FOR IMMEDIATE RELEASE
May 11, 2005
|
CONTACT:
Susan Nierenberg, Catalyst
(646) 388-7744
Omar Velarde-Wong, HACR
(202) 835-9672 Ext. 206
Damon Williams, The Executive Leadership Council
(202) 298-6346 |
Los Angeles, May 11, 2005–
Uniting under the common goal of increasing representation of
women and minorities on corporate boards, three leadership
organizations—
Catalyst,
Hispanic Association on Corporate Responsibility (HACR),
and
The Executive Leadership
Council today announced their collaboration as the
Alliance for Board Diversity
and released the results of their first joint research,
Women and Minorities on
Fortune 100 Boards, which assesses diversity in the
boardrooms of the Fortune 100 and calls attention to the
business imperative for advancing inclusion on corporate boards.
In sharing the results of this benchmark study, the Alliance
focused on the under-representation of women and minorities on
corporate boards. The report, which outlines the stark reality
of today’s board membership, was compiled with assistance from
The Prout Group, an executive search firm. Some key findings
included the following:
-
There is a severe under-representation of women on boards.
Just 16.7% of board seats in the Fortune 100 are held by
women.
-
Racial and ethnic minorities are similarly
under-represented. Only 14.9% of board seats are held by a
minority individual. Minority women fare worst of all,
holding just 3% of board seats in the Fortune 100.
-
Particularly low is representation of Hispanics, who hold
3.9% of board seats, and Asian-Americans, who hold just 1%
of board seats.
-
There is a recycling of the same individuals on multiple
boards, a trend especially seen among minority men.
-
Very few Fortune 100 boards have representation from all
groups, and in more than 60% of the boards surveyed, less
than one-third of the seats are held by women or
minorities.
Focusing
on the strategic urgency for greater inclusion in corporate
governance, the founding partners of the Alliance discussed how
shareholder interests are best served when women and minorities
are included on boards. “Good governance acknowledges the
interests of all stakeholders, including shareholders,
employees, customers, suppliers and communities that businesses
and organizations serve,” said
Alfonso E. Martinez, president and CEO of the Hispanic
Association on Corporate Responsibility. “Having a
diverse board sends a clear message to each of these groups.”
This marks a groundbreaking collaboration for the three
organizations, all well-respected for their individual work in
advancing inclusive leadership in corporate America and making
the business case for diversity in the workplace. “To remain
competitive globally, the United States must recognize and
embrace the power of inclusive leadership. We want to help
companies make the case that diversity is as essential in the
boardroom as it is in the executive suite,” said
Carl Brooks, president of The
Executive Leadership Council, an organization
representing the most senior African-American corporate
executives in Fortune 500 companies.
The three founding organizations plan to leverage membership and
reach to advance the business case for inclusion on corporate
boards. To fulfill this mission, the Alliance will:
-
Offer a qualified candidate referral service which can help
facilitate boardroom diversification
-
Conduct research to measure changes in the demographic
makeup within Fortune 100 Boards and raise awareness of
these findings
-
Identify corporations who commit to the diversification of
their own boardrooms and endorse the Alliance for Board
Diversity mission, collectively or individually, via
“signatory” status
-
Ally with and support like-minded organizations or
individuals who are highlighting the issue of boardroom
diversity as a vital shareholder concern.
Most
notably, the Alliance members are committed to providing
referrals to companies seeking qualified executive women and
minorities to serve on corporate boards. “Through our alliance
and our research, our individual organizations will better serve
companies, helping them to become more aware of the talented
women and minorities available to serve as directors,” said
Ilene H. Lang, president of
Catalyst, the leading non-profit organization working to
expand opportunities for women at work.
The National Association of
Corporate Directors (NACD) is a key partner helping to
advance the Alliance’s mission. For a full copy of
Women and Minorities on
Fortune 100 Boards, please visit
www.catalystwomen.org;
www.elcinfo.com; or
www.hacr.org.
ALLIANCE FOR BOARD DIVERSITY
MEMBERS
Catalyst
Catalyst is the leading research and advisory organization
working with businesses and the professions to build inclusive
environments and expand opportunities for women at work. As an
independent, nonprofit membership organization, Catalyst uses a
solutions-oriented approach that has earned the confidence of
business leaders around the world. Catalyst conducts research on
all aspects of women’s career advancement and provides strategic
and web-based consulting services on a global basis to help
companies and firms advance women and build inclusive work
environments. In addition, we honor exemplary business
initiatives that promote women’s leadership with our annual
Catalyst Award.
Catalyst currently has 328 member corporations, professional
firms and non-profit organizations. With offices in New York,
San Jose, and Toronto, Catalyst is consistently ranked No. 1
among U.S. nonprofits focused on women’s issues by The American
Institute of Philanthropy. For more information, please visit
www.catalystwomen.org,
or call (212) 514-7600.
The Executive Leadership
Council (ELC)
The Executive Leadership Council is an independent,
non-partisan, non-profit 501 (c) 6 corporation. It was founded
in 1986 by 19 African-American corporate executive pioneers to
fulfill a bold mission—change the face of corporate America by
creating a support network and public leadership forum that
prepares African-American corporate senior executives –from the
classroom to the boardroom -- honors business achievements by
African-Americans, encourages excellence in business, and
influences public policy on behalf of African-Americans and the
community at large.
Today the Executive Leadership Council has more than 340
members, of who one-third are women. Members represent more than
200 companies working to support The Executive Leadership
Council’s initiatives and goals. For more information, please
visit
www.elcinfo.com, or
call (202) 298-8226.
Hispanic Association on
Corporate Responsibility (HACR)
The Hispanic Association on Corporate Responsibility is one of
the most influential advocacy organizations in
the nation representing 14 national Hispanic organizations in
the United States and Puerto Rico. HACR’s mission is to ensure
the inclusion of Hispanics in corporate America at a level
commensurate with our economic contributions.
HACR focuses on four areas of corporate behavior as indicators
of corporate responsibility and market reciprocity: Procurement,
Employment, Philanthropy, and Governance. For more information,
please visit
www.hacr.org, or
call (202) 835-9672.
ALLIANCE FOR BOARD DIVERSITY
KEY PARTNERS
National Association of
Corporate Directors (NACD)
Founded in 1977, the NACD is a national non-profit membership
organization dedicated exclusively to serving the corporate
governance needs of corporate boards and individual board
members. NACD’s 15,500 members and customers represent companies
ranging from Fortune 100 public companies to small,
over-the-counter, closely held, and private firms.
NACD promotes high professional board standards, creates forums
for peer interaction, enhances director effectiveness,
communicates and monitors the policy interests of directors,
conducts benchmarking research, and educates boards and
directors concerning traditional and cutting-edge issues.
With almost three decades of corporate governance research and
experience to draw from, NACD provides a seasoned, authoritative
voice on corporate governance policy and practice. NACD also is
a vital forum for peer interaction and exchange of best board
practices.
The Prout Group
The Prout Group is an executive search firm that places senior
executives and board members for organizations across the United
States. It holds the philosophy that leadership at all
functional levels provides a powerful advantage in today's
competitive marketplace.
With the belief that diversity is a strategic business
advantage, The Prout Group leverages its experience and
resources in that space and is committed to presenting a diverse
slate of candidates on all search assignments.
The Prout Group, Inc. is a member of the Association of
Executive Search Consultants (AESC) and is a certified Minority
Business Enterprise (MBE).
