Is DiversityInc a ‘Slick Money-Making Machine’?
Luke Visconti’s Ask the White Guy column is a top draw on DiversityInc.com. Visconti, the founder and CEO of DiversityInc, is a nationally recognized leader in diversity management. In his popular column, readers who ask Visconti tough questions about race/culture, religion, gender, sexual orientation, disability and age can expect smart, direct and disarmingly frank answers.
Stu Arnold, one of our relationship managers, received this email from Terry Howard, diversity director, Texas Instruments on Oct. 10, 2010:
[From Terry Howard] … Diversity Inc has a growing reputation as being nothing but a slick “money-making machine” driven solely by your profit motive. Not sure if you’ve heard that or not but that reputation is out there in the diversity community.
Here’s the email I sent to Terry on Oct. 14, 2010:
[From Luke Visconti] That was a really foolish thing to write, Terry. Every company exists to make a decent profit for return on equity.
But businesses shouldn’t just be measured on profit alone, Terry. Corporate citizenship is also very important – you have an area about that on your website. It says that TI donated $18.8 million to various charities (including $8 million to the TI Foundation). Your firm had $12.5 billion in annual revenues. That means TI donated 0.15 percent of its revenue to charity. I’m on three college boards and one other not-for-profit board. I donated 2 percent of my gross revenue – or 33 percent of my salary — to those philanthropies.
Which company is the “slick money-making machine”?
And about reputation in the “diversity community”: There’s no diversity area on your website – this might be because out of 18 corporate executives pictured on your web site, none appear to be non-white and only three are women – two of the three women are definitely not in line positions. That means that 6.25 percent of your leadership positions are staffed by women.
What “diversity community” are you a member of? The almost 100 percent white male one.
Your reputation is fully grown with me, Terry: You’re a fig-leaf holder. I’ll bet they make you work out of an office outside the state. No Texan I know would put up with you.
On Oct. 21, 2010, after he received the above email, Terry sent this email to a group of diversity professionals in Dallas. One of them forwarded it to me:
[From Terry Howard]: To tag onto the recent exchanges about the DiversityInc survey, does anyone have a feel for just how “diverse” DiversityInc is relative to the number of people of color and women who work there? Who holds the key jobs there and what do they look like?
And further, given that DiversityInc has become a financial behemoth, does anyone know how much they have given back to their homebase, the city of Newark, known to have problems of unemployment, high crime, etc.
In short, is DiversityInc really walking their talk or are they just raking in the dough?
Are my questions legitimate ones to pose? Talk to me Consortium.
Terry
I responded by referring the person who forwarded Terry’s email to me to www.DiversityInc.com/aboutus. Please note that when Terry sent the above email, he already had my response about DiversityInc philanthropy. For the record, of my eight direct reports, six are women, two are men (one white man). Five of my eight direct reports are not white. I sent this email to that person on Oct. 24, 2010 (the companies I named were on The 2010 DiversityInc Top 50 list – on The 2011 DiversityInc Top 50 list, several companies do no business with me, including General Mills, Cummins and SC Johnson):
[From Luke Visconti]: One more thing you may want to think about — entering the DiversityInc Top 50 competition is free — and you get a report card. There are six companies on my list who don’t do any business with me, including JPMorgan Chase, General Mills and Xerox — which PROVES there’s no connection between doing business with me and being on my list (I’m just guessing this has been brought up).
There are some people who think that not participating is the best thing to do – if you don’t participate, your CEO can’t ask “Why aren’t we on the list?” If you do participate and get on the list, you have to worry about falling down in your rankings. If you’re a fig-leaf holder for your corporation — if you’re the kind of person who figures “Hey, I got mine, the hell with everyone else,” the LAST thing you want is a measure of independent verification. Once you have it, you actually have to drop the fig-leaf to DO SOMETHING. Might be risky! Might be stressful! You might actually have to face some heat.
The reason I waited to publish this interaction until now was the hope that it would go away – unfortunately two companies have recently contacted me with the same slander – one of them mentioned Terry by name. Unfortunately, Terry must have mistaken my kindness for weakness. Bullies often do that. I’m going to send his CEO and corporate counsel a copy of this column with a letter from me. For the record, Texas Instruments does not participate in The DiversityInc Top 50 and we do no business with them.
For those of you listening to whispering campaigns by people like Terry – who will slander and libel my company behind my back and do not have the guts to confront me directly (yes, I know all about you two on the West Coast), please keep this in mind: I’m not going to take it quietly anymore.
11:28 am
Great articleand keep up the good work. The naysayers will always challenge diversity, because it is about losing their power not truth.
11:31 am
Great response. Keep doing what you do.
11:37 am
Yes, I’ve read the response, but, how many men of color?
11:42 am
Dear ATWG,
As usual, you have schooled another miseducated “leader” on why diversity matters. Even better, you have lead by example.
LFears
11:49 am
this seems like a childish, playground exchange between two grown men who should know better…better handled in a phone call guys. Defintely not something I want to read as a Diversity Minute. Disappointed in Diveristy’s response to this as it appears more personal than anything else.
11:50 am
Dear Mr. Visconti:
Thanks a lot for sharing the story. I know it is a serious issue, but I just could not stop laughing while reading. In my humble opinion, nothing speaks louder than facts. Just one question: what did you do to this guy that he has such a beef with you!
Success and keep up the good work!
11:54 am
Thank you for this article. I am an avid reader of Diversity Inc. and I’m glad you are fighting back. Your articles are insightful and very beneficial. I forward them on a regular basis to friends, co-workers and members of my companies Hispanic Affinity Group. You have my support
11:56 am
This is the sort of “pissing” match we should all try to avoid! I have great respect for Diversityinc, but to respond with such defensiveness, I think, doesn’t raise the level of the conversation. I hope things die down soon so we can all get back to dealing with what is “real” and “important” – promoting diversity in our workplaces and our culture!
12:01 pm
I am so glad you are responding this way to this slander. We are a small women owned 33 year old consulting company one of our areas of expertise is in Diversity and we get regularly attacked by people in the large companies with whom we work. I would be happy to share one on one some of the attacks we have had to deal with.
I just wrote about it on Facebook and in our Newsletter. I too am tired of these companies slinging mud when their houses are covered in the stuff!
Good for you! Keep it up you give the rest of us hope in what we hope will be a very diverse future! And by the way we hope you make as much money as you can so you can keep these messages and your work coming!!
Susan Van Vleet
12:05 pm
Luke I read this article and it really saddens me that we still have people like Terry still working in large corporations, and as a diversity leader no less… This is a perfect example of why the work you are doing is so important…
12:10 pm
It is not very professional to call out Texas Instruments for not wanting to have interactions with your company. Further, it was very bully-ish of you to mention the West Coast individuals who also may have a campaign against you. The only thing that you can do as the professional leader of your company is to influence the external environment by speaking positively (and perhaps alluding to any difficult letters or conversations received) at speaking engagements or within your written materials and educate. Further, onboarding members of your team by engaging them in these topics of conversation would be key to expanding your influence. We all work for companies that are dragged through the media or may have teams of persons with an agenda against our platform, etc. We cannot call everyone out in this manner; it would just be stooping to their level. We can only educate, influence and engage in healthy debates.
Kind Regards,
Melissa
12:17 pm
II read the email exchanges and responses. I was disappointed by the reply from DiversityInc. I thought it defensive and never really responded to a direct and fair question (whether you like the question or not, it is fair to ask). Instead of a direct response, I see a heated attack on the messenger. The issue at the heart of the question from Terry is really one of authenticity and the history of the diversity movement and manipulation by others’.
The challenge for modern day diversity is not to have someone else tell the story of and for diverse people and people traditionally locked out of the leadership role. We as people of color do not need sympathy and do not need others’ usurping our issues and challenges. It simply populates the stereotypes of disempowerment and helplessness that we work to quash. It suggests that we can’t help ourselves unless a person of white appearance is in the mix.
As a large firm employment lawyer representing corporate defendants, I wonder if the response provided works too hard. If your organization is as diverse as you represent and operated for the purpose and mission, I do not understand the frontal assault on a legitimate question. Furthermore, not only did you not respond in the appropriate manner and tone, attacked the guy, you then entered a campaign to discredit him with his supervisor. Who is engaged in career sabotage now? What happened to free speech and intelligent exchange of ideals and inquiry?
To be frank, you response caused more of a question about what is really going on at DiversityInc then the original question. I think the term is overkill.
Based on the above exchange, I am doubtful this comment will see the light of day.
12:23 pm
I do not claim to have the full backstory that precipitated these exchanges, but I wonder what is necessarily defamatory behind the claim that Diversity Inc. is a “slick, money making machine.” Is it not reasonable to conclude one interpretation of such a characterization is that Diversity Inc., operating in a free market system, is an effecient and effective operation which happens to be profitable? What specific facts, transactions, or the like do Terry and company cite to unequivocally substantiate a negative interpretation of this given characterization?
12:25 pm
Luke: I agree. This has been going on too long and not just with TI but other corporations do the same but quietly. Your points well taken. I have been doing business with several corporations over the years in the diversity consulting arena. some I’ve made several individuals in middle management moved up the ladder but in the end, they all – as you put it – There are some people who think that not participating is the best thing to do – if you don’t participate, your CEO can’t ask “Why aren’t we on the list?” If you do participate and get on the list, you have to worry about falling down in your rankings. If you’re a fig-leaf holder for your corporation — if you’re the kind of person who figures “Hey, I got mine, the hell with everyone else,” the LAST thing you want is a measure of independent verification. Once you have it, you actually have to drop the fig-leaf to DO SOMETHING. Might be risky! Might be stressful! You might actually have to face some heat.”
This country at large is still very much a white man’s world and for me, a female minority, no matter how much my company has done to further a lot of people’s careers, it’s never enough. I have come to be quite discouraged but after I read your column, I’ve gotten my “Fire-in-the-belly” back. Thank you and keep being you.
I feel the same way and will now push forward…. THANK YOU!!!!
12:29 pm
Luke- I have respected you and followed the growth of DiversityInc since 2004 when I was interviewed for an online article about the development of Solectron’s program at the time. While I have at times read articles in the magazine and online and thought “wow, did they really go there?” I have always been thankful for the no-hold barred candor you and your staff have presented when discussing subjects that too many people want to shove under the rug. I have been on the MBE/WBE side of things for 3 years now and I have seen far too many companies with the “fig leaf” you have mentioned above. Even those companies with big spend dollars, when you pull back the curtain they are achieving those numbers with a small amount of suppliers…no true business development. Those who claim workforce diversity still have a full roster of white males on their board and C-suite positions. I say all that to say, keep up the good work…no matter how much money you may make off your efforts, they are still appreciated and effective…some people just don’t want to look in the mirror.
12:33 pm
Luke,
I think that such mud-slinging should be kept away from the public eye; we are all entitled to our opinions.
DiversityInc is a company with numerous corporate sponsors that do business with TI; out of respect for those sponsors, I feel that this conflict, which has absolutely no real impact or relation to the current state of diversity and inclusiveness in society, should not be associated with the companies/sponsors that contribute to your paycheck.
That being said…. I enjoy receiving POSITIVE messages from your company showcasing the companies that are leading the way towards equality. On occasion, it is also necessary to scrutinize and “call out” a company’s negative action or discriminatory policy towards a minority group; this particular case with TI does not fall into either category and should have been blocked from publishing.
I personally disagree with Terry’s opinion of DiversityInc and feel that your messages to Terry were on target with reality; however, we need to be comfortable with the simple fact that not everybody in this world will like us or agree with us. This is your issue, not mine :)
12:36 pm
Hooorah! The good fight often means fighting back against naysayers and those who would throw salt just for the sake of it. Especially those that choose not to participate but feel they still have the right to condemn others. I choose to look at what you do …not what you don’t do. Keep up the good work and the good fight!
12:39 pm
Thanks for keeping us posted. Stay encouraged; continue to beat the drum of justice and equality, and continue to be part of the solution to resolving the diversity and inclusion dilemma.
12:40 pm
Luke:
Thanks for sharing this. I had not heard about it before. What an awful thing for you to have to deal with! Your responses are wonderful. Keep up the good fight.
12:40 pm
GO GET EM BROTHER!
Let me know how I can be of help.
Standing with you and ready to fight!