Best Practices in Diversity 2013

475526
Cornell Hospitality Quarterly XX(X)Madera

2013
CQXXXX10.1177/1938965513475526
Focus on Human Resources
Best Practices in Diversity Management

in Customer Service Organizations: An
Investigation of Top Companies Cited
by Diversity Inc.
Cornell Hospitality Quarterly

54(2) 124135
The Author(s) 2013
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DOI: 10.1177/1938965513475526
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Juan M. Madera1
Abstract
An analysis of diversity management programs used by fourteen companies cited for diversity found a suite of practices
used by nearly all of them. Using a benchmarking assessment, this study analyzed the diversity management programs
from a sample of hospitality and customer service organizations that were named by Diversity Inc. to be top companies for
diversity. The analysis of the organizations specific practices revealed the following seven complementary and highly related
categories of diversity management practice: corporate diversity council, diversity training programs, supplier diversity,
employee networking and mentoring, cultural awareness, support for women, and lesbian, gay, bisexual, and transgender
network programs and same-sex benefits. The result of these policies is a highly diverse workforce and relatively diverse
management in the sample firms.
Keywords
diversity management; best practices; diversity training; human resources; mentoring
Diversity, as the term is used in the United States, is a continuing concern of the U.S. government and the nations
businesses and organizations The fastest growing groups in
the U.S. workforce are Hispanics, Blacks, foreign-born
individuals, and people with disabilities (Bureau of Labor
Statistics 2009; Houtenville and Kalargyrou 2012; Toossi
2012). All of these groups are included in the U.S definition
of workplace diversity, which includes such aspects as ethnicity, gender, sexual orientation, age, and disability (Arthur
and Doverspike 2005; Madera 2011; Richard 2000). Given
the governments focus on diversity, corporate investments
in diversity management efforts have grown in the last two
decades to an eight-billion-dollar level (Chavez and
Weisenger 2008; Hansen 2003). Organizations have
adopted numerous practices aimed at fostering diversity,
such as mentoring programs focused on developing women
and ethnic minorities, diversity training, networking programs that connect employees who share a similar demographic background, and supplier diversity programs.
With the exception of collected lists of best practices, I
have found little structured information about specific programs used by hospitality and customer service organizations (Kalev, Dobbin, and Kelly 2006). Thus, the purpose of
this study was twofold: first, to outline what the diversity
management literature suggests about various diversity
management programs, and second, to examine which

diversity management practices are used by organizations
that have been recognized as exemplary organizations for
diversity management, including a comparison with what
the literature recommends. To do this, I analyzed the diversity management programs from a sample of hospitality and
customer service-related organizations that were named by
Diversity Inc. to be top companies for diversity.
Diversity Management Practices

Diversity management practices are complementary, interrelated human resource policies that focus on increasing
and maintaining a diverse workforce (Dyer and Reeves
1995). Research suggests that diversity management practices can provide firms with a competitive advantage,
among other benefits (Cox and Blake 1991; McKay, Avery,
and Morris 2008, 2009; Richard 2000; Richard and
1
University of Houston, TX, USA
Corresponding Author:
Juan M. Madera, Hilton College of Hotel and Restaurant Management,
University of Houston, 229 C. N. Hilton Hotel & College, Houston, TX
77204-3028, USA
Email: jmmadera@uh.edu
Downloaded from cqx.sagepub.com at UNIVERSITE DE MONTREAL on January 26, 2016
125
Madera
Johnson 1999). Diversity management practices succeed
by directing attention to relevant efforts to achieve the
goals of diversity and eliminate discrimination. Among the
effective practices are formal, written guidelines and policies to increase diversity, which lead to more diversity in
the workforce and management positions (Konrad and
Linnehan 1995). Regardless of their specific form, diversity management programs generally focus on recruiting
and developing diverse employees, for example, through
networking and mentoring programs focused on hiring and
advancing women and ethnic minorities. Most programs
include executive positions related to administering the
program, and many firms also maintain programs to source
purchasing from women- and minority-owned businesses.
In addition, these programs generally involve educating
and training employees regarding diversity.
Y. B. Kim (2006) applied a four-dimensional scheme to
diversity management practices, based on the following
four broad benefits of diversity: maintaining a heterogeneous workforce that provides new and fresh ideas, improving firm growth, enhancing firm image, and gaining a pool
of valuable human resources.
New and Fresh Ideas

Y. B. Kim (2006) proposed that a diverse workforce can
enhance an organizations marketing strategy because
diversity in work groups often leads to diverse ideas and
perspectives. In fact, research shows that groups of diverse
personnel are more effective in solving and analyzing problems than are homogeneous groups (Cox 2001). In addition
to generating new ideas, a diverse workforce will mirror the
diversity that makes up customers.
Improve Firm Growth

Research shows that having diversity management programs promotes employees organizational attitudes that
affect individual performance (McKay, Avery, and Morris
2009). Those favorable attitudes would be reflected in the
operations of customer service organizations (Waight and
Madera 2011).
selecting, and retaining a diverse workforce will give an

organization a competitive advantage (Y. B. Kim 2006),
numbers alone are not sufficient. Instead, research shows
that the benefits of diversity on organizational performance
are contingent on formal and integrative diversity practices
(Cox, 2011; Kalev et al. 2006; McKay, Avery, and Morris
2008, 2009).
Commonly Cited Diversity

Management Programs
Leadership Initiatives
Leadership, particularly executive positions related to
administering a diversity program, is one of the most
important factors for developing a diverse workforce
(Richard 2000). Management positions are responsible for
monitoring diversity outcomes (such as recruiting and
retention rates of ethnic minorities and women). Some
scholars argue that direct involvement from top executives
in diversity-related functions can signal an organizations
commitment to diversity (e.g., Cox 2001; Gilbert, Stead,
and Ivancevich 1999; Hubbard 2004). Even stronger is
including diversity and nondiscrimination policies as part
of the organizational culture (Baytos 1992; Cox 2001;
Hubbard 2004; Naff and Kellough 2003; Richard 2000;
Sturm 2001).
Diversity Training
Many organizations offer diversity training to implement
and maintain a culture of diversity and inclusion (up to
79%, according to Galvin 2003). Although the specifics of
diversity training programs can vary widely, they share one
common set of goals, which is to increase knowledge
about diversity, to improve attitudes about diversity, and to
develop diversity skills (Kulik and Roberson 2008, p. 310).
Such training can take the form of online modules,
classroom-based training, videos, discussions, role-plays,
simulations, and exercises (Bendick, Egan, and Lofhjelm
2001; Pendry, Driscoll, and Field 2007).
Recruitment and Selection
Enhance Firm Image

Companies with exemplary diversity management practices perform better, as measured by their stock prices
(P. Wright et al. 1995). However, allegations of discrimination can harm an organizations public image (Y. B. Kim
2006) and damage stock prices (Goldman et al. 2006).
Create Valuable Human Resources

Customer service organizations already depend on a diverse
workforce and will continue to do so. Although recruiting,
Regarding the key aspect of diversity management programs, recruiting and promoting diverse applicants, the literature points to the following three specific strategies:
(1) using proper communication media and messages, such
as minority publications and websites; (2) using minority
recruiters and advertising materials that include diverse
individuals; and (3) communicating the importance and
value of diversity to all applicants to maintain a positive
diversity climate among new hires (Arthur and Doverspike
2005; Avery 2003; Avery, Hernandez, and Hebl 2004; Cox
2001; Digh 1999; Doverspike et al. 2000; Houtenville and
126
Cornell Hospitality Quarterly 54(2)
Kalargyrou 2012; S. S. Kim and Gelfand 2003; Perkins,

Thomas, and Taylor 2000).
management practices recommended by researchers are

the ones adopted by these successful firms.
Mentoring and Networking
Method and Sample Construction
The diversity management literature underscores the importance of mentoring and networking programs for minorities
(Brass 1984). Many diversity management programs focus
on mentoring and providing networks for minority employees. The literature suggests two major programs: (1) creating formal programs in which managers mentor minority
employees and (2) using affinity groupsemployee networking groups in which employees engage in informal
activities, discussions, and meetings to share information
and career advice (Cole 2003; Digh 1997; Higgins and
Thomas 2001; Houtenville and Kalargyrou 2012; Sparrowe
and Liden 2005; D. A. Thomas 2001;Wanberg, Welsh, and
Hezlett 2003).
Using Hinkin and Traceys (2010) benchmarking assessment

methodology, I studied fourteen organizations selected
from the 2010 Diversity Inc. Top 50 Companies for
Diversity to investigate what these organizations do to successfully manage a diverse workforce. In this competitivegeneric hybrid benchmarking analysis, organizations from
the same industry and organizations from other but similar
industries are examined in one sample. I used the Diversity
Inc. list as a proxy for an assessment of effective diversity
management. I note that these organizations have a higher
proportion of women and minorities in their workforce,
management positions, and executive positions than organizations outside this list. These organizations are representative of major U.S. corporations, and they are positively
rated by the majority of their employees. Their company
size, revenue, health care benefits, and salaries are highly
comparable, and company information and demographic
data are generally available. Because the majority are headquartered in the United States, most organizations are governed by the same laws (e.g., Title VII of U.S. Civil Rights
Law). Similar methods have been used by past research
examining diversity management practices (e.g., Bilimoria
2006; Rechner and Dalton 1991; Wiersema and Bantel 1992).
The fourteen companies that I chose from the Diversity
Inc. list all involve a large service component as part of
their business model. The sample included five hospitality
organizations: Sodexo (ranked 1 by Diversity Inc.), Marriott
International (ranked 7), Starwood Hotels and Resorts
Worldwide (ranked 19), MGM Mirage (ranked 24), and the
Walt Disney Company (ranked 33); two food and beverage
purveyorsthe Coca-Cola Company (ranked 17) and Kraft
Foods (ranked 35); and seven other service organizations:
Bank of America (ranked 9), Verizon Communications
(ranked 11), Health Care Service Corporation (ranked 20),
HSBC-North America Bank (ranked 27), JP Morgan Chase
Bank (ranked 34), Target Corporation (ranked 40), and
J. C. Penney (ranked 46). These fourteen organizations are
listed in Exhibit 1, together with their diversity management practices, and ethnicity- and gender-related workforce
statistics, as available.
The Diversity Inc. list is developed from a multiplechoice survey consisting of about 300 questions that is
mailed to more than 700 companies. No subjective or qualitative questions are asked. The survey is organized in four
parts: CEO commitment, human capital, corporate communications (internal and external), and supplier diversity.
The survey includes questions on workforce demographics,
including information on race and gender at different levels
of management and on the retention rates for female and
minority managers, and about supplier diversity, such as the
Supplier Diversity
Supplier diversity programs help support the estimated
10.4 million women- and minority-owned businesses in
the United States, which generate more than $1.5 trillion in
sales revenue and employ 11.7 million people (U.S.
Census Bureau 2002). More than 75 percent of organizations have some type of supplier diversity initiative, but
these initiatives are not always communicated or implemented effectively (Holmes 2005). Corporate commitment
and corporate culture have been identified as the most
important factors in developing and maintaining a supplier
diversity program (Carter, Auskalnis and Ketchum 1999;
Duffy 2004; Min 1999; Whitfield and Landeros 2006;
Yuva 2003).
Affirmative Action (AA) and Equal

Employment Opportunity (EEO) Compliance
Underlying most successful diversity programs are AA/
EEO programs, which are also generally mandated by federal or state law. Usually administered by a director, AA/
EEO programs focus on setting goals for increasing diversity in all ranks of an organization and evaluating the
progress of diversity, including collecting and analyzing
demographic information of an organization, finding
departments or ranks in which women and minorities are
underutilized, and disseminating information about diversity to employees (Cox 2011; Jayne and Dipboye 2004;
Kalev et al. 2006; Konrad and Linnehan 1995).
With that background for why diversity management
practices benefit hospitality organizations, I will examine
which specific diversity management practices are adopted
by a sample of successful hospitality and customer service
organizations. The goal is to develop an organized list
of diversity programs and discover whether diversity
127
Madera
Exhibit 1:
Diversity Management and Workforce Diversity Statistics

Ranking and Company
(1) Sodexo
1. Corporate diversity council

2. Diversity training programs
3. Supplier diversity
4. Employee networking and mentoring programs
5. Cultural awareness
6. Support for women
7. Same-sex benefits
(7) Marriott International 1. Corporate diversity council
(9) Bank of America
(11) Verizon
Communications
(17) Coca-Cola Company 1. Corporate diversity council
(19) Starwood Hotels and 1. Corporate diversity council
Resorts Worldwide
(20) Health Care Service 1. Corporate diversity council
Corporation
(24) MGM Mirage
(27) HSBC-North
America Bank
Workforce Diversity Statistics

Ethnic minorities account for 49.7% of the workforce,
and 60% are women.
Ethnic minorities account for 24% of management, and
45% are women.
Ethnic minorities account for 61% of the workforce,

and 55% are women.
Women account for 48% of management. Ethnic
minorities are 27% of new managers hired.

and 69% are women.
49% are women.
and women are 30%.
30% of managers are ethnic minorities, and 22% are
women.
and 41% are women.
49% are women.

and 50% are women.
Ethnic minorities account for 50% of college interns.

and 34% are women.

and 50% are women.
44% are women
and 57% are women.
Ethnic minorities account for 37% of new hires, and
56% are women
(continued)
128
Exhibit 1: (continued)
Ranking and Company
(33) Walt Disney
Company
(34) JP Morgan Chase

Bank
(35) Kraft Foods
(40) Target Corporation
(46) J. C. Penney
Workforce Diversity Statistics


and 52% are women.
44% are women
volume of purchases, provision of loans, or other financial

assistance to diverse suppliers. To be selected for the list,
companies must score above average in all four parts.
My study examined these firms diversity management
practices as found on their web sites, the Standard and
Poors Register of Corporations, and information from the
Human Rights Campaign, the National Association of
Female Executives (NAFE), and the National Minority
Supplier Development Council. I conducted a content analysis using Krippendorffs (2004) coding guidelines, in
which trained coders read all of the materials and develop a
coding scheme. Along with the coders, I cross-checked
the coding scheme for reliability. We then developed and
cross-checked subthemes.
Results and Discussion

The content analysis found seven major themes reflecting
the following seven diversity management programs
applied by all fourteen corporations: corporate diversity
Ethnic minorities account for 41% of the workforce.

and 35% are women

and 59% are women.
47% are women.
Workforce demographic data were not available.
council, diversity training programs, supplier diversity,

employee networking and mentoring, cultural awareness,
support for women, and lesbian, gay, bisexual, and transgender network (LGBT) programs and same-sex benefits.
Corporate Diversity Council

Although known by different names, the firms corporate
diversity councils have a common function of focusing
management and staff on diversity issues and actions. At
Coca-Cola, the diversity council is composed of employees
from various levels and business units to advise senior
management regarding diversity (Coca-Cola 2011). MGM
Mirage holds diversity roundtable discussions that include
top executives, including the CEO, and established the
Corporate Diversity and Community Affairs Department to
implement diversity and inclusion initiatives (MGM Mirage
2011). The CEO of Bank of America is the chair of their
corporate diversity council, which meets quarterly (Bank of
America 2011).
129
Madera
Kraft Foods established a diversity practices council
that comprises executive leaders from various departments,
including corporate and legal affairs, multicultural marketing, diversity management, and talent acquisition to ensure
that their diversity efforts are aligned with corporate strategies (Ezell, Wise, and Moody 2010). Sodexo takes a unique
approach with their diversity council because the members
of their Diversity and Inclusion Business Advisory Board
are not employees of Sodexo, but are rather leaders from
outside the company who advise the corporate leaders on
diversity issues (Sodexo 2011).
Starwood Hotels and JP Morgan Chase all include senior
leaders in their diversity teams. Starwoods Diversity
Council monitors the status of women and minorities in
three areas: their associates, managers, and owners. Chaired
by the CEO, Marriott International created a corporate
diversity council that meets quarterly and is composed of
company executive leaders who are responsible for developing diversity objectives and keeping track of diversity in
four areas, including their employees, guests, suppliers, and
owners.
J. C. Penney uses regional chapters for its diversity and
inclusion councils overseen by a senior executive of diversity and inclusion development program (J. C. Penney
2011). Similarly, the Walt Disney Company established a
diversity leadership advisory board comprising executives
from various business units in all of its locations. These
diversity councils assist their site in developing diversity
strategies, such as monitoring trends in management diversity. A common thread in all these diversity councils is that
support from top management is an important aspect,
reflecting the importance of top management in promoting
diversity initiatives (Chrobot-Mason and Quiones 2002;
Hebl, Madera, and King 2007).
Diversity Training Programs

Ten of the fourteen organizations communicate the availability of diversity training through their corporate web
site, namely, Coca-Cola, Health Care Service Corporation,
J. C. Penney, JP Morgan Chase Bank, Marriott, MGM
Mirage, Starwood Hotels and Resorts, Target, Walt Disney,
and Sodexo. Coca-Cola, for instance, has diversity training,
a diversity speaker series, and diversity training for supplier
diversity to ensure that its associates understand how
women- and minority-owned business can be used as an
asset for Coca-Cola. Sodexo maintains mandatory diversity
training for the entire workforce on such topics as generations in the workplace and cross-cultural communications.
Similarly, Target has mandatory diversity training for all of
their employees, which is held monthly for half a day.
Diversity training at Starwood Hotels and Resorts
Worldwide is not mandatory, but a one-day session at
MGM Mirage is required for both employees and managers.
Marriott Internationals training is also mandatory, as is that

of Health Care Service Corporation, J. C. Penney, Walt
Disney, and Kraft Foods, in sessions that range from half a
day to a full day.
Broad or Narrow Approach to Diversity. Most of the
firms I studied defined diversity quite broadly, but some
gave it a narrow interpretation. Broad definitions can
encompass a variety of demographic dimensions (e.g., race,
age, gender, disability, sexual orientation) and individual
dimensions (e.g., parental status, education level, personality). In contrast, narrow definitions of diversity may only
consider a few demographic dimensions (e.g., race, age;
Roberson, Kulik, and Pepper 2003).
Diversity training in the following firms takes a broad
approach: Coca-Cola, Health Care Service Corporation, J.
C. Penney, JP Morgan Chase, Sodexo, Target, and the Walt
Disney Company. This approach is consistent with researchbased evidence that shows that employees prefer diversity
training that takes a broad approach (Mobley and Payne
1992; Roberson et al. 2003). In doing so, employees feel
that every group, whether based on race or age, is represented as diverse, including their own.
Supplier Diversity
All fourteen of the organizations had some type of supplier
diversity program that was clearly communicated through
their web sites. In 2010, the Walt Disney Companys supplier diversity program spent $443.6 million on womenand minority-owned businesses, representing more than
13 percent of the firms supplier spending (Walt Disney
Company 2011), and Disney also has a formal relationship
with the National Association of Women Business Owners.
MGM Mirage spent more than $700 million (17% of its
supplier spending) in construction and design contracts
with more than 200 minority-owned firms throughout a
five-year project (MGM Mirage 2011), and works with the
Womens Chamber of Commerce of Nevada to support
women-owned businesses. Marriott International spends
16.6 percent of its discretionary spending with diverse suppliers, surpassing its goal of 15 percent established in 2007
(Marriott International 2011). Similarly, Starwood Hotels
and Resorts Worldwide spends 11 percent with diverse
suppliers.
Supplier diversity programs are mutually beneficial.
HSBC-North America (2011) states that HSBC leverages
the supplier diversity program to build relationships with
select businesses by providing training and exposure that
strengthens their ability to compete in the U.S. and global
market place. With more than 30 years of experience,
J. C. Penney has a long history with promoting minorityand women-based organizations. J. C. Penney is a founding member of the National Minority Supplier Development
Council and the Womens Business Enterprise Council,
130
two business networking organizations that are focused

on promoting women- and minority-owned businesses.
Similarly, supplier diversity for Sodexo, which spends
14 percent on supplier diversity initiatives, is communicated
as an opportunity to provide excellent products and goods,
and as a competitive advantage for their diverse customers
and their minority-based business partners (Sodexo 2011).
Many of the organizations also provide some form of
mentoring to diverse suppliers. Spending 25 percent of its
supplier spending on women- and minority-owned businesses, Coca-Cola established a supplier diversity mentoring program that trains and guides female and minority
business owners (Coca-Cola 2011; Tharasook 2008). In
addition to spending 28 percent of supplier spending
with diverse vendors, Bank of America provides womenand minority-owned suppliers financial assistance and
resources, such as loans, equity financing, and financial services (Bank of America 2011). Verizon spent 36.5 percent
of its supplier spending with diverse suppliers and actively
pursues business with diverse suppliers by partnering with
diversity advocacy groups, chambers of commerce, and
other organizations to identify qualified diversity suppliers
(Verizon 2011). In sum, the average spending on diverse
suppliers was 20 percent for this sample, higher than the
typical spending focused on women- and minority-owned
businesses, which ranges more commonly from 5 to 8 percent (National Minority Supplier Development Council
2004).
Employee Networking
and Mentoring Programs
The third theme that emerged from the data analysis was
the presence of employee networking groups and mentoring programs, which are found in all fourteen organizations. For example, Verizon established the Employee
Resource Group, which provides networking, mentoring,
special initiatives, seminars, and conferences for employees (Verizon 2011). Kraft Foods established a Jumpstart
program in which senior members coach employees who
have less than three years with the company. The program
helps employees understand how to build and maintain
relationships, gain leadership skills, and establish effective
mentor networks. Kraft Foods also has peer-coaching networks that are specifically aimed at accelerating the development of women and ethnic minorities toward management
positions (Ezell et al. 2010). Similarly, MGM Mirage holds
a nine-month executive mentoring program with the goal of
advancing high-potential minority employees into the
executive level.
Sodexo uses both mentoring and employee networking
groups for its diversity and inclusion initiatives. In particular, Sodexo established IMPACT, which is an annual event
in which mentoring partnerships are formed to help
protgs achieve their work goals. To increase diversity in

management, Sodexo also established the Spirit of
Mentoring Bridge Program, which is focused on connecting newly hired and frontline managers.
Starwood established a virtual mentor network that is
centered on a web-based tool that allows employees worldwide to create mentoring relationships with other associates. Mentors and protgs establish goals on leadership
competencies and measure progress, provide coaching and
development opportunities, and prepare employees for
leadership roles (Allen, Finkelstein, and Poteet 2009).
Affinity Groups. A subtheme in the networking category is
affinity groups based on a common dimension (e.g., race, religion, disability, gender). Sodexos affinity groups, for instance,
include the African American Leadership Forum, the Military
Network Group, the Intergenerational Network Group, the
Pan-Asian Employee Network Group, PRIDE (a LGBT), the
Organization for Disabilities Resources, the Organization of
Latinos, and the Womens Network Group (Catalyst 2012).
Coca-Cola, HSBC-North America Bank, and J. C. Penney
have also established affinity groups, such as people with
disabilities, female, African-American, Asian/Pacific
Islander, LGBT, Hispanic, and Native American employees. Developing employee networking groups, and mentoring programs that are focused on women and minorities is
aligned with the literature examining mentoring experiences for those groups, which suggests that minority managers have fewer intimate networking relationships (Hebl,
Madera, and King 2007; Ibarra 1995; D. A. Thomas 1990).
It is widely recognized that networks are central to a persons mobility, promotion, and emergence as a leader. The
absence of such networks, moreover, leads to feelings of
exclusion and lack of commitment in the workplace
(Williams and OReilly 1998).
Cultural Awareness
Twelve of the fourteen organizations communicated cultural awareness programs or training on their corporate web
sites: Bank of America, Coca-Cola, Health Care Service
Corporation, J. C. Penney, JP Morgan Chase, Marriott,
Target, Sodexo, Starwood Hotels and Resorts, Verizon, and
Walt Disney.
Marriotts web site clearly communicates that the multicultural makeup of the U.S. workforce is a business opportunity, stating that
for many new immigrants, hotels are often the first
opportunity for formal employment and [they]
deeply influence initial impressions of their new
homeland. In the U.S., many of our associates are
foreign-born, and Marriott has long advocated for
a comprehensive approach to immigration reform.
(Marriott International 2011)
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Madera
In addition to their efforts in U.S. properties, in 2008,
Marriott appointed a global diversity officer to spearhead
the companys diversity outreach outside of the United
States. Part of Marriotts required diversity training aims to
help employees gain cultural competence and be able to
effectively work with peers and customers from different
cultures. Disney uses its hola program to promote
Hispanic and Latino heritage and cultural exchange between
employees.
An example of how hospitality organizations can embrace
cultural awareness is provided by the observance of
Ramadan by Starwood Hotels and Resorts, in which the
hotels provide reduced rates to customers traveling during
that time. Verizon also celebrates cultural holidays with
events such as the Lunar New Year, Cinco de Mayo,
Hispanic Heritage month, Black History month, Latin
Grammys, the National Association for the Advancement of
Colored People Image Awards, and the Hispanic and Asian
film festivals. Health Care Service Corporation established a
Diversity Day, in which employees can take a paid floating holiday that can be used for any cultural holiday.
In addition to having general cultural awareness programs, some of the organizations, such as Starwood and
Marriott, have programs that welcome employees from all
cultures and facilitate employees to work and gain international experience in their company under specific visas.
Such programs promote cultural diversity among the workforce and strengthen employees ability to communicate
effectively with a wide span of customers.
Language Proficiency Programs. Another subtheme was
that some of the organizations had programs focusing on
language proficiency. Both Starwood Hotels and Resorts,
and Marriott offered language programs. Marriotts language program teaches Spanish-speaking employees workplace skills in English to increase their English proficiency.
Such programs benefit the workers and develop a bilingual
staff, which is important to the organization. Verizon provides customer service in multiple languages in the United
States to support customers in Mandarin, Cantonese,
Korean, Russian, Spanish, and Vietnamese.
Support for Women

All of the firms work on recruiting, developing, and retaining women. This finding is underscored by the fact that
women constitute a greater proportion of workers than ever
before (Powell and Graves 2003). It is projected that by
2016, women will make up about 46 percent of the labor
force, a percentage that will hold relatively steady (at 48%)
through 2025 (Fullerton 1999; Toossi 2008). The hospitality industry has more work to do here, given its reputation
for sex discrimination, sexual harassment, and being male
dominant (Slonaker, Wendt, and Baker 2007; Sparrowe
and Iverson 1999). Additionally, research has shown that
women earn less than men in similar job positions and that
there are gender differences in hospitality industry managerial positions (Biswas and Cassell 1996; Purcell 1996;
Sparrowe and Iverson 1999; Thrane 2007).
The fourteen organizations in this study have clearly recognized the value of creating avenues for women in top
management positions, with programs such as Womens
Leadership Development Program at Marriott, CocaColas Womens Linc business resource group, and the J.
C. Penney womens affinity group. Marriotts program
includes a Leadership Development Talent Inventory process for female general managers to give them a personal
assessment, feedback, coaching, a workshop, and a personal development plan. Sodexos Womens Network
Group was established to include womens growth and
development as part of Sodexos culture and mission
(Catalyst 2012).
Seven of the firms have been given the NAFE Top 50
Award, for companies that display a great interest in their
female executives, based on the number of women in executive positions. Those firms are Bank of America, HSBCNorth America, JP Morgan Chase, Kraft Foods, Marriott
Hotels, Sodexo, and Verizon. Women in the organizations
on the NAFE list represent an average of 23 percent of
boards of directors and 26 percent of executive positions. In
contrast, women only constitute 15.4 percent of corporate
officers and 14.6 percent of boards of directors of Fortune
500 organizations (Catalyst 2007).
LGBT Programs
and Same-Sex Benefits
The last theme that emerged from the analysis is support for
LGBT employees and providing same-sex benefits. All
fourteen organizations offer same-sex benefits to their
employees, which exceeds the 57 percent rate of Fortune
500 organizations that provide benefits to employees samesex partners. Estimated at up to 10 percent of the population, LGBT individuals often face discrimination in their
personal lives (Gonsiorek and Weinrich 1991; Herek 2000)
and in the workplace (Friskopp and Silverstein 1996; Hebl,
Madera, and King 2007; Ragins and Cornwell 2001;
Ragins, Singh, and Cornwell 2007). Although there are
state and local antidiscrimination laws that protect sexual
orientation diversity, sexual orientation is not protected at
the federal level.
Three organizations stand out for advancing LGBT
employment policies and protection: Marriott International,
JP Morgan Chase, and MGM Mirage. Marriott International
was among the first in the lodging industry to offer domestic partner benefits and has earned perfect 100-percent
scores on the Human Rights Campaigns Corporate Equality
Index for multiple years (Gunther 2008). JP Morgan Chase
was the first in the banking industry to offer same-sex
132
domestic partner benefits to its employees. Similarly, MGM

Mirage was the first company in the gaming industry to
offer same-sex health benefits to employees.
Other organizations also provide same-sex benefits and
actively engage in events that advance LGBT diversity.
Verizon flies a rainbow flag during Pride month, and Target
has a history of sponsoring events in the LGBT community.
In addition, Marriott hotels have hosted LGBT community
functions and events as part of their efforts to advance
LGBT inclusion policies.
Sexual Orientation Nondiscrimination. A subtheme that
emerged here is that some of the organizations also include
sexual orientation in their nondiscrimination polices, including J. C. Penney, Disney, and Starwood, which includes
gender identity as a protected class. Research has shown
that including LGBT nondiscrimination policies is positively related to job satisfaction and commitment among
LGBT employees (Day and Schoenrade 2000).
Comparing the Results to the Literature

As a final step, I compared the results of the content analysis with recommendations from the diversity management
literature to examine whether the programs adopted by
these large, successful organizations match those recommendations. I found considerable congruence. These companies had leadership initiatives, diversity training, supplier
diversity programs, and mentoring and networking programs, and they also communicated their support of diversity and nondiscrimination policies through their cultural
awareness, support for women, diversity training, and
LGBT programs and same-sex benefits.
In addition, the importance of recruiting and selecting
diverse individuals was also communicated through many
of the diversity management practices adopted by these
firms, including Marriotts global diversity officer; the supplier diversity initiatives (including women-owned businesses) on the part of MGM Mirage, Verizon, and Walt
Disney; Marriotts language program; and Marriott
Internationals, JP Morgan Chases, and MGM Mirages
offer of same-sex benefits and protection to attract and
retain LGBT individuals.
I also identified practices that were not aligned with
the diversity management literatures recommendations. In
only three firms, for example, was the CEO part of the corporate diversity council, Marriott, MGM Mirage, and Bank
of America. However, many firms did have corporate
diversity councils to administer diversity initiatives and
progress.
Interestingly, the companies in this sample do not include
specific mentions of AA or EEO policies in conjunction
with their diversity program. This result, however, is consistent with a growing body of literature that suggests that
because AA/EEO programs are federally mandated and are
often associated with negative stereotypes, many organizations frame their diversity initiatives outside of their AA/
EEO statements (Chavez and Weisenger 2008; Hansen
2003; Society for Human Resource Management 2008).
That is, diversity management practices are voluntary organizational programs, whereas AA/EEO programs are tied to
legislation.
The results also underscore an important shortcoming of
the diversity management literature, which is that the literature lacks practical and specific advice. The best practices suggested by the diversity management literature are
often conceptual and general, while the firms practices are
often quite specific to various groups, such as affinity
groups focusing on disabilities, programs to promote
women into management, language programs for foreignborn employees, and policies that specifically protect
LGBT employees.
Summary and Conclusion

This study identified seven categories of diversity management practices used by the fourteen organizations I
examined: corporate diversity council, diversity training
programs, supplier diversity, employee networking and
mentoring, cultural awareness, support for women, and
LGBT programs and same-sex benefits.
This study contributes to the diversity management literature by examining which specific diversity management
practices have been adopted. The sample, drawn from the
Diversity Inc. top-rated companies, provides a window into
diversity management practices used by the most successful
firms. The successful diversity management practices highlighted here are particularly important for the hospitality
industry, given its position as one of the largest employers
of women, ethnic minorities, and immigrant employees
(Jackson and DeFranco 2005; Lee and Chon 2000).
Hospitality employers can use these results as a gauge for
which diversity management practices have been successful
for other service organizations and as models for diversity
management. Six organizations use all seven diversity management practices, and all fourteen had at least five of these
practices. What these results suggest is that to have a truly
effective approach to diversity management, organizations
need to offer a broad set of diversity management
practices.
One interesting observation is that all fourteen companies had a corporate diversity council, even though only
three included their CEO. All of the corporate diversity
councils were responsible for diversity initiatives and for
monitoring progress, which the diversity management literature suggests is vital for diversity programs to be successful. Another practice common to all fourteen companies
was the use of employee networking groups or affinity
groups. The fact that this can be done virtually is
133
Madera
particularly important for small companies or those with
distant operations. I found that Sodexo, Coca-Cola, and
Bank of America, among others, use free social media, such
as Facebook and Twitter, to organize their affinity groups.
In closing, it important to highlight the presence of hospitality firms on this list. A hospitality organization, Sodexo,
was the top company for diversity. According to Diversity
Inc., Marriott International, Starwood Hotels and Resorts
Worldwide, MGM Mirage, and the Walt Disney Company
were also high on the list, giving evidence that the hospitality industry can be a leader for diversity management practices. These practices will help offset the industrys major
problem, as identified by Hinkin and Tracey (2010): there is
an attitude in the hospitality industry that the industry faces
special problems that other industries do not (p. 170), such
as high turnover rates. By adopting diversity management
programs, as explained here, organizations in the hospitality industry will be able to increase and maintain a diverse
workforce in all levels.
Declaration of Conflicting Interests
The author(s) declared no potential conflicts of interest with
respect to the research, authorship, and/or publication of this
article.
Funding
The author(s) received no financial support for the research,
authorship, and/or publication of this article.
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Bio
Juan M. Madera, PhD, is an assistant professor at the Conrad N.
Hilton College of Hotel and Restaurant Management, at the
University of Houston.

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Cornell Hospitality Quarterly XX(X)Madera

Focus on Human Resources

Best Practices in Diversity Management

Cornell Hospitality Quarterly

management programs, and second, to examine which

Diversity Management Practices

University of Houston, TX, USA

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New and Fresh Ideas

Improve Firm Growth

selecting, and retaining a diverse workforce will give an

Commonly Cited Diversity

Recruitment and Selection

Enhance Firm Image

Create Valuable Human Resources

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Cornell Hospitality Quarterly 54(2)

Kalargyrou 2012; S. S. Kim and Gelfand 2003; Perkins,

management practices recommended by researchers are

Mentoring and Networking

Method and Sample Construction

Using Hinkin and Traceys (2010) benchmarking assessment

Affirmative Action (AA) and Equal

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Diversity Management and Workforce Diversity Statistics

Diversity Management Practices

1. Corporate diversity council

Workforce Diversity Statistics

Ethnic minorities account for 61% of the workforce,

Ethnic minorities account for 44% of the workforce,

Ethnic minorities account for 60% of the workforce,

Ethnic minorities account for 41% of the workforce,

Ethnic minorities account for 61% of the workforce,

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Cornell Hospitality Quarterly 54(2)

(34) JP Morgan Chase

(35) Kraft Foods

(40) Target Corporation

Diversity Management Practices

Workforce Diversity Statistics

1. Corporate diversity council

Ethnic minorities account for 21% of the workforce,

volume of purchases, provision of loans, or other financial

Results and Discussion

Ethnic minorities account for 41% of the workforce.

Ethnic minorities account for 21% of the workforce,

Ethnic minorities account for 42% of the workforce,

Workforce demographic data were not available.

council, diversity training programs, supplier diversity,

Corporate Diversity Council

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Diversity Training Programs

Marriott Internationals training is also mandatory, as is that

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Cornell Hospitality Quarterly 54(2)

two business networking organizations that are focused

protgs achieve their work goals. To increase diversity in

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Support for Women

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Cornell Hospitality Quarterly 54(2)

domestic partner benefits to its employees. Similarly, MGM

Comparing the Results to the Literature