Erby Foster Jr. Director of Diversity and Inclusion The Clorox Company
A Word About Accountability Erby L. Foster, Jr. Director, Diversity & Inclusion The Clorox Company April 23, 2009 Clorox Confidential Making everyday life better,
Accountability • Accountability is a concept in ethics with several meanings. It is often used synonymously with such concepts as responsibility, answerability, enforcement, blameworthiness, liability and other terms associated with the expectation of account-giving. As an aspect of governance, it has been central to discussions related to problems in both the public and private (corporation) worlds. • Accountability is defined as "A is accountable to B when A is obliged to inform B about A’s (past or future) actions and decisions, to justify them, and to suffer punishment in the case of eventual misconduct". • In leadership roles, accountability is the acknowledgment and assumption of responsibility for actions, products, decisions, and policies including the administration, governance and implementation within the scope of the role or employment position and encompassing the obligation to report, explain and be answerable for resulting consequences. Clorox Confidential Making everyday life better, 4
Diversity Leadership Statement “At Clorox, we view diversity as a business imperative, not just a Human Resources initiative. We believe the most effective way to approach diversity is to focus our efforts in three areas: our employees, the suppliers we work with, and the consumers of our products. We are committed to each area, and will continue to link our diversity efforts in this way. When we build the capability to effectively connect with people across a broad range of diverse backgrounds, then we can win in markets and our communities around the world. ” Don Knauss, Chairman & CEO Chair, Diversity Advisory Board Clorox Confidential Making everyday life better, 5
Consumer Insights § America is no longer a mass market. • Minorities are a big group. They represent 33% of population • They are growing 6 -15 times faster than general population • Disposable income growing 50 -300% faster, creating a major source of business growth and profitability 300% Buying Power Increase 1990 -2007 298% 250% 222% 200% 150% 100% 169% 112% 50% 0% Hispanic 1990 - 2007 Asian White African American Source: San Francisco Chronicle, May 17, 2007 – U. S. Census Bureau Clorox Confidential Making everyday life better, 6
Clorox Confidential Making everyday life better, 7
People & Culture Team Vision and Purpose The vision of the People and Culture Team (PCT) is to drive business success by bringing our #1 Corporate strategy to life globally: • Be a high performance organization of enthusiastic owners The purpose of the PCT is to be accountable for our global people strategies and processes including: q q Values-based culture Engagement Total Rewards (compensation and benefits) Talent Management § human resource planning, capability development, leadership development, succession planning, recruiting q Diversity q People policies Clorox Confidential Making everyday life better, 8
People & Culture Team Executive Members • Senior Vice President – Human Resources (leader) • • • • Chairman & Chief Executive Officer EVP – Chief Operating Officer EVP – International EVP – Strategy & Growth SVP – Chief Financial Officer SVP – General Counsel VP – GM, Cleaning Division VP – GM, Specialty Division VP – Chief Information Officer VP – Controller VP - Marketing VP – Product Supply VP – Research & Development VP - Sales Clorox Confidential Making everyday life better, 9
Diversity Business Case Diversity as a Business Consumers People Suppliers Diversity is a business imperative, not just a HR initiative Clorox Confidential Making everyday life better, 10
Diversity Journey 2004 Business Case for Diversity Clorox Confidential 2009 Employee Resource Groups Competitive Advantage for Talent External Recognition Bridge to Business Making everyday life better, 11
Diversity Approach Culture of Inclusion External Focus Partnerships Networks Hiring Internal Focus Diversity and Inclusion ERG’s Mentoring Inclusion Training Functional People Strategies Clorox Confidential Making everyday life better, 12
Bridging Employees Passion to Strategy q Be a high-performance organization of enthusiastic owners Ø ERGs provide development opportunities, share consumer insights, and enhance engagement q Win with superior capabilities in Desire, Decide, & Delight Ø A fully engaged diverse organization drives greater productivity, effectiveness, and innovation q Accelerate growth both in and beyond the core Ø Developing our brands with diverse consumers is one of our biggest growth opportunities q Relentlessly drive out waste Ø To be competitive in the marketplace, we must be able to attract and retain diverse employees Clorox Confidential Making everyday life better,
Why Diversity Programs Fail q Confusion between diversity and inclusion initiatives Ø Ø Diversity metrics center mostly on representation Inclusion metrics reflect organizational health & employee engagement q Isolated diversity function Ø Ø Siloed and disconnected from other areas of the business Neither accessed nor made accessible to senior management q Focusing just on compliance Ø Ø Delivery of training and percentage of employees who have completed Lack evidence in decision-making, promotion criteria, strategic direction, and professional development q Blurred vision Ø Ø Ø Trainings, or cultural awareness events, or activities that look like diversity work Companies are often reluctant to measure and assess where they are in the diversity process Asking for feedback raises expectations and ignoring these answers make the company vulnerable Source: Black EOE Journal Clorox Confidential Making everyday life better,
Commitment & Involvement What’s Your Diversity EQ? • • In order to achieve diversity and inclusion, the journey must be Visible, Inclusive, and Integrated. * Is the work we’re doing Visible (can be seen from every angle and view)? Is it Inclusive (all voices in the room and welcoming to everyone)? Is it Integrated (into everything we do and all that we are)? Roles & Responsibilities** • • Executive Champion ~ Drive partnership throughout Clorox Relationship Partner ~ Align partnership priorities with business strategy ERG ~ Drive advocacy to attract, recruit, retain, & promote diverse employees Function ~ Managers demonstrate personal commitment and active involvement Function Mix (10 Bowling Pins) = Key To Success** • • • 1 ~ Vice President serve as Executive Champion 2 ~ Directors in a team captain/board leadership role 3 ~ Managers attend diversity events as active members 4 ~ Staff get involved as volunteers for chapter activities 10 ~ Total members per organization * Source: 7 Keys 2 Success: Unlocking the Passion for Diversity ~ by Rosalyn Taylor O’Neale ** We should not target employees for participation based on Gender, Ethnicity, Race, Sexual Orientation or other Self-Identification Clorox Confidential Making everyday life better,
Town Hall Meeting Clorox Confidential Making everyday life better, 16
Open House Clorox Confidential Making everyday life better, 17
Top Chefs at Clorox Pride Month Clorox Confidential Making everyday life better, 18
Hispanic Employees in the Media Clorox Confidential Making everyday life better, 19
Path Forward: Culture of Inclusion Typical Behaviors and Beliefs along the Diversity Journey: 1. Pre-Awareness: Conversations often consider "diversity and excellence" as "either/or" propositions 2. Diversity Awareness: Diversity issues and diversityrelated services are often delegated to underrepresented minorities and to women as "their" task 3. Transition State: People struggle with how to be inclusive and at the same time how to value differences 4. Intentional Inclusion: Discussions consciously include how diverse staff may be affected by any decision, program, or policy being considered 5. Culture of Inclusion: Inclusiveness and diversity are assumed to be part of the way Clorox does business Clorox Confidential Making everyday life better, 20
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Multicultural Workforce Clorox Confidential Making everyday life better, 22
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