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Article: Ten Top Companies for Minority MBAs

Article Group List / Diversity / Ten Top Companies for Minority MBAs

Ten Top Companies for Minority MBAs

Ten Top Companies for Minority MBAs
American Express
Boston Consulting Group
Cisco Systems
Fannie Mae
General Mills
IBM
Lucent Technologies
Merrill Lynch
Nike
Procter & Gamble

Not too long ago, most companies viewed workplace diversity efforts to raise the number of women and ethnic minorities employees as a necessary evil or a curiosity.  But today, they're realizing that diversity is simply good business.

Companies are enjoying enormous benefits from employing people with different backgrounds.  For instance, global companies with minority employees are better able to communicate with clients worldwide - and with an increasingly diverse customer base at home.

But just stating a commitment to diversity isn't enough to ensure that firms make all of their employees comfortable.  They must invest time and money into building an atmosphere where minorities can succeed.

Prove it!

Some companies do a far better job of this than others.  Vault.com looked for major MBA employers that demonstrate a dedication to diversity beyond quota goals.  At all levels, top companies must make it clear that diversity is a priority.

It's hard to choose the absolute 10 best companies for minorities.  Here, we've opened our vault of insider contacts to identify 10 of the top major employers for minorities.  We'd be happy to hear about any others we may have missed - or companies you think might make the "Worst Ten" list - e-mail us at divmagazine@vault.com.  For more information about the companies, including application addresses, consult the Diversity Career Guide's Resources section or visit www.vault.com/diversity.

~ American Express
HQ: New York, NY

You might expect an international financial and travel services company to have an expansive view of its own employee diversity - and you'd be right.  Consistently recognized as one of the nation's top employers, NYC-based American Express is known for supporting and encouraging minorities inside and outside its walls.

Its president and chief operating officer, Kenneth Chenault, is African-American and sits on the board of directors with two women as well as Bill Clinton-confidante, Vernon Jordan.  Chenault will succeed Harvey Golub as chief executive officer in April 2001 and as chairman the following year.  Reports a recently-hired MBA graduate: "Diversity issues are addressed at all levels, and almost all employees seem satisfied with the commitment the company has made toward women and minorities."

The firm offers domestic partner benefits to same-sex life partners of gay and lesbian employees and since 1995 has supported internal employee networks to promote diversity in the workplace.  There are currently 10 employee networks organized around various groups, including African-American, Asian, Christian, gay and lesbian, Hispanic, Jewish, American Indian, people over 40, people with disabilities, and women. Says Marietta Cozzi, Vice President of Recruitment and Selection at American Express.  "We've made tremendous progress in the number of minority campus recruits we've hired in 1999." The company reports that nearly half of its new hires were minorities and more than 50 percent were women in that same year.

~ Boston Consulting Group
HQ: Boston, MA

Consultants are professional problem solvers, but that doesn't mean these companies don't have internal issues.  The Boston Consulting Group, however, is proof that innovation can start at home.  One of the nation's top consultancies, BCG provides strategic consulting services to major players in many industries from financial to retail to automotive.

Insiders add that the environment for women at BCG is "outstanding." In U.S. offices, for instance, women comprise about a third of BCG consultants (as opposed to the 29 percent at business schools).  About 40 percent of the consultants in Boston and 50 percent in New York are women.

Ken Keverian, Vice President, who as co-head of global recruiting is responsible for recruiting in the Americas, comments to Vault.com: "BCG is a place that is as true of a meritocracy as I've ever seen. I think that creates an environment were people from all backgrounds can succeed. People succeed from the strength of their insight rather than their appearance."

Cisco
HQ: San Jose, CA

Cisco, based in the San Francisco Bay area, is the world's leading supplier of networking products. The Silicon Valley company seeks out choice tech talent at job fairs, through internships, and on the Internet. Most of its new hires are technical professionals and nearly 40 percent are minorities (31 percent are Asian), according to Fortune.  Cisco recruits through engineering associations founded by women, African-Americans, Hispanics, and Native-Americans. 21.2 percent of the company's MBA-level managers are Asian, black, or Hispanic - unusual for still-predominantly white Silicon Valley.

~ Fannie Mae
HQ: Washington, DC

Established by the federal government in 1938, Fannie Mae was chartered to increase the amount of money available for mortgages by creating a secondary market.  Since 1968, Fannie Mae, now public, has been helping low- to middle-income families attain mortgages and buy homes of their own.

Fannie Mae has been a leader in promoting women and minorities into management positions.  African-Americans make up 26.3 percent of the firm's workforce, 5.5 percent is Asian and 4.1 percent is Hispanic.  12.2 percent of Fannie Mae's senior officers are African-American and 44 percent are women.  The CEO, Franklin Raines, is African-American.

Maria Johnson, the VP of Diversity at Fannie Mae, speaks about Fannie Mae's initiatives.  "We have some of the best diversity numbers in the country, all the way up to the CEO.  We also have the most aggressive objectives."

One particularly unusual initiative at Fannie Mae: the "diversity library." Employees may take out books and videos that enhance an understanding of diversity issues and authors - from movies like The Joy Luck Club and Glory to the Oprah Winfrey bestseller Make the Connection -Ten Steps to a Better Body - and a Better Life.  Fannie Mae also has an intensive mentorship program. 

General Mills
HQ: Minneapolis, MN

General Mills isn't just a purveyor of tasty cereals and snacks.  It's also a nourishing environment for women and minorities. The company reports that 16 percent of its employees are minorities and 37 percent percent are women.

~ "The company is a great place for women and minorities to work. There are many women in supervisory and director-level positions," says an insider.  Another adds: "GMI is a very progressive company that believes strongly in diversity within its employees, customers, suppliers, and consumers." General Mills' reputation for being a friendly employer of women extends beyond hiring. "Many women do part-time work when they have families," says an employee. "You see a lot of families here and women with kids. The company promotes families in every way, which is great for women."

IBM
HQ: Armonk, NY

Jeans may have replaced the suit at resurgent tech leader IBM, but the company's commitment to diversity hasn't changed.  With operations in more then 160 countries, IBM's employees are culturally and ethnically diverse.

IBM has seen significant progress in the representation of minority and women MBA-level executives.  Since 1995, the firm has increased the number of women executives globally by 150 percent (from 185 to 464).  In the U.S., minority executives have increased by more than 100 percent (from 117 to 245). IBM has eight executive task forces representing Asian, black, gay/lesbian, Hispanic, Native American, people with disabilities, men, and women employees. 

Lucent Technologies
HQ: Murray Hill, NJ

Lucent is a leading designer, developer, and manufacturer of communications systems and software. Spun off from AT&T Corp. in 1996, Lucent has grown into a top U.S. manufacturer of the hardware and software for global communications networks.

~ Lucent's top executive tier has been described as "one of the most inclusive leadership teams in the industry and corporate America." Lucent supports employee organizations representing ethnic minorities, gays and lesbians, and the disabled.  Each organization has a web site and hosts an annual national convention.

Lucent is "above average for large technical corporations for minority and female representation at most levels," says one insider.  The statistics back her up.  Women comprise 36 percent of the company's employees, while 23 percent are ethnic minorities.

Bill Price, Corporate Media Relations Manager at Lucent, comments, "We view diversity as a central piece of business strategy.  Quite honestly, it's the right thing to do, and it helps our business to have a wide variety of opinions, talent, and backgrounds when making strategic business decisions."

Merrill Lynch
HQ: New York, NY

Investment banking isn't known for the gorgeous mosaic of its employees.  In this industry, genuine effort counts, and Merrill Lynch tries hard.

Recent MBA hires say they're impressed by the firm's efforts to diversify. While there's a way to go, Merrill Lynch employs one of the most senior African-Americans on Wall Street: E. Stanley O'Neal, executive vice president and chief financial officer.  He also is a member of the executive management committee. The company's board of directors includes two women, one of them of color.

~ Merrill Lynch also funds career-development groups for women, African-American, and Hispanic employees that run workshops, lectures, and seminars within the firm.  The firm recently expanded health benefits to include domestic partners.

According to First-Vice President of Corporate Reaponsibility, Westina Matthews Shatteen, "Merrill Lynch is committed to creating a corporate environment that promotes mutual respect, acceptance, and productivity among people from diverse backgrounds."

Nike

In encouraging women and minorities, Beaverton, Oregon-based sports king Nike seems to "just do it." Externally, it encourages women and minorities to play sports, while internally, nearly 20 percent of its officials and managers are minorities.

To encourage minority applicants, the company advertises on Internet sites geared to African-Americans and Hispanics.

Once hired, minorities have access to an established support system - the Nike "diversity division" - comprised of several support groups or "caucuses" for African-Americans, Hispanics, Asian-Americans, women, and gays and lesbians.  Members from each caucus, as well as company professionals from all levels, meet regularly as an advisory board, focusing on diversity training and awareness.

Procter & Gamble

With more than 300 products marketed in 140 countries, Procter & Gamble, based in Cincinnati, is the world's largest maker of household products.  Although only one of P&G's top 15 officers is female, employees say many women hold middle and upper-middle management jobs and are working their way up the corporate ladder.

~ It wasn't always so.  In 1992, P&G realized that the attrition rate for women in brand and general management was far higher than that for males.  So while there were large numbers of women entering management ranks, few made it to the top levels. To stem the losses, P&G created the Advancement of Women initiative, which provides mentors and networking options for women and flexible hours for working mothers.  A similar program was initiated for minority employees, and progress is reviewed annually.

Employees praise these programs.  Says one, "Minorities and women have a great chance of getting promoted fast since the company is trying to change its traditional conservative corporate atmosphere." The company is more accepting of employees who don't fit the traditional mold. To ensure opportunities for minorities, P&G's CEO annually reviews diversity issues and monitors career development among top minorities.  In addition, the head of each P&G division is held accountable for reaching diversity goals. 

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