2004 Chicago United Year in Review

Chicago United’s 2004 Year in Review Leadership in a Changing World

The work of Chicago United is made possible by the support of our members:

Abbott Laboratories, Inc

David Gomez & Associates, Inc.

Odell Hicks & Company

Advocate HealthCare

Earl Neal & Co.

Peoples Energy

Aon Corporation

Electronic Knowledge Interchange

Primera Engineers, Ltd.

Ariel Capital Management, Inc.

Endow, Inc.

Ralph G. Moore & Associates

Azteca Foods, Inc.

Ernst & Young

Rush Presbyterian St. Luke’s Medical Center

Bank of America

Harris

Sanchez & Daniels

Baxter International, Inc.

Hill, Taylor LLC

Sara Lee Corporation

Blue Cross and Blue Shield of Illinois

Hispanic Housing Development Corporation

Seaway National Bank

Interface Computer Communications, Inc.

Sidley, Austin, Brown & Wood, LLP

Bonaparte Corporation BP Amoco Inc. Burris, Wright, Slaughter & Tom, LLC Cabrera Capital Management Carrington & Carrington, Ltd. Chicago State University Chicago Symphony Orchestra Chicago Tribune Company Chicago Urban League Citibank F.S.B. Commonwealth Edison Company Crain’s Chicago Business Cub Foods

Jewel-Osco LaSalle Bank Loop Capital Markets, LLC Marshall Field’s Mayer, Brown, Rowe & Maw Mesirow Financial Neal, Murdock & Leroy, LLC NJW & Associates Northern Trust Company Northwestern Memorial Hospital

ShoreBank Corp.

Smith Whiley & Company Synch Solutions United Airlines, Inc. United Building Maintenance, Inc. University of Chicago Hospitals University of Illinois at Chicago USG Corporation Washington, Pittman & McKeever, LLC Winston & Strawn

Nuveen Investments

Executive Committee 2004 Officers Timothy Schwertfeger Chairman & CEO Nuveen Investments Chair, Chicago United Michael O’Halleran President & COO Aon Corporation Vice Chair, Chicago United Albert Grace President, Loop Capital Markets Secretary, Chicago United James Hill, Jr. Founder/Chairman & CEO Hill Taylor LLC Treasurer, Chicago United

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Kevin B. Brookins Regional Director Exelon Corporation

Manuel “Manny” Sanchez Founding & Managing Partner Sanchez & Daniels

Raymond McCaskey President & CEO Health Care Service Corporation

Pete Van Helden President, Jewel-Osco

Essex Mitchell Division Vice President Abbott Laboratories Jean Pogge Senior Vice President ShoreBank John W. Rogers, Jr. Chairman & CEO Ariel Capital Management

Gloria Castillo President, Chicago United

MESSAGE FROM THE PRESIDENT

2004 was an exciting year for Chicago United!

It is with a great pride that I represent the members of Chicago United. Our members recognize the value of diversity and inclusion in their own organizational health and success as well as the larger positive impact on the economic fabric of Chicago and our nation. Nowhere was member stewardship more apparent than in the support of our first conference, The Changing Color of Leadership. As an organization we enjoyed 100% participation by our Executive Committee and almost 98% participation of all members. Contributions large and small, monetary commitment and the commitment of talent and resources made the conference not only a financial success but supported a unique learning and sharing environment.

It was gratifying to hear the comments of the Bridge Award Dinner keynote speaker, US Securities and Exchange Commissioner, Roel C. Campos. Mr. Campos suggested that Chicago United should be a national model for research and advocacy on behalf of multiracial leadership. While the praise is appreciated, we recognize that Chicago enjoys a special breed of influentials that are not only business leaders but hold the dual role of civic leaders as well; therefore the Chicago United model will not easily be replicated.

As we move into 2005 our members remain focused on building sustainable diversity in the business community.

Participation is as a channel through which they can contribute to and impact the local social and economic structures in which their businesses operate and thrive. In 2005 we will celebrate the next group of board ready individuals to be honored in the Business Leaders of Color publication. We will host thought provoking Race and Business Forums and again present the Changing Color of Leadership Conference and Bridge Award Dinner.

We welcome our members and all who value the potential of all of the communities that make up the Chicago regions to join with Chicago United in “Closing the Gap Between Race and Business.�

Gloria Castillo

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Dialogue Participate Celebrate

2004 HIGHLIGHTS

Changing Color of Leadership Conference

Dialogue

The role of Chicago United increasingly has become that of facilitator of critical dialogue. Our programs allow many voices to be heard. Whether the format is an internal meeting, a summit of employee groups or a question-and-answer session at our Race and Business forums, we hear the points of view and concerns that shape our products and programs.

The Changing Color of Leadership Conference both reflected and led the dialogue on issues of creating sustainable diversity. The conference reflected employers’ desires to build the diverse leadership of tomorrow and employees’ desires to fully participate in career development. It also reflected the desire for more fully expanded business partnerships between minority and majority corporations. The organization led the business dialogue by presenting actionable information to the conference participants.

Importantly, Chicago United’s own research served as catalyst for important discourse throughout the conference.

Participate

The members of Chicago United exhibited their leadership around diversity issues throughout the year and at the conference. Member contributions to the Chicago region’s business community were numerous. Efforts to build sustainable diversity were exhibited by chairing and participating in committees and panels. Chicago United members served as speakers and facilitators, provided financial resources and hosted important programs.

Chicago United members were thought leaders and change agents guiding development of Chicago United’s Professional Services Model (PSM): A Business Management Tool for Large Corporations to Address the Problem of Limited Utilization of Minority Professional Service Firms and the Corporate Diversity Profile. They developed criteria and guidelines and screened potential honorees for the The Bridge Award, the first national award honoring racial and ethnic diversity at the Board of Directors Level.

Members were joined at the Changing Color of Leadership Conference by outstanding panelists and experts in fields directly impacting development of multiracial leadership. Conference attendees participated in conference tracks building sustainable diversity in corporate governance, executive level management and business partnerships.

Celebrate

Throughout the year members of Chicago United celebrated accomplishments, both individual and organizational.

Among the highlights of the year, was a special celebration of the Chicago United 2003 Business Leaders of Color. At a private luncheon, Mayor Richard M. Daley addressed the Business Leaders of Color and the members of Chicago United, providing his candid remarks and a clear vision of the critical needs of the Chicago region.

The Bridge Awards Dinner celebrated five CEOs of leading large corporations for bringing diversity to all ranks of their companies.

Ivan Seidenberg, CEO, Verizon was the first Bridge Award honoree. The Chicago United identification process evaluated both quantitative and qualitative factors in selecting the honoree. The Bridge Advocate Award honored Roel C. Campos, Commissioner of the U.S. Securities and Exchange Commission for his advocacy on behalf of diverse boards of directors.

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Corporate Diversity Profile Race and Business Forums

2004 ACCOMPLISHMENTS

Corporate Diversity Profile

Chicago United developed the Corporate Diversity Profile to serve as a measurement tool and a benchmark for Chicago companies to track the progress of diversity in corporate leadership. Launched in 2001, it was the first survey of its kind nationally to focus on measurement of racial diversity specifically in the leadership ranks of large corporations.

Many Chicago corporations requested the addition of a “national benchmark” component to the survey that would allow Chicago companies to track their progress on a local as well as a national scale. To accommodate this request, Chicago United reached out to companies on the 2003 Fortune Magazine list of “Best Companies for Minorities.”

These companies were identified as a “national benchmark” only for the purpose of comparison, not as examples of a definitive point of accomplishment.

The report’s findings indicate that Chicago companies can gain valuable insights in recognizing where the Fortune Diversity Leaders have been truly successful, such as overall diversity in the workforce. Additionally, the findings indicate that even corporations lauded as leaders within the arena of diversity have a long way to go in realizing true diversity among the highest echelons of corporate leadership.

Race and Business Forums

Two significant forums were held in 2004. The first focused on minority contractors and the City of Chicago, and the second focused on the economic environments impact on the multiracial leadership pipeline. The highlight of the forums was the presentation of action steps at the end of each panel discussion.

The forum titled “The Challenge to the City of Chicago’s M/WBE Program,” examined the decision handed down by U.S. District Court Judge James B. Moran in a suit filed by the Builders Association of Greater Chicago to strike down Chicago’s minority contracting ordinance. Economics Professor Gerald Jaynes of Yale University, told the forum that striking down the MBE ordinance would mean that “rather than stimulate Chicago’s economic development, $43 million of Chicago taxpayer money would flow directly to other, suburban municipalities.” He concluded that the ripple effect of minority contracting on employment, crime prevention, homeownership, graduation rates and more could be adversely affected.

Support of the city’s efforts to restructure the ordinance was an important Chicago United contribution to the local economy in light of these findings.

The second forum focused on “How the Economy Affects the Multi-racial Leadership Pipeline.” Diversity in the corporate workforce is a practice that has proven its value. Increasingly, more and more employers recognize that the different perspectives and strengths that minorities bring to a company contribute to its growth. The panel discussed important issues including: the internal dynamics of how corporate downsizing affects internal leadership pools and diversity programs; the legal challenges in maintaining diversity initiatives during a reduction in force; and how companies utilize leadership development initiatives to counteract the effects of downsizing on the diversity in their leadership pipeline.

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Employee Network Summits Advocacy

2004 ACCOMPLISHMENTS

Employee Network Summits

Chicago United serves as a sounding board for member and non-member constituents who are dedicated to supporting the development of the multiracial leadership pipeline in business. As the need for a dialogue among ethnically based employee network groups presented itself, Chicago United provided the guidance and infrastructure to make the first Employee Network Summit a reality. Chicago United conducted a survey to determine the status and needs of Employee Network Groups (ENGs).

The first summit was held with goals to provide an environment for dialogue among ethnic/racial ENGs, facilitate sharing of best practices information, and sharing of information about value added activities undertaken by ethnic/racial affinity groups in Chicago area firms.

The success of the summit was unquestionable. As a result, a second, half-day summit followed. A workshop track developed for the Changing Color of Leadership Conference was strongly influenced by these summits.

Advocacy

Members of Chicago United were actively involved in developing actionable advocacy in both the private r and public sectors.

M B E TAS K FO RC E Mayor Richard M. Daley appointed a task force to help revise the City’s M/WBE program. The 16-member panel includes aldermen and their staffs, business and civic organizations, and construction firms. Chicago United actively participated in the task force and represented the corporate community and its considerations. Members of Chicago United agreed with the mayor’s belief that “This program is vital to our efforts to make sure all of Chicago participates in the economic life of our city.”

The Task Force was formed after Federal Judge James Moran’s recent ruling in favor of the City of Chicago’s efforts to remedy discrimination in the construction industry. The ruling, which came in a lawsuit filed by the Builders Association of Greater Chicago (BAGC) challenging the constitutionality of the City’s MBE/WBE ordinance, was examined at length at the March Race and Business Forum.

POS ITI O N PA P E R Responding to member concerns, the first in a series of research papers was published. Chicago United’s Professional Services Model (PSM): A Business Management Tool for Large Corporations To Address The Problem of Limited Utilization of Minority Professional Service Firms, was written with the support of a blue-ribbon panel Chaired by Abbott CEO, Miles White, and Ariel Capital Management Chairman and CEO, John W. Rogers, Jr. Corporations and CEOs recognize that in order to remain competitive in the global marketplace and sustain the growth and health of their organizations, diversity will have to be addressed at all levels. Minority professional service firms represent an under-tapped talent pool with ideas that translate into corporate savings without compromising quality. Their “diversity of thought” positively impacts competitive priorities, yet business opportunities for minority professional service firms have been conspicuously limited.

The Chicago United Position Paper brought an actionable strategy to greater utilization and greater corporate value of minority professional service firm business partnerships. The paper presented a qualitative analysis of the underlying causes, explaining why minority professional service firms are underutilized by large corporations. In addition, the paper presented anecdotal information, which highlighted the underutiliztion of minority professional service firms even by corporations with robust supplier diversity programs already in place. The paper also contained a Professional Services Model (PSM) for facilitating and improving relationships between minority professional service firms and the corporations purchasing those services and for increasing the utilization of minority professional service firms.

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Chicago United Members:

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CHICAGO UNITED EVENTS 2004

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Address: 300 East Randolph Street Mail: 11 East Pedway Drive, Chicago, IL 60601-5083

Phone: 312-977-3060 Fax: 312-977-3089 www.chicago-united.org