Diversity in the Corporate World

[Japher]

What is more important; diversity of ethnicity, race, gender, etc. or diversity of thought? Does one necessarily imply the other?

I'm taking a corporate governance course and they brought up the idea of diversity on a corporate board of general 8-14 people and how necessary it is. One comment was that 80% of a consumer decisions are made by a women, and yet women comprise less than 10% of the board memberships. Does this even matter? They buy whatever is sold. Besides, determining things like social responsibility programs, compensation methods, etc. isn't really what ends up putting an item on the shelf.

Another thing that bugs me is that they indicated that it might be a good idea to have foreign individuals on their boards if the are an international company. Why is this? Does that matter? Isn't part of the fun of going to a Japanese restaurant the fact that the waiter or guy chopping carrots in front of you has a thick Asian accent? Even if he's Mexican? My point on this matter is that if a Board really has some influence on the overall presentation of their offering, and people like that offering because of the ethnicity attached to it, why would you tarnish that? Even if it is sold somewhere else?

Anyway, I'm for diversity of thought, that's basically why I post here. We don't care if the other random troll is white, black, female, gay, old, young, mentally handicapped or a jewish rodeo clown with a pencil fetish (yeah, you know who you are) we could probably make a halfway decent board without really knowing all that other stuff.

Thoughts?

[David Floyd]

Diversity is a buzzword, and really nothing more. Yes, it's important to have differing opinions on matters, and it's important to understand your consumers. However, "diversity" currently means, in the corporate world, either hiring women, or hiring minorities, or preferably both. This is considered an end unto itself, and in a sense it is, in that it prevents lawsuits.

On the other hand, some of the most worthless people I have ever worked with or for were those who were hired because of diversity concerns. Not to say that women and minorities are worthless, but basing hiring decisions on those factors is idiotic.

Essentially, "corporate diversity" exists to avoid lawsuits, not for any practical business reason.

[Zevico]

I'm taking a corporate governance course and they brought up the idea of diversity on a corporate board of general 8-14 people and how necessary it is. One comment was that 80% of a consumer decisions are made by a women, and yet women comprise less than 10% of the board memberships. Does this even matter? They buy whatever is sold.
Thoughts?

I think the implicit suggestion being made by the person who made is that a board made up of women would be able to to devise products that suit women's needs or wants better. Thus a company with a female (or partly female) board might implement more effective strategies to gain the attention of female consumers than a board that is male. So while women may buy "whatever is sold" at the moment, they may well be more inclined to buy from certain companies because their advertising strategies are better or their products. The crux of the idea is "by women, for women."

I have no idea whether the statistic is accurate, and I certainly have no idea whether the suggestion being made is accurate.

Another thing that bugs me is that they indicated that it might be a good idea to have foreign individuals on their boards if the are an international company. Why is this?

Foreign individuals have insight into the culture and practices of the country of their origin, which is very important if the company is operating in that country. Obviously though if you're operating in China, appointing a director from Peru wouldn't provide too much assistance.

[David Floyd]

I have no idea whether the statistic is accurate, and I certainly have no idea whether the suggestion being made is accurate.

That "statistic" is completely inaccurate. Women customers, just like male customers, are absolutely stupid. They will buy what is sold to them. Consumers in general are ****ing idiots, and frankly, adding a female executive doesn't change anything. The company must still provide solutions geared around profitable growth in order to survive. Customers are ancillary to this - yes, they are necessary, but no, their attitudes/sensibilities make little difference.

At the end of the day, the only value of diversity hiring is in avoiding lawsuits. My point is, if women, ******s, and ****ing brown people have no value other than their race or the wound in their crotch, then why hire them? OTOH, if they add value to the organization in a non-Human Resources (read: anti-lawsuit) type of way, then they should be hired. Simple science, no secret sauce. Evaluate people for what they are, embrace the fact that "diversity" is meaningless to profitable growth, and move the **** on.

[loinburger]

I only know engineering, but minority engineers (this includes women, because while women are not a minority they are certainly a minority in the engineering profession) fit many more engineer stereotypes than minority stereotypes, i.e. diversity in appearance does not translate to diversity in thought.

[MRT144]

That "statistic" is completely inaccurate. Women customers, just like male customers, are absolutely stupid. They will buy what is sold to them. Consumers in general are ****ing idiots, and frankly, adding a female executive doesn't change anything. The company must still provide solutions geared around profitable growth in order to survive. Customers are ancillary to this - yes, they are necessary, but no, their attitudes/sensibilities make little difference.

Explain the wild and raging success of New Coke in the face of the stupid consumer's sensibilities and attitudes. I'm sorry, is a solution to profitable growth not giving people what they want, but telling people what they want and giving it to them?

[David Floyd]

New Coke? Who gives a **** about New Coke? No one I know, anyway.

Additionally, by and large, people really don't know what they want. Have you ever dealt with women, for example, who make up 52% of the population? Yeah, they have no clue what they want.

[onodera]

Holy ****, why isn't the word ****** censored, but **** is?

[BeBMan]

What is more important; diversity of ethnicity, race, gender, etc. or diversity of thought? Does one necessarily imply the other?

Not automatically IMO, but with lotsa different backgrounds it could be more probable to have diversity of thought too. Unless they're all stupid, regardless of background, then it's rather

[Zkribbler]

Maybe if Chevy had had a Spanish speaker on the Board, it wouldn't have tried to sell the Nova in Mexico.


I can't remember right now the name of the guy who so successfully ran the Fidellity Funds several years back. But he wisely invested in L'eggs when his wife came home complaining that it was hard to get through the press of customers at the L'eggs rack, so that she could buy the product. Different sorts of people see different things.

[MRT144]

New Coke? Who gives a **** about New Coke? No one I know, anyway.

Additionally, by and large, people really don't know what they want. Have you ever dealt with women, for example, who make up 52% of the population? Yeah, they have no clue what they want.

I can't help that you have only met stupid, indecisive women.

[Imran Siddiqui]

I can't help that you have only met stupid, indecisive women.

Though it does make sense that Floyd has only met those types of women.

FWIW, saying people will buy whatever you put in front of them is one way to make sure you never succeed in business.

[RGBVideo]

Diversity of thought is very important, otherwise you'll get stuck with old ideas. Old ideas might work for a long time, mind you, but evolving your products along with societal trends is unevitable at one point or another. Well, that or going bust because of no demand for your obsolete products. Intelligent people generally have diverse minds, hire intelligent, disciplined people to leadership positions.

also,

New Coke? Who gives a **** about New Coke? No one I know, anyway.

self-pwnage

[RGBVideo]

also,

Maybe if Chevy had had a Spanish speaker on the Board, it wouldn't have tried to sell the Nova in Mexico.

i think this myth was busted on snopes

[DanS]

I look at it more from the standpoint of attracting skillful people. It seems daft to inadvertently or purposefully turn off or exclude a potential employee/board member who can offer the company a lot otherwise. Doesn't matter whether that person is an Indian Jewish transvestite or a white Utah Mormon with a dozen kids.

Birds of a feather tend to flock together, but from a leadership standpoint, any businessperson should take great care to ensure that they aren't excluding large pools of potential talent. If my company comprises all white Utah Mormons with a dozen kids, then I would suspect that my interests in the most skillful workforce aren't being met. In that vein, it seems like a reasonable use of valuable time to try to find those potential minority pools of candidates.

Likewise, I've not had problems dealing with colleagues with lifestyles or attributes that do not fit within my norms. If they are skillful and do their jobs well, I value that and want to make them feel welcome in the company.