The 25 Noteworthy Companies were close to making The 2006 DiversityInc Top 50 Companies list and all excel in at least one, and in most cases several, of the four areas we measure—CEO commitment, human capital, corporate communications and supplier diversity. These companies are close to the Top 50, which makes them head and shoulders above the rest of corporate America in diversity management. They should be honored for their accomplishments and watched, as many of them will be on next year's Top 50. Of the 2005 Noteworthy list, nine made it onto the 2006 Top 50 list. That's especially noteworthy because there were 256 participants this year, up 26 percent from last year.
Here are the 25 Noteworthy Companies in alphabetical order, as these companies are not ranked:
Accenture: This company should be noted for its commitment to its employee-resource groups and its stellar supplier-diversity efforts, including mandatory Tier II supplier diversity, formal training and mentoring for diverse suppliers, and required third-party certification.
Army Air Force Exchange Service: Human capital is the strength here—with a work force that is 57 percent people of color and management that is 43 percent people of color and 64 percent women.
AstraZeneca: The pharmaceutical company deserves praise for its diversity progress. It has increased the representation of people of color in its work force from 18.8 percent in 2002 to 28 percent as of the end of 2005. That compares with 34 percent for the Top 50 average, so there's still room to grow. AstraZeneca's big focuses have been on recruitment—including an emphasis on recruiting people with disabilities—and retention. A major reason for its progress in its employee demographics is the company-funded and company-sponsored networking groups and work/life-balance initiatives.
AT&T: Also No. 4 on the Top 10 Companies for Recruitment & Retention list, No. 5 on the Top 10 Companies for Supplier Diversity list, No. 2 on the Top 10 Companies for African Americans list, No. 4 in the Top 10 Companies for Latinos, No. 4 in the Top 10 Companies for Executive Women and No. 3 on the Top 10 Companies for GLBT Employees list
With consistent retention rates across race and gender, high representation of people of color (28 percent) and women (44 percent) in the management, and programs to recruit people with disabilities and GLBT people, AT&T is a human-capital diversity leader. It's also strong in supplier diversity, with 12 percent of Tier I procurement going to diverse vendors, and it is a leader in corporate communications, with excellent employee-resource groups and strong diversity training.
Comcast: Supplier diversity is the cable company's strongest diversity area, with minority- or women-owned companies representing 12.25 percent of its vendors. The company has mandatory Tier II supplier diversity and third-party certification is required.
Cummins: The strengths here are corporate communications and supplier diversity. For corporate communications specifically, Cummins has strong employee-resource groups backed by senior leadership, mandatory diversity training for the entire work force lasting a full day, and mandatory employee surveys. For supplier diversity, the company has the head of supplier diversity reporting to the head of procurement, and training and financial assistance for diverse suppliers.
Eastman Kodak: Also No. 5 in the Top 10 Companies for People With Disabilities
Kodak CEO Antonio Perez chairs the diversity council, signs off on compensation tied to diversity and has Chief Diversity Officer Essie Calhoun as a direct report. The company, a longtime national diversity leader, also has strong employee-resource groups and mandatory diversity training for its entire work force.
EMC Corp.: This company, a first-time participant, has 53 percent of its managers participating in a mentoring program, recruitment programs for people with disabilities and GLBTs, excellent work/life benefits, strong employee-resource groups and mandatory diversity training.
Genentech: With a work force that is 47 percent people of color and 49 percent women, the company also has management that is 29 percent people of color and 41 percent women. And the trend is escalating as 31 percent of managers receiving promotions are people of color and 46 percent are women.
Herman Miller: Also No. 7 on the Top 10 Companies for Supplier Diversity list
A first-time participant, this company has strong employee-resource groups, a diversity council that meets monthly, mandatory diversity training for the entire work force lasting more than two days, mandatory employee surveys, and strong supplier diversity, with 12.25 percent of Tier I spending going to minority- and women-owned vendors.
Hyatt: The hotel chain's best diversity strength is its human-capital management. Hyatt's managers are 37 percent people of color, and 38 percent of managers receiving promotions are people of color.
Kellogg: This company should be noted for its strong employee-resource groups, multicultural-marketing efforts, and supplier-diversity initiatives, including mandatory Tier II supplier diversity and training for minority- and women-owned vendors.
KeyBank: Chairman and CEO Henry L. Meyer III chairs the diversity council and signs off on executive compensation tied to diversity. The company has strong employee-resource groups and diversity training, surveys employees on diversity and has extensive philanthropic endeavors to diverse communities. In addition, its Web site received a perfect score on communicating its diversity focus.
KPMG: Also No. 8 on the Top 10 Companies for People With Disabilities list
Human capital is the greatest area of strength for this Top 50 company. While 26 percent of the work force is people of color, 32 percent of new hires are people of color, demonstrating real progress. In addition, the company has a consistent retention rate across race and gender and 44 percent of managers are women, as well as 45 percent of managers who received promotions. The accounting company has active programs to recruit GLBTs and people with disabilities.
McDonald's: Twenty-nine percent of top-level managers (reporting directly to the CEO) are people of color at the fast-food giant, and of women at that level, 33 percent are people of color.
New York Life: Also No. 3 on Top 10 Companies for Asian Americans list
With strong work/life benefits, the insurance company also has a work force that is 29 percent people of color. Managers are 21 percent people of color and people of color receive 22 percent of management promotions.
Pepco Holdings: With consistent unbiased retention across race, gender and ethnicity, the utility company also reports 27 percent of managers are people of color as well as 32 percent of managers who receive promotions.
Pepsi Bottling Group: The greatest diversity strength in this company is supplier diversity. Supplier-diversity initiatives are communicated to employees and the head of supplier diversity meets regularly with corporate communications. Supplier diversity is part of procurement. Tier II supplier diversity is mandatory. In addition, the company provides external training and financial assistance to diverse suppliers and requires third-party certification.
Procter & Gamble: This longtime national diversity leader has consistent and unbiased retention across all races, ethnicities and genders. People of color are 21 percent of the managers but receive 24 percent of management promotions. The company has excellent employee-resource groups and mandatory diversity training for its entire work force, lasting a full day.
Sandia National Laboratories: This company has strong, consistent and unbiased retention across all races, ethnicities and genders and mandatory Tier II supplier diversity.
Southern California Edison: Also No. 5 on the Top 10 Companies for Asian Americans list
People of color are 42 percent of the managers in this company and 23 percent in the top level, direct reports to the CEO. They also are 29 percent of the top 10 percent highest-paid employees.
TXU: Also No. 10 in the Top 10 Companies for Supplier Diversity
With 12 percent of Tier I procurement spent with diverse suppliers, this company also reports it has mandatory Tier II supplier diversity, strong communications between supplier diversity and the rest of the company and external training for diverse suppliers.
Wal-Mart: Also No. 6 in the Top 10 Companies for African Americans
The retail giant's commitment to diversity is exemplified by its strong employee-resource groups, mandatory diversity training for the entire work force lasting a full day, excellent philanthropic endeavors to diverse communities, and a major multicultural-marketing push.
Warner Brothers: Also No. 8 on the Top 10 Companies for Recruitment & Retention list
Thirty-eight percent of the work force and 40 percent of new hires are people of color, showing progress. In addition, managers are 27 percent people of color, and 30 percent of managers receiving promotions are people of color. Retention is high and unbiased across all races, ethnicities and genders.
Xerox: Also No. 1 on the Top 10 Companies for GLBT Employees list and No. 4 on the Top 10 Companies for African Americans list
A long-time diversity human-capital leader, Xerox reports management is 21 percent people of color and 30 percent women. The company actively recruits for GLBT people and people with disabilities. It has a strong supplier-diversity effort, with 33 percent of Tier I procurement going to diverse suppliers.
