american express on workforce diversity

AMBILIDEEPTHIGAGANA

MANJULA

PROMOTING DIVERSITY

WE ARE HERE » To understand the importance of diversity and its role in creating a positive work environment

» To study the practical implementation of diversity at a large American company

» To analyze the extent to which diversity initiatives can be implemented at large companies with dispersed operations

» To understand the pitfalls of focusing on diversity to the extent of neglecting the mainstream workforce

DIVERSITY

Differences among people in age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background,

capabilities/disabilities and in the thought process.

What do we mean by diversity in the thought process??

Let’s Find out……

Select a card mentally……. Don’t jus look at it, concentrate on it

And memorize it

Your card isn’t there…………

Is it a magic??? Did I really read your mind????

Well, things are not always as they appear…………

We need to look at the actual picture behind the visible one….

Want to see

how ???

These were the original cards…• None of the cards were

dealt on the second hand…..

• Did u consider the real and the bigger picture while selecting the card??

• This happens because most of the times we think of our own objectives and miss out the big picture.

Conclusion:• Don’t just hear what the person, while interacting,

wants to say but LISTEN and UNDERSTAND his point of view..

For that……….

• We need to diversify our horizons…

• Diversity is not just in age, gender, race… it ACTUALLY lies in your thinking, your thought process

What Do We Mean By Managing Diversity?

A management system which incorporates the differences found in a multicultural workforce in a manner which results in the highest level of

productivity for both the organization and the individual.

Workplace diversity

• Workplace diversity refers to the variety of differences between people in an organization.

• That sounds simple, but diversity encompasses race, gender, ethnic group, age, personality, cognitive style, tenure, organizational function, education, background and more

Sources of Diversity in the Workplace

THE AMERICAN EXPRESS WAY

PROMOTING DIVERSITY

“We value diversity and are proud of the progress we have made in this area. Yet experience has taught us not to become complacent. We will continue our efforts to create the type of environment that will help us attract and retain a diverse workforce.”

- Kenneth Chenault, CEO of American Express, in 2003.

"Building and sustaining a highly committed, talented and diverse workforce is a key priority for our company. We believe our diversity makes us stronger and positions us to be more competitive in the marketplace."

- Ursula Fairbairn, Executive Vice President, Human Resources and Quality, at American Express, in 2004.

INTRODUCTION

• In January 2006, the American Express Company (AmEx) was featured on Fortune's list of the '100 Best Companies to Work for' in America.

• AmEx was ranked ninth among large companies, and 37th in the overall ranking of the list of the best employers in the US.

• company stood ninth in the overall ranking

American expressway and diversity• Fortune said AmEx's diversity initiatives, especially its

policies related to women employees and minorities, made the company one of the best places to work for in the US.

• AmEx's commitment to minorities was also saluted by Black Enterprise and included in its '30 Best Companies for Diversity' list. For its significant representation of African Americans and other ethnic minorities in four key areas - corporate procurement, corporate boards, senior management, and the total workforce.

AmEx was also appreciated by other mainstream magazines as well as those catering to minority groups and special interests such as Hispanic Business and Working Mother, for its diversity related policies.

• In the 1990s, along with women and minorities markets had also rapidly expanded beyond national boundaries.

• It compelled companies to adapt their operations to diverse cultures and societies.

• AmEx was one of the forerunners in embracing diversity in its workforce in the US.

• AmEx was also one of the few large companies that had an African-American CEO, Kenneth Chenault (Chenault).

BACKGROUND

• American Express Company, sometimes known as AmEx, is a diversified global financial services company headquartered in New York City.

• Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average(stock market index).

• The company is best known for its credit card, charge card, traveller's cheque businesses and travel.

•  It was founded as a joint stock corporation by the merger of the express companies owned by Henry Wells (Wells & Company), William Fargo (Livingston, Fargo & Company), and John Warren Butterfield (Wells, Butterfield & Company, the successor earlier in 1850 of Butterfield, Wasson & Company).

• Kenneth Irvine Chenault has been the CEO and Chairman of American Express since 2001.He is the third African-American CEO of a Fortune 500 company

Henry Wells (Wells & Company)

William Fargo (Livingston, Fargo & Company),

John Warren Butterfield (Wells, Butterfield & Company

Kenneth Irvine Chenault

• Acquired companies-Shearson Loeb Rhoades, First Data Resources, Trade development Bank, Lehman Brothers Kuhn Loeb and Investors diversified services.

• Competition- VISA and MASTER CARDS.• September 11,2001 terrorist attack.• Agreements – MBNA, Citibank and Bank of

America to issue co-branded credit cards.• Employed more than 65000 people on 6

continents(revenue $24 billion)

DIVERSITY AT AMEX

• Diversity is an integral part at Amex• Helps to gain competitive advantage in

expanding global market• Helps to obtain better understanding of varied

markets it operates in

DIVERSITY COUNCILS

Blue Box Diversity Council : Consisted of senior managers from across the

company To develop company’s vision and policies related to

diversity Managing best practices Monitoring diversity related projects Benchmarking

• Corporate Level Council

• Regional Diversity Council

• Diversity Teams

RECRUITING WITH DIVERSITY

• To gain access to diverse pool of applicants (to win the marketplace) , Amex participated in minority job fairs and associated itself with many organizations

• Tie up with AIESEC which provides internship exchange program to students worldwide

• Amex recruited from outside America thru AIESEC

• Worked with disability council to recruit people with minor physical disabilities.

• Worked with Lifeworks Service Inc. to recruit

people with mental disabilities as well

• Placed recruitment ads in minority magazines and

minority websites

• Hirediversity.com : a division of Hispanic Business

Inc.

EMPLOYEE NETWORKS

• Recruitment efforts supplemented by employee networks- promoted diversity

• 2005 – Amex had 10 networks – African-American, Asian, Christian, Jewish, Homosexuals

• Hire forums: leaders interact with new recruits• Each network hosted career panels- interact with

senior management, discuss issues.

• “Employee connections” – formal mentoring program

• “Happy Hours” – informal social events• “WIN” –women network Introduced job sharing, telecommuting, flexi time

for women Child care facilities.

• “GLOBE”- Homosexuals’ Network

• Implemented domestic partner benefits

• Anybody could participate even if they didn’t

belong to that group

• Eg :African American Network.

A SUPPORTIVE CULTURE

• Culture- supportive towards women• Facilities- telecommuting, compressed work

weeks, job sharing, flexi time, child care• Flexibility• No discrimination/ hurdles• Religion & personal beliefs• Granting leave for religious reasons

MANAGING DIVERSITY

• Attend managing diversity sessions• Leadership and coaching sessions • Flexibility in implementing policies• Treat all fairly • Identify cases of prejudice & intolerance• Develop succession plans • Same kind of opportunities to progress

• Annual leadership feedback sessions

• Leadership competency model

• Focus group meetings

THIRD PARTY DIVERSITY

• Customers & suppliers• Provided diversity training• Supplier diversity program- small business

owned & operated by minorities, women, disabled

DIVERSITY EYEWASH

• Gender discrimination lawsuit in 1999.• Sexual hostile environment• Discrimination between black & white• Different performance rules for men & women• Unassigned accounts to white males• Paid lip service to diversity• In 2005-Company’s policy and compensation

CONCLUSION

• One of the best company- policies, diversity initiatives.

• Though AmEx concentrated on promoting diversity, there were certain issues which was affecting the company.

• Company wished to avoid the problems by various settlements whenever they faced problems.

Company wanted to move forward in a positive

way and settlements as an opportunity to

strengthen its efforts to make

“American express a positive place for everyone”

ANY QUESTIONS