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Making everyday life better, every day.
Clorox Confidential
Erby L. Foster, Jr.Director, Diversity & Inclusion
The Clorox CompanyApril 23, 2009
A Word About Accountability
Making everyday life better, every day.
Clorox Confidential 4
AccountabilityAccountability
• Accountability is a concept in ethics with several meanings. It is often used synonymously with such concepts as responsibility, answerability, enforcement, blameworthiness, liability and other terms associated with the expectation of account-giving. As an aspect of governance, it has been central to discussions related to problems in both the public and private (corporation) worlds.
• Accountability is defined as "A is accountable to B when A is obliged to inform B about A’s (past or future) actions and decisions, to justify them, and to suffer punishment in the case of eventual misconduct".
• In leadership roles, accountability is the acknowledgment and assumption of responsibility for actions, products, decisions, and policies including the administration, governance and implementation within the scope of the role or employment position and encompassing the obligation to report, explain and be answerable for resulting consequences.
Making everyday life better, every day.
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Diversity Leadership StatementDiversity Leadership Statement
“At Clorox, we view diversity as a business imperative, not just a Human Resources initiative.
We believe the most effective way to approach diversity is to focus our efforts in three areas: our employees, the suppliers we work with, and the consumers of our products. We are committed to each area, and will continue to link our diversity efforts in this way.
When we build the capability to effectively connect with people across a broad range of diverse backgrounds, then we can win in markets and our communities around the world.”
Don Knauss, Chairman & CEOChair, Diversity Advisory Board
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Consumer InsightsConsumer Insights
America is no longer a mass market. • Minorities are a big group. They represent 33% of population• They are growing 6-15 times faster than general population• Disposable income growing 50-300% faster, creating a major
source of business growth and profitability
Source: San Francisco Chronicle, May 17, 2007 – U.S. Census Bureau
Asian5.0%
Black13.4%
Hispanic14.7%
White 66.9%
Annual Growth Rates of US Ethnic Populations 1990-2000
4.5% 4.5%
2.0%
0.8%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Com
poun
d An
nual
Gro
wth
Rate
Hispanic Asain Black White
298%
169%
222%
112%
0%
50%
100%
150%
200%
250%
300%
1990 - 2007
Buying Power Increase 1990-2007
Hispanic African American
Asian White
Making everyday life better, every day.
Clorox Confidential 7
Corporate Strategy
Objectives
We make everyday life better, every dayMaximize economic profit across categories, customers and countries
Be best at building big-share brands in economically attractive midsized categories
Goals
Double economic profit by 2013
Strategies
• Grow net customer sales by 5-7% per year
• Grow EP an average of 12-15% per year
Be a high-performance organization of enthusiastic owners
Win with superior capabilities in Desire, Decide and Delight
Accelerate growth both in and beyond the core
Relentlessly drive out waste
Making everyday life better, every day.
Clorox Confidential 8
People & Culture TeamVision and Purpose
People & Culture TeamVision and Purpose
The vision of the People and Culture Team (PCT) is to drive business success by bringing our #1 Corporate strategy to life globally:
•Be a high performance organization of enthusiastic owners
The purpose of the PCT is to be accountable for our global people strategies and processes including:
Values-based culture Engagement Total Rewards (compensation and benefits) Talent Management
human resource planning, capability development, leadership development, succession planning, recruiting
Diversity People policies
The vision of the People and Culture Team (PCT) is to drive business success by bringing our #1 Corporate strategy to life globally:
•Be a high performance organization of enthusiastic owners
The purpose of the PCT is to be accountable for our global people strategies and processes including:
Values-based culture Engagement Total Rewards (compensation and benefits) Talent Management
human resource planning, capability development, leadership development, succession planning, recruiting
Diversity People policies
Making everyday life better, every day.
Clorox Confidential 9
People & Culture TeamExecutive Members
People & Culture TeamExecutive Members
• Senior Vice President – Human Resources (leader)• Chairman & Chief Executive Officer• EVP – Chief Operating Officer• EVP – International• EVP – Strategy & Growth• SVP – Chief Financial Officer• SVP – General Counsel• VP – GM, Cleaning Division• VP – GM, Specialty Division• VP – Chief Information Officer• VP – Controller• VP - Marketing• VP – Product Supply• VP – Research & Development• VP - Sales
Making everyday life better, every day.
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Consumers People Suppliers
Diversity Business CaseDiversity Business Case
Diversity as a Business
Diversity is a business imperative, not just a HR initiative Diversity is a business imperative, not just a HR initiative
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2004
Business Case for Diversity
Employee Resource Groups
Competitive Advantage for Talent
External Recognition
Bridge to Business
2009
Diversity JourneyDiversity Journey
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Diversity ApproachDiversity Approach
External FocusPartnershipsNetworksHiring
Internal FocusERG’s
MentoringInclusion Training
Functional People StrategiesFunctional People Strategies
Diversity and
Inclusion
Culture of InclusionCulture of Inclusion
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Clorox Confidential
Bridging Employees Passion to StrategyBridging Employees Passion to Strategy
Be a high-performance organization of enthusiastic owners ERGs provide development opportunities, share consumer insights, and
enhance engagement
Win with superior capabilities in Desire, Decide, & Delight A fully engaged diverse organization drives greater productivity,
effectiveness, and innovation
Accelerate growth both in and beyond the core Developing our brands with diverse consumers is one of our biggest
growth opportunities
Relentlessly drive out waste To be competitive in the marketplace, we must be able to attract and
retain diverse employees
Making everyday life better, every day.
Clorox Confidential
Why Diversity Programs FailWhy Diversity Programs Fail
Confusion between diversity and inclusion initiatives Diversity metrics center mostly on representation Inclusion metrics reflect organizational health & employee engagement
Isolated diversity function Siloed and disconnected from other areas of the business Neither accessed nor made accessible to senior management
Focusing just on compliance Delivery of training and percentage of employees who have completed Lack evidence in decision-making, promotion criteria, strategic direction, and professional development
Blurred vision Trainings, or cultural awareness events, or activities that look like diversity work Companies are often reluctant to measure and assess where they are in the diversity process Asking for feedback raises expectations and ignoring these answers make the company vulnerable
Source: Black EOE Journal
Making everyday life better, every day.
Clorox Confidential
Commitment & InvolvementCommitment & Involvement
What’s Your Diversity EQ?• In order to achieve diversity and inclusion, the journey must be Visible, Inclusive, and Integrated.*
• Is the work we’re doing Visible (can be seen from every angle and view)?
• Is it Inclusive (all voices in the room and welcoming to everyone)?
• Is it Integrated (into everything we do and all that we are)?
Roles & Responsibilities**• Executive Champion ~ Drive partnership throughout Clorox• Relationship Partner ~ Align partnership priorities with business strategy• ERG ~ Drive advocacy to attract, recruit, retain, & promote diverse employees• Function ~ Managers demonstrate personal commitment and active involvement
Function Mix (10 Bowling Pins) = Key To Success**• 1 ~ Vice President serve as Executive Champion• 2 ~ Directors in a team captain/board leadership role• 3 ~ Managers attend diversity events as active members• 4 ~ Staff get involved as volunteers for chapter activities• 10 ~ Total members per organization
* Source: 7 Keys 2 Success: Unlocking the Passion for Diversity ~ by Rosalyn Taylor O’Neale** We should not target employees for participation based on Gender, Ethnicity, Race, Sexual Orientation or other Self-Identification
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Top Chefs at Clorox Pride MonthTop Chefs at Clorox Pride Month
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Hispanic Employees in the MediaHispanic Employees in the Media
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Path Forward:Culture of InclusionPath Forward:Culture of Inclusion
Typical Behaviors and Beliefs along the Diversity Journey:
1. Pre-Awareness: Conversations often consider "diversity and excellence" as "either/or" propositions
2. Diversity Awareness: Diversity issues and diversity-related services are often delegated to underrepresented minorities and to women as "their" task
3. Transition State: People struggle with how to be inclusive and at the same time how to value differences
4. Intentional Inclusion: Discussions consciously include how diverse staff may be affected by any decision, program, or policy being considered
5. Culture of Inclusion: Inclusiveness and diversity are assumed to be part of the way Clorox does business