Facebook, Twitter, Bank of America, and other large companies pledge to boost diverse leaders

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Some of the largest and best-known companies, institutions and organizations in the country have joined an initiative born in Silicon Valley to boost diversity in its leadership to 25% by 2025. Silicon Valley Leadership Group, which unveiled on 25 × 25 initiative last month, announced the list of 20 companies, institutions and organizations on Friday at its Diversity Forward Summit. The list includes social media giants Facebook Inc. FB, -3.06% and Twitter Inc. TWTR, -0.04%, plus Bank of America Corp. BAC, + 0.61%, United Airlines UAL, + 6.57%, Alaska Airlines ALK, +3.99% and the San Francisco 49ers of the National Football League

Companies that pledge commit that at least 25 percent of their leadership will be people from underrepresented groups (people of color and women) by 2025, or that by 2025 they will see an increase of at least 25 percent in underrepresented executives in leadership positions. Companies are expected to publish their diversity data and annual progress toward the goal, although those goals will look different depending on the leadership levels that companies decide will be covered by the initiative. “Nowhere in corporate America have I seen these metrics or an initiative with these kinds of metrics,” SVLG CEO Ahmad Thomas said in an interview with MarketWatch prior to the initiative’s announcement. “This is not a showcase. It is not a feel-good letter that everyone can sign and then return to the golf course. There’s a reason we haven’t seen anything like this – it’s a feat. ”The effort comes as employees, companies, shareholders and activists have stepped up advocacy for the importance of diversity in the workplace, especially after 2020, which brought racial justice issues to the fore. SVLG, an influential group with more than 350 member companies, is committed to doing so. Others joining include Zoom Video Communications Inc. ZM, -0.17% , Western Digital Corp. WDC, -0.77%, Stanford Lucille Packard Children’s Hospital, San Francisco Chronicle, Santa Clara University, and Silicon Valley Bank. Some of these companies have been disclosing their diversity numbers for a while. With a little Insistence In recent years, the tech industry has largely made public its workplace demographics, and other companies have followed. Thomas said he hopes on this initiative too, “as Silicon Valley goes, as The nation goes. ” See: We’re learning more about diversity in tech companies See also: Employees at the center of racial controversies in tech companies speak out Twitter is one of the companies on the list that regularly publishes its diversity data from the labor force. Last year, Twitter set a goal of increasing the number of women in its global workforce to 50% by 2025. The company’s current leadership is comprised of 38.2% women. In terms of race and ethnicity, Twitter’s leadership is 56% White, 17.6% Asian, 6.5% Black, and 3.9% Latino. “We are proud to join the 25 × 25 Commitment, which expands our bold vision of workforce representation and commitment to inclusion and diversity programs to accelerate progress,” said Dalana Brand, Vice President and Chief of Inclusion and Diversity On twitter. in a sentence. “The purpose of Twitter is to serve the public conversation and we are committed to ensuring that our business reflects the diversity of people who use the service.” When asking others to sign the pledge, SVLG cited McKinsey studies that have found that companies with ethnically diverse executive teams are 36% more likely to achieve above-average profitability, with that number being 25% for executive teams. with gender diversity. Another study, conducted by the Boston Consulting Group, found that diverse management teams have 19% higher revenues. See: Tech Industry Has a ‘Moral Imperative’ to Act on Inequality, Says New Silicon Valley Leader: “As a Black Executive, I Have Very Strong [about diversity]”Said Thomas, SVLG’s first black CEO. “I think it is the right thing to do. But ultimately, the data is incontrovertible. Business competitiveness drives this. ”As part of the initiative, companies that commit also commit to increase resources by 25% by 2025 for funding and / or community engagement for underrepresented groups and to scale up projects. minority talent pool They are also committed to educating their workers about inclusion and unconscious biases.