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.
2:35 pm
Luke,
Good for you. You don’t have to take this lying down. Keep up the good work and I support you. I read your magazine (and learn from it) and I use your wisdom in my work here as Diversity Officer for Mission Health System.
Justice and Blessings,
Michael Carter
Diversity Officer, Mission Health System
Asheville, NC
2:39 pm
Terry asked some legitimate questions which were answered. However, it seems Luke’s response lacked much professionalism. It’s the kind of response you might hear from a defensive person who felt the need to attack. Either respond in a manner that you would like others to respond to you or don’t respond at all. Content was not the issue. It’s the tone. Humility and respect go a long way whether or not you feel you’ve been targeted. IMHO it sounds like Luke’s response comes from a recognition that there is more than one person questioning his motives. Only Luke will truly know his motives. However, his response leaves it open for multiple interpretations (as my comments here do).
2:47 pm
Wow, this has gotten nasty. I will be interested in seeing how this gets resolved via litigation.
2:55 pm
I have been a fervent reader and know that your company not only talks the talk but walks the walk. Kudos to you
2:57 pm
Let the truth be told! The revolution will not be televisied. Someone should stand up, people may not like how the information is wrapped, but it’s necessary! Diversity should not be a complacent action.
3:04 pm
Hi Luke:
It’s been awhile since we’ve connected.
It’s time to fix that since I’m troubled by Terry Howard’s accusation about DiversityInc being (my words) a diversity pimp. Having experienced similar attacks, only not quite so publicly, I appreciate your transparency about it.
In my 35 years in D&I I have often found myself a target for criticism in terms of “doing well by doing good.”
So kudos to you for advancing diversity on such a sustained and successful basis and then reinvesting your company’s financial wherewithal as an example for all of us out here in the field to follow.
Keep up the good, solid work,
Linda B.
3:05 pm
Hi Luke,
Please don’t listen to this. You have been a great supporter of diversity for very long time….
I appreciate your work and support you.
3:06 pm
I scarcely ever read the articles I get, but this one caught my attention. Though yes, the argument seemed a bit defensive, there is nothing stronger than facts. I will look at TI in a whole different light and reconsider my purchases with them. I will let others know as well. Keep up the hard work.
3:07 pm
Well said Luke….some folks just dont get it.
3:12 pm
I can’t imagine why people see him as some sort of authority. There doesn’t appear to be much diversity accomplishment at that company. I wonder if it doesn’t boil down to the fact that you are “the white guy”?
3:43 pm
Hi Luke, if cooler heads prevailed, your message would have been a great teaching moment for why diversity and inclusion are important as well as how your company truly “walks the walk”. I know you are passionate about diversity, your company and the principle of mutual respect. As such, might I suggest next time to professionally bury the naysayers under a torrent of facts and demonstrated results–not caustic declarations? You (and many others like you) are doing good work to move the needle–don’t let personalities distract you from the goal turn them from doubters to believers. My Nana always said, “you catch more flies with honey than with vinegar . . . ” Hang in there, Kevin
3:59 pm
Luke:
I would like to send an open email defending Diversity Inc, You have done great giving back to all communities. HP as many other tech companies do not believe they have to play by the rules.
I have been working with you since you started your magazine and know how much you have done. Let me know if you would like me to write a response to Mr Howard.
BTW: I liked how you handled this guy, he is what you say he is.
Thanks for all your support throughout the years.
Jose Marquez
CEO
LISTA
4:17 pm
I’m shocked by the tone of the resonse from Luke to Terry Howard of TI. Instead of interpreting the email from Terry as a heads-up and responding positivley, the worst was assumed and delivered in reply. This was a missed opportuinty to start an exchange that may have won you a friend; intead you have made an enemy. I can only assume that Luke and Diversity Inc., have been worn thin by repeated like charges to have replied this way. I hope Diversity Inc. and Luke will take a deep breath and try again. Maybe Terry hopes so too.
4:21 pm
Luke,
When I was promoted to my first management position my immediate boss said, “Alma, in this and other positions of responsibility, “if everyone likes you, you are not doing your job. Not everyone will embrace what you are trying to accomplish. It isn’t human nature.” The retired USAF Colonel knew what he was talking about. A guy like Howard just doesn’t get it and because HE DOES NOT GET IT, he is compelled to knock down what he does not or will not understand.
This TI person does a tremendous disservice to all of us who do the job, know the facts, and can tell the difference between “slick” and honest to goodness research supported data. Too bad for Howard and too too bad for TI.
On a first hand knowledge basis I know that you have always had one of the most if not most diverse employee base in any field. And I am speaking race, ethnicity, gender, age, sexual preference and limited ability. Luke Visconti “Walks the Talk” as Tom Peters wrote many years ago. Above all I have always found you to be a person of immense and unquestionable honor and integrity. For that reason I can relate to your reaction to being maliciously described as Howard did. When your honor and integrity are questioned you cannot sit still. In today’s environment where we see greed at the root of many personal and business failures, it is important to protect those traits that are our true heritage and the most valuable things we can leave our chukdren, our families, our friends, and society.
Keep up the good fight Luke. You are a true champion. If you happen to have a successful business and make a profit in the process it shows the good old American dream is alive and healthy. Luke, it is always good to know that “good guys do not have to finish last.”
Siempre adelante, Alma
4:37 pm
Luke, thank you for your leadership, passion and the tremendous service DiversityInc provides. I suppose some, as has been mentioned here, can construe your response to Terry as “defensive,” I, on the other hand, feel the passion of your conviction. I share this conviction. I do business with DiversityInc because the service you provide adds value to what I do. I applaud those who make a profit doing good. Continue the good work.
4:39 pm
It’s okay to challenge companies on their diversity progress, but unfortuately this exchange makes it look like he got your goat on this one. Be a class act. Look at Catalyst, or Tom Joyner. Every enterprise — even the corner deli — has its detractors. Don’t cede the high ground. Better to be seen fighting for diversity than for oneself.
4:46 pm
I couldn’t think of a more inaccurate description of Diversity Inc. than “a slick money-making machine.” There are many things you publish that confront workplace issues directly and uncomfortably for some, and if anything could actually have a negative impact on your bottom line if employers resented that issue being brought to light.
5:27 pm
Diversity can be something of an enigma to corporate C level people. Some get involved because it looks good to the public, others get involved because they really get it and still others try to hide behind their admins. In the end, a healthy dose of understanding and implementation should make C’s feel good about themselves and their companies. Just figure out a way to make it fit the shareholders needs and the public’s and we’re all winners..
5:42 pm
Luke,
Great points. I am glad you shared this with us. I read your stuff all the time. I think this underscores a major problem in our society today. People have a poor outlook on wealth or money, often equating it with evil. Profit motive does not equal wrongdoing. Too many people attack firms and companies for being profitable or rich people for taking risks and becoming a success. Money is NOT the root of evil. You took a very important issue –Diversity — and made a company around it. The fact that you are profitable means you can do more (which you have done) than some other company that doesn’t do well and goes broke. You employ diversity at your own firm which employs diverse people and you spread the awareness that our society sorely needs. I admire people like you who take a dream and run with it. Your success is our success. Haters hate because they are too weak or simple minded to do anything else. Don’t be distracted by them. Don’t let them steal your energy. You do good work. So many of us benefit from your work. Keep it up.
5:46 pm
Luke,
Your “Old Testament” type response to Terry was totally appropriate. It was stupid of him to start a fight with a fighter pilot! :-). To those who chided you for having a public pissing contest totally missed or ignored the point. To allow those accusations to go unchallenged or to try to have a rational discussion in private is the approach that many followed in the early days of civil rights struggle to no avail. Not until the graphic images of the savage dog attacks and the high pressure water hoses filled our TV screens did our nation begin to say enough.
You are performing a service to our nation and to the world and I’m proud to call you friend. Please feel free to post my response to your site.
Fraternally,
_PGP_
PAUL G. PATTON, Colonel, USAF (Ret.)