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The Case for Latinas on Corporate Boards
Diversity in any business is smart. Diversity on corporate boards is both smart and good business. The increasing Hispanic demographics predicate changes in how America's business is conducted. For corporations it means that Hispanic employment, business procurement alliances, corporate philanthropy and social responsibility, and governance issues must be addressed. Depending on how well corporations do in the above four categories they will either maintain a business edge or lose it to the companies that understand the importance of Hispanic inclusion. Those who also understand Latina influence will do the best.
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Alma Morales Riojas (center, with family)
President & CEO
MANA, A National Latina Organization
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The companies that LATINA Style has acknowledged as companies that offer the best workplaces for Latinas deserve congratulations. As a
Latina, however, I must ask when diversity efforts will extend to Latina inclusion on boards of directors. Inclusion is not simply a case of social justice or equal opportunity. It is a business imperative! Statistics relative to women as a group show that they:
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Purchase 82 percent of all household products and services,
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Purchase 92 percent of packaged goods,
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Make 75 percent of all household financial decisions,
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Make 50 percent of all personal investment decisions,
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Make the majority of healthcare decisions for their families, and
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Open businesses at twice the rate of men.
Obviously women exercise substantial power and control. The increase of white women on corporate boards and at officer levels shows that corporations see this dynamic. However, that same increase has not occurred for Latinas in most of corporate America, including the Fortune 1000.
The Hispanic Association on Corporate Responsibility's (HACR) Corporate Governance Study reports that 23 Hispanic women hold a mere 36 seats, or 0.3 percent, of all Fortune 1000 board seats. Further, eight of the 21 Latina directors serve on more than one Fortune 1000 board. Fewer Latinas serve on corporate boards than Latinos. Over a decade ago, Latinas represented 12.5 percent compared to only 14 percent of all Hispanic directors today. Since only seven Latinas serve as executive officers in "Fortune 1000" companies, there is no pipeline of Latina candidates being created to lead them to the boardroom.
It is not because corporations do not know how to bring about inclusion. Women now hold about one out of eight Fortune 500 board seats compared to one out of 12 in 1993, and they represent 10.9 percent of all Fortune 1000 directors. The New York-based non-profit research and advisory organization Catalyst reports that 87 percent of all Fortune 500 companies have at least one woman on their board, and a May 2003 Catalyst study shows that just 25 (0.1 percent) of nearly 14,000 corporate officers in the Fortune 500 are Hispanic women.
The barriers affecting a woman's chance of reaching the boardroom are not a big surprise. While the absence of mentors is a number one challenge for achieving career success, women also report that "outsider" perception and "lack of cultural understanding among managers" are a problem. Catalyst also reports that 21 percent of Hispanic women surveyed cited family commitments as a barrier to advancement. From a MANA, A National Latina Organization® perspective, while Latinas may be more likely to cite family commitments as a barrier to advancement, they are also more likely to stretch themselves to accommodate the pressures of career and family. Women such as Patricia Diaz-Dennis, general counsel with SBC, and Linda Alvarado, president of Alvarado Construction, are examples of women who have been successful in business, serve on corporate boards, and also have a rich family life.
As an officer of the board of directors of HACR, I have worked with corporations that have made a great effort to bring about diversity changes from the entry level to the boardroom. They know that it affects their bottom line. Most recently, HACR partner and LATINA
Style 50 company Ford Motor Company appointed Kimberly Cassiano to its board of directors. Wyndham International appointed Adela Cepeda to its board. Obviously Ford Motor Company and Wyndham "get it."
The 42.6 million Hispanics in the United States now have over a $650 billion annual purchasing power. From food, homes, automobiles, travel, clothing and pharmaceuticals, Latinas influence more than half of that amount. It makes sense that if a corporation is going to be positioned to offer the "product of choice," it will do well to have the advice and counsel of Latinas at all levels. Having Latinas on boards of directors makes good sense for corporate America and for Latinas.
"Latinas are making a difference today and creating a better tomorrow."
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