Running Head: Integrated Inclusion

Assignment # 2: Integrated Inclusion

Ardavan A. Shahroodi

Northeastern University

HRM 6045—Change, Challenge, and Competence

Professor Michelle Del Rosario

Thursday, February 27, 2014

Integrated Inclusion

Question # 1: Describe the difference between Bolt-on diversity and Built-in (integrated inclusion): Bolt-on diversity strategies are those organizational efforts “at the corporate margins” (Castleberry-Singleton, 2009, p. 11) and “experienced by general employees as something other than mainstream” (p. 10). These Bolt-on diversity endeavors such as “diversity recruiting and diversity training” (Castleberry-Singleton, 2009, p. 10) are not considered an integral dimension of “mainstream business unit and corporate function efforts—such as talent acquisition, employee and community partnerships and marketing and communications” (p. 10). Rather Bolt-on diversity operations are “budgeted separately under human resources, driven by diversity employees” (Castleberry-Singleton, 2009, p. 10). Castleberry-Singleton (2009) argues that the aforementioned bolted-on attempts in promoting diversity that are created “around the edges of the company’s core strategy and objectives, rather than integrally bound up with the heart and soul of strategy and objectives” (p. 8) lead to “organizational resistance” (p. 8). On one level, bolted-on diversity campaigns and “requirements are seen by managers as costs to be managed and minimized rather than as investments that can lead to bottom-line rewards” (Castleberry-Singleton, 2009, p. 8). This characteristic and reputation of being a marginal element of the larger organizational strategy also prevents bolted-on diversity efforts in “convincing employees that inclusion is an essential part of the company’s success” (Castleberry-Singleton, 2009, p. 10). On the other hand, a Built-in diversity strategy or integrated inclusion “support the growth of cohesive, productive relations among all employees” (Castleberry-Singleton, 2009, p. 9) and construct “relationships among people of diverse backgrounds and create open communication” (p. 9). In an integrated inclusion approach, the organization regards “diversity as a core business goal, one that is essential to the company’s success” (Castleberry-Singleton, 2009, p. 10) by illustrating that “inclusion is a core task, and not a peripheral one” (p. 10). This elevated understanding must be clearly emphasized by the “company’s leaders” (Castleberry-Singleton, 2009, p. 10) and consistently “backed-up by commitments and resources” (p. 10). Here, leaders must perpetually delineate the belief that “diversity equals increased value” (Castleberry-Singleton, 2009, p. 10)) and an inherent “part of the company’s identity and a core strand of its strategy and objectives” (p. 10). In an organizational environment dedicated to integrated inclusion, “diversity management becomes aligned with tasks that are common to the whole company and the groups within it” (Castleberry-Singleton, 2009, p. 10). Integrated inclusion offers “shared accountability” (Castleberry-Singleton, 2009, p. 10) for the “sustainable” (p. 11) promotion of diversity efforts in all “business units” (p. 11).

Question # 2: How does the integrated inclusion model satisfy various stakeholders needs (identify various stakeholders and the value of this model to each of them)? Hamdani & Buckley (2010) observe that “Businesses operate within a broader network of social and political forces” (p. 39). They contend that in such an environment “Organizations are not only competing for market share and profits, but are also striving to meet the expectations of various stakeholders including government, community, customers, employees and society at large” (Hamdani & Buckley, 2010, p. 39). Castleberry-Singleton (2009) also highlights a number of organizational stakeholders namely “owners, employees, and customers” (p. 10) and external stakeholders such as the “regulatory structure” (p. 14). In relation to the needs of internal stakeholders, Castleberry-Singleton (2009) argues that “Corporations must manage the diversity that employees bring into the workplace—and ensure that the work place is diverse and inclusive in the first place by shaping a corporate identity and culture that is inclusive and welcoming for a greater diversity of employees” (p. 1). Castleberry-Singleton (2009) hold that it is imperative to construct “connections between groups” (p. 9) of organizational actors in order to facilitate the creation of an “overarching purpose” (p. 9) and enhance “commitment to that …superordinate identity” (p. 9). Indeed these authors assert that “Never in history has it been more important to build relationships that transcend differences and to possess cultural acumen” (Castleberry -Singleton, 2009, p. 13). Del Rosario (2014, Week 2 Lecture Notes) observes “This means, different employees will have various needs and expectations that will need to be met to effectively motivate and produce results” (p. 12). The very nature of integrated inclusion is in making “every employee, as opposed to diversity employees and a few corporate leaders, responsible for achieving the organization’s goals and a culture of inclusion” (Castleberry -Singleton, 2009, p. 10). Organizations that operate domestically or internationally in the present day employment environment “encounter the challenges of diversity-of managing an enterprise in which people from different groups work together” (Castleberry-Singleton, 2009, p. 7). Here as Douglas R. Conant (2008), president and chief executive officer of Campbell Soup Company observes, “Creating a diverse and inclusive culture is a key component of [Campbell’s] strategy to build a strong, engaged work-force” (as cited in Castleberry & Singleton, 2009, p. 15). With respect to customers, Del Rosario (2014, Week two Lecture Notes) holds that “In this global context, organizations are providing products and services to a diversity of customers…We have also experienced a growth of minority buying power, which requires organizations to change their business/operating models to attract this growing population” (p. 12). Integrated inclusion enables companies to develop an organizational culture that is effective in “mastering differences, changing traditional business practices, and acquiring cross-cultural competence

Integrated Inclusion

in order to do business” (Castleberry & Singleton, 2009, p. 7). In global markets, the emphasis on strengthening cultural competencies allows “U.S. companies to understand, to adjust behaviors to respect cultural norms, and to be sensitive to the cultural complexity of doing business in each country where they operate” (Castleberry & Singleton, 2009, p. 8). There remain other stakeholders such as owners, organizational leaders, government, community and society at large where the satisfaction of their needs is an indication of organizational viability and profitability. Del Rosario (2014, Week Two Lecture Notes) argues “at bare minimum given today’s legal environment and global workforce there is a business case for diversity” (p. 14). In addition, Greenberg (2005) contends, the existence of diversity in organizations facilitates “a greater variety of solutions to problems in service, sourcing and allocation of resources” (as cited in Del Rosario, 2014, Week Two Lecture Notes, p. 14) and greater flexibility “in adapting to fluctuating markets and customer demands” (p. 14). Greenberg (2005) also maintains “organizations that encourage diversity in the workplace inspire all of their employees to perform to their highest ability…Company-wide strategies can then be executed ; resulting in higher productivity, profit and return on investment” (as cited in Del Rosario, 2014, Week Two Lectures, p. 14).

Question # 3: Describe some obstacles to success with the integrated inclusion model: The dynamic of “change fatigue” (Castleberry-Singleton, 2009, p. 5) is the first obstacle that organizations may face in the promotion of diversity enhancement efforts. This is due to the “long engagement companies have had with affirmative action and diversity management…and the ever-changing training approaches, terminologies, and objectives that managers have been expected to absorb and promote” (Castleberry-Singleton, 2009, p. 5). As a result, diversity policies and implementation have also been characterized by “mission expansion” (Castleberry-Singleton, 2009, pp. 5-6) where “the expansion of affirmative action mission has resulted in constantly changing approaches and rhetoric on diversity” (Del Rosario, 2014, Week Two Lectures, p. 15) although “organizations have not expanded their resources or staff with the scoop creep of diversity missions” (p. 15). Furthermore, “regulatory constraints” (Castleberry-Singleton, 2009, p. 6) have had “a chilling effect on open communication and feedback between managers and employees, because company documentation about the status of diversity initiatives can be used to support a plaintiff’s case in a discrimination or reverse discrimination lawsuit” (p. 14). This pattern has limited the collection of needed “information required to address root cause issues within the organization” (Castleberry- Singleton, 2009, p. 14) and placed emphasis on “compliance rather than understanding the barriers to inclusion” (p. 6). Most importantly, facilitating an atmosphere that is conducive to the implementation of integrative inclusion requires “employees…first believe that they can speak freely about workplace issues and that their company will receive their input in good faith, as opposed to punishing them for their honesty” (Castleberry-Singleton, 2009, p. 14). An additional potential obstacle to the integrative inclusion model are “social networks” (Castleberry & Singleton, 2009, p. 13) that may not be not diverse and thereby energize or nurture organizational “referral systems” (p. 13) that “reinforce a lack of diversity” (p. 13). Integrated inclusion may also be hampered by “open conflict and chaos if there is mistrust and lack of respect among employees” (Del Rosario, 2014, Week 2 Lecture Notes, p. 15).

Question # 4: How would you measure the effectiveness of the integrated inclusion model? In measuring the effectiveness of the integrated inclusion model “each business unit, human resources, customer service, or consumer marketing tracks all demographics…so that it becomes second nature in all business activities to perceive the demographic balance and impact of operations” (Castleberry-Singleton, 2009, p. 11). In the traditional model of evaluating diversity in an organization “statistics about minority workforce trends” (Castleberry-Singleton, 2009, p. 11) are gathered. In the integrative inclusion model, emphasis is placed on measuring “demographic trends of all operational reporting to include demographics in consumer trends, advertising spend, customer satisfaction, and other areas” (Castleberry-Singleton, 2009, p. 12). This is very much in line with transforming the diversity efforts of an organization from “program management to organization change management” (Castleberry-Singleton, 2009, p. 12). A further measurement model is the “Monster.com’s Top Companies for Diversity Survey” that “measures the perceptions of a company’s employees regarding the employer’s performance on specific diversity factors across three broad categories: organizational commitment to diversity, fairness in compensation and culture of inclusion” (Castleberry-Singleton, 2009, p. 15).

Question # 5: What are some activities organizations can do for each of the areas identified in the model? In relation to talent acquisition, “the company leadership, the staffing organization, and the leaders of the inclusion effort [must] build and maintain a database of diverse candidates …for job openings before they occur” (Castleberry-Singleton, 2009, p. 13) by attending “industry trade shows, sponsorship events and professional conferences” (p. 13). With respect to learning and development, cultural competencies must be “reflected in each of the business acumen competencies rather than as one or two bolt-on competencies” (Castleberry-Singleton, 2009, p. 12). In regards to employee and community partnerships, companies need “to understand, to adjust behaviors to

Integrated Inclusion

respect cultural norms, and to be sensitive to the cultural complexity of doing business” (Castleberry-Singleton, 2009, p. 8) in diverse domestic or international environments. McDonald’s alteration of its “core product line” (Castleberry-Singleton, 2009, p. 7) in India in order to acknowledge and respect “the Hindu aversion to harming animals” (p. 7) and Disney’s unprecedented “joint” (p. 7) ownership model in Tokyo and Hong Kong are both illustrations of actions in line with an integrated inclusion organizational strategy. In addition, in an integrated inclusion environment, “every employee as opposed to diversity employees and a few corporate leaders [is] responsible for achieving the organization’s goals and a culture of inclusion” (Castleberry-Singleton, 2009, p. 10). Integrated inclusion also necessitates that marketing and communication functions acquire “shared accountability” (Castleberry-Singleton, 2009, p. 10) for diversity efforts “in partnership with human resources” (p. 10) and other diversity officers. In connection to work culture, employees must be convinced that they do not face “retaliation” (Castleberry-Singleton, 2009, p. 14) for expressing themselves “freely about workplace and marketplace issues” (p. 14) and that “their concerns will be addressed” (p. 14). Within the parameters of business processes and tools, “inclusion is a core task, and not a peripheral one” (Castleberry-Singleton, 2009, p. 10) supported by “commitments and resources…a part of the company’s identity and a core strand of its strategy and objectives” (p. 10). In this atmosphere of “shared accountability” (Castleberry-Singleton, 2009, p. 10) diversity promotion is a “part of the company’s DNA” (p. 11).

Question # 6: Any example of companies using this integrated approach? Campbell’s Soup Company (Campbell’s) is an example of a company that has adopted the principles of integrated inclusion in its business processes and organizational culture. The company states in its Web site that at Campbell’s, diversity is defined as the “similarities and unique differences of individuals in the workplace, marketplace and community (Diversity & Inclusion , 2014. In Campbell’s, inclusion is understood as an instrument that creates an “extraordinary” (Diversity & Inclusion, 2014) organization “where every voice is heard, you can be who you aspire to be and…differences make a difference” (Diversity & Inclusion, 2014). The company asserts that “establishing an inclusive global culture is critical to the sustainability and success of [their] business…in a rapidly global marketplace…[where they] must cultivate and embrace a diverse employee population (Campbell’s Soup Company, Diversity & Inclusion, 2014). Most importantly, Campbell’s emphasizes that “Diversity and Inclusion strategy supports [their] intention to integrate what [they] know about changing global demographics into all aspects of managing…business” (Diversity & Inclusion, 2014). Presently, “women make up 45% of Campbell’s workforce and people of color make up 35%...employee representation (including retention and development) is a critical area of focus with [Campbell’s] strategy…the culture of…organization is a key driver in creating and reinforcing a dynamically diverse and inclusive environment” (Campbell’s, Diversity & Inclusion, 2014). Furthermore, Campbell’s also possesses a “robust communications and engagement strategy” (Campbell’s, Diversity & Inclusion, 2014). Business Resource Affinity Networks (BRANs) are one example of Campbell’s integrated inclusion strategy. BRANs are “employee-led, company supported volunteer organizations, which help [Campbell’s] focus outward and connect to an increasingly diverse consumer base” (Campbell’s, Diversity & Inclusion, 2014). In addition, BRANs help Campbell’s “focus inward by providing opportunities for…employees to impact…business in innovative and creative ways” (Campbell’s, Diversity & Inclusion, 2014). BRANs also “improve the performance and retention of their members and connect Campbell’s to consumers, both of which ultimately deliver sustainable business results” (Campbell’s, Diversity & Inclusion, 2014). The Asian Network of Campbell, Campbell African American Network, Hispanic Network de Campbell, Maxton American Indian Network and Women of Campbell’s Network are some of Campbell’s BRANs.

Integrated Inclusion

References

Campbell’s Soup Company (2014). Diversity & Inclusion, Nourishing Our Employees, Corporate Responsibility, Retrieved February 27, 2014 from Campbell’s Soup Company Web site: http://csr.campbellsoupcompany.com/csr/pages/employees/diversity-and-inclusion.asp#.UxAHu8uYaUk .

Castleberry-Singleton, C. (2009). From Bolted-on to Built-in: Diversity management and intergroup leadership in U.S. Corporations. In T. L. Pittinsky (Ed.), Crossing the divide: Intergroup leadership in a world of difference (Chapter 14). Boston, MA: Harvard Business School Publishing Corporation, HRM 6045 Coursepack (pp. 161-176), College of Professional Studies, Northeastern University, Winter 2014.

Del Rosario, M. (2014). Week 2: Managing Work Place Diversity [PDF document]. HRM 6045—Change, Challenge, and Competence, Winter 2014, Second Half Session, College of Professional studies, Northeastern University. Retrieved form Lecture Notes Online Web site: https://nuonline.neu.edu/bbcswebdav/pid-7087377-dt-content-rid-8157540_1/courses/HRM6045.20269.201425/HRM6045.80352.201235_ImportedContent_20120422045612/HRM%206045%20week2slideswithnotes%281%29.pdf .

Greenberg, J. (2005). Diversity in the workplace: Benefits, challenges and solutions. In M. Del Rosario, Week 2: Managing Work Place Diversity (p. 14) [PDF document]. HRM 6045—Change, Challenge, and Competence, Winter 2014, Second Half Session, College of Professional studies, Northeastern University. Retrieved form Lecture Notes Online Web site: https://nuonline.neu.edu/bbcswebdav/pid-7087377-dt-content-rid-8157540_1/courses/HRM6045.20269.201425/HRM6045.80352.201235_ImportedContent_20120422045612/HRM%206045%20week2slideswithnotes%281%29.pdf .

Hamdani, M. R., & Buckley, M. R. (2010). Diversity goals: Reframing the debate and enabling a fair evaluation. Kelley School of Business, Indiana University, Business Horizons (2011) 54, 33-40. Boston, MA: Harvard Business School Publishing Corporation, HRM 6045 Coursepack (pp. 43-50), College of Professional Studies, Northeastern University, Winter 2014.