Recommendations of theFederal Glass CeilingCommissionWashington, D.C.November 1995

MAKING FULL USE OF THENATION’S HUMAN CAPITALA SOLID INVESTMENT:

THE VISIONOF THE GLASS CEILING COMMISSIONA national corporate leadership fully aware that shifting demographics and economic restructuringmake diversity at management and decisionmaking levels a prerequisite for the long-term success ofthe United States in domestic and global marketplaces.

THE MISSIONOF THE GLASS CEILING COMMISSION“There is established a Glass Ceiling Commission to conduct a study and prepare recommendationsconcerning —

(1) eliminating artificial barriers to the advancement of women and minorities; and(2) increasing the opportunities and development experiences of women and minorities to fosteradvancement of women and minorities to management and decisionmaking positions in business.”

Public Law 102-166—November 21, 1991Civil Rights Act of 1991

Section 203

A SOLID INVESTMENT:MAKING FULL USE OF THENATION’S HUMAN CAPITAL

A SOLID INVESTMENT:Recommendations of theFederal Glass CeilingCommissionWashington, D.C.

November 1995

MAKING FULL USE OF THENATION’S HUMAN CAPITAL

The Honorable Robert B. Reich, ChairSecretary of Labor

Mrs. Patricia V. AsipNational Manager of Multi-Cultural AffairsJ.C. Penney Company

Mr. Alphonso BrownPrincipalBrown Consulting Groups

Mrs. Joanne M. CollinsAssistant Vice PresidentUnited Missouri Bank of Kansas City

Mrs. Maria Contreras-SweetVice President of Public AffairsSeven-Up Royal Crown Bottling CompanyHispanics Organized for Political Equality

Mr. Earl G. GravesPresident and Chief Executive OfficerBlack Enterprise Magazine

The Honorable John T. JenkinsMayorCity of Lewiston, Maine

Ms. Beverly A. KingPresidentKing & Wright Consulting Inc.

Ms. Jean Ledwith KingAttorney-at-LawAnn Arbor, Michigan

Ms. Judith L. LichtmanPresidentWomen’s Legal Defense Fund

The Honorable Nita M. LoweyU.S. House of RepresentativesNew York 18th District

The Honorable Patty MurrayUnited States SenateState of Washington

Dr. Lynne O’SheaPresident and Chief Operating OfficerShalit Place, L.L.C

Mrs. Marilyn B. PaulyPresidentBANK IV Kansas

Mrs. Delia M. ReyesPresidentReyes Consulting Corporation

The Honorable Olympia J. SnoweUnited States SenateState of Maine

Ms. M. Anne SzostakSenior Vice PresidentFleet Financial Group

Mr. Henry TangManaging DirectorJeffries and Company

Mrs. Carol Cox WaitPresident and Chief Executive OfficerCommittee for a Responsible Federal

Budget

Ms. Judith B. WierciakDirector of Special Programs & AdministrationAnheuser-Busch Companies, Inc.

Ms. Rene A. RedwoodExecutive Director Designated Federal Official

THE COMMISSIONERS

Message from the Chair Page 4

Acknowledgements Page 7

Introduction Page 9

Summary of Recommendations Page 13

Introduction to the Business Recommendations Page 17

Introduction to the Government Recommendations Page 31

Societal Initiatives Page 45

Next Steps Page 55

Resources Page 57

TABLE OF CONTENTS

The “glass ceiling” is a concept that betrays America’s most cherished principles. It is the unseen,yet unbreachable barrier that keeps minorities and women from rising to the upper rungs of the

corporate ladder, regardless of their qualifications or achievements.

The American Dream is about opportunities for all. This country has drawn tens of millions of immi-grants with the promise that all citizens could succeed if they worked hard and played by the rules.Yet, the glass ceiling denies millions of Americans opportunities for economic and personal advance-ment.

Over the past 30 years, we have made great progress in bringing down barriers that prevented largenumbers of citizens from fully participating in our society. Yet, the existence of the glass ceiling tellsus that there is still work to be done. A phrase coined to describe the difficulties women have in risingto the upper echelons of business, the glass ceiling is now understood to be an obstacle to minorities aswell.

The Glass Ceiling Commission was established in 1991 to study these barriers and issue recommenda-tions for eliminating these hindrances “to the advancement of women and minorities” to “managementand decisionmaking positions.” These recommendations, which follow last spring’s fact-finding report— Good for Business: Making Full Use of the Nation’s Human Capital — complete theCommission’s valuable work.

The glass ceiling is not only an egregious denial of social justice that affects two-thirds of the popula-tion, but a serious economic problem that takes a huge financial toll on American business. Equitydemands that we destroy the glass ceiling. Smart business demands it as well.

The glass ceiling is intertwined with a broader set of problems afflicting America’s economy and well-being. During the last 15 years, virtually all of this nation’s economic growth went to the wealthiestfifth of American households. The United States is now the most stratified major society in the indus-

4

MESSAGE FROM THE CHAIR

5

trial world, as incomes have fallen for the poor and stagnated for the middle class. For 30 years afterWorld War II, America grew together — although minorities and women did not get their fair share ofthe growing pie. Since 1979, America has been growing apart.

What’s gone wrong? The economy has undergone profound changes: Markets have become global-ized. The creation and distribution of information have supplanted the production of goods. The com-position of the workforce has radically changed. And education has become a fault line dividing win-ners from losers.

But it is not the only fault line. Discrimination — the glass ceiling, in particular — remains anotherdeep line of demarcation between those who prosper and those left behind.

I repeat: It is not only a matter of fair play, but an economic imperative that the glass ceiling be shat-tered. It matters to the bottom line for businesses and to the future economic stability of America’sfamilies.

Independent research has shown that companies that go the extra mile in hiring and promoting minori-ties and women are more profitable. A study of the Standard and Poors 500 by Covenant InvestmentManagement found that businesses committed to promoting minority and women workers had an aver-age annualized return on investment of 18.3 percent over a five-year period, compared with only 7.9percent for those with the most shatter-proof glass ceilings.

In addition, many business leaders see the demographic handwriting on the wall: Minorities andwomen make up a growing percentage of the workforce and consumer market. Thus, managerial talentmust be drawn from an increasingly diverse pool. Many corporate leaders also realize that if compa-nies treat their workers well, morale and productivity improve. What’s more, they know that con-sumers and communities also respond favorably to businesses with good employment practices. In thisincreasingly diverse marketplace, companies must be prepared to do business with customers, com-petitors and partners who are also increasingly diverse.

As these recommendations suggest, if America’s businesses fully utilized the nation’s human capital,they would be making a solid investment. They would be doing good, and doing good for themselves.

Sadly, for millions of Americans — as well as for our $7 trillion economy — America’s vast humanresources are not being fully utilized because of glass-ceiling barriers.

While minorities and women have made strides in the last 30 years, and employers increasingly recog-nize the value of workforce diversity, the executive suite is still overwhelmingly a white man’s world.Over half of all Master’s degrees are now awarded to women, yet 95 percent of senior-level managersof the top Fortune 1000 industrial and 500 service companies are men. Of them, 97 percent are white.African Americans, Hispanics, Asian and Pacific Islander Americans and American Indians alsoremain woefully under-represented in the upper echelons of American business.

The Commission’s recommendations emphasize that government must lead by example, followed bystrong commitment and leadership from corporate America. Yet, action by government and businessare not enough. For real change to occur, bias and discrimination must be banished from the board-rooms and executive suites of corporate America.

These recommendations build upon strategies that companies and government are already using to enddiscrimination. The recommendations must be seen as a beginning, not the end. We as a nation, and inparticular corporate leaders, must continue to strive to overcome the barriers that keep minorities andwomen from advancing. We also must encourage the development of business organizations thatreflect our population.

The Commission’s work clearly shows that breaking the glass ceiling opens avenues to the AmericanDream, and gives all Americans the opportunity to benefit from and contribute to economic growth.Economic gains must, and can, be shared by all.

Its recommendations also help point the way for America’s growing “anxious class” to once againbecome a larger and more confident middle class. When glass ceilings are forever shattered, we willhave succeeded in using our greatest asset — the insights and talents of all our working people — totheir fullest potential. The permanent destruction of the glass ceiling will be a profound legacy wemust leave for future generations.

6

7

Breaking glass ceiling barriers in corporateAmerica will not result from any single act

or event. Rather, it will be the culmination of aprocess involving people and organizations fromall segments of our society.

A Solid Investment: Making Full Use of theNation’s Human Capital is also the culminationof a process, and the Glass Ceiling Commissionwishes to thank everyone who contributed ideasand information over the past four years. Theinvolvement of many people from business, gov-ernment, academia, and the non-profit sectorhelped the Commission focus its thinking andformulate its recommendations.

Many individuals gave generously to the creationand production of this recommendations report.The Commission acknowledges the dedicatedwork of the Commission staff at the Departmentof Labor: communications director Gordon Berg,executive assistant Loretta Davis, research coor-dinator Howard S. Hankerson, automation clerk

Margaret Rimson, deputy director Lisa OsborneRoss, and the Commission’s executive director,René A. Redwood.

Special thanks go to Stephen Gaskill, the writerof the report. Also to Siobhan Nicolau andGeorgianna McGuire for reviewing the manu-script and to Carol Gaudin for her technicaladvice.

ACKNOWLEDGEMENTS

Special thanks to those individuals who,beyond their regular duties, greatly facilitated the work of the Commission.

Katharine AbrahamAnnie BlackwellGale BlackGary BuffDiane CrothersKathy CurranDiane DavisTommie DuncanSheila DustinRonald EdwardsJocelyn FryePatricia HidalgoHank HooverMark HunkerAngela JacksonDiana JohnstonPaul KaplanCathrael KazinAngelique Larson

Anne LewisMichael McElroyCynthia MetzlerMiriam Miller Joachim NeckereHolly NelsonRita PandoKarin PedrickThomas PlewesHermelinda PompaRuth SamardickYvonne Sims Charles SmithStephanie SwirskyVincent TrivelliBrenda VaughnAaron WardBetty WilliamsSeth Zinman

Title II of the Civil Rights Act of 1991 creat-ed the 21-member, bipartisan Federal Glass

Ceiling Commission. The Commission’s man-date is to study the barriers to the advancementof minorities and women within corporate hierar-chies (the problem known as the glass ceiling), toissue a report on its findings and conclusions,and to make recommendations on ways to dis-mantle the glass ceiling.

The Commission undertook an extensiveresearch and information gathering effort,including public hearings, surveys of chief exec-utive officers, and interviews with focus groups.This work culminated with the spring 1995release of the Commission’s report, Good ForBusiness: Making Full Use of the Nation’sHuman Capital. The Commission now com-pletes its work, with the release of its recommen-dations in A Solid Investment: Making FullUse of the Nation’s Human Capital.

The glass ceiling is a reality in corporateAmerica. Glass ceiling barriers continue to denyuntold numbers of qualified people the opportu-nity to compete for and hold executive level posi-tions in the private sector. The relationship

between glass ceilings, equal opportunity andaffirmative action is complex, as the findingscontained in Good for Business demonstrate.Minorities and women are still consistentlyunderrepresented and under utilized at the high-est levels of corporate America. For example, 97percent of the senior managers of Fortune 1000Industrial and Fortune 500 companies are white,and 95 to 97 percent are male; in the Fortune2000 industrial and service companies, only 5percent of senior managers are women, andalmost all of them are white; African Americanmen with professional degrees earn 21 percentless than their white counterparts holding thesame degrees in the same job categories. Butwomen and African Americans are not the onlyones kept down by the glass ceiling. Only 0.4percent of managers are Hispanic, althoughHispanics make up eight percent of America’sworkforce. Asian and Pacific Islander Americansearn less than whites in comparable positionsand receive fewer promotions, despite more for-mal education than other groups. Generally, thelack of educational opportunity drasticallyreduces the available pool of Amercian Indiancandidates and CEOs rarely consider them formanagement jobs. These numbers are put in

Readers should review “Good for

Business”, the Commissions fact

finding report, to understand the data

supporting these recommendations

INTRODUCTION

9

context by the fact that in our society, two-thirdsof the population — and 57 percent of workers— are women, minorities or both.

Corporate leaders increasingly are cognizant ofboth the existence of the glass ceiling and thevalue of workforce diversity at the managementand decisionmaking levels. What motivatescompanies that have begun to take steps to breakglass ceiling barriers? The bottom line.Business leaders see the changes taking place inthe demographics of national consumer marketsand the labor force, and the rapid globalizationof the marketplace. They know that these condi-tions affect the ability of their companies to sur-vive and prosper — and that the existence of theglass ceiling keeps them from adapting to theseconditions efficiently and effectively.

The glass ceiling can affect the bottom line inother ways, too. Companies that make full useof diverse human resources at home will be bet-ter prepared for the challenges involved in man-aging even more diverse workforces in theemerging global economy. Companies withstrong records for developing and advancingminorities and women will find it easier torecruit members of those groups. Companieswhose cultures are hospitable to minorities andwomen will find it easier to retain those employ-ees, or incur additional recruitment and trainingcosts due to turnover. Increasing the number of

minorities and women in areas such as productdevelopment, marketing and advertising allowscompanies to maximize their ability to tap intomany segments of the consumer market.Overall, a poor diversity track record can makecompanies vulnerable to activist consumergroups.

To compete successfully at home and abroad,businesses must make full use of the resourcesembodied in our people — all of our people.Individuals of all races and both genders areentering our workforce in increasing numbers.By the year 2000, two-thirds of new labor forceentrants will be minorities and women, yet theglass ceiling prevents qualified people of diversebackgrounds from achieving top managementpositions. Over the past 30 years governmentand business have taken steps to provide accessfor minorities and women to all levels ofemployment. These efforts must continue, butbusiness must take the initiative to go beyondwhat it has achieved to date. Successful compa-nies will be those that seize the opportunity pre-sented by increased diversity, to create a world inwhich inclusion is elicited and not coerced, andwork to increase both the diversity of their work-forces and the opportunities available to allmembers of their workforce.

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THE RECOMMENDATIONS

True to its mandate, the Commission offers itsrecommendations as a strategy for shattering theglass ceiling once and for all. The glass ceilingis, in the first instance, a business issue, and wemust look for solutions in the world of business.The recommendations begin with steps business-es can take to dismantle barriers within their cor-porate structures.

Business does not operate in a vacuum. Itreflects the attitudes and conditions of society asa whole, and other segments of society must alsocontribute to ending the glass ceiling. The rec-ommendations turn, then, to ways in which gov-ernment can most effectively play a part in deliv-ering for its customers — the citizens — bybreaking glass ceiling barriers. Finally, thereport discusses societal initiatives to enlistschools, the media, community organizations andother institutions in helping to bring down theglass ceiling.

But the recommendations offered by theCommission can only be the beginning. Theremust be an open and continuing dialogue on howto move this issue to the forefront, with businessleading, not following. Business to businesscommunications — peer-to-peer CEO sessions,roundtables and industry forums — must play acentral role in the process to break the glass ceil-ing.

The Commission believes that every member ofour society should have the opportunity to strivefor positions of responsibility and leadership,regardless of their gender, race or ethnic back-ground. The concept of upward mobility needsto be kept alive in our culture; it is vital to ournation’s future. These recommendations are sub-mitted in the belief that they will help to shatterthe glass ceiling in American business and in sodoing enable business to fully utilize our mostprecious resource — our people.

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14

Eliminating the glass ceiling requires that the CEO communicate visible and continuing commitmentto workforce diversity throughout the organization. The Commission recommends that all CEOs andboards of directors set companywide policies that actively promote diversity programs and policiesthat remove artificial barriers at every level.

Businesses customarily establish short- and long-term objectives and measure progress in key businessareas. The Commission recommends that all corporations include in their strategic business plansefforts to achieve diversity both at the senior management level and throughout the workforce.Additionally, performance appraisals, compensation incentives and other evaluation measures mustreflect a line manager’s ability to set a high standard and demonstrate progress toward breaking theglass ceiling.

Affirmative action is the deliberate undertaking of positive steps to design and implementemployment procedures that ensure the employment system provides equal opportunity to all. TheCommission recommends that corporate America use affirmative action as a tool ensuring that allqualified individuals have equal access and opportunity to compete based on ability and merit.

Traditional prerequisites and qualifications for senior management and board of director positionsfocus too narrowly on conventional sources and experiences. The Commission recommends that orga-nizations expand their vision and seek candidates from non-customary sources, backgrounds andexperiences, and that the executive recruiting industry work with businesses to explore ways to expandthe universe of qualified candidates.

13

Demonstrate CEOcommitment

Include diversity in allstrategic business plans andhold line managersaccountable for progress

Use affirmative action as a tool

Select, promote and retainqualified individuals

SUMMARY OF RECOMMENDATIONS

BUSINESS

Too often, minorities and women find themselves channeled into staff positions that provide littleaccess and visibility to corporate decisionmakers, and removed from strategic business decisions. TheCommission recommends that organizations expand access to core areas of the business and to various developmental experiences, and establish formal mentoring programs that provide career guid-ance and support to prepare minorities and women for senior positions.

Organizations cannot make members of society blind to differences in color, culture or gender, butthey can demand and enforce merit-based practice and behavior internally. The Commission recom-mends that companies provide formal training at regular intervals on company time to sensitize andfamiliarize all employees about the strengths and challenges of gender, racial, ethnic and cultural dif-ferences.

Work/life and family-friendly policies, although they benefit all employees, are an important step in anorganization’s commitment to hiring, retaining and promoting both men and women. TheCommission recommends that organizations adopt policies that recognize and accommodate the bal-ance between work and family responsibilities that impact the lifelong career paths of all employees.

There is a positive relationship between corporate financial performance, productivity and the use ofhigh performance workplace practices. The Commission recommends that all companies adopt highperformance workplace practices, which fall under the categories of skills and information; participa-tion, organization and partnership; and compensation, security and work environment.

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Prepare minorities and womenfor senior positions

Educate the corporate ranks

Initiate work/life andfamily-friendly policies

Adopt high performance work-place practices

Government at all levels must be a leader in the quest to make equal opportunity a reality forminorities and women. The Commission recommends that all government agencies, as employers,increase their efforts to eliminate internal glass ceilings by examining their practices for promotingqualified minorities and women to senior management and decisionmaking positions.

Workplace discrimination presents a significant glass ceiling barrier for minorities and women. TheCommission recommends that Federal enforcement agencies increase their efforts to enforce existinglaws by expanding efforts to end systemic discrimination and challenging multiple discrimination.The Commission also recommends evaluating effectiveness and efficiency and strengthening intera-gency coordination as a way of furthering the effort. Additionally, updating anti-discrimination regu-lations, strengthening and expanding corporate management reviews and improving the complaintprocessing system play major roles in ending discrimination. Finally, the Commission recommendsmaking sure that enforcement agencies have adequate resources to enforce anti-discrimination laws.

Accurate data on minorities and women can show where progress is or is not being made in breakingglass ceiling barriers. The Commission recommends that relevant government agencies revise the col-lection of data by refining existing data categories and improving the specificity of data collected. Allgovernment agencies that collect data must break it out by race and gender, and avoid double countingof minority women, in order to develop a clear picture of where minorities and women are in theworkforce.

Public disclosure of diversity data — specifically, data on the most senior positions — is an effectiveincentive to develop and maintain innovative, effective programs to break glass ceiling barriers. TheCommission recommends that both the public and private sectors work toward increased public dis-closure of diversity data.

15

Lead by example

Strengthen enforcement of anti-discrimination laws

Improve data collection

Increase disclosure ofdiversity data

GOVERNMENT

Business Recommendations

Breaking the glass ceiling is an economic prior-ity that this nation can no longer afford toignore. It is an economic imperative driven byrecent dramatic shifts in three areas that arefundamental to business success: (1) changes inthe demographics of the labor force; (2)changes in the demographics of national con-sumer markets; and (3) the rapid globalizationof the marketplace.

To compete successfully in this new environ-ment, our nation needs the talents of all quali-fied individuals regardless of race, gender orethnicity at the highest levels of corporateAmerica. The goal is to develop a true meritsystem that allows individuals to rise to the topbased on their own skills and talents, and tocompensate achievers for a job well done.

The Commission believes that government andbusiness are societal institutions uniquely able toimpact workplace behavior and attitudes towardminorities and women. Businesses must developand implement programs to break the glass ceil-ing, and must make such efforts an intrinsic partof corporate planning and management.Whether by dedicating budgetary and other

resources to new diversity programs, highlight-ing existing practices to encourage the businesscommunity to act or developing creative newapproaches, business has the capacity to draftstrategies that address the shortage of minoritiesand women in boardrooms and senior manage-ment. For instance, corporations must exerciseresponsibility in their selection of sponsorshipsof events in the community, the type of advertis-ing they run, and the programming and outlets inwhich that advertising is placed.

In Good For Business, the Commission identi-fied seven elements of comprehensive, systemicbusiness practices to breaking the glass ceilingincluding leadership and career development;rotation/nontraditional employment; mentoring;accountability programs; succession planning;workforce diversity initiatives; and familyfriendly programs. Taken together, these ele-ments comprise a corporate “best practices”agenda, that must become standard practice.Key to the success of these efforts is the activesupport of corporate leadership, whose commit-ment will change the corporate culture. Fullyutilizing the resources of minorities and womenis essential to long-term corporate profitability. 18

INTRODUCTION TO THE BUSINESS RECOMMENDATIONS

Recommendation

Eliminating the glass ceiling requires that theCEO communicate visible and continuing com-mitment to workforce diversity throughout theorganization. The Commission recommends thatall CEOs and boards of directors set company-wide policies that actively promote diversity pro-grams and policies that remove artificial barri-ers at every level.

Breaking glass ceiling barriers must start wherethe ceiling is — at the top. By changing the wayan organization deals with the issue of diversity,CEOs can successfully position their companiesto confront the dramatic changes occurring bothin domestic and international markets as well asin the workforce. Improving workforce diversityat the top and throughout the company is a long-term process affecting all employees. The CEO

must raise the issue of diversity, keep it visibleand viable, and drive it through every level of thecompany. A CEO with the vision and commit-ment to stay the course will ensure that the orga-nization will draw its future leaders from thelargest talent pool available.

All materials flowing from the corporation mustreflect that diversity is a core value of the organi-zation — statements in annual reports, corre-spondence from the CEO, employee handbooks,recruiting brochures, newsletters and video mes-sages for all employees. Updates on the compa-ny’s diversity initiative can be provided at stock-holder meetings. As a consequence, externalaudiences — customers, stockholders, suppliers,and the community at large — will come tounderstand that diversity is the corporate philoso-phy and employment objective of the company.

19

The Los Angeles Times

Shelby Coffey III, Editor and

Executive Vice President of The

Los Angeles Times, was awarded

the 1995 Ida B. Wells Award “for

exemplary courage in guiding

the Los Angeles Times — while it

was downsizing — to increase

hiring diversity in one of the

nation’s most dynamic markets;

for doubling the percentage of

minority professionals and

tripling minority line editors and

executives to 18.7 percent in six

years; and for bold leadership,

using aggressive internal guide-

lines to amass the nation’s

largest number of minority pro-

fessionals in supervisory posi-

tions at a single newspaper.”

.

DEMONSTRATE CEO COMMITMENT

This chart was developed in October 1995 by IBM’s Global Diversity Council. The Council has iden-

tified five global issues to be addressed by each IBM geographic region, in addition to other specific

regional issues. The five global issues are cultural awareness/acceptance; multilingualism; diversity

of the management team; women; and workplace flexibility/balance

Recommendation

Businesses customarily establish short- andlong-term objectives and measure progress in keybusiness areas. The Commission recommendsthat all corporations include in their strategicbusiness plans efforts to achieve diversity both atthe senior management level and throughout theworkforce. Additionally, performanceappraisals, compensation incentives and otherevaluation measures must reflect a line manag-er’s ability to set a high standard and demon-strate progress toward breaking the glass ceiling.

The drive to break the glass ceiling must be posi-tioned and measured with the same level of sup-port as other business practices that lead to long-term corporate profitability. It is important tonote, however, that there is no one formula for

measuring diversity success. Careful and con-stant monitoring — as with profits, capitalinvestment, productivity, market share and quali-ty — allows a corporation to know what’s work-ing and what’s not. Non-performing processescan be altered, and successful practices can beexpanded.

The role of the manager is also critical. Linemanagers need to know that there are conse-quences for failing to honor diversity commit-ments and opportunity just as there are rewardsfor success. Linking pay, promotion and bonusesto accomplishments of diversity objectives — aswith other business goals — sends a clear mes-sage throughout the organization that inclusive-ness is being assessed and will be rewarded. Recommendation

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INCLUDE DIVERSITY IN ALL STRATEGIC BUSINESS PLANS AND HOLDLINE MANAGERS ACCOUNTABLE FOR PROGRESS

21

GLOBAL WORKFORCE DIVERSITY CHALLENGES

UNITED STATES

EXECUTIVE TASK FORCESDEPENDENT CAREDOMESTIC PARTNERSGLASS CEILING/WALLS

-WOMEN OF COLORSOCIAL ISSUES

-AFFIRMATIVE ACTION DEBATE-AGING-EDUCATION-GROUP DEFINITIONS-IMMIGRATION-REDISTRICTING-WORK EXPORTATION

LATIN AMERICA

CULTURAL CONSERVATISMHEALTH/EDUCATION ACCESSINCOME DISPARITY

CANADA

AFFINITY FOCUS GROUPSCREDENTIALISMIBM REPRESENTATION

-PERSON WITHDISABILITIES

-ABORIGINAL PEOPLEINFORMAL NETWORKPROGRAM UTILIZATION

EUROPE/MIDDLE EAST AFRICA

AGING-ELDER CARE-WORKFORCE

SOUTH AFRICAEXTERNAL-MODEL FOR AFRICA-ECONOMIC GROWTH-INTERNAL STABILITY-INTERNATIONAL

CONFIDENCEINTERNAL-EMPLOYMENT, TRAINING, & DEVELOPMENT

ASIA/PACIFIC

AGINGDISABILITYSOCIAL CONSERVATISM

CULTURAL AWARENESS/ACCEPTAN CE

MULTI-LINGUALISM

DIVERSITY OF OUR MANAGEMENT TEAM

WOMEN

WORKPLACE FLEXIBILITY/BALANCE

Affirmative action is the deliberate undertakingof positive steps to design and implementemployment procedures that ensure the employ-ment system provides equal opportunity to all.The Commission recommends that corporateAmerica use affirmative action as a tool ensuringthat all qualified individuals have equal accessand opportunity to compete based on ability andmerit.

Affirmative action, properly implemented, doesnot mean imposing quotas, allowing preferentialtreatment or employing or promoting unquali-fied people. It means opening the system and cast-ing a wide net to recruit, train and promote oppor-tunities for advancement for people who can con-

tribute effectively to a corporation and, consequent-ly, the nation’s economic stability.

The definition of affirmative action embodiesefforts to increase the supply of qualified individ-uals of all ethnic groups and both genders.Having access to widely different ethnic, racial,and social backgrounds accelerates the quest forcorporate excellence. One of our nation’s great-est assets is our diversity — it is our strength. Ascommerce becomes more global and competitive,it is imperative that businesses engage the fullpotential of our labor force, which is increasinglycomposed of women and minorities from diversebackgrounds and cultures.

Recommendation

22

Excerpt from Reaffirmation of Affirmative Action at GM, a statement by John F. Smith, Jr., Chief

Executive Officer and President, General Motors:

“When it comes to affirmative action, we will continue to press the envelope, but at the same time we will

be moving to a broader concept — that is, managing diversity. As a global company, we want to fully

benefit from a diverse workforce. Our commitment to diversity extends beyond the door of our company.

It includes our dealerships, our suppliers, and the many communities we operate in. In our industry, as

in this nation, our diversity is our strength. This diversity is more than merely part of our national her-

itage; it is part of our national pride. Having people of widely different ethnic, racial and social back-

grounds in our corporation has not slowed our pursuit of excellence — it has accelerated it. We will con-

tinue to do everything possible to bring minority group members and women into General Motors and

the mainstream economy. We cannot, must not, waste this talent.”

USE AFFIRMATIVE ACTION AS A TOOL

Traditional prerequisites and qualifications forsenior management and board of director posi-tions focus too narrowly on conventional sourcesand experiences. The Commission recommendsthat organizations expand their vision and seekcandidates from non-customary sources, back-grounds and experiences, and that the executiverecruiting industry work with businesses toexplore ways to expand the universe of qualifiedcandidates.

Most organizations still prefer to find seniorexecutives from within their own ranks, perpetu-ating the “old school network” in which a limitedrange of job titles and experiences artificiallyrestricts the candidate pool. Corporate Americahas not yet demonstrated the flexibility requiredto expand the traditional recruiting network, norhas it appeared comfortable with people holdingunusual or innovative job experiences. Businessneeds to assess more accurately and broadly theactual skills and characteristics people must pos-sess to do specific jobs, including talents, knowl-edge and abilities.

CEOs frequently assert that they do not knowwhere to look for potential women or minorityexecutives. An abundance of experienced andpotential executive talent lies in places many cor-porations seldom consider, both inside and outsidethe corporation, including nonprofits, minorityand women’s advocacy organizations, women’scolleges, colleges and universities with historicalties to particular ethnic groups, and the military.

The Commission recognizes that executivesearch firms are on the frontline in assisting inthe recruitment of highly visible senior slots andboard of director positions. Corporations shoulddemand that executive search firms providediversity profiles of the search firm itself as wellas the candidates it represents. The Commissionbelieves the executive search industry has athree-fold responsibility: (1) to recommend to itsclients a diverse array of candidates for specificpositions, even when not specifically requestedto do so; (2) to expand its outreach to identifyminorities and women; and, (3) to examine itsown hiring practices and workforce compositionto ensure diversity. Recommendation

23

The Association of Executive Search ConsultantsThe Association of Executive SearchConsultants (AESC) represents 123 execu-tive search consulting firms worldwide. Itestabilshes professional and ethical stan-dards for its members and provides infro-mation to the media and public on the fieldof executive search.AESC’s Mission and Professional PracticeGuidelines include the provision that“AESC members affirm without reservationthe principles of equal opportunity inemployment. As a matter of policy andpractice, member organizations of theAESC do not and will not discriminateagainst qualified candidates for any unlaw-ful reason, including race, religion, gender,national origin, age or disability. AESC members encourage andanticipate that their clients will also complywith non-discrimination policies and practices.”

In 1993, the AESC Annual Conference’stheme was “Professionalism in the age ofDiversity.”Discussions at that conference led to thecreation in 1993 of AESC’s Diversity TaskForce. It considered such issues as howclient diversity initiatives affect executivesearch(a vast majority of AESC memberfirms have conducted searches geared todeveloping diversity candidates in the last12 months) and internal diversity intiativesof AESC member firms (benchmarking in1993 shows that AESC member firms havestrong initiatives in place to continue todiversify their professional staff.)AESC, as part of its present program activi-ties, is providing information and guidancematerials designed to advance diversitygoals.

SELECT, PROMOTE AND RETAIN QUALIFIED INDIVIDUALS

Hispanic Association of Colleges and Universities (HACU)The Hispanic Association of Colleges and Universities (HACU) is a national association of Hispanic-Serving Institutions (HSIs) — specifically nonprofit, accredited collegesand universities where Hispanics constitute a minimum of 25 percent of the total enrollment at either the undergraduate or graduate level. The mission of HACU is three-fold:

-to promote the development of member colleges and universities;-to improve access to and thequality of post-secondary educational opportunities for Hispanic students;and -to meet the needs of business, industry, and government through the development and sharingof resources, information,and expertise.

Interestingly, the first mentor

appears to have been a woman.

In ancient Greek mythology, the

goddess Athene (also known as

Minerva) advised and guided the

young Telemachus in Homer’s

classic The Odyssey. Disguised

as Mentor, a man, Athene skill-

fully set Telemachus on his

course for discovering the fate of

his father. Athene, Zeus’ favorite

child, was the protector of civi-

lized life, and was the first to

tame horses for human use.

Too often, minorities and women find themselveschanneled into staff positions that provide littleaccess and visibility to corporate decisionmak-ers, and removed from strategic business deci-sions. The Commission recommends that organi-zations expand access to core areas of the busi-ness and to various developmental experiences,and establish formal mentoring programs thatprovide career guidance and support to prepareminorities and women for senior positions.

Organizations must identify and place all highpotential employees, including minorities andwomen, into leadership and career developmentprograms to foster and build the skills managersneed to lead a company in a changing competi-tive climate. Since the career path to seniormanagement may take many years, these pro-grams must be linked to the organization’simmediate and long-range business objectivesand goals. Characteristics of successfulprograms that prime the pipeline to theexecutive suite include:

● rotational and non-traditional job assignments that broaden the base of a candidate’s experience and visibility;

● specific career path programs thatidentify objective performance, skill, and knowledge criteria for advancement;

● employee-sponsored networks andaffinity groups;

● access to specialized training, seminars and workshops; and

● formal succession planning.

Another key method of executive development isa formal mentoring program that provides guid-ance to future executives within the corporatestructure. Smart corporations also must acceler-ate their efforts to build expertise and empowerpeople lacking role models and advisors through-out the community by making senior executivesavailable to young adults who will be futurebusiness leaders.

Recommendation

24

PREPARE MINORITIES AND WOMEN FOR SENIOR POSITIONS

25

“Workforce diversity is a priority

at Xerox and adds value to our

business. Diversity of our work-

force requires an openness by all

employees in respect to age,

race, gender and thought. The

Xerox corporate culture must be

continually reshaped so that

Xerox and Xerox employees alike

obtain the full benefits of a work-

place in which diversity is culti-

vated, nurtured and rewarded.”

Paul Allaire,Chairman and CEO

Xerox Corporation

First winner of the Perkins-

Dole National Award for

Diversity and Excellence in

AmericanExecutiveManagement

Organizations cannot make members of societyblind to differences in color, culture, or gender,but they can demand and enforce merit-basedpractice and behavior internally. TheCommission recommends that companies pro-vide formal training at regular intervals on com-pany time to sensitize and familiarize all employ-ees about the strengths and challenges of gender,racial, ethnic, and cultural differences.

Employees who understand and respect gender,racial and ethnic differences will work togethermore cooperatively and be more committed tothe success of the company. Educating the cor-porate ranks means creating a workplace envi-ronment that is welcoming and open to allemployees regardless of age, race, gender andthought, and respects and values each individualfor his or her unique skills, talents and abilities.Diversity training that addresses stereotypes andpreconceptions, issues of sexual and racialharassment, cultural differences and styles of

communication is critical to breaking glass ceil-ing barriers. Diversity training comes in manyforms and must include employees from all lev-els and sections of an organization broughttogether for open, honest, and non-confrontation-al sharing and feedback. By allowing people tounderstand their conscious and unconsciousnotions about gender and race, diversity trainingdebunks myths about the suitability of minoritiesand women for executive careers, which is animportant step in breaking the glass ceiling.

There is no one right method of training for diver-sity awareness. Organizations must tailor theirprograms according to the composition of theworkforce and the particular strategic goals andobjectives of the company. Senior corporate lead-ers should monitor and receive regular feedback toensure that training objectives are integrated withbusiness objectives and that individuals changetheir workplace behavior accordingly.

Recommendation

EDUCATE THE CORPORATE RANKS

26

Work/life and family-friendly policies, althoughthey benefit all employees, are an important stepin an organization’s commitment to hiring,retaining and promoting both men and women.The Commission recommends that organizationsadopt policies that recognize and accommodatethe balance between work and family responsi-bilities that impact the lifelong career paths ofall employees.

Family- friendly policies improve productivityand reduce costs by relieving workers of non-jobrelated worries, and allow them to focus on busi-ness objectives. A survey conducted by theConference Board about the value of work/lifeprograms found that nearly 80 percent of the

respondents thought that the introduction of suchprograms helped all employees pursue careeradvancement. Corporations that make availableflexible work arrangements, elder and child care,family leave benefits, support groups, relocationassistance and other initiatives report significantreductions in absenteeism, tardiness andturnover.

These policies demonstrate that the company val-ues the individual, and realizes that activities out-side of the office help a worker keep his or herperspective. Work/life policies provide a broadersupport network for working men and women,affording them greater opportunities to advancetheir careers.Recommendation

INITIATE WORK/LIFE AND FAMILY-FRIENDLY POLICIES

There is a positive relationship between corpo-rate financial performance, productivity and theuse of high performance workplace practices.The Commission recommends that all companiesadopt high performance practices, which fallunder the categories of skills and information;participation, organization and partnership; andcompensation, security and work environment.

High performance workplace practices enhanceopportunities for workers at all levels withinorganizations to participate in the decisionmak-ing process and share information about theworkings of that organization. These practicescan break down barriers and organizational hier-archies within a corporation, providing greateropportunities for minorities and women whomay have previously been denied access to suchchances.

The US Department of Labor’s “Road to High

Performance Workplaces: A Guide to Better Jobsand Better Business Results” reports that whilesome corporations may excel at one specializedarea of policy, outstanding firms are likely toexcel across a wide range of management prac-tices. In correlating the results of FortuneMagazine’s annual survey on corporate reputa-tions, a 1994 Gordon Group, Inc. survey foundthat companies highly regarded for their employ-ee practices are also highly regarded with respectto their other critical practices, including thequality of management, the quality of productsand the ability to innovate. The study furtherconcluded that companies with well-respectedemployee practices scored highest on criticalmeasures of long-term corporate performance,including the utilization of capital and totalreturns to investors. Companies that invest intheir workers see a positive impact on their skillsand talents.

27

ADOPT HIGH PERFORMANCE WORKPLACE PRACTICES

I. Skills and Information

Training and Continuous Learning

✓Are there programs to support continuous learning (job rotation and cross-function team training, for instance)?✓Are training expenditures balanced among the company’s entire work force?

Information Sharing

✓Do all workers receive information on operating results, financial goals, and organizational performance? How?✓Are there multiple mechanisms by which internal communication occurs so that information flows up, down, and across the organization?

II.Participation,Organization,andPartnership

Employee Participation✓Are workers actively involved in continuously improving their work process and redefining their jobs? ✓Are they actively involved in problem solving, selecting new technology, modifyingthe product or service provided, and meeting with customers?

Organizational Structure

✓Are most workers organized into work teams with substantial autonomy?✓Are there cross-functional teams and other mechanisms to share innovative ideas across organizational boundaries?

28

Workplace Practices Checklist

III. Compensation, Security, and Work Environment

Compensation Linked to Performance and Skills

✓Does the incentive system incorporate new ways of rewarding workers?✓Is executive pay tied to corporate (or business unit) performance?

Employment Security

✓Are there comprehensive employment planning strategies and policies to minimize or avoid laying off workers?✓If layoffs have occurred in recent years,does the organization actively help laid-off workers to find new jobs? How?

Supportive Work Environment

✓Does the company attract and retain a talented work force? What is the annual turnover rate? Why do people leave?✓Are family-supportive policies, such as flexible work schedules, child care, and/or elder care, in place? ✓Does the organization actively hire, train,retain, and promote a diverse work force?

IV. Putting It All Together

✓Does the company fully integrate its humanresource policies and workplace practices with other essential business strategies?✓Are quality and continuous improvement efforts meshed with training, work organization, employee involvement, and alternative compensation programs?

29

Government Recommendations

The concept of equal opportunity is woven intothe fabric of our society. Our governmentembraces this concept and supports programsand policies that attempt to make it a reality forall people.

Laws, legal decisions, and executive orders havegiven the government an active role in makingequal employment opportunity a reality for qual-ified minorities and women. Beginning in 1941,strides have been made in eliminating employ-ment barriers for minorities and women, whenPresident Franklin D. Roosevelt signed the firstexecutive order forbidding race discrimination byFederal contractors. Starting in 1963, followingpassage of an important civil rights law designedto attack continuing discrimination, the govern-ment assumed a more active role in monitoringand enforcing anti-discrimination laws. Forexample, another executive order, signed byPresident Lyndon Johnson in 1968, prohibitedsex discrimination by Federal contractors.

There is no stronger endorsement for an ideathan adopting it. Government is a major playerin the drive to break the glass ceiling, and there-fore must lead by example. The Commission

recommends that government -- at all levels --take the lead in efforts to provide equal opportu-nity to all.

While barriers that block the access of minoritiesand women to managerial and executive posi-tions cannot be eliminated solely by governmentaction, there is an appropriate role for the publicsector. In Good For Business, the Commissionidentified three areas where government action iscrucial to breaking glass ceiling barriers. Thefollowing summarizes what those needs are andthe Commission's recommendations to meetthem:

● Vigorous and consistent law enforcement

The Commission recommends that Federalenforcement agencies increase their efforts toenforce existing anti-discrimination laws. Theselaws include the Equal Pay Act, Title VII of theCivil Rights Act of 1964, Executive Order 11246(which prohibits discrimination in hiring oremployment opportunities on the basis of race,color, religion, sex and national origin), the AgeDiscrimination in Employment Act, thePregnancy Discrimination Act, the Americans32

INTRODUCTION TO THE GOVERNMENT RECOMMENDATIONS

33

with Disabilities Act and the Civil Rights Act of1991. In addition, the Family and Medical LeaveAct, while not directly dealing with discrimina-tion, creates a family-friendly and flexible workenvironment.

The Commission approves seeking strong reme-dies, including affirmative action. Accordingly,strong enforcement agency coordination is neces-sary if efforts to improve enforcement and effec-tiveness are to be successful. Further, multiplediscrimination must be challenged head-on, cor-porate management reviews that help identifywhere workers are in the organizational pipelinemust be strengthened, and the complaint process-ing system must be streamlined. Each of theseinitiatives helps break the glass ceiling.

● Collection and disaggregation ofemployment-related data

The Commission supports the concept of govern-ment-wide consistency in collection methods,definitions and categories, and encourages allagencies wherever possible to make data avail-able not only by race and ethnicity but also with-in each category by gender. Agencies within the

Federal government collect information for dif-ferent reasons; however, consistent data collec-tion throughout the government would permitwider and more accurate interagency and indus-try comparisons. In addition, consistent collec-tion methods would also provide for easier inter-pretation and use of the data by academics,researchers, and the public.

● Reporting and dissemination of inform-ation relevant to glass ceiling issues.

Increasing the number of minorities and womenin the corporate hierarchical pipeline is the out-come of breaking the glass ceiling. In order totrack progress, information on where minoritiesand women are must be collected and reported.Information on the status of minorities andwomen in the workplace can be disseminatedthrough technical assistance processes already inplace.

For example, the Office of Federal ContractCompliance Programs (OFCCP) has a strongprogram of compliance assistance to help con-tractors understand their contractual obligationsfor equal employment opportunities and affirma-

tive action. OFCCP provides technical assis-tance and guidance to contractors on how toestablish an affirmative action program. Stafffrom the district and regional offices hold work-shops and seminars, joint training programs withindustry liaison groups and one-on-one consulta-tions for contractors. In addition, the EqualEmployment Opportunity Commission (EEOC)provides educational and outreach activities forindividuals who have historically been victims ofjob bias through its Technical Training Institute.

34

Recommendation

Government at all levels must be a leader in thequest to make equal opportunity a reality forminorities and women. The Commission recom-mends that all government agencies, as employ-ers, increase their efforts to eliminate internalglass ceilings by examining their practices forpromoting qualified minorities and women tosenior management and decisionmaking positions.

In its report, "Civil Service 2000," the Office ofPersonnel Management (OPM) recognized theneed to continue emphasizing hiring, training andpromoting minorities and women. While the per-centages of minorities and women have been

increasing in grades 13 to 15 and in the SeniorExecutive Service, the Commission believes thatgovernment agencies can further improve thisrecord. Government agencies should designrecruitment, training, mentoring, and job develop-ment plans to help qualified minorities and womenenter and climb the career ladders that lead to man-agerial and decisionmaking positions.Government agencies should share information,technical assistance, and training programs whichcan facilitate the development of talented minori-ties and women. In its role as an employer, gov-ernment should lead by example. To that end, theCommission urges government agencies to care-fully consider and implement where appropriatethe Commission's recommendations.

35

LEAD BY EXAMPLE

1990 19940

10

20

30

40

50

60

GS and Related Grades 1-12

Men Women

43.5%

56.5%

44%

56%

43.5%

56.5%

44%

56%

1990 19940

10

20

30

40

50

60

70

80

90

GS and Related Grades 13-15

Men Women

81.3%

18.7%

76.6%

23.4%

1990 19940

10

20

30

40

50

60

70

80

90

Senior Pay Levels*

Men Women

88.9%

11.1%

82.8%

17.2%

Percent Distribution ofFederal Workers by Gender

FY 1990 vs FY 1994

Source: Office of Personnel Management's CentralPersonnel Data File, Executive Branch Only.

Notes: GS and Related (GSR) pay plans include the GeneralSchedule (GS) pay plans similar to GS, Foreign Servicepay plans, and demonstration project pay plans.

*Senior Pay Levels include the SES and employees in otherpay systems paid above the salary for a GS-15 Step 10.

1990 Total Men WomenGS and Related Grades 1-12 83.0 72.3 93.7GS and Related Grades 13-15 16.4 26.7 6.1Senior Pay Levels* 0.6 1.1 0.1

1994 Total Men WomenGS and Related Grades 1-12 79.4 68.8 90.3GS and Related Grades 13-15 19.7 29.7 9.4Senior Pay Levels* 0.9 1.5 0.3

Percent Distribution of Workforce

Recommendation

Workplace discrimination presents a significantglass ceiling barrier for minorities and women.The Commission recommends that Federalenforcement agencies increase their efforts toenforce existing laws by expanding efforts to endsystemic discrimination and challenging multiplediscrimination. The Commission also recom-mends evaluating effectiveness and efficiencyand strengthening interagency coordination as away of furthering the effort. Additionally, updat-ing anti-discrimination regulations, strengthen-ing and expanding corporate managementreviews and improving the complaint processingsystem play major roles in ending discrimina-tion. Finally, the Commission recommends mak-ing sure that enforcement agencies have ade-quate resources to enforce anti-discriminationlaws.

The Commission's fact finding report makesclear that programs designed to expand equalemployment opportunity, like affirmative action,work best when combined with real and vigorousenforcement. Strong enforcement efforts giveemployers an incentive to develop effective pro-grams -- like special outreach programs, mentor-ing and training programs, goals and timetables,

and other affirmative action programs -- thatattack glass ceiling barriers by expandingemployment opportunities for qualified minori-ties and women. Better interagency coordinationwill enable agencies to improve enforcementeffectiveness and seek strong remedies, includingaffirmative action. Improving the enforcementof anti-discrimination laws is central to breakingthe glass ceiling. The Commission recommendsthe following actions be taken:

Expand efforts to endsystemic discrimination

The paucity of minorities and women in manage-rial ranks serves as a compelling reminder ofcontinued systemic and "pattern and practice"discrimination. Systemic discrimination is prac-ticed against an entire class; pattern and practicediscrimination is the regular, routine or standardpractice of discrimination by an employeragainst a particular group. The Commission rec-ommends the continuation of efforts to end sys-temic discrimination through a variety of means,including bringing pattern and practice and classaction cases and expanding systemic investiga-tion of Federal contractors.

36

STRENGTHEN ENFORCEMENT OF ANTI-DISCRIMINATION LAWS

Challenge multiple discrimination

Discrimination affects different cultural groupsdifferently. Research indicates and statisticaldata show that minority women face multipleburdens of race and gender discrimination in try-ing to break through glass ceiling barriers. TheCommission recommends government agenciesrecognize this phenomenon and develop enforce-ment, outreach and public education policies totarget specific discriminatory employment prac-tices that affect minority women.

Evaluate effectiveness and efficiency

To effectively enforce anti-discrimination laws,government anti-discrimination agencies mustregularly evaluate and improve their existing pro-gram and policy systems. The Commission rec-ommends that each agency review all programsand policies (both internally and with regulatedgroups), seek ways to improve operations andTheir effectiveness, and conduct regularly-sched-uled meetings to review the process and the out-comes. Viewed as a working partnershipbetween the regulators and those regulated, theseconsultations should improve fairness and effec-tiveness for affected parties, bolster public under-standing and confidence, and assure that appro-priated funds are spent in a cost-effective man-ner.

Strengthen interagency coordination

Strong interagency coordination -- among theDepartment of Justice, the Department of Laborand the Equal Employment OpportunityCommission (EEOC) -- promotes efficient andeffective enforcement of anti-discriminationlaws. While these agencies have some coordina-tion of strategies in place, it is important toimprove information sharing and ensure the bestapplication of resources. The Commission rec-ommends that Federal enforcement agenciesresponsible for enforcing anti-discriminationlaws continue to explore new ways to coordinate.

Update anti-discrimination regulations

Over the last 15 years, key legal and legislativedevelopments -- such as the Americans withDisabilities Act, the Civil Rights Act of 1991, thePregnancy Discrimination Act and the Familyand Medical Leave Act -- have impacted heavilyupon minorities and women. The regulationsand interpretations that agencies use to enforceanti-discrimination laws and executive ordersmust reflect current legal opinion and laws. TheCommission recommends revision of regulationsand compliance manuals to reflect changes in theworkplace, and in society, and the law.

37

Strengthen and expand corporatemanagement reviews

Corporate management reviews or compliancereviews ensure that Federal contractors are meeting the letter and the spirit of the equalemployment opportunity and affirmative actionrequirements governing entities doing businesswith the Federal government. The Commissionrecommends corporate management reviewsinclude practices which often hinder the advance-ment of minorities and women into executive posi-tions, such as: (1) how ratings of managerial poten-tial are carried out, and their effects on minoritiesand women; (2) the extent and type of trainingprovided to those conducting performance evalua-tions; (3) the race, ethnic origin, and gender com-position of management committees involved inassessing future managers; (4) the impact of work-place practices that result in unequal opportunities,such as whether workers who need parental leaveare tracked into dead-end positions, or whethercontractors implement meaningful family-friendlypolicies that actually facilitate working parents'opportunities; and (5) how corporate mergers ordownsizing actions have affected minorities andwomen both at the executive level and in thepipeline.

Improve the complaint processing system

Justice delayed is justice denied. TheCommission recommends (1) continuing effortsto improve the investigation and complaint reso-lution process through the voluntary use of alter-native dispute resolution, wherever appropriate,which often provides faster, less expensive, lesscontentious and more productive results in elimi-nating workplace discrimination, and (2) contin-uing efforts to reduce the accumulated backlogof cases now pending before the EqualEmployment Opportunity Commission.

Ensure anti-discrimination agencieshave adequate resources

Effective and vigorous enforcement of anti-dis-crimination and equal employment opportunitylaws is critical to the advancement of minoritiesand women in the workplace. To make equalemployment opportunity and affirmative action areality, however, government anti-discriminationenforcement agencies must have the funding andthe tools necessary for the job. As theCommission's earlier report, Good For Business,makes clear, efforts by the business communityto expand equal employment opportunity workbest when complemented by swift and vigorousenforcement. The Commission recommends thatCongress provide anti-discrimination agencieswith the funding and staffing necessary to enablethem to accomplish their mandated missions. 38

39

Equal Employment Opportunity Commission

Number of

Charges Received

Number of

Investigations Closed

Full Time Equivalents*

Operating Budget

Budget adjusted

for Inflation**

*Data on Full-Time Equivalents for fiscal years 1971 and 1973.

**All Figures are in 1993 dollars, deflated using the CPI-UXI.

Source: EEOC Annual Reports 1970-1993

FY1971

28,609

7,321

$16,185,000

$56,600,000

FY1973

72,274

16,256

$32,000,000

$97,900,000

FY1980

79,868

84,812

3,777

$124,313,000

$218,100,000

FY1983

120,361

32,796

3,084

$146,286,000

$212,300,000

FY1990

59,426

67,415

2,853

$184,926,000

$204,564,000

FY1991

116,765

112,115

2,796

$201,930,000

$214,236,000

FY1992

124,479

118,157

2,791

$211,271,000

$217,580,000

FY1993

149,231

118,042

2,831

$222,000,000

$222,000,000

Recommendation

Accurate data on women and minorities canshow where progress is or is not being made inbreaking glass ceiling barriers. The Commissionrecommends that relevant government agenciesrevise the collection of data by refining existingdata categories and improving the specificity ofdata collected. All government agencies thatcollect data must break it out by race and gender,and avoid double counting of minority women, inorder to develop a clear picture of where minori-ties and women are in the workforce.Specifically:

Standard Occupational Classification Manual

The Standard Occupational Classification Manualprovides a mechanism for cross-referencing andaggregating occupation-related data collected bysocial and economic statistical reporting pro-grams. Its intent is to maximize the usefulness ofstatistics on the labor force, employment, income,and other occupational data. Revisions must con-

tinue to the Standard Occupational ClassificationManual to ensure that it is sufficiently detailed todifferentiate between managers who have dissimi-lar tasks and responsibilities.

Expansion of Job Classification Categories

The Employer Information EEO-1 form is arequired submission for all employers with (a)100 or more employees or (b) 50 or moreemployees for firms holding Federal contractsworth $50,000 or more. The categories currentlydo not separate senior managers with corporatedecisionmaking authority from managers whomay be responsible for small business units oronly a few employees. Expanding job classifica-tion categories would better enable Federalenforcement agencies and employers to evaluatethe racial, ethnic and gender composition ofoccupations, especially at the managerial level.The Commission recommends that the relevantgovernment agencies take whatever steps arenecessary, including regulatory changes, toaccomplish this.

40

IMPROVE DATA COLLECTION

41

Current Population Survey

The Current Population Survey (CPS) is the mostimportant source of information on the laborforce, employment and unemployment in the US.In existence for 53 years, the CPS yields perhapsthe most eagerly awaited economic statistic -- themonthly unemployment rate -- and a host ofother key data related to trends in employment.Exploration of ways to improve the specificity ofoccupational data from the CPS must continue.

Occupational Employment Statistics Survey

The Occupational Employment Statistics (OES)survey is a periodic mail survey of nonfarmestablishments that collects occupationalemployment data on workers by industry. TheOES program surveys approximately 725,000establishments in 400 detailed industries.Modification of the OES to include demographicdata should be considered.

Recommendation

Public disclosure of diversity data -- specifically,data on the most senior positions -- is an effectiveincentive to develop and maintain innovative,effective programs to break glass ceiling barriers.The Commission recommends that both the publicand private sectors work toward increased publicdisclosure of diversity data.

Public disclosure of how well companies areexpanding opportunities for minorities andwomen is an effective incentive for other compa-nies to develop diversity programs. Public disclo-sure campaigns, such as the mandated disclosureof bank community lending data, demonstrate thepower of this tool. Disclosure of diversity datamotivates organizations to begin a process of posi-tive social change through their corporate employ-ment policies; with this data, the public can makeinformed choices about doing business with,investing in or working for an organization. TheCommission recommends that all members of thecorporate community increase their voluntary dis-closure of race, ethnic and gender composition oftheir workforces, particularly at the senior man-agement level.

The issue of disclosure prompted much discussionamong the Commission. Commissioners heard

and received volumes of testimony on this topic.Some Commisisoners felt that mandated disclo-sure is a necessity. They argued that individuals,shareholders and stockholders, as well as the gen-eral public, have a right to know the compositionof the corporate workforce for publicly-tradedcorporations and Federal contractors. OtherCommissioners, however, felt that any presure todisclose diversity data is too much. Issues of pri-vacy and corporate trade secrets were the majorfocus of opposition to disclosure.

The Commission recognizes that in the short-termthere must be a greater conversation on this topicand that agreement must be reached among theprivate and public sectors as to the most beneficialway to proceed.

Accordingly, the Commission urges the Federalgovernment and its agencies to look for ways toincrease public access to diversity data. For exam-ple, the government should encourage companiesto voluntarily release general EEO-1 information,such as workforce by occupation categories, aswell as statistics specific to the glass ceiling prob-lem, such as data on race, ethnicity and gender ofthe highest paid employees. The governmentshould also explore the possibility of mandatingpublic release of EEO-1 forms for Federal con-42

INCREASE DISCLOSURE OF DIVERSITY DATA

tractors and publicly-traded corporations.

Another area for government review is the modifi-cation of the 10-K reporting form. This annualreport, already a public document, is filed by com-panies with the Securities and ExchangeCommission (SEC). It gives an overview of acompany's business during the previous fiscalyear, and usually includes the monetary andequity compensation of corporate officers.Including the race, ethnicity and gender of theseofficials would help track progress in breakingglass ceiling barriers.

43

Societal Initiatives

Glass ceilings in the business world are not anisolated feature of corporate architecture; rather,they are held in place by the attitudes of societyat large. The Commission recognizes that attitu-dinal changes cannot be dictated, mandated orlegislated. However, the Commission's fact find-ing report, Good for Business: Making FullUse of the Nation's Human Capital, identifiedtwo types of societal barriers that engender andreinforce a glass ceiling for minorities andwomen. These are:

● The Difference Barrier: Essentially,prejudice, or prejudging that someone is different and therefore less able to do the job. The major differences that lead to discomfort are cultural, gender-based andcolor-based differences.

● The Supply Barrier: The lack of qualified, capable minorities and women,

due to lack of education, for instance. The supply barrier doesn't just keep

qualified applicants from walking through the door to the executive suite, it keeps them from even entering the building.

THE DIFFERENCE BARRIER:STEREOTYPE, PREJUDICE AND BIAS

Stereotypes generally result from wide publicitygiven the negative actions of a few memberswithin a particular group, or from fantasies creat-ed by the entertainment industry to fulfill a plotline. The bottom line is, however, that stereo-types can be absorbed and become the beliefsupon which we act. These misconceptions aboutgroups of people become embedded in our mindsand prompt us to think differently about eachother. Attitudinal change brings behavioralchange, and so accordingly, the Commission hasidentified the following initiatives that can helpto overcome the Difference Barrier:

Recognize the Role of the Media

The media do not reflect America so much asshape America. The media play a critical role indeveloping and eliminating stereotypes and bias-es that affect the way minorities and women areviewed in society at large and in the workplace.The Commission recommends that (1) mediaorganizations examine closely their diversity46

SOCIETAL INITIATIVES

demographics at all levels; (2) the media regular-ly review their coverage for accurate diversityportrayal and possible distortions; and (3) and anaward be established and presented annually tothe media organization that consistently putsforth an accurate and positive reflection ofwomen and minority groups in their program-ming or coverage.

Efforts to diversify television and newspapernewsrooms with minorities and women hasyielded limited progress, according to severalrecent surveys by the American Society ofNewspaper Editors, the Radio and TelevisionNews Directors Foundation and Vernon Stone atthe Missouri School of Journalism. Progresstoward promoting minorities and women intodecisionmaking positions was even less evident.The Commission recommends the industry real-ize the urgency of getting women and minoritiesinto decisionmaking positions, especially in tele-vision, and notes that the lack of minority andwomen ownership in media outlets has a long-term negative impact on news reporting. Tobring the public balanced news and entertain-ment, the media need to provide better workforcediversity and sensitize all employees to cultural,ethnic and gender strengths which can improvethe quality of the media's product and signifi-cantly reduce stereotyping.

Further, broadcast ownership is a public trust.The media must examine the types of news sto-ries they cover, the language they use to describethem, and the portrayal of characters on enter-tainment programming to discern evidence ofbias and stereotyping. Such self-examinationmust result in a determined effort to establish areasonable balance in reporting and entertain-ment programming. Color, gender, and culturaldifferences can be positively portrayed and thepower of stereotyping can be substantiallydiminished in the greater society.

Though many organizations have created andregularly present awards for media excellence,few have focused on how minorities and womenare presented in the content of news and enter-tainment programming, especially in relation totheir employability at the highest levels of theAmerican workforce. An award presented annu-ally to the media organization that consistentlypresents an accurate and positive reflection ofwomen and minority groups in its programmingcould be based on the following questions posedby News Watch**:

"Is news coverage distorted by stereotypes, bias,bad reporting and ignorance? How might theseflaws of journalism skew what readers, listenersand viewers of news think about their fellow citi-zens? In what way does this have an impact onthe day-to-day activities and decisions that make 47

White Men54%

White Women28%Minority Men

8%

Minority Women10%

White Men64%

White Women25%Minority Men

5%

Minority Women6%

Radio News Work Force

Source: Vernon Stone, Missouri School of Journalism

TV News Work Force

Source: Vernon Stone, Missouri School of Journalism

Ida B. Wells AwardDistinguished journalist, fearless reporter and wife of one of America's earliest black publishers, Ida B.Wells also was the editor and proprietor of the Memphis Free Speech and Headlight. She told her maleco-founders she would not help launch the newspaper unless she was "made equal to them." In the 19thcentury, she won acclaim on two continents for her fearless crusade against lynchings. She championedan integrated society and urged black Americans to seek their rightful share of jobs in the new industrialsociety.

The Wells Award is awarded by the National Association of Black Journalists and the NationalConference of Editorial Writers. Its purpose is to give tangible and highly visible recognition to the indi-vidual who has provided exemplary leadership in opening doors of employment for minorities inAmerican journalism.

According to Professor Samuel L. Adams, the award curator at the William Allen White School ofJournalism at the University of Kansas, "those who have received the award strive to improve theirperformance" which has a tremendously positive effect on their individual organizations, the industryand the public at large. The Wells Award:● focuses on career leadership relating to equal employment opportunity in journalism;● contributes to cultural awareness in America; ● raises standards of management sensitivity for print and broadcast journalism leaders;● helps worthy minority journalism students through college with scholarship● furthers the conviction of Ida. B. Wells, whose career illuminated both discrimination and

employment opportunity in American journalism.

public life and impact public policy?"The award could be presented by any number ofentities -- a Presidential commission, otherbranches of government, a coalition of industryorganizations, or a public-private partnership, forinstance.

**"News Watch: A Critical Look at Coverage ofPeople of Color" is a national news media moni-toring campaign and critique of US journalistic

practices. News Watch is a project of the Centerfor Integration and Improvement of Journalism atSan Francisco State University in cooperationwith the nation's four largest professional organi-zations representing journalists of color: AsianAmerican Journalists Association, NationalAssociation of Black Journalists, NationalAssociation of Hispanic Journalists and NativeAmerican Journalists Association.

48

Educate for Cultural Awareness

Business leaders identify perceptions based oncultural differences as significant barriers imped-ing the advancement of minorities and women incorporate structures. Overcoming glass ceilingbarriers necessitates that individuals change theirbehavior and attitudes toward people who aredifferent in gender, race, color, and ethnicity.Increasing understanding and respect for diversecultures through the educational process can helpeliminate stereotypical thinking and action andfacilitate merit-based practice and behavior with-in the corporate structure. It is important toremember that stereotypes are not created out ofthin air; they often develop, consciously andunconsciously, during our earliest years. By edu-cating students about the different values, cul-tures, history, styles of communicating, dress,food, family customs, and other group norms,schools can better prepare future executives tofunction comfortably and collaboratively withpeers and subordinates from diverse ethnic andracial groups. Therefore, the Commission rec-ommends that cultural awareness educationbecome part of every school's curriculum so thatchildren can experience, understand and valuethe strengths that diversity can create.

THE SUPPLY BARRIER:OPPORTUNITY AND ACHIEVEMENT

According to Good for Business:Before one can even look up at the glassceiling, one must get through the frontdoor and into the building. The fact islarge numbers of minorities and womenof all races and ethnicities are nowherenear the front door to CorporateAmerica....Some groups within theAfrican American, American Indian,Asian and Pacific Islander American andHispanic American communities are dis-proportionately represented among theworking poor. Segments of all thesegroups are overrepresented in low-wageoccupations, in part-time and seasonaljobs, in the informal and secondaryeconomies, and they suffer high unem-ployment. Mobility is almost nonexis-tent, and if there is a lack of financialresources, the prospects of educationalattainment are further hindered.

The Supply Barrier is the social force which pre-vents minorities and women from receiving therecognition or training they need to achieve thenext level of professional development.Education and exposure to other kinds of lifeexperiences are the keys to shattering the supplybarrier. The Commission identified several edu- 49

"We must recognize the whole

gamut of human potentialities,

and so weave a less arbitrary

social fabric, one in which each

diverse human gift will find a fit-

ting place."

-Margaret Mead, anthropologist

cation-centered initiatives which will help breakthis very real, very visible impediment.

Counsel for Careers in Business

Minorities and women continue to be channeledinto traditional academic and occupationaltracks, often without exposure to the courses andskills which businesses consider vital to potentialexecutive candidates. The Commission recom-mends that schools acquaint students-- starting in elementary school and continuingthrough high school -- with a wide array ofdiverse career opportunities and identify the spe-cific skills, course work and post secondary edu-cation they will need to qualify for careers inbusiness. Simple activities can achieve grand

results -- for instance, businesses can work withschool guidance counselors to provide informa-tion about how to prepare for successful profes-sional careers, or executives can visit schools andprovide career counseling seminars describingtheir own experiences in the business world.These types of school/business partnerships helpbridge the gap between the world of work andthe world of education by making academiclearning more relevant to practical businessneeds and making the future success of studentsin the corporate world more likely. Employmentopportunities often are limited by the educationalchoices that minorities and women make early intheir academic training, and counseling thathighlights the need for making the right choicesis an important first step.

50

Recognize All Potential

Individuals identified as high scholastic achiev-ers receive steady support and encouragement topursue educational and professional paths lead-ing to the executive suite. The education systemand society must also look beyond test scoresand grades and seek out individuals who mayexhibit non-traditional, but valuable, skills, inter-ests and abilities. By expanding traditional con-cepts of core competencies and academic suc-

cess, we can ensure that achievers whose talentsare less obvious will develop intellectually, acad-emically, and professionally, thus allowing busi-ness to benefit from their diverse skills and tal-ent. The Commission recommends that scholar-ships, educational enrichment opportunities, andcorporate internships be made available to thosewhose promise may not be reflected in grades ortest scores, but who display leadership, team-work, and strong analytical, communication andinterpersonal skills.

51

Steven Jobs and Stephen Wozniak, Apple Computers Co-Founders

Steven Jobs' high-school electronics teacher recalled that the Apple Computer Corporation co-founder

was something of a loner and always had a different way of looking at things. After classes, Jobs attend-

ed lectures at the Hewlett-Packard electronics firm in Palo Alto where he was eventually hired as a sum-

mer employee. There he met Stephen Wozniak, a recent dropout from the University of California at

Berkeley. Upon graduation from highschool, Jobs attended one semester of Reed College, then dropped

out and hung around campus for a year taking classes in philosophy and immersing himself in counter-

culture.

After several months working, he saved enough money to travel to India in search of spiritual enlighten-

ment. A short time later, Jobs and Wozniak designed the Apple I computer in Jobs' bedroom and built the

prototype in the Jobs garage. They started their new company with $1,300 raised from selling personal

possessions. Jobs came up with the name of the new company in memory of a happy summer he had

spent as an apple orchard worker in Oregon.

Acquire Second Language Proficiency

Language is a key competitive tool, and the inter-national scope of today's business world makescommunicating across national and culturalboundaries essential to corporate competitive-ness. Multilingualism is necessary if we are tosell more goods and services here and abroad.English is one of the primary languages of inter-national commerce, and any executive dealing

with customers, contractors and suppliers inother countries must excel in reading, writing,speaking and understanding English.Nevertheless, many executives have found suc-cess by speaking the language of their customers-- which means developing their capacity tocommunicate in two or more languages. TheCommission recommends that students develop aproficiency in a second language before graduat-ing from high school.

"The language of international

trade is not English. The

language of international trade

is the language of the

customer...you can't begin to

understand what people demand

if you can't talk to them in their

own terms. Their terms means,

of course, their own language."

-Leonard Lauder, President,

Estee Lauder

52

Berlitz International, which runs foreign languagestudy programs, has seen its US business increase19 percent over the five year period 1989 to 1994.As illustrated in the chart above, the percentage ofBerlitz students in the US who cite "job-relatedreasons" as their motivation for learning a newlanguage -- including both "required forwork/relocation" and "could help in present job orgetting a new job" has increased from 74 percentto 83 percent over the period 1991 to 1994.Nearly three-quarters of the Fortune 500 companies are or have been clients of Berlitz.

Reason for Studying Language: 1991 vs. 1994

Among students taking any language: reasons for studying

'91 '94

Job–related (net)..........................................................74 83

required for work/bus. travel/ relocation.......................71 79

could help at work..................................................18 25

Pesonal reasons (net)..................................................49 46

leisure travel ..........................................................11 12

degree/education .................................................... 5 6

*students may cite multiple reasons

U.S.%

Take A Child To Work Day

Many young people, especially girls and mem-bers of minority groups, have difficulty definingtheir career goals because of limited exposure tothe business world. Children who have limitedexposure to the adult world of work and littlesense of the range of professional possibilitiesopen to them have their road to career advance-ment blocked early in life. And, often, children

who need the most guidance are the ones withoutthe parental structure to provide it. Establishing"Take A Child To Work Day" would allowAmerican business to provide leadership andcommitment to generations of youngsters search-ing for role models. Building on the success ofthe Ms. Foundation's "Take Our Daughters ToWork (sm) Day," a national "Take A Child ToWork Day" will help open up professional vistasfor all children.

53

Take Our Daughters To Work (sm) -- Program Description

Take Our Daughters To Work (sm), the public education program of the Ms. Foundation for Women,

was launched in 1993 in response to disturbing research findings on the adolescent development of

girls. Studies by Harvard University researchers, the American Association of University Women

(AAUW) and the Minnesota Women's Fund indicate that during adolescence girls often receive less

attention in school and in youth-serving programs, suffer from lower expectations than do their boy

counterparts, and tend to like or dislike themselves based on aspects of their physical appearance.

Those are the problems. Fortunately, the Ms. Foundation for Women has the solution -- to prevent

these problems from happening by helping girls to strengthen their resiliency. Research has shown

that by intervening with girls before these problems take root, we can help girls to grow up with confi-

dence, in good health, and ready to fulfill their dreams.

Copyright 1994 Ms. Foundation for Women

55

The Glass Ceiling Commission was tasked withunderstanding barriers that prevent qualifiedminorities and women from reaching seniormanagement and decisionmaking positions andwith identifying opportunities for advancement.Among other things, the March 1995 release ofGood For Business raised public awareness ofthe negative effects of exclusion on Americanbusiness and the nation's economy. This recom-mendations report offers tangible guidelines andsolutions on how these barriers can be overcomeand eliminated.

However, the work cannot stop here. This reportrepresents completion of the Commission's leg-islative mandate, but the effort for us individuallyor for all of us as a nation must continue. In fact,this is just the beginning of work that still needsto be done to ensure that the glass ceiling inAmerica is forever shattered, thereby achievingthe full promise of our society by making itsbounty available to all.

Champions for Change

The mark of any sound strategic plan is itsimplementation. To ensure that the goals of theGlass Ceiling Commission stay alive, theCommissioners call on a confluence of con-

stituencies --business, minority, civil rights,women -- to take responsibility for:

● implementing the recommendations;● influencing others to implement the

recommendations; and,● monitoring the progress and measuring

the impact of the recommendations.

Industry Comparison Research

Key to the Commission's effort to make recom-mendations for effective change is an analysis ofcurrent corporate strategies for success. To com-plete this review, the Commission believes thatadditional study is needed in the area of compar-ative research of business and industries in whichwomen and minorities are and are not promotedto management and decisionmaking positions.

Longitudinal Analysis

The work of the Commission must be comple-mented with a five-to-ten year longitudinal studyto determine definitively the sequence of activi-ties that would be most effective in dismantlingglass ceilings and promoting minorities andwomen.Such a study could focus on both the elements of

NEXT STEPS

selected organizations' infrastructure that mayaffect the glass ceiling and the career progress ofa number of high-potential individuals within themanagement ranks of the selected organizations,including white and minority women and men.The results of this major research would add sig-nificant dimension to the work already commis-sioned and reviewed for this and the fact findingreport.

Econometric Models To Assess the Cost ofDiscrimination

Discrimination is costly. Additional research toquantify the cost of maintaining glass ceilingbarriers to individuals, corporations and societyat large should be conducted and econometricmodels developed.

Public Education Campaign

A recent Washington Post/Kaiser FamilyFoundation/Harvard University survey on howinformation and misinformation shapes the waypeople think found what the Post called, "a dis-torted image of minorities" and "a 'glass ceiling'of misperception."

This lack of understanding and stereotypingleads the Commissioners to call for a nationalpublic education campaign designed to dismantlemisperceptions, stereotypes and biases and to

create better understanding and appreciation ofour diversity as a people.

Role of Technology in Breaking Barriers

Communication and information sharing are keycomponents of breaking glass ceiling barriers inbusiness. E-mail, the World Wide Web, live chatson the Web, video conferencing and documentsharing are only a few examples of the many tech-nologies which allow access to time-efficient andinexpensive methods of exchanging information.

State and Local Glass Ceiling Commissions

Like the Federal government, the local govern-ment must also lead by example. TheCommission believes that state and local govern-ments should examine what they are doingregarding removing or breaking the glass ceilingand what they do differently that makes somegovernments more successful than others.

Asian & Pacific Islander Center for Census56

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Stella M. "Barriers to Work Place AdvancementExperienced by African-Americans."Massachusetts Institute of Technology andUniversity of North Carolina at Charlotte

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Burbridge, Lynn C. "The Glass Ceiling InDifferent Sectors of the Economy: DifferencesBetween Government, Non-Profit, and For-ProfitOrganizations." Wellesley College Center forResearch on Women, Wellesley, MA.

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Center for Integration and Improvement of 57

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60

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61

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