Beyond Promises to Progress: Black CEOs and C-Suite Officers Speak Out on Diversity
Stephanie J. Creary for The Executive Leadership Council
December 2021
EXECUTIVE SUMMARY: After more than a year of reckoning and commitments, what must be different this time?
Since George Floyd’s murder, much of Corporate America committed itself to improving diversity, equity and inclusion after the senseless killings of many Black Americans by police. However, despite highly visible social posts, advertisements, trainings and diversity plan announcements, visible signs of meaningful change have not been realized for Black people.
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ew would deny that there is a compelling case for achieving racial equity in Corporate America. Black Americans have suffered the consequences of systemic racism for more than 400 years and evidence of this can be seen in existing disparities between workers and executives of different races in all parts of the business sector.
and roadmap from the perspective of 17 current and former Black CEOs and senior executives who have been doing this work for years, often in addition to other roles and without broad-based support from their organizations or industries.
For many Black leaders, the last year and a half has been simultaneously invigorating and exhausting. “Invigorating” because a critical mass of corporate leaders, board directors, investors and government officials — Black and non-Black — have committed to addressing the issues; yet “exhausting” because many Black leaders have spent much of their careers (and retirement) pressing the gas pedal on the movement towards racial equity.
This paper provides a roadmap for making real progress — and the time for implementing it is now. Many of the tactics and strategies discussed here, from having the CEO be truly responsible for the company’s diversity, equity and inclusion plans and results, to including more board oversight and governance, stronger ties to compensation, improved succession planning and more focus on employee engagement, vendor programs and philanthropy have been part of best practices for years.
An Inability — or an Unwillingness? Many of the tactics and strategies for achieving real change have been known for years. Executives from across the spectrum of industries have acknowledged that improving diversity, equity and inclusion is a business imperative. Yet, much of Corporate America has long exhibited an inability to follow through on promises to improve racial equity. But should we draw a distinction between inability and unwillingness? Because of existing racial disparities, a variety of recommendations have been proposed to increase the representation of Black employees in leadership positions. These include “systems-based” perspectives that advocate for transforming company structures and processes over tactical one-off approaches and external initiatives designed to increase board members’ engagement in racial and equity work. While these approaches are promising, what we lack is a multi-level framework of strategies to help Corporate America improve racial equity and a roadmap for instilling accountability for implementing these strategies and tracking their effectiveness. This report, written for The Executive Leadership Council by diversity and identity scholar, Professor Stephanie J. Creary of The Wharton School, presents such a framework
A Roadmap for Real Progress
So why aren’t companies using these tactics, or doing so in an effective manner? A small number of corporations have made some progress, but most have not. As one interviewee noted: “We know what to do. It is foolish to think we know how to do everything else, but not this. We have to have the will to act and act decisively.” We do not underestimate the challenge of this undertaking and what it’s going to take to get it right. Therefore, The Executive Leadership Council is doubling down on its commitment to build more momentum on diversity, equity and inclusion. The stakes have never been higher. •M ore diversity at every level of the company, and especially at executive, C-suite and board levels, is critical. • Companies must use their influence to improve communities of color and go beyond direct employment. • Unrelenting wealth disparities continue to eat away at the very fabric of our society, and we need better solutions and better policies. Corporate America has built its success on setting and meeting high bars. Meeting the bar identified in this paper should be no exception. We cannot let this moment be of minimal or no consequence. It is our hope that this paper will serve as a tool and call to action for all leaders making the necessary changes to move their organizations forward.
ABOUT THE EXECUTIVE LEADERSHIP COUNCIL The Executive Leadership Council (ELC) opens channels of opportunity for Black executives to positively impact business and communities. The ELC has nearly 800 members who are current and former Black CEOs, C-suite and senior executives and board directors at Fortune 1000 and Global 500 companies, entrepreneurs of top tier firms and global thought leaders. Established in 1986, The ELC has worked to build an inclusive business leadership pipeline while empowering Black corporate leaders to make significant and impactful contributions in the global marketplace and their communities. For more information visit www.elcinfo.com.