Measuring Up: Diversity Accountability Scores Big at Catalyst Awards Conference

Image via Catalyst

Image via Catalyst

By Melissa J. Anderson (New York City)

Metrics, metrics, metrics was the theme of this year’s Catalyst Awards Conference. Held yesterday in New York at the Waldorf-Astoria Hotel, the Conference honored award winners Campbell Soup, Deloitte, LLP, RBC, and Telstra Corporation Limited.

Each of these companies demonstrated a passionate commitment toward promoting workplace gender diversity, and they had the numbers to prove it. The general consensus within the conference, attended by over 70 CEOs and 1500 industry leaders, was: “if you set targets for other parts of your business, why not set gender and diversity targets as well?”.

“The business case for gender diversity is so clear,” commented Julie Nugent, Director, Research and Chair of the Catalyst Award Evaluation Committee, referring to recent studies showing that gender diversity at the top ranks of companies improves their bottom line. “This is truly becoming a global initiative.”

With the award winning companies based in the US, Canada, and Australia, Nugent explained that Catalyst received applications from all over the world, citing a particularly large increase in applications from the Asia-Pacific region this year.

The international research-based organization works “with businesses and the professions to build inclusive workplaces and expand opportunities for women and business.” The awards honor “innovative approaches with proven results taken by organizations to address the recruitment, development, and advancement of all managerial women, including women of color.”

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PwC’s GLBT Diversity Initiative: “I am Open”

imopenBy Melissa J. Anderson (New York City)

At PricewaterhouseCoopers, diversity means openness – about oneself and about accepting others’ differences. The company explains that “open working relationships are stronger and more productive.” Openness about difference allows colleagues greater opportunities to learn about one another, and find common ground.

Jennifer Allyn, Managing Director, Office of Diversity, explained that GLBT inclusiveness is often overlooked within diversity programs, because “the gay dimension of diversity is invisible.” That is, people can’t usually tell if someone fits into this group simply by their appearance.

“Five to six years ago, PwC convened a board of GLBT partners to advise our diversity team, to make sure GLBT staff feel included and welcome at our firm,” Allyn explained. “The advisory board is made up of very visible role models” – role models for both GLBT individuals, as well as PwC employees at large.

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New FWA Report: Optimistic Outlook Despite Discouraging Numbers

FWAreportBy Melissa J. Anderson (New York City)

“I think that the numbers pretty much speak for themselves,” said Ziporah Janowski, co-chair of the Financial Women’s Association of New York’s Corporate Governance Committee. “They’re discouraging.”

The 2009 FWA100 Study:The Time Has Come, released last week, analyzes the presence of women at the highest levels of major corporations in New York. According to this year’s report:

“On an aggregate basis, the percentage of board seats held by women in the overall population remained virtually unchanged at 17.8% (17.6% in the 2008 study). Women gained a net total of one board seat. The number of companies in the sample with no women on their boards actually increased from 9 to 11 this year, a 22% increase.”

But rather than dwell on the negative aspects of the report, Janowski said, “we want to focus on positive signs of change.”

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Enduring Myths and Broken Promises

pipelineBy Gigi DeVault (Munich)

On day 4 of this year’s World Economic Forum‘s Davos Conference, members of a panel heading a discussion entitled The Gender Agenda asserted that gender parity is “not just a worthy goal — but also an excellent business proposition.” The panelists, three male chief executives and three professional women, said all the right things. They said what we would expect them to say. And they probably said what we all have been thinking.

Last month, the New York Times published an article on The Gender Agenda; readers posted comments that were manifestly concordant with contemporary thinking about gender-based dynamics in the workforce. To summarize: If you work hard enough—and deliver—you’ll move up the corporate ladder. But expect the “mommy track” to impact your career trajectory. Gender issues don’t really warrant all the attention they garner; if women come into the workforce prepared, companies will hire and promote them.

There’s not much here that would take the Davos debate to a new level, or even rekindle argument. Or is there? In fact, if a report by Catalyst, Pipeline’s Broken Promise, had been released in time for the Davos panelists to prepare for their debate, the discussion may well have taken a different tack.

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Why the Paycheck Fairness Act is Crucial

paycheckfairnessBy Tina Vasquez (Los Angeles)

The Lilly Ledbetter Fair Pay Act was signed into law by President Obama on Jan. 29 and according to the organization AAUW, a charitable membership organization dedicated to advancing equity for women and girls through advocacy, education, philanthropy and research, it restores the long-standing interpretation of civil rights laws and Equal Employment Opportunity Commission policies that allow employees to challenge any discriminatory paycheck they receive. This of course, is a step in the right direction, but recent numbers from the Bureau of Labor Statistics show that the pay gap between men and women has actually widened for full-time, year-round workers. It seems completely ludicrous that women are still making less money than men for performing the same amount of work, but what’s even worse is that Congress has failed to pass any legislation that would give women equal pay protections.

This is where the Paycheck Fairness Act comes into play. The bill, which was the topic of the Senate Committee on Health, Education, Labor, and Pensions’ hearing yesterday, March 11, provides a much-needed update of the Equal Pay Act, which is completely outdated and nearly 47-years-old. According to AAUW, this comprehensive legislation would create stronger incentives for employers to follow the law, empower women to negotiate for equal pay, and strengthen federal outreach, education, and enforcement efforts. The bill would also deter wage discrimination by strengthening penalties for equal pay violations and by prohibiting retaliation against workers who ask about employers’ wage practices or disclose their own wages. Many believe that after the enactment of Ledbetter Act last year, the Paycheck Fairness Act is the next logical step forward in the fight for pay equity, but whether or not it will pass remains unknown. According to AAUW’s Director of Public Policy and Government Relations, Lisa Maatz; however, the Act has a better chance now than ever before.

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Is Norway working? The case for women on boards

norwayBy Elizabeth Harrin (London)

Norway is considered one of the most progressive countries with regards to increasing the number of women on boards – thanks to it being an early adopter of legislation to force companies to recruit women to the boardroom. It sounded like a great idea to improve diversity and shareholder returns, and since then many other countries have adopted or considered similar laws. It’s been seven years since the law took affect. Has it made any difference?

Amy Dittmar, associate professor of finance at the University of Michigan’s Ross School of Business has recently analysed the impact of the Norwegian decision, and she doesn’t think so. Dittmar and her colleague Kenneth Ahern studied what happened after Norway required public-limited firms to have at least 40% of board seats filled by women in 2003. Voluntary compliance in the country failed, so the law made it compulsory in 2006, with a two year transition period. “Boards are chosen in order to increase shareholder wealth,” says Dittmar. “Placing restrictions on the composition of a board will reduce value.”

Dittmar and Ahern’s study found that when a board had a 10% increase in the number of women, the value of the company dropped. The bigger the change to the structure of the board, the bigger the fall in returns.

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Who Is Holding the Purse-Strings at Foundations and Endowments?

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pursestringsBy Gigi DeVault (Munich)

Endowments and foundations need to do well in order to do good. The funds of endowments and foundations did very well—prior to 2009. Now, Chief Investment Officers of these institutional funds must forge strategies that can get the funds back on track and safeguard their missions.

Reihan Salan, who writes a weekly column for Forbes and is a fellow at the New American Foundation, believes that women will play a leading role in the restoration of a healthy financial realm. Salan believes the shift of power to women has taken a revolutionary tack “dramatically accelerated by the economic crisis.” As the woman who is managing the clean-up of the Countrywide Mortgage mess for Bank of America, Barbara Desoer may be closer to the thrust of that revolutionary tack than most. She believes that men in finance suffer from “the bravado effect”—the excessive risk-taking, independent mentality of a trader.

Here we have three parts to a new equation: More women are taking the lead in the investment world; leaders are needed who understand the power of collaboration, coordinated communication, and studied, ethical decision-making; and endowments and foundations are lining up for more moderate pathways to future earnings.

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New Catalyst Report: Senior Women 3 Times More Likely to Lose Job than Senior Men

srwomanBy Elisabeth Grant (Washington, D.C.)

Everyone has been hit by the current state of the economy, but are women in senior leadership positions being hit harder?

A new Catalyst report says yes, three times harder.

The report, titled “Opportunity or Setback? High Potential Women and Men During Economic Crisis,” showed a striking difference for women executives when compared to men in the same positions. From those surveyed for the study, three times more women at the executive level, at 19%, had lost their jobs when their companies downsized or closed, as compared to executive men, of which only 6% had lost their jobs. Interestingly, for both women and men beneath the executive level job loss was exactly the same, at 11%. 

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Cautious Optimism at the FWA’s Economic Forum II: The American Worker

cautious optimismBy Melissa J. Anderson (New York City)

Last night the Financial Women’s Association of New York held the second of its Economic Panel series: The American Worker. Moderated by Patti Domm, Executive News Editor of CNBC, Panelists included Richard B. Hoey, Chief Economist at BNY Mellon and The Dreyfus Corporation, Joseph A. LaVorgna, Managing Director and Chief US Economist, Deutsche Bank Securities, Inc., and Edward F. Keon, Managing Director and Portfolio Manager, Quantitative Management Associates (QMA).

The discussion focused on the state of the economy and unemployment as the Untied States exits the recent recession. LaVorgna started the evening asking for a show of hands – how many in the audience were worried about a “double dip” recession, as defined by the economy “rolling back” within a twelve month period following a recession. More than half the audience raised their hands.

LaVorgna had some positive information though – only three times, he said, since 1884 has a double dip occurred – the most recent in the 1980-81 cycle. In fact, all three panelists expressed doubt that the recession would see a double dip. Hoey said, for example, that the 1980 recession is inherently different than the recent economic downturn. He explained that the reason for the 1980-81 double dip was anti-inflationary policy by then-Fed chief Paul Volcker – an intentional double dip.

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Microfinance in Haiti – One Woman’s Story

Photo by Kelly Atlas-Bache

Photo by Kelly Atlas-Bache

Contributed by Heather Balke

In March 2009, I boarded a plane destined for Port-au-Prince, Haiti. I wasn’t sure what was ahead, but I knew it was going to be a learning opportunity and an adventure. A month earlier I signed up to go to Haiti on a microfinance delegation with Fonkoze USA, to see first-hand the programs and activities of Fonkoze, Haiti’s largest rural microfinance institution.

My experience began with peering out a jeep window as we left the Port-au-Prince airport. I saw the most glaring urban poverty, ramshackle buildings half erected and children chasing pigs in the street. As we meandered up the hill towards Fonkoze headquarters, I viewed what I considered to be a garbage dump next to homes on the main road. I did a double take when I saw a woman defecating in that dump in broad daylight, and in plain view.

That evening at the historic Hotel Olaffson, Anne Hastings, the Director of Fonkoze, told the story on how she built Fonkoze from a vision of Father Joseph Philippe, Fonkoze’s founder. In the early 1990’s, when a hard-fought democratic system was taking hold in Haiti, Father Joseph knew in his heart that political democracy would mean little without what he called, “economic democracy.”

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