023 Top 50 event.  

The session began with Susan Stith, retired Vice President of Diversity, Equity and Inclusion at The Cigna Group (No. 14 on the 2023 Top 50 Companies for Diversity list), giving a talk about diversity fatigue and how to avoid burnout. She discussed the evolution of workplace fairness over the past 20 years, highlighting the shift from policies focused on non-discrimination and EEO to DEI as a driver of innovation, growth and strong business results. 

Stith also discussed the emotional, physical and mental toll that DEI work can take on practitioners, especially when met with resistance to initiatives, changing priorities and employees expecting immediate action. She stressed the importance of DEI work, not just as the right thing to do, but also as a competitive advantage for companies, leading to more profitability, innovation and growth.  

She was followed by Randall Tucker, Executive Vice President and Chief Inclusion Officer at Mastercard (No. 1 on the 2023 Top 50 Companies for Diversity list). He shared personal examples of making decisions that prioritized his mental health and self-worth, which ultimately led to better opportunities and respect from executives. He highlighted the importance of being an authentic leader and visible role model, such as coming out as a gay executive.  

As leaders and proponents of workplace fairness, Tucker believes they play a pivotal role in helping to bring people closer together and building the best, most dynamic teams for innovation and problem-solving. However, he emphasized that diversity leaders must take care of themselves first and put their own oxygen masks on before helping others. He provided four key points for diversity leaders to consider: believe in yourself, develop critical business skills, add value to organizations that care and take time out for self-care. He also gave some advice about salary negotiations.  

“Negotiate your salary based on your market worth and then add another 20% to it because everybody else is doing it, too,” Tucker said. “For those experts in this field, get your coins. Leave nothing on the table.” 

The pair then sat with Jenkins for a panel discussion to further dig into the topic. Watch the video to view the full session. Click here for more articles, photos and videos from the 2023 Top 50 event.  

The pair discussed the importance of workplace fairness in business, with Nassetta speaking about how he has been explaining to shareholders the need for it. He also shared the progress that Hilton has made in diversifying its board of directors to send a message throughout the organization that fairness is a priority. 

Nassetta also acknowledged the challenges of promoting fairness within the hospitality industry, particularly at the highest levels, and how Hilton has been working to develop a systematic approach to doing just that.  

“It’s easy for our senior people who we’re asking a lot of to say, ‘I’m going to take the easy way out,’” Nassetta said. “That doesn’t mean they’re bad people, it’s just easier. So you have to make them work harder. But when they start to see that there’s a benefit that it’s working, that in the end, the company is functioning better, the culture of the company is exhibited, and most importantly with the output of serving customers, then it becomes embedded in the data. Then it gets a lot easier even though it’s still hard work. People believe they see cause and effect.” 

Click here for more articles, videos and photos from the 2023 Top 50 event. 

 Accenture was No. 1 on the 2022 Top 50 Companies for Diversity list and was inducted into the Hall of Fame this year.  

 Etheredge spoke about how to prioritize fairness during times of transition and change, such as restructuring or layoffs. Etheredge mentioned that Accenture has doubled down on employee resource groups (ERGs), expanded apprenticeship programs and set targets for increasing diversity in leadership. 

 He then emphasized the power of disruption to drive change. 

 “If you feel like the status quo isn’t where it needs to be, then having something that’s disruptive is going to be helpful to change that.” 

 Click here for more articles, videos and photos from the 2023 Top 50 event. 

Elena Richards, Chief Diversity, Equity and Inclusion Officer at KPMG (No. 6 on DiversityInc’s 2023 Top 50 Companies for Diversity list) emphasized the importance of building trust at Fair360’s (formerly DiversityInc) 2023 Top 50 event, “The Link Between Leadership Accountability and Data Standardization.” During her Top 50 Talk, “Enhancing Support for People Through Self-Identification,” she stressed the importance of continuous listening.  

“When you think about the surveys that we are all participating in, you want to hear the sentiment of your employees,” said Richards. “You want to hear and provide access for them to give you information. My team will hear me say this all the time; feedback is a gift.” 

KPMG’s employee resource groups play a significant role in getting that feedback.  

“We have a third of our professionals that are a part of our business resource groups,” she said. “They are a mighty community, swelling things up from the top to the bottom, sharing with us what we should focus on. That’s helping us to evolve our strategy because you’re hearing from your employees.” 

Richards admits the process can be challenging. KPMG has executed the campaign slowly, with the help of its colleagues. But the results are evident. In 2022, the KPMG saw an average increase of 21.4% in self-ID rates among its veterans, LGBTQ Employees and People with Disabilities. KPMG is using its findings to examine the benefits they offer to their workers.  

“I know we’re going to celebrate the wins because that’s the thing that’s going to keep us going,” she said. “We all know that there’s more work to be done. And that’s going to keep us accountable.” 

Click here for more articles, videos and photos from the 2023 Top 50 event.  

 Marshall, along with Carolynn Johnson, CEO of Fair360 (formerly DiversityInc), Karen S. Carter, President of Packaging & Specialty Plastics at Dow (No. 7 on DiversityInc’s 2023 Top 50 Companies for Diversity list) and Dr. Alveda Williams, Chief Inclusion Officer at Dow, shared the importance of support systems for women of color at the 2023 Top 50 event, where the theme was “The Link Between Leadership Accountability and Data Standardization.” 

After a 36-year career with AT&T, Marshall was approached to help Dow reignite its equity and inclusion efforts. Marshall sponsored Carter as Dow’s first Chief Inclusion Officer. Mark Cuban also chose Marshall to lead the Dallas Mavericks during that time. Both women were determining if they should take the roles.   

“When I got the call, I was very hesitant,” said Carter. “The first call I made was to Cynt. What she said to me back then is what I said to her at that moment, which was: ‘This is not about you sister. This is about the moment. This is about the movement. This is also about all those people, some of which look like us, will believe they can because we did.’”  

Carter says one of the most significant lessons she learned from Marshall was the importance of “sending the elevator back down.” Carter paid it forward when she selected Dr. Alveda Williams as Dow’s Corporate Director of Inclusion. 

“They put the brand of Karen S. Carter and Cynt Marshall behind me. They were vested and invested in me,” said Williams.  

One of the first connections Marshall suggested Carter and Williams make was Johnson. 

“Folks are constantly looking for examples of how we show up for one another and what the outcomes, the people and their stories are,” she said. “After tonight, you do not have to look any further. When we support each other, when we show up, when we are fair in our selection process, this is what happens.” 

Click here for more articles, videos and photos from the 2023 Top 50 event.  

 “I spend more time with our investor relations folks answering questions around what is the narrative (in the data)?” Otero said. “So it is about taking a whole bunch of lenses and looking at the data sets that you have. At the end of the day, if you’re not doing that rigor of analysis, you’re not going to fill up those gaps that were mentioned. You’re not going to get to the promised land, if you will, of fixing those opportunity areas.” 

 Otero was joined on stage by Kelly Copes-Anderson, Global Head of Diversity, Equity and Inclusion at Eli Lilly & Company (No. 5 on the 2023 Top 50 Companies list), and Denise Brownlee, Senior Vice President of Global Talent & Top Management at Stellantis (No. 30 on the 2023 Top 50 Companies list).  

 The session highlighted the importance of data standardization for new leaders who need to understand what’s working and what’s not in the company quickly. Copes-Anderson spoke about the standardization of business rules, alignment of definitions and centralization of data sources as essential for consistent data interpretation and accurate data analysis.  

 Brownlee emphasized the role of governance in ensuring consistent data collection and storage across different departments and business units within the organization. Internal audit groups must be delegated with the authority to audit data compliance and accuracy. 

Click here for more articles, videos and photos from the 2023 Top 50 event.    

The CEOs of Eli Lilly & Company, Centene Corporation and Northwell Health spoke about what the companies are doing to expand health equity at the Fair360 (formerly DiversityInc) 2023 Top 50 event: “The Link Between Leadership Accountability and Data Standardization.” 

Sarah London, CEO at Centene Corporation (No. 37 on DiversityInc’s 2023 Top 50 Companies for Diversity list), is working to transform the communities it serves by addressing the social determinants of health (SDOH). SDOH are the conditions in which people live, work and worship that impact their health outcomes.  

“We can start to do the math differently and say, what is the right investment and the right resources to drive health outcomes in an open aperture and think about access to healthy foods, transportation, jobs, security, things like that,” she said.  

Eli Lilly & Company (No. 5 on DiversityInc’s 2023 Top 50 Companies for Diversity list) has been making products for people with diabetes for 100 years. Dave Ricks, Chair and CEO, said the COVID-19 pandemic forced the company to look deeper into the disparities it witnessed.  

“We thought about this problem,” he said. “But to be honest, I think the urgency of the pandemic forced new thinking and new ways of working, starting with how we develop our own products to make sure that the data we present about their effectiveness is inclusive of all communities.” 

Michael Dowling, President and CEO Northwell Health (a DiversityInc Hall of Fame Company) urged organizations to work together to solve health inequities rather than operating in silos.   

“You can act as a catalyst to get other people to work together. If we work together more, we can have an enormous effect,” he said. “There’s a collective responsibility here we all have to take responsibility for. To me, that’s the responsibility of leadership in every organization.” 

Click here for more articles, videos and photos from the 2023 Top 50 event.   

This was the message from Martha, who is Chairman and CEO of Medtronic as he spoke with Fair360 CEO Carolynn Johnson during a fireside chat titled “Navigating the Evolving Challenges of ESG” at the annual Top 50 event in New York City.  

This might be the first time you’ve seen the name Fair360, and you might be wondering where it came from. During the evening portion of the Top 50 event, Johnson announced that DiversityInc would now be DiversityInc Powered by Fair360 to prioritize workplace fairness.  

The Fair360 concept was developed by Johnson and DiversityInc Founder and Chairman Luke Visconti in 2016.

“We embarked upon this journey in January where we were very intentional about how we were going to not only continue on with the DiversityInc Top 50 survey but also start to look at sentiment surveys. With that, we are returning to our parent company name of Fair360. Everything that you see from this moment forward will be ‘Powered by Fair360,'” Johnson said.

As part of the discussion, the pair discussed Medtronic’s environmental, social and governance (ESG) goals and other achievements.  

 Its accomplishments include 100% pay equity across gender and ethnic lines, $2.7 billion spent on research and development in addition to another $2.7 billion with diverse suppliers.  

Martha said the company achieved these milestones by setting and building goals over time, which can be found in the company’s 2022 ESG Report.   

Medtronic’s CEO emphasized the role of authenticity in building and delivering ESG and workplace fairness programs, policies and practices.  

“I think the most important thing was the authenticity, starting with our mission and the conversations around why this isn’t just the right thing to do, but it’s a business imperative. And those repeating conversations, the authenticity, putting some structure to this, measuring this, making public commitments—it all comes back for us to our mission. “ 

Fair360, formerly DiversityInc, tackled the topic in the panel “The State of the Chief Diversity Officer” at the 2023 Top 50 event “The Link Between Leadership Accountability and Data Standardization.” 

While budgets and DEI positions are being cut, companies that are focused on workplace fairness will remain steadfast in their commitment, said Adrienne Trimble, Vice President and Chief Diversity and Culture Officer for Sysco Corporation (No. 17 on the Fair360 2023 Top Companies for Talent Acquisition for Women of Color). 

“When you make it a strategic part of the business strategy, you can’t just pull it out because it’s so embedded into how you show up in the things you actually do,” she said.  

Wanda Hope, Chief Diversity, Equity and Inclusion Officer for Johnson & Johnson (a Hall of Fame Company), said aligned thinking and strategy at all levels of an organization is essential to advancing DEI.  

“When we do that, we can lift the entire organization and drive greater progress,” she said.  

When asked how she navigates DEI’s challenges, including increased political rhetoric and staff reductions, Alicia Petross, Chief Diversity Officer for The Hershey Company (No. 3 on the Fair360 2023 Top 50 Companies for Diversity list) said it all comes back to commitment.  

“Certainly there are challenges out there,” she said. “We know that our business is stronger and healthier. We know that our colleagues grow the more diverse and inclusive we are. It’s great for our bottom line. It’s great for employees and also helps fuel the communities where we operate.” 

Click here for more articles, videos and photos from the 2023 Top 50 event.   

“There are so many things that come across, whether it’s social innovation or partners in human resources, in which we have to decide which direction to go,” he said. “Having data to inform your strategy allows us to do things in a more systematic fashion. Otherwise, we won’t know where to spend all of our energy.” 

This message fit perfectly with the theme of Fair360’s (formerly DiversityInc) 2023 Top 50 event, “The Link Between Leadership Accountability and Data Standardization,” which took place on May 2 in New York City. Bethel spoke to the importance of data and how it informs company strategy decisions during a panel with Senior Business Writer Linda Bell titled “Using Data to Be Proactive About Your Company’s Skills Development Strategy.” 

To ensure a company is making progress Bethel said it’s important to measure the data to see if you are on track, falling behind or need to change course. According to Bethel, leaders must balance being responsive to the data while committing to long-term strategies. They must not be reactionary, but proactive in identifying and addressing root causes. This is particularly important in industries where trends can change rapidly and staying ahead of the curve is essential to remain competitive. 

Bethel said today’s business world also calls for building a conscious environment of learning and development, which is especially important when it comes to employee engagement and retention. Leaders must ensure that their employees feel empowered and have the tools they need to succeed. This can be achieved through continuous feedback, team member engagement surveys and by focusing on the top two or three priorities that have been identified by the team. 

Bell and Bethel also discussed the importance of trust between leaders and employees to retain top talent and foster a more positive work environment. Managers must communicate effectively and build strong relationships with their employees, especially Black and brown workers who have a higher turnover rate than their white counterparts.  

Click here for more articles, videos and photos from the 2023 Top 50 event.  Check back early next week to view the full video recording of the session. 

“Without employment, people being released end up with no other options,” says Dwight Tostenson, CEO and co-founder of the Redemption Project, a nonprofit organization dedicated to reducing the chance of recidivism. “They end up short on money and have to pay their bills somehow. They have a tendency to go back to doing what they know best — a life of crime, which puts them right back in the system.” 

The business case for second chance hiring has become more pronounced post-pandemic and following the social justice movements of 2020.  

“Let’s be honest. COVID accelerated the exit of baby boomers from the workforce,” says Bill Payne, President and CEO of Second Chance. The nonprofit organization provides workforce readiness training, sober-living housing and other support services to justice-involved individuals. “There’s been an increasing appetite for taking action in areas of social justice brought on by George Floyd and others. Also, a continued appetite to reform the inequities and injustice from our traditional criminal justice system.”   

Experts say hiring former offenders can be a win-win for both parties. While formerly incarcerated people have a higher unemployment rate than the general population, the U.S. economy is experiencing a talent shortage. What can companies do to ensure their second chance initiatives are successful?   

Back the Commitment 

The U.S. Chamber of Commerce estimates the economy loses up to $87 billion by excluding justice-involved job seekers from the workforce. Second chance hiring is when companies hire previously incarcerated individuals or those with a criminal record. Research shows that hiring former offenders can result in lower turnover, higher engagement and increased productivity, leading to improved company performance. 

“That’s about 80 million Americans that have experienced some form of justice involvement, which is about 25% of the adult employable population,” Payne says. “There’s no business these days that can afford to throw away 25% of the potential talent pool.” 

Company-wide alignment is essential for second chance hiring to be successful.  

“From people at the top, all the way down to people working on the floor, what does this mean and how can we as a company be supportive of this type of work environment? That’s when they’ll tap into a workforce a lot of other organizations aren’t and be very successful with it,” says Tostenson.  

Tostenson stresses that second chance hiring isn’t charity and businesses don’t have to lower their standards to hire justice-involved people. Eighty-two percent of managers say people with criminal records perform the same as or better than employees without criminal records, according to the Second Chance Business Coalition (SCBC).  

“Employers are always looking for the best-qualified candidates to fill open positions,” says Dane Linn, Senior Vice President at Business Roundtable, one of four founding partners of the SCBC. “By considering candidates with a criminal record, employers increase the talent pool available to them. They also have an opportunity to improve the communities where they operate by employing people who may otherwise struggle to find a job but are ready and willing to work.”  

Focus on Training and Development  

The SCBC gives employers the tools to provide economic opportunities to people with criminal records. Since its founding in April 2021, the coalition has grown from 29 to 46 large employers, including Randstad (No. 21 on DiversityInc’s 2022 Top 50 Companies for Diversity list) and CVS Health (No. 28 on DiversityInc’s 2022 Top 50 Companies for Diversity list).   

Randstad’s efforts to support second chance hires include identifying job categories most accessible to candidates with past convictions and investing in specialized training, skill-building and apprenticeship programs. Its Hire Hope program provides career-readiness training and job-placement services to underserved and at-risk women. 

“Approximately 200 women have been employed by Randstad corporate partners through Hire Hope since Randstad launched the initiative in 2014,” says Keith Brown, Community Impact Director of Randstad North America. “Most graduates work in HR-related functions such as benefits, payroll and recruiting.” 

CVS Health’s Workforce Initiatives team partners with 1,400+ community-based organizations for workforce development, including apprenticeships, internships and on-the-job training. In 2022, over 2,400 justice-involved individuals were reached and 4,200 people were hired. 

“We continue to leverage and build on our successful community partnerships so that we can provide employment services and training to returning citizens — a pool of talent that is often overlooked — and support successful life and employment transitions for these individuals that will benefit the communities we serve and society at large,” says Ernie DuPont, Executive Director of Workforce Initiatives for CVS Health. 

READ: How Community Partnerships Can Help Formerly Incarcerated People Find Jobs 

Rethink Business Practices 

“Ban the Box” laws forbid public and often private employers from inquiring about an applicant’s criminal history until late in the hiring process. Yet only 15 states and the District of Columbia have ban the box laws that pertain to public employers. 

“The practice is you’re continually punished and denied access to opportunities because of your justice involvement,” says Payne. “That little box that you have to check on a job application about whether you’ve been convicted of a crime is a form of continued incarceration or punishment for the rest of someone’s life.” 

Legislation alone is not enough. Revamping HR processes like rewriting job descriptions or training hiring managers are necessary to make the workplace more equitable. 

Payne emphasizes that leveraging the talent of justice-involved individuals requires sustained commitment, cultural change and organizational change management, akin to DEI initiatives, necessitating ongoing attention. 

If companies don’t consider returning citizens as part of their diversity, equity and inclusion work, they may be missing out on a number of opportunities. 

“When you focus on returning citizens, you’re also focusing on other underrepresented and marginalized groups,” Dr. Damon Phillips, Professor of Management at The Wharton School, said at the 2022 DiversityInc Top 50 Companies for Diversity event. “The lifetime imprisonment for Black males is one in three. It’s one in six for Latino men. But fewer people are aware that lesbian, gay and bisexual people are incarcerated at three times the rate of straight people. This is something which captures a lot of the groups that we think about and care about.”   

WATCH: 2022 DiversityInc Top 50 Panel: Cutting Edge Research on DEI in the Workplace 

Providing jobs to former offenders is only one piece of the puzzle.  

Payne says to empower justice-involved people and help them be self-sufficient, partnerships with local resources are essential. He says support should be provided in six areas: housing, personal and social wellness, justice involvement, education and job skills and income and employment. The SCBC has also developed a Community Partners Map, which connects employers with nonprofit and public organizations supporting second chances. 

The big four accounting firms, EY (a DiversityInc Hall of Fame company), KPMG (No. 11 on DiversityInc’s 2022 Top 50 Companies for Diversity list), PwC (a Hall of Fame company) and Deloitte, are working to explore what they can do differently as businesses to improve supplier diversity within their own organizations and how they can better serve their clients, many of whom are interested in using diverse suppliers.

Understanding that supplier diversity affects the entire industry and that the industry’s unique requirements called for collaboration, the four companies work with supplier diversity partner organizations like the National Minority Supplier Development Council (NMSDC) and the Women’s Business Enterprise National Council (WBENC). The two organizations help foster industry groups to encourage companies with similar business profiles to collaborate on supplier diversity. Thus, the Professional Services Industry (PSI) group was born.

Supplier Diversity Goals for the Professional Services Industry

The group’s goals and purposes range from the practices these companies have internally that support supplier diversity to how they help create an ecosystem in which diverse suppliers can thrive and compete for bigger contracts in the market. Doing so is not only good for the accounting firms themselves, but their clients as well.

“I think specifically when you think of an industry like professional services, we need to focus on building these suppliers’ capacity,” Shannon Schuyler, Chief Purpose Officer at PwC, said. “We have to make it feasible for a $30 billion company to hire them. They’re not just going to jump into that mix and be a part of that portfolio that will be selected, you need to make sure that you’re building on ramps and inroads for that to happen.”

The companies which comprise the PSI group all have their own supplier-focused initiatives to help bring this to life. For EY, helping suppliers reach that next level to potentially be a supplier for the company and their clients is driven by its Environmental Social Governance Services (ESGS) initiative, which stands up a number of programs meant to support diverse suppliers.

“Our commitment is to inspire diverse suppliers to think big and be confident in their ability to provide high-quality products and services that meet our needs,” Larry Phelan, Global Chief Supply Chain Officer at EY, said. “Through ESGS, we aim to create a distinctive experience for suppliers by teaming together to develop innovative solutions, strategies and accelerating possibilities as we respond with a diverse mindset to our customers, clients and communities around us.”

The services sector has a major footprint in the overall economy and by extension, the supplier diversity landscape. Keith Hines, Director of Supplier Diversity at KPMG noted that in 2021, the services sector contributed about 77% of the United States GDP, and therefore, it’s imperative that companies that don’t manufacture, work together on things that affect their entire Industry.

“Supplier diversity is something that will affect each service industry, albeit in different ways,” Hines said. “We all need diverse suppliers that can provide goods and services to meet the unique needs of the respective industries. That said, diverse suppliers need to know that industries are interested in working with them. Diverse suppliers gravitate toward opportunities that are most visible to them.”

One lesson the companies have learned along the way is to understand market dynamics and how they can affect different industries in the short and long term. For example, Black women are the fastest-growing demographic of entrepreneurs in the U.S. The number of businesses owned by Black women grew by 50% from 2014 to 2019. This is an example of how market dynamics have shifted and how supplier diversity practitioners must keep up to date but also develop strategies to get in front of these changes.

Hines also noted how quickly sustainability concerns are being added to the overall supplier diversity picture.

“Supplier diversity has also expanded to include sustainability at an increasing number of companies and with accounting firms,” Hines said. “Supplier Diversity is now a critical component of environmental, social and governance (ESG). Sustainability is woven into the broader responsibility of supplier diversity leaders, and we must manage the new goals and expectations around this key issue and share what’s on the horizon with diverse suppliers and our clients.”

Driving Growth

At the core of this effort is an aim to help grow diverse-owned businesses. While Black women may be one of the fastest-growing segments of entrepreneurs, the fact is that minority-owned businesses often struggle to sustain themselves over time. Pre-pandemic, 80% of Black-owned businesses failed within the first 18 months. More recent data shows that 58% of Black-owned businesses label themselves as “at risk” or “stressed” in U.S. Census data.

Access to business development resources is likely part of the problem these businesses face. For companies like the big four, helping these companies through mentoring is one way to make an impact.

“It’s more about sharing best practices (with suppliers) for determining best places to source,” Schuyler said. “What are things that different organizations need to continue to grow? Where do they need the most help? We’re learning and having open dialogues and what we’re finding is that these organizations need to be as resilient as possible and to be able to have skills that they might not have to be able to continue to grow.”

This is in addition to spending goals. For PwC, the growth of the company’s spending has been steady. PwC’s FY26 aspirational DEI goals include awarding 40% of reportable spend to certified diverse suppliers. In 2021, 33% of reportable spend was with diverse suppliers, up from 31% in 2020 and 22% in 2019. The successful expansion of spend to date is a result of working more closely with diverse suppliers to understand their needs and championing them through their procurement process.

Spend is quite possibly the simplest way to support the growth of diverse businesses. At the end of the day, putting money into these suppliers pockets makes that growth possible. But the efforts of the big four are also about changing the perception of supplier diversity from a part of DEI initiatives into an overall business best practice.

“We know we can’t take our eye off the most basic goal, which is to increase spend with diverse-owned businesses,” Hines said. “However, we do look at what’s over the horizon and how the business environment is changing. All our strategies seek to normalize supplier diversity and make it an integrated part of the end-to-end procurement process.”

Not only is pay equity the right thing to do, but it also benefits employers and employees by improving productivity and reducing worker turnover. All DiversityInc 2022 Top 50 Companies for Diversity and Hall of Fame have systemic efforts to detect and correct pay equity.

“The most critical piece is that pay equity is going to make you an employer of choice,” says Elisa van Dam, Vice President, Allyship and Inclusion, Institute for Inclusive Leadership at Simmons University. “The trend is towards more transparency. It’s all part of how you show up as an organization in the world and whether you’re on the right side of history or not.”

Here are four actions employers can take to support pay equity in the workplace.

Broaden Pay Transparency Practices

At the beginning of 2023, California, Washington and Rhode Island joined the list of states and cities with pay transparency laws. The laws, aimed at improving pay equity, include requiring companies to list salary ranges on job advertisements, transfers or promotion opportunities.

“Because pay gaps can compound over the course of a career, these pay transparency laws aim to reduce the risk of a gap forming in the first place by ensuring workers have the information they need to negotiate their starting pay,” says Helena Almeida, Vice President, Counsel at ADP (No. 14 on DiversityInc’s 2022 Top 50 companies for Diversity list).

Navigating the landscape of pay transparency laws can be challenging. While complying with local laws, some companies implement pay requirements nationally and globally.

“Trying to set up policies overall that meet the needs of as many of those laws and the jurisdictions they’re in as possible makes a lot of sense rather than saying, ‘we’re just going to work on the New York law in New York,’” says van Dam. “Ultimately, that’s the preferred strategy if you can do it.”

READ: Pay Transparency Laws are Crucial for Women of Color – Here’s Why

Lean on Data

Compensation data plays a significant role in allowing HR leaders to gain insights into internal equity and external benchmarking.

“When HR leaders are equipped with real-time and large-scale data sets, they can make informed decisions about the right pay range for a specific role, in a specific industry and for a specific location,” says Almeida. “Once they understand the relevant pay picture, they can answer key questions like, ‘is our pay competitive? What benefits other than pay are we offering to help us maintain an advantage in the market?’”

Starting salaries, merit increases and bonus structures are three areas where pay inequity can emerge. To ensure fairness, ADP recommends implementing standard pay ranges or guidelines for each position, reviewing internal pay policies and comparing internal data with broader industry benchmarks for bonuses. Pay audits are some of the most effective ways for companies to understand their internal pay data.

“If there are significant differences between employees performing similar roles, investigate to see what might be behind their pay differences,” says Almeida. “Do higher paid employees have greater tenure? Or do performance or job-related experience justify higher pay for some employees? Through this process, leaders can see if there are any areas of concern internally while also looking externally at how the market has shifted when it comes to compensating new talent.”

Learn more about DiversityInc’s benchmarking services.

Revamp Employment Processes

Companies are overhauling their employment strategies and practices to comply with pay equity laws.

“Many states and cities have banned employers from asking applicants for their salary history or basing a compensation offer on salary history information,” says Almeida. “Employers should consider eliminating this question on their job applications and in their interviewing and instead ask applicants what salary they expect or hope to earn in the new role. Employers also should ensure they have a clear policy and process for making pay decisions and apply that process consistently.”

In an ideal world, van Dam says companies should examine every step in the employment process to achieve pay equity and the equity of opportunity.

“For organizations that are far along the journey, they are starting to look at all those things,” she says. “They are looking at not just pay equity by gender, but by the intersection of race, ethnicity and gender or other social identities. They’re looking at the whole compensation. They’re looking at a representation at different levels of the organization and what the process is for promotion, stretch assignments.”

WEBINAR RECAP: Mind the Gap: Pay Equity

Communicate Change

Trust is a key element to a successful pay equity strategy.

“Leaders should be prepared to communicate their company’s pay policies and goals to their workers and be ready to have honest and sometimes challenging conversations with current employees about pay,” says Almeida. “Communicating your company’s existing and planned pay equity practices can help you attract new talent and keep the talent you have.”

According to research from ADP, approximately three-quarters of employees would consider looking for a new job if they discovered their company had an unfair gender pay gap or no diversity, equity and inclusion policy.

“It’s a general worker fairness thing and it helps companies attract talent,” says Andrea Johnson, Director of State Policy, Workplace Justice at the National Women’s Law Center. “If they’re putting out the ranges, they are hearing from people — that shows, to me, you’re a good employer, you value employees. This is a massive economic decision.”

Despite the passage of the Equal Pay Act in 1963 and the Lilly Ledbetter Fair Pay Act in 2009, which were aimed at addressing pay disparities based on gender and other protected characteristics, significant pay gaps still exist. According to data from the U.S. Census Bureau, women in the U.S. earn approximately 82 cents for every dollar earned by men, while women of color face even wider pay disparities.

According to an analysis from Forbes, women earned 17% less than men on average. Men in the legal profession earn 59% more than women in the same field and women of color are among the lowest-paid workers in rural areas, with rural Black and Hispanic women making just 56 cents for every dollar that rural white, non-Hispanic men make.

The full picture of the impact this has for Black and Hispanic women became clearer last March when Department of Labor (DOL) estimates released on Equal Pay Day showed Black women lost $39.3 billion and Hispanic women lost $46.7 billion in wages in 2019 compared with their white male counterparts due to their participation in low-wage sectors of the economy, such as caregiving and hospitality.

READ: Addressing the Wealth Gap: Study Shows the Movement Toward Equity Has a Long Way to Go

In recent years, there have been efforts at both the state and federal levels to address pay equity. Some states have passed their own pay equity laws, which go beyond the federal standards, and some employers have taken steps to conduct pay equity audits and address any disparities that are uncovered. In addition, the Biden administration has signaled its commitment to advancing pay equity through proposed legislation and executive orders.

Pay Equity Varies by Industry

While pay equity has become a priority for some companies, each industry as a whole has a pay gap to address. According to Payscale’s 2022 Gender Pay Gap Report, these five industries performed the worst when it came to pay equity:

1. Finance & Insurance (77 cents for every dollar a man earns)
2. Agencies & Consultancies (83 cents)
3. Healthcare (86 cents)
4. Transportation & Warehousing (87 cents)
5. Non-profits (88 cents)

Healthcare may come as a surprise to some given the number of women in nursing roles, however, the pay gap in nursing persists and has widened in the last few years. The 2022 Nurse Salary Research report shows that the median salary for a male RN is $14,000 higher than the median salary for a female RN, up from a difference of $7,297 in 2020.

RELATED: Breaking Barriers: Inclusion in First Responder Roles

Strides were made in the technology sector with more women entering STEM careers in recent years and pay equity being examined by the most prevalent players in the space. However, many of those gains are being offset by the number of women losing their jobs as part of layoffs amid concerns about the economy.

What’s Being Done to Address Pay Equity

According to Census Bureau data, the gender pay gap has narrowed over time. In 1980, women earned just 64% of what men earned, while in 2019, women earned 82% of what men earned. While this progress is significant, there is still a sizable gender pay gap that needs to be addressed and which has leveled off in in the last few years.

WEBINAR: Mind the Gap – Pay Equity

Efforts to address pay equity must take on both private and public forms. For its part, the Biden Administration celebrated the March 15 observation of Equal Pay Day last year by announcing more details of its Agenda for Women.

Among the targeted goals was banning the use of salary history when setting wages during the hiring process. Thus far, 21 states have instituted salary history bans or prohibitions.

Private sector efforts to address pay equity include things like pay equity audits which some employers have started to conduct. Many signed the Obama Administration’s Equal Pay Pledge, which requires that they conduct such audits. This typically involves conducting some form of multiple regression analyses which first control for variables that are known predictors of pay such as job level, job family/role, location, and experience.

When examining data from DiversityInc’s Top 50 survey, we see that 100% of companies in the Top 50 & Hall of Fame answer yes when asked whether they have methods in place to detect and correct pay inequity.

Corporate disclosures are another encouraging sign as some companies have started to disclose their pay equity data publicly, which can help to increase transparency and accountability around pay equity.

The Business Case for Pay Equity

The business case for pay equity is multifaceted and includes both financial and non-financial benefits. Here are some of the key reasons why pay equity is a smart business decision:

• Attract and retain top talent: Offering fair and equitable pay can help attract high-quality talent to your organization and improve employee retention rates.
• Boost employee morale and productivity: When employees feel they are being paid fairly, they are more likely to be motivated and engaged in their work, which can lead to increased productivity and better business outcomes.
• Reduce legal and reputational risks: Unequal pay practices can lead to lawsuits, negative publicity and damage to your brand reputation. Ensuring pay equity can help mitigate these risks.
• Increase customer loyalty: Companies that demonstrate a commitment to fair pay practices may also appeal to socially conscious consumers who are looking to support businesses that align with their values.
• Improve diversity, equity and inclusion: Pay equity is an important aspect of creating a more diverse, equitable and inclusive workplace. By ensuring equal pay for all employees regardless of their gender, race, or other factors, organizations can create a more welcoming and supportive environment for all.

Data lays bare the reality of consumer sentiments about corporations and their racial equity obligation. A survey by the market research firm Ipsos found that 81% of consumers in the U.S. believe brands have a role to play in addressing racial injustice, and 65% said that they would stop buying from a brand that doesn’t take a stand on racial injustice.

In a survey conducted by the consulting firm Accenture (No. 1 on DiversityInc’s 2022 Top 50 Companies for Diversity list), 41% of consumers said they would pay more for products and services from companies that are committed to racial equality.

As public scrutiny intensified, the question quickly became a matter of where is the transparency? And who, if anyone, is going to assume accountability for these promises?

Some companies, however, listened to the sentiment of both the public and their people, putting accountability measures in place. Eli Lilly and Co. (No. 5 on DiversityInc’s 2022 Top 50 Companies for Diversity list) is one of them. The pharma giant has not only set ambitious goals but tracked progress and reported on them on publicly. Its most recent Racial Justice Progress Report titled “Lilly’s Racial Justice Commitment: From Pledge to Progress” is evidence of that.

The report outlines the company’s progress across five key areas it identified in 2020. These include:

• People development
• Family sustaining jobs
• Health equity
• Social impact
• Diversity partners

At the outset, leadership committed to “decreasing the burden of racial injustice” by pledging $25 million and 25,000 volunteer hours over a five-year span. The targeted volunteer hours have already been surpassed and the company has tripled its spending with Black vendors and suppliers.

A key to the speedy progress Lilly has made has been the accountability measures the company put in place and a commitment to both internal and external transparency. The accountability piece began with creating a new position, Head of Lilly’s Racial Justice Commitment. That post has been filled by Terry Morris and involves leading the racial justice strategy.

That was followed by the establishment of a cross-organization Racial Justice Steering committee which is co-chaired by the Executive Vice President for HR and the EVP for Corporate Affairs and Communications. The mission of the steering committee is to advance racial justice for Black and marginalized Americans with “speed and purpose.”

Responsibility for progress is embedded into individual performance plans at all levels in key areas like supplier diversity and talent acquisition. Training and learning opportunities are an important component in creating an understanding and buy-in of company strategy and goals.

There are some ongoing challenges that must be navigated, as with any effort to create meaningful change. For example, the company’s commitment to the supplier diversity initiatives in the pledge has to be consistently renewed. If commitment or focus wanes, so does the program.

“DEI is a journey, not a destination – and similarly, so is our racial justice work,” Kelly Copes-Anderson, Global Head of Diversity, Equity and Inclusion at Lilly said. “Our work to increase the number of Black Business Enterprises we engage with starts over at zero every year with the contracting cycle. The commitment and diligence required to meet these goals must never wane.”

Another challenge will be the expansion of these efforts. Thus far, Lilly’s Racial Justice Commitment efforts have primarily been focused on addressing the issues Black Americans face. Now, the company is looking at opportunities to expand the work to other marginalized communities, in particular the Latinx community.

While the progress report itself and the continued renewal of their commitments are examples of external transparency, internally, leaders of the initiative had to figure out how to report progress to executives. They developed a Racial Justice Scorecard with metrics that indicate success, such as spend with local charities and startups in the Indianapolis area, recruitment of apprentices from underrepresented groups and the number of executives who have completed supplier diversity training, to name a few. These measures are tracked over the five-year commitment timeframe and shared regularly with the CEO and Executive Committee.

Family Sustaining Jobs

In the aftermath of the 2008 recession, it was common to hear about creating jobs. The success of presidencies and governorships can be tied to job creation, and much of the national view of the economy centers on conversations about jobs. But in that conversation, not much context is set in place around the sustainability of those jobs, the growth opportunities they offer or whether someone can support a healthy lifestyle, never mind a family on the wages that it pays.

The term “family sustaining jobs” has been growing in use, particularly since the creation of the OneTen Project, a coalition of companies with a goal to upskill, hire and promote one million Black Americans in ten years into family sustaining jobs that provide opportunities for advancement.

Lilly joined OneTen and began moving towards a skills-first approach to hiring and development for certain positions.

According to OneTen, family sustaining jobs meet four standards:

• Pay family sustaining wages. This varies based on the cost of living in each city, but generally means the compensation covers the basic needs for a family. Calculate the family sustaining wage in your area with the MIT Living Wage calculator.
• Accessible. These jobs do not require a four-year college degree for a candidate to perform successfully. An estimated 4 million jobs today can be re-credentialed to remove the requirement for a college degree.
• Opportunities for advancement. These jobs are eligible for promotion, parallel education and have a pathway to more senior positions within the company.
• Attractive. These jobs have a relatively low risk of being automated, informed by a 2013 study from Oxford, allowing a longer-term career to develop.

Lilly’s Skills First program is an effort to provide candidates without four-year college degrees, including Black Americans and other historically marginalized groups, greater access to roles at the company they may not have had through traditional recruiting methods.

Since 2020, more than 70 individuals from underrepresented groups have participated in apprenticeship programs that prepare them for full-time positions at Lilly in a variety of areas, including information technology, human resources, clinical research and development, business operations, and manufacturing. The apprenticeships range from 13 to 24 months.

“We have also added various wrap around services to address barriers to participation,” Copes-Anderson said. “As a global pharmaceutical company, we value robust education, especially in STEM areas, which are critical to innovation. However, we recognize that there are a multitude of different skill sets that enable us to fulfill our purpose to develop medicines that make life better for people. In the last couple years, we challenged ourselves to think differently – recognizing that the four-year degree as a default isn’t always necessary for many jobs at Lilly.”

Recently, Lilly announced an upskilling collaboration with the Be Nimble Foundation, a 501(c)(3) social enterprise creating fully diverse and inclusive tech ecosystems, to source talent within Lilly’s Skills First Program.

Commitment to Supplier Diversity

As noted in the report, Lilly has doubled its spend with Black suppliers and vendors as well as Black Business Enterprises in Indianapolis. While the impact has been significant for the community, the biggest impact has been on the company, according to Copes-Anderson.

“Every year we engage a third party to understand the number of jobs and economic impact our diversity supplier spending has on the community,” she said. “Generally, the economic impact is usually around two times the spend. So, for example, our $358 million in spending with Black Business Enterprises (BBE) equates to around $700 million of economic impact. While no doubt our work with Black Enterprises has benefited those individuals directly involved – the biggest impact has been on Lilly. Diversity is critical to innovation. We are a stronger company when there is greater diversity in the companies with whom we do business.  We are now committed to tripling our BBE spend by 2025.”

To read the full Racial Justice Progress Report, click here.

Workplace fairness has become a more significant issue for corporations. Organizations have realized that their supply chains can have a greater social and environmental impact than their operations. Here are three steps companies can take to evaluate the workplace fairness practices of their partners. 

Set Standards of Conduct

Research shows that workplace fairness is one of the values employees want from their employers. Fairness also factors into consumers’ buying decisions and companies demand the same of the businesses they choose to work with. 

Medtronic’s (No. 10 on DiversityInc’s 2022 Top 50 Companies for Diversity list) Mission and Code of Conduct include behaving ethically, dealing fairly in business, upholding human rights and doing business in an environmentally responsible manner. 

“Our Responsible Supply Management program aligns with international standards and guidelines, including those from the Organization for Economic Co-operation and Development and the United Nations Guiding Principles on Business and Human Rights,” says John Klein, Senior Vice President & Chief Procurement Officer, Medtronic. “We expect suppliers to implement their human rights and labor standards and comply with our Global Supplier Standards, which are included in supplier agreements and purchase order terms and conditions. All new suppliers must agree to these standards before working with us.”  

Kellogg’s (No. 6 on DiversityInc’s 2022 Top 50 Companies for Supplier Diversity list) says creating processes and procedures to include, evaluate and develop diverse suppliers is critical.

“To do business with Kellogg, all of our suppliers must agree to and adhere to our Global Supplier Code of Conduct,” says Debra Quade, Manager, Supplier Diversity, Kellogg Company. “This outlines our basic expectations and requirements to become and stay a supplier. Operating safe, ethical and sustainable supply chains is a priority for Kellogg and our supplier partnerships reflect these efforts and standards.”

Monitor Performance

While setting standards is a good start, Klein says meaningful monitoring and enforcement are necessary for its approach to be practical. 

“Our Supplier Sustainability Assessment program monitors suppliers’ compliance and performance against our standards, prioritizing suppliers where we have the highest spend and those deemed the highest risk,” he says. “To ensure suppliers’ participation, we expanded this program in FY22 to involve our category managers in the assessment process.” 

Using self-assessment surveys and on-site audits, Medtronic determines supplier risk in four areas: labor and human rights; environment; ethics; and sustainable procurement. 

“Our risk determination dictates the frequency of a supplier’s self-assessment,” says Klein. “Low-risk suppliers complete assessments every three years, while medium- and high-risk suppliers complete assessments every two years and annually.”

Walmart (No. 26 on DiversityInc’s 2022 Top 50 Companies for Diversity list) has extended its approach to human rights in its supply chain. The world’s largest retailer requires suppliers to submit third-party safety audits to meet expectations. Stellantis (No. 3 on DiversityInc’s 2022 Top Companies for Supplier Diversity) rates every one of its suppliers with a scorecard.  

“We have a set of terms and conditions right that every supplier gets when they do business with us,”  says Bruno Olvera, Head of North America Supplier Diversity Development at Stellantis. “One area we have in our terms and conditions is sustainability. There is a paragraph that talks about sustainability and best practices when it comes to the sustainability of the workplace, workforce, and other areas that we believe in from a guidelines and principles perspective.”

Provide Additional Resources

Quade says Kellogg’s takes pride in ensuring diverse suppliers have the resources and tools they need to be successful.

“Kellogg’s organizes and supports monthly Michigan Diversity Connection (MiDiCo) meetings, introducing diverse suppliers to West Michigan corporations where best practices are shared,” she says. “Pre-pandemic we scheduled Supplier Spotlights, providing diverse suppliers an opportunity to interact with Kellogg decision-makers. Post-pandemic, we evolved this to virtual sessions, reviewing our current processes, expectations and available resources with current diverse suppliers.”

Medtronic says suppliers not adhering to its Global Supplier Standards must undergo additional training.

“During FY22, we held 26 one-on-one training sessions on our standards and expectations,” Klein says. “These suppliers also received sample policies to integrate into their operations.”

Supplier development programs can be integral in helping suppliers improve their compliance with codes of conduct and strengthen a company’s supply base. 

Stellantis has two leadership development programs, including the National Black Supplier Development Program which provides more than 2.9 million Black businesses nationwide with access to supplier training and development. Modeled after the National Black Supplier Development Program is MentorWE, designed to prepare women-owned suppliers for future contracting and provide them with mentoring, executive business education and counseling. 

“We’re in our first cohort,” says Olvera. “We have nine suppliers that we’re mentoring. It’s been a great experience.”

He encourages an open discussion with partners and says transparency is essential.

“Maybe we have practices you might have feedback on or we’re not doing something you’re looking for,” says Olvera. “Is there something that we can include in our operations? That’s always feedback that we welcome. I like the transparency; if they have any ideas, put them in front of us.”

After attempting to pursue a relationship that didn’t work out, the pregnant, Black mother of two children had nowhere to stay. Fontes went to the county for help and her “home” became motels and shelters. 

Fontes vividly remembers the vouchers she received for motels in seedy areas. The shelter bathroom she was required to clean and share with a family of five. The mother with a teenage boy who was indifferent to cycling in and out of the shelter. 

“You’re trying to function in normal society, but you’re not normal in any way,” she says. “A lot of your food is donated. A lot of your clothes are donated. Some people don’t necessarily share the same desire to get out as you do.”

Racial Disparities in Homelessness

Race and homelessness are often intertwined. 

Over half a million people in the United States are homeless. Historically disadvantaged groups, including African Americans, Native Americans, Native Hawaiians and Pacific Islanders, experience homelessness at higher rates than whites. 

“To truly address this crisis in our country, we must acknowledge the disparities that exist and the fact that people of color are disproportionately impacted by homelessness and housing insecurity,” says Stephanie Ledesma, Vice President of Community Health Programs for Kaiser Permanente (a DiversityInc Hall of Fame company). 

While African Americans are 13% of the general population, they account for more than 40% of the unhoused population, with families making up a significant portion.

The reasons behind homelessness are multifaceted. Some people become homeless because of domestic violence or substance abuse issues. Lower incomes, less access to healthcare and higher unemployment and incarceration rates are among the factors contributing to higher rates of Black homelessness. The slowing economy, housing shortage and rising rents have worsened a bad situation.

A legacy of redlining and housing discrimination is also to blame, says Jennifer Friedenbach, Executive Director of the Coalition On Homelessness.

“African Americans have not had access to purchasing properties in areas where the real estate values have risen much higher,” she says. “They have not been able to accumulate wealth through that. Then there’s housing discrimination on the front end. People are seeking housing and landlords are discriminating against African Americans. Homelessness is where you see the visible effects of continued racist policies in the city and across the country.”

READ: The Role of Credit in the Black Homeownership Gap

Corporate Social Responsibility and Homelessness

Corporate social responsibility (CSR), which can address societal issues like homelessness, is a win-win for employers and employees. 

Research from the MIT Sloan School of Management found that not only does CSR help attract talent and boost employee morale in the workplace, but it can also lead to greater productivity and profits. Fifty-eight percent of organizations with a strong and a clear sense of purpose experienced 10% or more growth during the last three years, according to a study sponsored by EY, a (DiversityInc Hall of Fame) company. 

CSR has become a critical issue for workers, especially Millennials, the largest generation in the workforce. One study found that 83% of Millennials would be more loyal to a company that helps them contribute to social and environmental issues and 64% won’t take a job if their employee doesn’t have a strong CSR policy. Workers want to be involved in their company’s CSR initiatives and for its mission and values to align with their own. Companies are responding by encouraging volunteerism and some are paying workers for their time.

When viewing corporate philanthropy through this lens, it should come as no surprise that the percentage of total giving directed to community and economic development among the DiversityInc Top 50 Companies for Diversity has increased over the past three years.

Keith Brown, Director of Community Impact at Randstad (No. 21 on DiversityInc’s 2022 Top 50 companies for Diversity list) views social responsibility as a trifecta.  

“How do we engage around creating profits so we have a quality product or service that we provide and we’re doing it through our skilling efforts?” he asks. “How do we create an opportunity to support our communities so we can mitigate your crime and create good citizenship and a neighborly perspective? Then how do we create an ecosystem to ensure that the environment supports all that we’re doing and that these communities are thriving?”

Tackling the complex issue of homelessness requires a coordinated approach beginning with communities and continuing with strategies like government and corporate involvement. 

“One way is one-time funding towards the capital purchase of buildings and then trying to match that with ongoing government support,” says Friedenbach. “Another way is working with local organizations and hiring. Make sure they’re reaching out to employment organizations whose clients are Black and brown community members disparately impacted by poverty and homelessness and ensuring jobs within their companies.”

Homelessness often creates new health problems and exacerbates existing ones. Cleveland Clinic (No. 2) and Jefferson Health (No. 8 on DiversityInc’s 2022 Top Hospitals and Health Systems list) have launched initiatives that provide healthcare and social services to patients experiencing homelessness.

But despite the support of healthcare providers, no amount of healthcare can substitute for stable housing.

The National Low-Income Housing Coalition says almost 7 million more affordable housing units are needed nationwide for extremely low-income families. Corporate efforts can include partnering with local organizations or investing in affordable housing to improve outcomes for the homeless. That’s what companies like TD Bank (No. 13) and U.S. Bank (No. 17 on DiversityInc’s 2022 Top 50 companies for Diversity list) have done. 

“It’s almost impossible to stabilize economically while you continue to live on the streets,” says Friedenbach. “It’s difficult to hold on to identification and it’s difficult to get enough sleep to be able to successfully compete in the job market.”

Corporate tax increases on businesses in California have also been cited as one way to help solve the homelessness crisis.

“Often, it’s left to the municipal governments who don’t have the existing tax base and have to pass measures to get revenue to pay for housing, treatment and other things that the federal government has neglected,” says Friedenbach. “A lot of the corporate community opposes those measures very vigorously and it makes it difficult to generate revenue through taxation. Companies need to rethink what it means to be a good corporate community member and support efforts that are moving toward ending homelessness.”

READ: Socially Conscious Profits Turn Steady Profits 

Homeless Prevention Initiatives in Action 

Kaiser Permanente says it’s in its DNA to invest in the health of the communities it serves. The nonprofit healthcare provider addresses homelessness by investing in affordable housing, strategic partnerships and shaping policy. 

Kaiser Permanente has committed $400 million to the Thriving Communities impact investment fund, which will help create or preserve 30,000 affordable housing units by 2030. Since March 2022, the company has also contributed a total of $3.4 million to 21 crucial medical respite care programs to provide up to 15,000 individuals experiencing homelessness with a safe place to recover from illness. 

“We want to support systems change through our investments and efforts in our communities,” says Ledesma. “We want to challenge assumptions within affordable housing and community development investing, contribute broadly to programs that provide for disruption and innovations and create attainable solutions to entrenched problems.”

Seven years ago, Randstad founded Hire Hope. The program provides career-readiness training and job-placement services for women who are victims of human trafficking, domestic violence and homelessness. Hire Hope is only available in the Atlanta area, but Randstad is expanding the effort to other markets.

“In the U.S. alone, racial minorities experience homelessness at a higher rate than the white population,” says Brown. “How do we engage racial minority populations so they can be skilled in a thoughtful, streamlined way that aligns with our client ecosystem? We will have a much more dynamic workforce that is loyal to our client ecosystem, as well as loyal to being great community and corporate citizens.”

READ: Advancing Health Equity Through Community Partnerships

From Homelessness to Housing

When Fontes was homeless, she was determined to improve her children’s lives. 

After 500 employment applications and numerous bus trips from the shelter to interviews, she eventually secured a job and moved into transitional housing. After that, Fontes and her kids lived in a home donated by a local church for a year. 

“When I was going through my journey, I didn’t focus on the fear,” she says. “I stayed focused on – this is the next step that I need to get to. Through that, opportunities opened up and I was able to navigate.”

Fontes is thankful for the private landlord that rented her an apartment, despite having poor credit. She benefited from WANDA, a program that taught her and other single mothers about financial literacy. WANDA is supported by sponsors and partners, including Capital One (No. 22 on DiversityInc’s 2022 Top 50 companies for Diversity list). The program connected her with a mentor who encouraged her to set goals. 

Fontes survived homelessness and is now a business owner that helps companies evolve or transform their culture. She is married with six kids. While her husband was recently laid off, she believes her family’s better equipped to deal with economic uncertainty. 

“I tried to pursue this entrepreneurial journey and it’s not as secure and there is a lot of risk with what I’m doing right now,” she says. “We worry a bit, but I have better tools to help me.”

Nevertheless, Fontes admits that the feeling of living on the edge of homelessness never leaves those who were once unhoused. 

“Even though you get out of the situation you’re in, it’s the mindset you have to rewire,” says Fontes. “It’s that fear of, oh my gosh, if I lose my job or get laid off, I’m gonna go back into this system because our society isn’t set up unless you have a lot of reserves. It’s not set up to help people maintain levels of housing.”

Workplace Fairness for the In-Person, Hybrid, Remote Experience

The pandemic shifted us toward remote work being the norm, but as Americans look at a post-pandemic reality, whether it’s over or not, what the workplace looks like continues to be a topic of debate.

The fact is, there really is no putting the proverbial cat back in the bag. Most skilled workers now feel that a significant portion of their day-to-day jobs could be done from a location of their choosing. Companies that provide that flexibility are going to fare better than those who insist on forcing people back into commutes and cubicles. Among those that maintain flexibility, there’s another issue to concern themselves with: the employee experience of people not in the office.

While in-person working has its benefits and drawbacks, one of the chief concerns among HR experts centers on how the employee experience differs between those who have access to their managers and a variety of co-workers and those who will be connecting electronically.

What is the experience for virtual attendees in meetings? Do they feel included or like an outsider? Finding answers to all these questions will continue to be paramount to developing a culture where fairness, inclusion and equity are at the center of people’s day-to-day work.

“In terms of workplace flexibility, our future of work model moves beyond spaces and places to create what we call omni-connected experiences that level the playing field so people can fully participate regardless of where they are physically working,” Kate Clifford, Chief Human Resources Officer at Accenture North America, said in an interview with DiversityInc. (Accenture was No. 1 on DiversityInc’s 2022 Top 50 Companies for Diversity list).

READ: Winning the War for Talent in 2023

Defining Productivity

For many years, productivity was measured in metrics like hours worked, keystrokes, mouse clicks and documents created or emails sent. But efforts to quantify work vary in their effectiveness based on the type of work being done.

According to a study from the Stanford Graduate School of Business, tasks can be quantified when the work is simple, like steps on an assembly line. However, when the work is more complex, such as creative or engineering work, over-quantification demotivates the worker and drives down productivity.

Part of that may be a lack of accounting for the quality of a product rather than the amount of it. In hybrid and remote environments, the last two years have shown us that crude productivity metrics are ineffective and don’t actually measure an employee’s effectiveness. Instead, many companies have shifted toward focusing on business outcomes tied to an employee’s work, a trend that will need to continue as employees remain remote.

Maintaining Diversity Amid Layoffs

When the Great Recession hit, Black workers were among the first laid off, with Black unemployment percentages reaching double digits and remaining there for the next six years. It took nearly a decade for Black pre-recession income levels to return, whereas their white counterparts’ unemployment never approached double digits.

Interestingly, the pandemic saw Black unemployment fall, but there are now concerns about what happens in the wake of a recession. There is plenty of research out there which shows people from racial and ethnic backgrounds as well as people with disabilities, those with a criminal record and those who lack a college education are the first to be let go and the last to be rehired when recovery begins. The question now is, will that trend repeat itself in this recession?

The first workers to go in a recession are those whose work can’t be tied directly to business outcomes or the bottom line (marketing, IT, etc.). In addition, that can sometimes include folks in HR or diversity as well as ESG functions if they are not investors or governing boards’ priority.

As a result, DEI initiatives that have made progress in increasing representation could be negated if budgets for those programs and the team that built them are cut. Something experts warn against if companies are looking at the bigger picture.

“You’re looking at generations in the workplace and decades of work that’s been done,” Rebecca Ray, Executive Vice President of Human Capital at The Conference Board said. “If you stop doing that, you have to be cognizant of the fact you’re going to lose some ground and you’re going to have to work that much harder to get back on up. It’s harder to restart an engine than to slow it down slightly, but keep moving forward.”

READ: 5 Ways to Recession Proof Your DEI Strategy

Treatment of Part-Time, Contract and Gig Workers

Another consequence of a recession is that as workers are laid off, they often turn to gig and contract work to make ends meet. In the Great Recession, many full-time hourly workers saw their hours cut down to part-time, reducing their benefit offerings and diminishing their pay.

While gig work is common now, it still comes with no guarantees and no benefits. Even with the Affordable Care Act offering healthcare alternatives in many states, this can have dire consequences for access to healthcare, to say nothing of the ability to take time off or cope with difficult personal circumstances such as the loss of a loved one or loss of a partner’s income.

Contract workers are partners of the organization and should be treated in ways that align with company culture. When the crisis passes and the time comes to beef up the workforce once again, how the company care for its people, partners and community during difficult times will be an integral part of its employer brand.

For part-time workers, now is the time to invest in people and help them grow through reskilling, upskilling and leadership development programs, another casualty during tough economic times.

“It’s important for leaders to recognize that the stressors their companies face, whether it be inflation, shifting customer demands or social challenges – also place greater pressure on their workforce,” Clifford said. “Supporting and prioritizing people’s needs should be a key business priority for companies even during times of change.”

Research has shown that a sound sustainability strategy can help companies lessen the impact of economic turmoil. A recent survey from PwC (A DiversityInc Hall of Fame company) found that ESG is among the top five concerns for investors. Sustainability has emerged as a critical issue and will impact companies’ decision-making, strategies and priorities. 

Looking Beyond 2023

Climate change is one of the most pressing problems facing our world today. In 2023, companies will continue working toward their commitment to being net zero by 2030. 

“New regulations range from Scope 3 corporate emissions disclosures to climate stress test requirements for banks,” says Meggin Thwing Eastman Managing Director, ESG and Climate Research at MSCI. “Companies will find themselves having to cope not only with these new disclosure requirements but also with regulations that could change how they operate.” 

As part of its ESG strategy known as “Travel with Purpose,” Hilton became the first global hospitality company to set science-based climate targets.

“In 2022, Hilton announced strengthened greenhouse gas emissions goals, which aim to cut emissions intensity by 75% in our managed hotels and by 56% in franchised by 2030,” says Jean Garris-Hand, Vice President of Global ESG at Hilton (No. 1 on DiversityInc’s 2022 Top Companies for ESG and a DiversityInc Hall of Fame company). “These goals have been validated by the Science Based Targets initiative (SBTi), a global body enabling businesses to set ambitious emission reduction targets in line with the latest climate science.”

After seeing that sustainability was becoming much more important to stakeholders, Eli Lilly and Company (No. 15 on DiversityInc’s 2022 Top Companies for ESG) updated its ESG strategy and embedded sustainability objectives in its business decisions. Eli Lilly says it will continue to work toward its 2030 ESG goals, which include increasing access to medicine and minimizing its environmental impact. 

“Sustainability is central not only to our purpose but also our growth agenda,” says James Greffet, Head of ESG Strategy at Eli Lilly. “All components of ESG are integrated into our business strategy because it’s not only the right thing to do, but it also makes Lilly a stronger, more resilient company.”

READ: What It Means To Be Net Zero and How Companies Are Working Toward It

Focusing on Talent and Diversity 

The global talent shortage, human capital management and the labor market will remain a top concern for companies in 2023. The World Economic Forum states that sustainability goals should be a core part of companies’ strategy, while effectively recruiting and training people that can bring that vision to life.

“Recent times have seen companies and workers under pressure,” says Thwing Eastman. “Labor shortages, wage pressure, inflation, strikes, questions about the future of work and the Great Resignation are all taking their toll. Companies that can’t afford to simply raise wages may need to get creative in how they appeal to workers and keep them happy. They might also find benefit in revisiting well-known workforce management tools, like employee surveys.” 

While strides have been made in board diversity over the past ten years, MSCI says one of the most significant governance challenges facing companies in 2023 and beyond is the need to rethink what the right board of directors looks like. 

“Being prepared for the challenges of tomorrow means getting the right board in place ahead of time,” says Thwing Eastman.“ The required mix of demographics, experience and expertise is changing, in some cases quite rapidly.”

Despite a slowing economy, Hilton remains focused on creating an inclusive environment in all aspects of the team member experience – from attracting diverse talent to helping team members see the opportunities for growth and development at all levels. 

“From a DEI perspective, we will continue to focus on the diversity we set in 2021, where we committed to achieving global gender parity and 25% ethnic representation at our corporate leadership levels by 2027,” says Garris-Hand.

Abbott will continue working toward its goal of improving the lives of 3 billion people by the end of the decade.

“Building a more diverse and inclusive workplace and supply chain, responsibly applying data to advance care and protecting a healthy environment – all of these factors are connected to building a healthier future,” says Melissa Brotz, Vice President, Global Marketing and External Affairs at Abbott (No. 3 on DiversityInc’s 2022 Top Companies for Environmental, Social & Governance (ESG).

READ: Five Ways to Recession-Proof Your DEI Strategy 

Driving Innovation  

Like sustainability efforts, diversity is central to a workplace culture based on fairness. Research has shown that diverse workplaces foster greater innovation and productivity. In 2023, Eli Lilly expects to deliver volume-driven revenue growth and potentially launch four new medicines. 

“Lilly recognizes that DEI is critical to innovation, and it will continue to be an important part of Lilly’s strategy to deliver on these ambitious business goals,” says Greffet. 

As sustainability transforms the way we live, business demand for sustainable finance is soaring. Sustainable finance is the process of taking into account ESG factors when making investment decisions. Last November, U.S. Bank (No. 2 on DiversityInc’s 2022 Top Companies for Environmental, Social & Governance (ESG) set an environmental finance goal of $50 billion by 2030 by financing more customers and projects with a positive impact on the environment.

“In 2023, we are focused on responding to customer requests for new sustainable finance and equitable lending products and support,” says Carrie Reeder, Senior Vice president, Head of the ESG program office at U.S. Bank.

“As consumer behaviors and financial regulations change, we are committed to continuing to make banking accessible and serving our customers and other stakeholders all while maintaining our risk discipline to operate successfully,” she adds.

READ: Businesses Must Overcome ESG Challenges to Satisfy Investors

Confronting Economic Challenges 

Increased stakeholder interest in ESG initiatives has put pressure on organizations to invest in ESG initiatives. Despite recessionary concerns, nearly half of chief financial officers say they plan to increase investment in environmental, social and corporate governance (ESG) initiatives in 2023. Lilly is one of those companies.  

“We don’t see anything changing our commitment to ESG, however, we maintain flexibility in our approach to responding to coming regulations, such as the coming SEC rule for climate disclosures,” says Greffet. 

Abbott is confronting economic challenges by putting health access and equity at the center of its long-term ESG strategy. 

“For 2023, our focus will continue to be centered on our sustainability priority, innovating for greater access in health,” says Brotz. “We’ll bring this to life by building affordability into our products and technologies, and by working with others to get people the care they need, including both existing and new health equity partnerships.” 

Despite the slowing economy, Hilton sees its sustainability goals as a long-term investment in its business. 

“(It) increases the efficiency of our operations and helps protect the destinations and communities we know and love for generations to come,” says Garris-Hand. “While we will adjust along the way to reflect the latest science and progress in our efforts, we take a long view on ESG to ensure it is fully embedded in our business globally to meet the needs of our many stakeholders, even as they evolve.”