*{Diversity in the Workplace: Getting It Right [http://www.weforum.org/site/knowledgenavigator.nsf/Content/Diversity%20in%20the%20Workplace%3A%20Getting%20It%20Right?open&topic_id=300250000&theme_id=300]

            27.01.2001

            Annual Meeting 2001}

            *partie=titre Integrity and the Many Faces of Diversity *partie=nil 

            Cultures of uniformity have given way to multiracial, multinational workforces. Given the many pressures of modern organizations, how are we to harness diversity in the workplace? Will it make teamwork more difficult or will it bring improved productivity? These were the questions placed before the panel by moderator John Stopford, Professor of International Business, London Business School, United Kingdom.

            Peter Brabeck-Letmathe, Chief Executive Officer, Nestlé, Switzerland, stated that international diversity is absolutely necessary for an international company and that diversity should be combined with, but not submerged into, corporate culture. Diversity must serve a purpose. In the case of Nestlé, it reflects market reality. A company producing and marketing food around the world must create for and communicate to local preferences and be sensitized to these preferences.

            Reuel J. Khoza, Chairman, Eskom, South Africa, reported on his company’s highly successful experience with diversifying a workforce that under apartheid had been overwhelmingly white. As recently as ten years ago Eskom’s management was 98% "male and pale" as Khoza put it. Within ten years the company has largely accomplished the integration of the company by age, sex and race. "Training and development were vital for de-racializing and adding the gender mix," he told participants. "What gets measured gets done." But such ambitious programmes require the identification and leveraging of diversity’s benefits and then sponsorship from the top, he said. "People might say this could tamper with performance; this did not prove true. Delivery increased," and other key ratios remained without negative impact. "Diversity must be implemented at all levels or it won’t work. We are now tapping all available resources."

            Fred Hassan, President and Chief Executive Officer, Pharmacia Corporation, USA, said his large company had faced the necessity of merging various monocultures and recognized that diversity is a strategic weapon and an attitude. Individual country cultures need to be superseded by a corporate culture, a listening and learning attitude, and taking ownership of the process.

            Thomas J. Pritzker, President, Hyatt Corporation, USA, said the diversity issues for his company vary considerably in the domestic company and the international one. In the US, a director of diversity is employed and specific programmes are in place to ensure a diverse workforce. "We don’t do it out of social reasons but for profitability." The US is a country of many and different communities and Hyatt markets to them. Certain large corporations vet hotels and only book their business travellers with those having diversity programmes. Hyatt International is very different due to its presence in so many countries. "We are international nomads, can relocate, adapt and go to work," Pritzker said.

            In response to a participant question, the panellists then discussed ethics. All agreed they serve people not governments and support ethical behaviour but Brabeck-Lemathe wondered: "What ethic? My ethic alone? That precludes commitment to diversity." A participant from a major airfreight/courier service noted that the firm is global and cannot withdraw -- but what can be done to help transform corrupt or unjust societies?

            Khoza proposed: "You need a measure of intelligent ignorance. You begin to understand a local behaviour and you show respect." Then you can have a dialogue about world views. Acculturation never takes place by imposition. Differences must be addressed with respect, he concluded.

            Hassan told participants: "We will lose market share rather than compromise our integrity, a word we prefer to ethics." In what he later described as a brainstorm, he then proposed that the World Economic Forum take up the challenge of assisting the public sectors in North America, Europe and Japan to develop a uniform standard, a code of conduct with actionable specifics for corporations, which will facilitate their dealings with fragile countries vulnerable to corruption. There was vigorous approval among participants and panellists.                 

                  *{Contributors:       Brabeck-Letmathe Peter
                  Hassan Fred
                  Khoza Reuel J.
                  Pritzker Thomas J.
                  Stopford John}