Best Practices in Diversity 2013

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Cornell Hospitality Quarterly

54(2) 124 –135

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Diversity, as the term is used in the United States, is a con-

tinuing concern of the U.S. government and the nation’s

businesses and organizations The fastest growing groups in

the U.S. workforce are Hispanics, Blacks, foreign-bornindividuals, and people with disabilities (Bureau of Labor

Statistics 2009; Houtenville and Kalargyrou 2012; Toossi

2012). All of these groups are included in the U.S definition

of workplace diversity, which includes such aspects as eth-

nicity, gender, sexual orientation, age, and disability (Arthur

and Doverspike 2005; Madera 2011; Richard 2000). Given

the government’s focus on diversity, corporate investments

in diversity management efforts have grown in the last two

decades to an eight-billion-dollar level (Chavez and

Weisenger 2008; Hansen 2003). Organizations have

adopted numerous practices aimed at fostering diversity,

such as mentoring programs focused on developing women

and ethnic minorities, diversity training, networking pro-grams that connect employees who share a similar demo-

graphic background, and supplier diversity programs.

With the exception of collected lists of best practices, I

have found little structured information about specific pro-

grams used by hospitality and customer service organiza-

tions (Kalev, Dobbin, and Kelly 2006). Thus, the purpose of

this study was twofold: first, to outline what the diversity

management literature suggests about various diversity

management programs, and second, to examine which

diversity management practices are used by organizations

that have been recognized as exemplary organizations for

diversity management, including a comparison with whatthe literature recommends. To do this, I analyzed the diver-

sity management programs from a sample of hospitality and

customer service-related organizations that were named by

Diversity Inc. to be top companies for diversity.

Diversity Management Practices

Diversity management practices are complementary, inter-

related human resource policies that focus on increasing

and maintaining a diverse workforce (Dyer and Reeves

1995). Research suggests that diversity management prac-

tices can provide firms with a competitive advantage,

among other benefits (Cox and Blake 1991; McKay, Avery,and Morris 2008, 2009; Richard 2000; Richard and

1University of Houston, TX, USA

Corresponding Author:

Juan M. Madera, Hilton College of Hotel and Restaurant Management,

University of Houston, 229 C. N. Hilton Hotel & College, Houston, TX

77204-3028, USA

Email: [email protected]

Best Practices in Diversity Management

in Customer Service Organizations: An

Investigation of Top Companies Cited

by Diversity Inc.

Juan M. Madera1

Abstract

An analysis of diversity management programs used by fourteen companies cited for diversity found a suite of practices

used by nearly all of them. Using a benchmarking assessment, this study analyzed the diversity management programsfrom a sample of hospitality and customer service organizations that were named by Diversity Inc. to be top companies for

diversity. The analysis of the organizations’ specific practices revealed the following seven complementary and highly related

categories of diversity management practice: corporate diversity council, diversity training programs, supplier diversity,employee networking and mentoring, cultural awareness, support for women, and lesbian, gay, bisexual, and transgender

network programs and same-sex benefits. The result of these policies is a highly diverse workforce and relatively diverse

management in the sample firms.

Keywords

diversity management; best practices; diversity training; human resources; mentoring

Focus on Human Resources

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Madera 125

Johnson 1999). Diversity management practices succeed

by directing attention to relevant efforts to achieve the

goals of diversity and eliminate discrimination. Among the

effective practices are formal, written guidelines and poli-

cies to increase diversity, which lead to more diversity in

the workforce and management positions (Konrad andLinnehan 1995). Regardless of their specific form, diver-

sity management programs generally focus on recruiting

and developing diverse employees, for example, through

networking and mentoring programs focused on hiring and

advancing women and ethnic minorities. Most programs

include executive positions related to administering the

program, and many firms also maintain programs to source

purchasing from women- and minority-owned businesses.

In addition, these programs generally involve educating

and training employees regarding diversity.

Y. B. Kim (2006) applied a four-dimensional scheme to

diversity management practices, based on the following

four broad benefits of diversity: maintaining a heteroge-

neous workforce that provides new and fresh ideas, improv-

ing firm growth, enhancing firm image, and gaining a pool

of valuable human resources.

New and Fresh Ideas

Y. B. Kim (2006) proposed that a diverse workforce can

enhance an organization’s marketing strategy because

diversity in work groups often leads to diverse ideas and

perspectives. In fact, research shows that groups of diverse

personnel are more effective in solving and analyzing prob-

lems than are homogeneous groups (Cox 2001). In addition

to generating new ideas, a diverse workforce will mirror the

diversity that makes up customers.

Improve Firm Growth

Research shows that having diversity management pro-

grams promotes employees’ organizational attitudes that

affect individual performance (McKay, Avery, and Morris

2009). Those favorable attitudes would be reflected in the

operations of customer service organizations (Waight and

Madera 2011).

Enhance Firm Image

Companies with exemplary diversity management prac-tices perform better, as measured by their stock prices

(P. Wright et al. 1995). However, allegations of discrimina-

tion can harm an organization’s public image (Y. B. Kim

2006) and damage stock prices (Goldman et al. 2006).

Create Valuable Human Resources

Customer service organizations already depend on a diverse

workforce and will continue to do so. Although recruiting,

selecting, and retaining a diverse workforce will give an

organization a competitive advantage (Y. B. Kim 2006),

numbers alone are not sufficient. Instead, research shows

that the benefits of diversity on organizational performance

are contingent on formal and integrative diversity practices

(Cox, 2011; Kalev et al. 2006; McKay, Avery, and Morris2008, 2009).

Commonly Cited DiversityManagement Programs

Leadership Initiatives

Leadership, particularly executive positions related to

administering a diversity program, is one of the most

important factors for developing a diverse workforce

(Richard 2000). Management positions are responsible for

monitoring diversity outcomes (such as recruiting and

retention rates of ethnic minorities and women). Some

scholars argue that direct involvement from top executives

in diversity-related functions can signal an organization’s

commitment to diversity (e.g., Cox 2001; Gilbert, Stead,

and Ivancevich 1999; Hubbard 2004). Even stronger is

including diversity and nondiscrimination policies as part

of the organizational culture (Baytos 1992; Cox 2001;

Hubbard 2004; Naff and Kellough 2003; Richard 2000;

Sturm 2001).

Diversity Training

Many organizations offer diversity training to implement

and maintain a culture of diversity and inclusion (up to

79%, according to Galvin 2003). Although the specifics ofdiversity training programs can vary widely, they share one

common set of goals, which is “to increase knowledge

about diversity, to improve attitudes about diversity, and to

develop diversity skills” (Kulik and Roberson 2008, p. 310).

Such training can take the form of online modules,

classroom-based training, videos, discussions, role-plays,

simulations, and exercises (Bendick, Egan, and Lofhjelm

2001; Pendry, Driscoll, and Field 2007).

Recruitment and Selection

Regarding the key aspect of diversity management pro-

grams, recruiting and promoting diverse applicants, the lit-erature points to the following three specific strategies:

(1) using proper communication media and messages, such

as minority publications and websites; (2) using minority

recruiters and advertising materials that include diverse

individuals; and (3) communicating the importance and

value of diversity to all applicants to maintain a positive

diversity climate among new hires (Arthur and Doverspike

2005; Avery 2003; Avery, Hernandez, and Hebl 2004; Cox

2001; Digh 1999; Doverspike et al. 2000; Houtenville and


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126 Cornell Hospitality Quarterly 54(2)

Kalargyrou 2012; S. S. Kim and Gelfand 2003; Perkins,

Thomas, and Taylor 2000).

Mentoring and Networking

The diversity management literature underscores the impor-tance of mentoring and networking programs for minorities

(Brass 1984). Many diversity management programs focus

on mentoring and providing networks for minority employ-

ees. The literature suggests two major programs: (1) creat-

ing formal programs in which managers mentor minority

employees and (2) using affinity groups—employee net-

working groups in which employees engage in informal

activities, discussions, and meetings to share information

and career advice (Cole 2003; Digh 1997; Higgins and

Thomas 2001; Houtenville and Kalargyrou 2012; Sparrowe

and Liden 2005; D. A. Thomas 2001;Wanberg, Welsh, and

Hezlett 2003).

Supplier Diversity

Supplier diversity programs help support the estimated

10.4 million women- and minority-owned businesses in

the United States, which generate more than $1.5 trillion in

sales revenue and employ 11.7 million people (U.S.

Census Bureau 2002). More than 75 percent of organiza-

tions have some type of supplier diversity initiative, but

these initiatives are not always communicated or imple-

mented effectively (Holmes 2005). Corporate commitment

and corporate culture have been identified as the most

important factors in developing and maintaining a supplier

diversity program (Carter, Auskalnis and Ketchum 1999;

Duffy 2004; Min 1999; Whitfield and Landeros 2006;Yuva 2003).

Affirmative Action (AA) and Equal

Employment Opportunity (EEO) Compliance

Underlying most successful diversity programs are AA/

EEO programs, which are also generally mandated by fed-

eral or state law. Usually administered by a director, AA/

EEO programs focus on setting goals for increasing diver-

sity in all ranks of an organization and evaluating the

progress of diversity, including collecting and analyzing

demographic information of an organization, finding

departments or ranks in which women and minorities areunderutilized, and disseminating information about diver-

sity to employees (Cox 2011; Jayne and Dipboye 2004;

Kalev et al. 2006; Konrad and Linnehan 1995).

With that background for why diversity management

practices benefit hospitality organizations, I will examine

which specific diversity management practices are adopted

by a sample of successful hospitali ty and customer service

organizations. The goal is to develop an organized list

of diversity programs and discover whether diversity

management practices recommended by researchers are

the ones adopted by these successful firms.

Method and Sample Construction

Using Hinkin and Tracey’s (2010) benchmarking assessmentmethodology, I studied fourteen organizations selected

from the 2010 Diversity Inc. Top 50 Companies for

Diversity to investigate what these organizations do to suc-

cessfully manage a diverse workforce. In this competitive-

generic hybrid benchmarking analysis, organizations from

the same industry and organizations from other but similar

industries are examined in one sample. I used the Diversity

Inc. list as a proxy for an assessment of effective diversity

management. I note that these organizations have a higher

proportion of women and minorities in their workforce,

management positions, and executive positions than orga-

nizations outside this list. These organizations are represen-

tative of major U.S. corporations, and they are positively

rated by the majority of their employees. Their company

size, revenue, health care benefits, and salaries are highly

comparable, and company information and demographic

data are generally available. Because the majority are head-

quartered in the United States, most organizations are gov-

erned by the same laws (e.g., Title VII of U.S. Civil Rights

Law). Similar methods have been used by past research

examining diversity management practices (e.g., Bilimoria

2006; Rechner and Dalton 1991; Wiersema and Bantel 1992).

The fourteen companies that I chose from the Diversity

Inc. list all involve a large service component as part of

their business model. The sample included five hospitality

organizations: Sodexo (ranked 1 by Diversity Inc.), Marriott

International (ranked 7), Starwood Hotels and ResortsWorldwide (ranked 19), MGM Mirage (ranked 24), and the

Walt Disney Company (ranked 33); two food and beverage

purveyors—the Coca-Cola Company (ranked 17) and Kraft

Foods (ranked 35); and seven other service organizations:

Bank of America (ranked 9), Verizon Communications

(ranked 11), Health Care Service Corporation (ranked 20),

HSBC-North America Bank (ranked 27), JP Morgan Chase

Bank (ranked 34), Target Corporation (ranked 40), and

J. C. Penney (ranked 46). These fourteen organizations are

listed in Exhibit 1, together with their diversity manage-

ment practices, and ethnicity- and gender-related workforce

statistics, as available.

The Diversity Inc. list is developed from a multiple-choice survey consisting of about 300 questions that is

mailed to more than 700 companies. No subjective or quali-

tative questions are asked. The survey is organized in four

parts: CEO commitment, human capital, corporate commu-

nications (internal and external), and supplier diversity.

The survey includes questions on workforce demographics,

including information on race and gender at different levels

of management and on the retention rates for female and

minority managers, and about supplier diversity, such as the




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Madera 127

Exhibit 1:Diversity Management and Workforce Diversity Statistics

Ranking and Company Diversity Management Practices Workforce Diversity Statistics

(1) Sodexo 1. Corporate diversity council2. Diversity training programs

3. Supplier diversity4. Employee networking and mentoring programs5. Cultural awareness6. Support for women7. Same-sex benefits

Ethnic minorities account for 49.7% of the workforce,and 60% are women.

Ethnic minorities account for 24% of management, and45% are women.

(7) Marriott International 1. Corporate diversity council2. Diversity training programs3. Supplier diversity4. Employee networking and mentoring programs5. Cultural awareness6. Support for women7. Same-sex benefits

Ethnic minorities account for 61% of the workforce,and 55% are women.

Women account for 48% of management. Ethnicminorities are 27% of new managers hired.

(9) Bank of America 1. Corporate diversity council2. Supplier diversity3. Employee networking and mentoring programs

4. Cultural awareness5. Support for women6. Same-sex benefits


Ethnic minorities account for 25% of management, and

49% are women.

(11) VerizonCommunications

1. Corporate diversity council2. Supplier diversity3. Employee networking and mentoring programs4. Cultural awareness5. Support for women6. Same-sex benefits

Ethnic minorities account for 37% of the workforce,and women are 30%.

30% of managers are ethnic minorities, and 22% arewomen.

(17) Coca-Cola Company 1. Corporate diversity council2. Diversity training programs3. Supplier diversity4. Employee networking and mentoring programs5. Cultural awareness6. Support for women

7. Same-sex benefits



(19) Starwood Hotels andResorts Worldwide

1. Corporate diversity council2. Diversity training programs3. Supplier diversity4. Employee networking and mentoring programs5. Cultural awareness6. Same-sex benefits


Ethnic minorities account for 50% of college interns.

(20) Health Care ServiceCorporation

1. Corporate diversity council2. Diversity training programs3. Supplier diversity4. Employee networking and mentoring programs5. Cultural awareness6. Same-sex benefits


(24) MGM Mirage 1. Corporate diversity council2. Diversity training programs

3. Supplier diversity4. Employee networking and mentoring programs5. Support for women6. Same-sex benefits


Ethnic minorities account for 36% of management, and44% are women

(27) HSBC-NorthAmerica Bank

1. Corporate diversity council2. Supplier diversity3. Employee networking and mentoring programs4. Support for women5. Same-sex benefits


Ethnic minorities account for 37% of new hires, and56% are women

(continued)




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Ranking and Company Diversity Management Practices Workforce Diversity Statistics

(33) Walt DisneyCompany

1. Corporate diversity council2. Diversity training programs3. Supplier diversity

4. Employee networking and mentoring programs5. Cultural awareness6. Support for women7. Same-sex benefits


Ethnic minorities account for 21% of management, and

44% are women

(34) JP Morgan ChaseBank

1. Corporate diversity council2. Diversity training programs3. Supplier diversity4. Employee networking and mentoring programs5. Cultural awareness6. Support for women7. Same-sex benefits

Ethnic minorities account for 41% of the workforce.

(35) Kraft Foods 1. Corporate diversity council2. Supplier diversity3. Employee networking and mentoring programs4. Support for women

5. Same-sex benefits

Ethnic minorities account for 21% of the workforce,and 35% are women

(40) Target Corporation 1. Corporate diversity council2. Diversity training programs3. Supplier diversity4. Employee networking and mentoring programs5. Cultural awareness6. Support for women7. Same-sex benefits



(46) J. C. Penney 1. Corporate diversity council2. Diversity training programs3. Supplier diversity4. Employee networking and mentoring programs5. Cultural awareness6. Support for women7. Same-sex benefits

Workforce demographic data were not available.

Exhibit 1: (continued)

volume of purchases, provision of loans, or other financial

assistance to diverse suppliers. To be selected for the list,

companies must score above average in all four parts.

My study examined these firms’ diversity management

practices as found on their web sites, the Standard and

Poor’s Register of Corporations, and information from the

Human Rights Campaign, the National Association of

Female Executives (NAFE), and the National Minority

Supplier Development Council. I conducted a content anal-

ysis using Krippendorff’s (2004) coding guidelines, in

which trained coders read all of the materials and develop acoding scheme. Along with the coders, I cross-checked

the coding scheme for reliability. We then developed and

cross-checked subthemes.

Results and Discussion

The content analysis found seven major themes reflecting

the following seven diversity management programs

applied by all fourteen corporations: corporate diversity

council, diversity training programs, supplier diversity,

employee networking and mentoring, cultural awareness,

support for women, and lesbian, gay, bisexual, and trans-

gender network (LGBT) programs and same-sex benefits.

Corporate Diversity Council

Although known by different names, the firms’ corporate

diversity councils have a common function of focusing

management and staff on diversity issues and actions. At

Coca-Cola, the diversity council is composed of employeesfrom various levels and business units to advise senior

management regarding diversity (Coca-Cola 2011). MGM

Mirage holds diversity roundtable discussions that include

top executives, including the CEO, and established the

Corporate Diversity and Community Affairs Department to

implement diversity and inclusion initiatives (MGM Mirage

2011). The CEO of Bank of America is the chair of their

corporate diversity council, which meets quarterly (Bank of

America 2011).




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Madera 129

Kraft Foods established a diversity practices council

that comprises executive leaders from various departments,

including corporate and legal affairs, multicultural market-

ing, diversity management, and talent acquisition to ensure

that their diversity efforts are aligned with corporate strate-

gies (Ezell, Wise, and Moody 2010). Sodexo takes a uniqueapproach with their diversity council because the members

of their Diversity and Inclusion Business Advisory Board

are not employees of Sodexo, but are rather leaders from

outside the company who advise the corporate leaders on

diversity issues (Sodexo 2011).

Starwood Hotels and JP Morgan Chase all include senior

leaders in their diversity teams. Starwood’s Diversity

Council monitors the status of women and minorities in

three areas: their associates, managers, and owners. Chaired

by the CEO, Marriott International created a corporate

diversity council that meets quarterly and is composed of

company executive leaders who are responsible for devel-

oping diversity objectives and keeping track of diversity in

four areas, including their employees, guests, suppliers, and

owners.

J. C. Penney uses regional chapters for its diversity and

inclusion councils overseen by a senior executive of diver-

sity and inclusion development program (J. C. Penney

2011). Similarly, the Walt Disney Company established a

diversity leadership advisory board comprising executives

from various business units in all of its locations. These

diversity councils assist their site in developing diversity

strategies, such as monitoring trends in management diver-

sity. A common thread in all these diversity councils is that

support from top management is an important aspect,

reflecting the importance of top management in promoting

diversity initiatives (Chrobot-Mason and Quiñones 2002;Hebl, Madera, and King 2007).

Diversity Training Programs

Ten of the fourteen organizations communicate the avail-

ability of diversity training through their corporate web

site, namely, Coca-Cola, Health Care Service Corporation,

J. C. Penney, JP Morgan Chase Bank, Marriott, MGM

Mirage, Starwood Hotels and Resorts, Target, Walt Disney,

and Sodexo. Coca-Cola, for instance, has diversity training,

a diversity speaker series, and diversity training for supplier

diversity to ensure that its associates understand how

women- and minority-owned business can be used as anasset for Coca-Cola. Sodexo maintains mandatory diversity

training for the entire workforce on such topics as genera-

tions in the workplace and cross-cultural communications.

Similarly, Target has mandatory diversity training for all of

their employees, which is held monthly for half a day.

Diversity training at Starwood Hotels and Resorts

Worldwide is not mandatory, but a one-day session at

MGM Mirage is required for both employees and managers.

Marriott International’s training is also mandatory, as is that

of Health Care Service Corporation, J. C. Penney, Walt

Disney, and Kraft Foods, in sessions that range from half a

day to a full day.

Broad or Narrow Approach to Diversity. Most of the

firms I studied defined diversity quite broadly, but somegave it a narrow interpretation. Broad definitions can

encompass a variety of demographic dimensions (e.g., race,

age, gender, disability, sexual orientation) and individual

dimensions (e.g., parental status, education level, personal-

ity). In contrast, narrow definitions of diversity may only

consider a few demographic dimensions (e.g., race, age;

Roberson, Kulik, and Pepper 2003).

Diversity training in the following firms takes a broad

approach: Coca-Cola, Health Care Service Corporation, J.

C. Penney, JP Morgan Chase, Sodexo, Target, and the Walt

Disney Company. This approach is consistent with research-

based evidence that shows that employees prefer diversity

training that takes a broad approach (Mobley and Payne

1992; Roberson et al. 2003). In doing so, employees feel

that every group, whether based on race or age, is repre-

sented as diverse, including their own.

Supplier Diversity

All fourteen of the organizations had some type of supplier

diversity program that was clearly communicated through

their web sites. In 2010, the Walt Disney Company’s sup-

plier diversity program spent $443.6 million on women-

and minority-owned businesses, representing more than

13 percent of the firm’s supplier spending (Walt Disney

Company 2011), and Disney also has a formal relationship

with the National Association of Women Business Owners.MGM Mirage spent more than $700 million (17% of its

supplier spending) in construction and design contracts

with more than 200 minority-owned firms throughout a

five-year project (MGM Mirage 2011), and works with the

Women’s Chamber of Commerce of Nevada to support

women-owned businesses. Marriott International spends

16.6 percent of its discretionary spending with diverse sup-

pliers, surpassing its goal of 15 percent established in 2007

(Marriott International 2011). Similarly, Starwood Hotels

and Resorts Worldwide spends 11 percent with diverse

suppliers.

Supplier diversity programs are mutually beneficial.

HSBC-North America (2011) states that “HSBC leveragesthe supplier diversity program to build relationships with

select businesses by providing training and exposure that

strengthens their ability to compete in the U.S. and global

market place.” With more than 30 years of experience,

J. C. Penney has a long history with promoting minority-

and women-based organizations. J. C. Penney is a found-

ing member of the National Minority Supplier Development

Council and the Women’s Business Enterprise Council,




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two business networking organizations that are focused

on promoting women- and minority-owned businesses.

Similarly, supplier diversity for Sodexo, which spends

14 percent on supplier diversity initiatives, is communicated

as an opportunity to provide excellent products and goods,

and as a competitive advantage for their diverse customersand their minority-based business partners (Sodexo 2011).

Many of the organizations also provide some form of

mentoring to diverse suppliers. Spending 25 percent of its

supplier spending on women- and minority-owned busi-

nesses, Coca-Cola established a supplier diversity men-

toring program that trains and guides female and minority

business owners (Coca-Cola 2011; Tharasook 2008). In

addition to spending 28 percent of supplier spending

with diverse vendors, Bank of America provides women-

and minority-owned suppliers financial assistance and

resources, such as loans, equity financing, and financial ser-

vices (Bank of America 2011). Verizon spent 36.5 percent

of its supplier spending with diverse suppliers and actively

pursues business with diverse suppliers by partnering with

diversity advocacy groups, chambers of commerce, and

other organizations to identify qualified diversity suppliers

(Verizon 2011). In sum, the average spending on diverse

suppliers was 20 percent for this sample, higher than the

typical spending focused on women- and minority-owned

businesses, which ranges more commonly from 5 to 8 per-

cent (National Minority Supplier Development Council

2004).

Employee Networking

and Mentoring Programs

The third theme that emerged from the data analysis wasthe presence of employee networking groups and mentor-

ing programs, which are found in all fourteen organiza-

tions. For example, Verizon established the Employee

Resource Group, which provides networking, mentoring,

special initiatives, seminars, and conferences for employ-

ees (Verizon 2011). Kraft Foods established a “Jumpstart”

program in which senior members coach employees who

have less than three years with the company. The program

helps employees understand how to build and maintain

relationships, gain leadership skills, and establish effective

mentor networks. Kraft Foods also has peer-coaching net-

works that are specifically aimed at accelerating the devel-

opment of women and ethnic minorities toward management positions (Ezell et al. 2010). Similarly, MGM Mirage holds

a nine-month executive mentoring program with the goal of

advancing high-potential minority employees into the

executive level.

Sodexo uses both mentoring and employee networking

groups for its diversity and inclusion initiatives. In particu-

lar, Sodexo established IMPACT, which is an annual event

in which mentoring partnerships are formed to help

protégés achieve their work goals. To increase diversity in

management, Sodexo also established the “Spirit of

Mentoring Bridge Program,” which is focused on connect-

ing newly hired and frontline managers.

Starwood established a virtual mentor network that is

centered on a web-based tool that allows employees world-wide to create mentoring relationships with other associ-

ates. Mentors and protégés establish goals on leadership

competencies and measure progress, provide coaching and

development opportunities, and prepare employees for

leadership roles (Allen, Finkelstein, and Poteet 2009).

Affinity Groups. A subtheme in the networking category isaffinity groups based on a common dimension (e.g., race, reli-

gion, disability, gender). Sodexo’s affinity groups, for instance,

include the African American Leadership Forum, the Military

Network Group, the Intergenerational Network Group, the

Pan-Asian Employee Network Group, PRIDE (a LGBT), the

Organization for Disabilities Resources, the Organization of

Latinos, and the Women’s Network Group (Catalyst 2012).

Coca-Cola, HSBC-North America Bank, and J. C. Penney

have also established affinity groups, such as people with

disabilities, female, African-American, Asian/Pacific

Islander, LGBT, Hispanic, and Native American employ-

ees. Developing employee networking groups, and mentor-

ing programs that are focused on women and minorities is

aligned with the literature examining mentoring experi-

ences for those groups, which suggests that minority man-

agers have fewer intimate networking relationships (Hebl,

Madera, and King 2007; Ibarra 1995; D. A. Thomas 1990).

It is widely recognized that networks are central to a per-

son’s mobility, promotion, and emergence as a leader. The

absence of such networks, moreover, leads to feelings of

exclusion and lack of commitment in the workplace(Williams and O’Reilly 1998).

Cultural Awareness

Twelve of the fourteen organizations communicated cul-

tural awareness programs or training on their corporate web

sites: Bank of America, Coca-Cola, Health Care Service

Corporation, J. C. Penney, JP Morgan Chase, Marriott,

Target, Sodexo, Starwood Hotels and Resorts, Verizon, and

Walt Disney.

Marriott’s web site clearly communicates that the multi-

cultural makeup of the U.S. workforce is a business oppor-

tunity, stating that

for many new immigrants, hotels are often the first

opportunity for formal employment and [they]

deeply influence initial impressions of their new

homeland. In the U.S., many of our associates are

foreign-born, and Marriott has long advocated for

a comprehensive approach to immigration reform.

(Marriott International 2011)




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Madera 131

In addition to their efforts in U.S. properties, in 2008,

Marriott appointed a global diversity officer to spearhead

the company’s diversity outreach outside of the United

States. Part of Marriott’s required diversity training aims to

help employees gain cultural competence and be able to

effectively work with peers and customers from differentcultures. Disney uses its “hola” program to promote

Hispanic and Latino heritage and cultural exchange between

employees.

An example of how hospitality organizations can embrace

cultural awareness is provided by the observance of

Ramadan by Starwood Hotels and Resorts, in which the

hotels provide reduced rates to customers traveling during

that time. Verizon also celebrates cultural holidays with

events such as the Lunar New Year, Cinco de Mayo,

Hispanic Heritage month, Black History month, Latin

Grammys, the National Association for the Advancement of

Colored People Image Awards, and the Hispanic and Asian

film festivals. Health Care Service Corporation established a

“Diversity Day,” in which employees can take a paid float-

ing holiday that can be used for any cultural holiday.

In addition to having general cultural awareness pro-

grams, some of the organizations, such as Starwood and

Marriott, have programs that welcome employees from all

cultures and facilitate employees to work and gain interna-

tional experience in their company under specific visas.

Such programs promote cultural diversity among the work-

force and strengthen employees’ ability to communicate

effectively with a wide span of customers.

Language Proficiency Programs. Another subtheme wasthat some of the organizations had programs focusing on

language proficiency. Both Starwood Hotels and Resorts,

and Marriott offered language programs. Marriott’s lan-guage program teaches Spanish-speaking employees work-

place skills in English to increase their English proficiency.

Such programs benefit the workers and develop a bilingual

staff, which is important to the organization. Verizon pro-

vides customer service in multiple languages in the United

States to support customers in Mandarin, Cantonese,

Korean, Russian, Spanish, and Vietnamese.

Support for Women

All of the firms work on recruiting, developing, and retain-

ing women. This finding is underscored by the fact that

women constitute a greater proportion of workers than ever before (Powell and Graves 2003). It is projected that by

2016, women will make up about 46 percent of the labor

force, a percentage that will hold relatively steady (at 48%)

through 2025 (Fullerton 1999; Toossi 2008). The hospital-

ity industry has more work to do here, given its reputation

for sex discrimination, sexual harassment, and being male

dominant (Slonaker, Wendt, and Baker 2007; Sparrowe

and Iverson 1999). Additionally, research has shown that

women earn less than men in similar job positions and that

there are gender differences in hospitality industry manage-

rial positions (Biswas and Cassell 1996; Purcell 1996;

Sparrowe and Iverson 1999; Thrane 2007).

The fourteen organizations in this study have clearly rec-

ognized the value of creating avenues for women in topmanagement positions, with programs such as “Women’s

Leadership Development Program” at Marriott, Coca-

Cola’s “Women’s Linc” business resource group, and the J.

C. Penney women’s affinity group. Marriott’s program

includes a Leadership Development Talent Inventory pro-

cess for female general managers to give them a personal

assessment, feedback, coaching, a workshop, and a per-

sonal development plan. Sodexo’s “Women’s Network

Group” was established to include women’s growth and

development as part of Sodexo’s culture and mission

(Catalyst 2012).

Seven of the firms have been given the NAFE Top 50

Award, for companies that display a great interest in their

female executives, based on the number of women in exec-

utive positions. Those firms are Bank of America, HSBC-

North America, JP Morgan Chase, Kraft Foods, Marriott

Hotels, Sodexo, and Verizon. Women in the organizations

on the NAFE list represent an average of 23 percent of

boards of directors and 26 percent of executive positions. In

contrast, women only constitute 15.4 percent of corporate

officers and 14.6 percent of boards of directors of Fortune

500 organizations (Catalyst 2007).

LGBT Programs

and Same-Sex Benefits

The last theme that emerged from the analysis is support forLGBT employees and providing same-sex benefits. All

fourteen organizations offer same-sex benefits to their

employees, which exceeds the 57 percent rate of Fortune

500 organizations that provide benefits to employees’ same-

sex partners. Estimated at up to 10 percent of the popula-

tion, LGBT individuals often face discrimination in their

personal lives (Gonsiorek and Weinrich 1991; Herek 2000)

and in the workplace (Friskopp and Silverstein 1996; Hebl,

Madera, and King 2007; Ragins and Cornwell 2001;

Ragins, Singh, and Cornwell 2007). Although there are

state and local antidiscrimination laws that protect sexual

orientation diversity, sexual orientation is not protected at

the federal level.Three organizations stand out for advancing LGBT

employment policies and protection: Marriott International,

JP Morgan Chase, and MGM Mirage. Marriott International

was among the first in the lodging industry to offer domes-

tic partner benefits and has earned perfect 100-percent

scores on the Human Rights Campaign’s Corporate Equality

Index for multiple years (Gunther 2008). JP Morgan Chase

was the first in the banking industry to offer same-sex




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domestic partner benefits to its employees. Similarly, MGM

Mirage was the first company in the gaming industry to

offer same-sex health benefits to employees.

Other organizations also provide same-sex benefits and

actively engage in events that advance LGBT diversity.

Verizon flies a rainbow flag during Pride month, and Targethas a history of sponsoring events in the LGBT community.

In addition, Marriott hotels have hosted LGBT community

functions and events as part of their efforts to advance

LGBT inclusion policies.

Sexual Orientation Nondiscrimination. A subtheme thatemerged here is that some of the organizations also include

sexual orientation in their nondiscrimination polices, includ-

ing J. C. Penney, Disney, and Starwood, which includes

gender identity as a protected class. Research has shown

that including LGBT nondiscrimination policies is posi-

tively related to job satisfaction and commitment among

LGBT employees (Day and Schoenrade 2000).

Comparing the Results to the Literature

As a final step, I compared the results of the content analy-

sis with recommendations from the diversity management

literature to examine whether the programs adopted by

these large, successful organizations match those recom-

mendations. I found considerable congruence. These com-

panies had leadership initiatives, diversity training, supplier

diversity programs, and mentoring and networking pro-

grams, and they also communicated their support of diver-

sity and nondiscrimination policies through their cultural

awareness, support for women, diversity training, and

LGBT programs and same-sex benefits.

In addition, the importance of recruiting and selectingdiverse individuals was also communicated through many

of the diversity management practices adopted by these

firms, including Marriott’s global diversity officer; the sup-

plier diversity initiatives (including women-owned busi-

nesses) on the part of MGM Mirage, Verizon, and Walt

Disney; Marriott’s language program; and Marriott

International’s, JP Morgan Chase’s, and MGM Mirage’s

offer of same-sex benefits and protection to attract and

retain LGBT individuals.

I also identified practices that were not aligned with

the diversity management literature’s recommendations. In

only three firms, for example, was the CEO part of the cor-

porate diversity council, Marriott, MGM Mirage, and Bankof America. However, many firms did have corporate

diversity councils to administer diversity initiatives and

progress.

Interestingly, the companies in this sample do not include

specific mentions of AA or EEO policies in conjunction

with their diversity program. This result, however, is con-

sistent with a growing body of literature that suggests that

because AA/EEO programs are federally mandated and are

often associated with negative stereotypes, many organiza-

tions frame their diversity initiatives outside of their AA/

EEO statements (Chavez and Weisenger 2008; Hansen

2003; Society for Human Resource Management 2008).

That is, diversity management practices are voluntary orga-

nizational programs, whereas AA/EEO programs are tied tolegislation.

The results also underscore an important shortcoming of

the diversity management literature, which is that the lit-

erature lacks practical and specific advice. The best prac-

tices suggested by the diversity management literature are

often conceptual and general, while the firms’ practices are

often quite specific to various groups, such as affinity

groups focusing on disabilities, programs to promote

women into management, language programs for foreign-

born employees, and policies that specifically protect

LGBT employees.

Summary and ConclusionThis study identified seven categories of diversity man-

agement practices used by the fourteen organizations I

examined: corporate diversity council, diversity training

programs, supplier diversity, employee networking and

mentoring, cultural awareness, support for women, and

LGBT programs and same-sex benefits.

This study contributes to the diversity management lit-

erature by examining which specific diversity management

practices have been adopted. The sample, drawn from the

Diversity Inc. top-rated companies, provides a window into

diversity management practices used by the most successful

firms. The successful diversity management practices high-

lighted here are particularly important for the hospitalityindustry, given its position as one of the largest employers

of women, ethnic minorities, and immigrant employees

(Jackson and DeFranco 2005; Lee and Chon 2000).

Hospitality employers can use these results as a gauge for

which diversity management practices have been successful

for other service organizations and as models for diversity

management. Six organizations use all seven diversity man-

agement practices, and all fourteen had at least five of these

practices. What these results suggest is that to have a truly

effective approach to diversity management, organizations

need to offer a broad set of diversity management

practices.

One interesting observation is that all fourteen compa-nies had a corporate diversity council, even though only

three included their CEO. All of the corporate diversity

councils were responsible for diversity initiatives and for

monitoring progress, which the diversity management lit-

erature suggests is vital for diversity programs to be suc-

cessful. Another practice common to all fourteen companies

was the use of employee networking groups or affinity

groups. The fact that this can be done virtually is




10/12

Madera 133

particularly important for small companies or those with

distant operations. I found that Sodexo, Coca-Cola, and

Bank of America, among others, use free social media, such

as Facebook and Twitter, to organize their affinity groups.

In closing, it important to highlight the presence of hos-

pitality firms on this list. A hospitality organization, Sodexo,was the top company for diversity. According to Diversity

Inc., Marriott International, Starwood Hotels and Resorts

Worldwide, MGM Mirage, and the Walt Disney Company

were also high on the list, giving evidence that the hospital-

ity industry can be a leader for diversity management prac-

tices. These practices will help offset the industry’s major

problem, as identified by Hinkin and Tracey (2010): there is

an attitude in the hospitality industry that the industry “faces

special problems that other industries do not” (p. 170), such

as high turnover rates. By adopting diversity management

programs, as explained here, organizations in the hospital-

ity industry will be able to increase and maintain a diverse

workforce in all levels.

Declaration of Conflicting Interests

The author(s) declared no potential conflicts of interest with

respect to the research, authorship, and/or publication of this

article.

Funding

The author(s) received no financial support for the research,

authorship, and/or publication of this article.

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Bio

Juan M. Madera, PhD, is an assistant professor at the Conrad N.

Hilton College of Hotel and Restaurant Management, at the

University of Houston.


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