MANY SPIRITS .ONE BROWN-FORMAN
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MANY SPIRITS...
...ONE BROWN-FORMAN
DIVERSITY & INCLUSION STRATEGY 2030
GENDER & RACE EDITION
CONTENTS
3
INTRODUCTION
4
As a global organization, Brown-Forman has employees
based in 42 countries, and markets its brands in more than
170 countries throughout the world. That means
employees and consumers may experience Brown-Forman
THE BUSINESS CASE and its products in countless ways – because the way an
individual interprets and responds to our organization is
6
highly influenced not only by their unique life
circumstances, but the environment in which they live,
work, and play.
STRATEGIC POSITION Unfortunately, this paper – and the research embedded
within it – could not accurately represent the experiences
55
of every Brown-Forman employee or stakeholder. In many
cases we defaulted to using the most readily available
information that likewise reflected the experience of the
largest number of Brown-Forman employees: our U.S.
STRATEGIC DIRECTION
salaried workforce. By leveraging this group, and
particularly its robust set of corresponding data, we were
58
able to streamline and accelerate the strategic planning
process. It is our hope that the U.S. analysis is reasonably
representative of many of our markets, especially our
STRATEGIC PRIORITIES developed markets, and as such, can serve as a reliable
proxy for our global employee population.
65
As a global strategy, this document will be used to guide
the company’s decisions and thinking at the highest level.
However, we recognize that additional work is needed to
customize the content to ensure it is truly applicable to all
APPENDIX Brown-Forman’s employees around the world. In the
coming months, we anticipate producing similar
documents for non-U.S. populations and countries,
including preparing similar analyses of in-country
employees using in-country external data. The Office of
Diversity & Inclusion, People Strategy & Analytics, and HR
Business Partners will be valuable resources for this work,
and look forward to providing ongoing support.
We also recognize that diversity takes many forms, and
trying to effectively tackle each aspect of diversity and
inclusion in one document would be cumbersome and
overwhelming. As such, we made a conscious decision to
focus heavily on gender (globally) and race (specifically in
MANY SPIRITS, ONE BROWN-FORMAN the U.S.) with this first edition of the strategy and its
accompanying ambitions. Future editions will expand this
ONE STRATEGY, MANY COUNTRIES
work to other elements of diversity.
1 | MANY SPIRITS, ONE BROWN-FORMAN
D&I @ B-F: A GLOSSARY OF TERMS
In the world of diversity and inclusion, there are a multitude of terms used to describe diverse
populations. These terms differ by geographic location, legal requirements, and ever-changing
trends and preferences. For the purpose of this strategy, and conversations within Brown-Forman
going forward, the company will use the nomenclature provided below, which is consistent with the
terms used by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency that
administers and enforces civil rights laws against workplace discrimination.
Recognizing that it is difficult, or even impossible, to pick a term that addresses the preferences of
all Brown-Forman employees, the following terms will be used with only the utmost respect and
intentions:
ASIAN Any person having origins in the Far East, Southeast Asia, India, or the
Pacific Islands. This includes individuals from China, Korea, the
Philippine Islands, and Samoa. The term Pacific Islanders is sometimes
used to describe a subsegment of this group.
BLACK
Any individual with origins in any of the black racial groups of Africa.
Within the U.S., these individuals are also often called African Americans.
HISPANIC A person of Mexican, Puerto Rican, Cuban, Central or South American, or
other Spanish culture or origin, regardless of race. Other terms used to
describe this population also include the gender-specific Latinos and
Latinas, as well as the increasingly popular gender-neutral LatinX.
LGBTQI+ A person that identifies as lesbian, gay, bisexual, transgender,
queer/questioning, or intersex. The plus sign (+) acknowledges that there
are other terms used to describe individuals in this community (such as
nonbinary and intersex).
POC People of Color. A term commonly used in the U.S. to describe a group of
individuals comprised of Black, Asian, Hispanic, and people comprised of
two or more races. Within the U.K., the terms BAME (Black, Asian,
Minority Ethnic) and BME (Black Minority Ethnic) are sometimes used to
describe this group. These terms are increasingly controversial, so
wherever possible Brown-Forman will use specific references to the
identifying race and ethnic groups.
WHITE An individual with origins in Europe, North Africa, or the Middle East.
Note: In some instances, this document may contain slight variations to account for the terminology used in source material.
D&I STRATEGY 2030 - GENDER & RACE EDITION | 2
INTRODUCTION
DEAR BROWN-FORMAN
COLLEAGUES:
As we look to our 2030 strategic ambitions, we are pleased
to introduce Many Spirits, One Brown-Forman: Diversity &
Inclusion Strategy 2030 – Gender & Race Edition.
The strategy adopts Brown-Forman’s strategic construct...
Strategic Position: Where We Are Today
Strategic Direction: Where We Are Going
Strategic Priorities: How We Will Get There
...to create a foundation from which to build a more diverse
workforce and inclusive culture.
Thank you to our global Brown-Forman colleagues for your
support of this strategy, and the work you’ve done in this
space over the last decade.
Because of your courageous efforts, we are starting from a
position of strength. Because of your high expectations, we
are focused on building our next generation company and
workforce. Because of our collective abilities, we are
confident that Brown-Forman will realize the true value of
diversity and inclusion and create a stronger, more
competitive organization where each individual has the
opportunity to reach their desired potential.
WE ARE MANY SPIRITS, BUT WE ARE ONE BROWN-FORMAN.
Respectfully,
Ralph de Chabert
SVP, Chief Diversity, Inclusion, and Global Community
Relations Officer
Kirsten Hawley
SVP, Chief Human Resources and Corporate
Communications Officer
Chris Graven
VP, Director, Global Talent Management
3 | MANY SPIRITS, ONE BROWN-FORMAN
THE BUSINESS CASE
IT'S IN THE NUMBERS
It’s hard to ignore the numbers.
Companies with inclusive
cultures are six times more
THE BUSINESS IMPACT
likely to be innovative, six times STUDIES REPEATEDLY SHOW VALUE
more likely to anticipate OF DIVERSITY & INCLUSION EFFORTS
changes and respond ON CORPORATE PROFITABILITY
effectively, and twice as likely to
exceed financial targets.
Organizations with the highest 6X
More Likely
9%
Increase
19% 2X
Increase in
levels of gender diversity on More Likely
to be in EBIT Innovation to Exceed
their executive teams are 21% Innovative Revenue Financial
more likely to outperform their Targets
27% 33% 6X 21%
industry on profitability and
27% more likely to have superior
value creation. If the executive More Likely to More Likely to More Likely
More Likely
team ranked among the best for to Have Experience Anticipate to Outperform
ethnic and cultural diversity, Superior Industry- Change & Industry on
the numbers are even more Value Leading Respond Profitability
Creation Profitability Effectively
impressive, with organizations
33% more likely to experience
industry-leading profitability.
Finally, companies with above- While many organizations may have initiated diversity and inclusion
average diversity (across six (D&I) efforts because it was “the right thing to do,” it is becoming
dimensions, including increasingly clear that diverse workforces and inclusive cultures are
migration, industry, career equally valuable from a business standpoint. McKinsey & Company, a
path, gender, education, and leading worldwide consulting firm, found that “awareness of the
age) have increases of 19% in business case for inclusion and diversity is on the rise. While social
innovation revenue and 9% in justice typically is the initial impetus behind these efforts, companies
EBIT (Earnings Before Interest have increasingly begun to regard inclusion and diversity as a source
and Taxes) margins, on average. of competitive advantage, and specifically as a key enabler of growth.”
While it is, of course, impossible
for these studies to prove Yet, only 13% of organizations have taken the critical step in
causation, the continued calculating the positive impact of gender diversity on the business.
correlation over multiple
research studies and numerous We did, for various aspects of diversity, and once again: It’s hard to
companies cannot be ignored. ignore the numbers.
D&I STRATEGY 2030 - GENDER & RACE EDITION | 4
Let’s take a recent study from Harvard Business Review and The following strategy will
compare it to Brown-Forman’s business. The study found that an guide the company on the next
organization could increase its innovation revenue by increasing stage of its D&I journey. By
the diversity of its management team, with additional additive better understanding the
increases for having workforces with diversity of national origin, environment in which we work,
industry experience, gender, and career path. and our positioning within it,
we can ensure that we have
If we took the study’s logic and applied it to the entire value chain initiatives in place to realize the
of Jack Daniel’s Family of Brands, the impact is considerable. true value of D&I for our people,
our brands, our business, and
our global community.
Through it all, we won’t ignore
By enhancing the diversity of the numbers. They hold us
accountable. They highlight
Jack Daniel’s global team, success (or failure). They build
the business case.
Brown-Forman could experience a
But in the end, they aren’t really
revenue increase equivalent to that what matters. It all comes down
of its premium American whiskey to our people and our ability to
bring Many Spirits together for
portfolio. One Brown-Forman.
It is only when diverse perspectives are included, respected, and valued
that we can start to get a full picture of the world, who we serve, what
they need, and how to successfully meet people where they are.
– Brené Brown, Dare to Lead
5 | MANY SPIRITS, ONE BROWN-FORMAN
STRATEGIC POSITION
WHERE WE ARE TODAY
Every strategic framework must which they operate. There is no in place to ensure companies
begin with a comprehensive part of a business that is free are embracing equality.
assessment of the current from legislative impact, and Norway was the first country
strategic position. To assess D&I is no exception. In recent to institute a gender quota,
Brown-Forman’s strategic years, more and more passing a law in 2003 that
positioning related to D&I, we countries are introducing required at least 40% of public
legislation that seeks to create limited company board
examined two areas: the global
a more equitable experience members to be women by 2008.
trends impacting
for all individuals. For Eventually other countries set
Brown-Forman, and an internal
example, there has been an similar quotas, ranging from
assessment of Brown-Forman’s
increase in countries 30% to 40%, including France,
D&I strengths, weaknesses,
introducing legislation that Belgium, Germany, Italy, the
opportunities, and threats. would permit same-sex Netherlands, and Spain.
marriages. In 2016, Taiwanese Australia passed the Workplace
TRENDS President Tsai Ing-wen
campaigned on the promise of
Gender Equality Act 2012,
replacing the Equal
marriage equality, and in May Opportunity for Women in the
There are many workforce,
2019, the Taiwanese Workplace Act 1999, to
cultural, economic, and
government became the first improve and promote equality
political trends impacting D&I.
Asian country to legalize for both genders. The Act
However, there are seven
same-sex marriage. While requires non-public sector
influential trends that are most
many countries are making employers with more than 100
critical to Brown-Forman and
gains in this area, there is still employees to provide reporting
its D&I initiatives over the next
a great deal of progress to be on gender equality indicators
10 years. While the trends will
made. Within the U.S. alone, such as gender composition,
highlight what is happening
there are 26 states, pay rates, and availability of
around the world, how
representing 44% of the U.S. flexible work arrangements. In
Brown-Forman responds is up
LGBTQI+ population, that do 2019, European Union (EU)
to the company.
not have laws with explicit institutions approved a ten-day
1
prohibitions for minimum paternity leave for
POLITICAL TENSIONS MAY discrimination based on sexual all EU countries, designing it as
CAUSE SETBACKS DESPITE orientation or gender identity, a non-continuous leave to
RECENT LEGISLATIVE GAINS including Kentucky, the increase flexibility for fathers.
location of Brown-Forman’s The U.S. is also seeing
Global organizations must stay corporate headquarters. increasing momentum with
in tune to the ever-changing legislation, including banning
laws, regulations, and political At the same time, some employers from requesting the
climate of all the countries in countries are putting controls salary history of job candidates
D&I STRATEGY 2030 - GENDER & RACE EDITION | 6
to help close the wage gap for
women and underrepresented
leading to escalating tensions
in the workplace and diversity 2 CONSUMERS ARE BECOMING
INCREASINGLY DIVERSE
groups. As of May 2019, a total dilemmas in organizations.”
of 16 states and 14 local The U.S. is not alone. A 2018 D&I initiatives, particularly
governments had enacted survey from the BBC, with when it comes to achieving
legislation putting restrictions 19,400 respondents across 27 equal representation of talent,
on this practice. countries, found that 76% of are highly influenced by the
people globally believe their composition and trends of the
Despite this progress, the country is divided, with 59% of population in the countries in
current political climate in the belief that it is more which they operate. At the
many countries has created a divided today than it was just a same time, it is equally
divisive environment that has decade ago. important for organizations to
the potential to stall or reverse understand and mirror the
these gains. Employers, therefore, are mindsets, preferences, and
grappling with the challenges behaviors of all consumers so
According to a report by the of when to speak up and that they can properly market
European Network Against address the issues happening their products to an
Racism, ethnic and religious outside their walls, and when ever-changing consumer base.
minorities and migrants to remain silent. As employees
continue to struggle against demand more from their The population within the U.S.
racial discrimination in the employers (see Trend 5 on page will continue to evolve in the
workplace, including wage 16), the growing geopolitical coming years, with anticipated
disparities, racist workplace tensions in society are finding changes in race/ethnicity
incidents, job insecurity, and their way inside the walls of composition occurring despite
poor working conditions. The organizations around the an overall slowdown in
report found that European world. population growth.
women of color are
disproportionately affected,
as they face discrimination
associated with their race,
gender, and class.
U.S. POPULATION PROJECTIONS
BY RACE/ETHNICITY
Chris Stulpin with Design
Intelligence, a business DIVERSE POPULATIONS WILL CONTINUE TO GROW IN
consulting firm, describes the SIZE OVER THE NEXT 40 YEARS
situation in the U.S., for
example, as “a nation divided 6%
against itself, where after 9%
years of conversation about the 13%
need for true equality and the
importance of inclusion, we 61% 18%
44% 15%
still fail to provide real and
18%
meaningful opportunity to 28%
entire groups of people.” He
goes on to explain how the 2% 4%
country has reached a “new
political era where employees 2020 2060
feel emboldened to express
White Asian Black Hispanic Other
exclusionary views about
different demographic groups Source: United States Census Bureau
7 | MANY SPIRITS, ONE BROWN-FORMAN
U.S. population projections “With 92% of the population 9% of bourbon drinkers – yet,
show a decrease in Whites growth in the U.S. over the past Nielsen research found them to
from 61% of the total 15 years coming from ethnic be the most likely demographic
population in 2020 to 44% in minorities, it's important for to prefer spirits over beer or
2060, while Hispanics content creators, media wine. To increase these
increase from 18% to 28%, platforms, manufacturers, numbers, bourbon brands may
Blacks grow from 13% to 15%, retailers and marketers to adopt inclusive marketing
and Asians increase from 6% understand their future practices, which endeavor to
to 9%. success depends on their appreciate and understand
ability to appeal and market to individuals' various identities,
The percentage of the U.S. a multicultural world,” said differences, and histories while
population born outside the Andrew McCaskill, former SVP, also illuminating places of
country is also expected to Global Communications & commonality.
increase during this time Multicultural Marketing for
period. Foreign-born Nielsen, the information, data, This means brands must have
individuals are projected to and measurement company. both breadth and depth to their
make up 15% of the U.S. multicultural marketing, no
population in 2030 and grow This understanding could longer relying solely on
to 17% by 2060. This is a prove highly valuable for the traditional multicultural
considerable increase from spirits market, and bourbon in marketing practices, which
the historic low of 5% in 1970 particular. Blacks, for example, created separate campaigns
and even from 2010 when it represent 13% of the U.S. targeted at diverse consumers.
was 11%. population, but comprise only Instead, they are best suited to
We believe that through diversity, we’ll make better decisions. And by
better understanding each other, we’ll better understand our
consumers.
– Owsley Brown II, Brown-Forman CEO, 1993-2005, and Chairman, 1995-2007
D&I STRATEGY 2030 - GENDER & RACE EDITION | 8
actively include multicultural with a household income over
consumers in the entire $100,000 (compared to 41% of
strategic process from married opposite-sex couples).
opportunity assessment to
insight development to Finally, from a generational
BUYING POWER execution, ultimately resulting perspective, U.S. Millennials,
in products and campaigns led whose spending power
ESTIMATED POWER OF
by the best cultural insights. surpassed that of U.S. Baby
DIVERSE GROUPS
Boomers in 2018, are expected
Another aspect of marketing to to spend a total of $1.4 trillion
diverse populations is in 2020. They are also using
$40 understanding the purchasing
patterns of consumers, and the
purchasing power of specific
their purchasing power to buy
from companies and brands that
fit their values. In 2017, a Weber
TRILLION market segments. Women, in Shandwick and KRC Research
Global Women particular, control an estimated study found that more than half
$40 trillion in worldwide of Millennials are more likely to
$3.8 spending, accounting for 85%
of all consumer purchases in
buy from a company with a CEO
who has publicly supported an
TRILLION 2018. This is a marked increase issue they care about. Yet, as
U.S. Asians, from 2013, when they controlled noted in Trend 5 on page 16,
Blacks, & Hispanics $29 trillion, or 64%, of consumer belief-driven purchases are not
spending worldwide. Even more, necessarily a phenomenon that
$1.4
it is estimated that advancing is isolated to Millennials, a
women’s equality could increase generation fueling many of the
the global GDP by 31% by 2025, shifts happening across society
TRILLION a figure equal to the combined and business.
U.S. Millennials GDP of the U.S. and China.
The rise in buying power is
45%
OF >$100K
The buying power of other
diverse groups is also
fueled in part by increases in
education levels. Harvard
increasing, especially within Business Review found that
INCOMES the U.S. The buying power of women now make up more than
Same-Sex Couples Asians increased by 68% between 50% of university graduates in
2010-2018 to $1 trillion and for countries around the world, and
Hispanics by 51% to $1.5 trillion.earn the majority of master’s
Also rising is the buying power and doctoral degrees in the U.S.
create one overarching of Blacks, noted at $1.3 trillion Also within the U.S., the number
strategy that embraces the in 2018. In comparison, all but of bachelor’s degrees awarded
total market (i.e. diverse 16 countries have annual to Hispanics has more than
audiences) while continuing GDP of less than $1 trillion. doubled over the ten-year period
multicultural programming from 2004-2014. Degrees
to attract and connect with In 2015, LGBTQI+ Americans awarded also increased for Black
consumers. Inclusive had a buying power of nearly $1 students (by 46%), Asian/Pacific
marketing takes a trillion, almost equal to that of Islander students (by 43%),
cross-cultural approach and Asian Americans. In fact, same- and White students (by 19%)
diversifies everything in the sex couples have a higher median over the course of the same
marketing process from income than opposite-sex time period.
insights to execution. The couples, with same-sex couples
gold standard approach is to accounting for 45% of all couples With the increase in education,
9 | MANY SPIRITS, ONE BROWN-FORMANmore and more diverse geographies, as individuals in
individuals will be added to the one country may experience
corporate talent pool, or the social, political, and economic
collection of individuals who events that are unlike their
are qualified and able to fill an peers in other locations. With
MILLENNIAL
open position. The talent pool this in mind, it is important to
is a more reliable baseline for note that Western generational VIEWS ON D&I
diverse talent than the general models, which are used in this Deloitte study found that
population, as not all document given Millennials' views differ
individuals are interested in Brown-Forman’s workforce from other generations
employment opportunities or composition, may not be
capable of meeting the entirely applicable to a global
educational and professional workforce. All statements
job requirements (see more in
Trend 4 on page 13).
henceforth must be tested
within local markets for
accuracy.
35%
As society becomes more More likely to focus
diverse, organizations must For the purposes of this on unique
continually adjust and monitor discussion, however, the experiences
their marketing and talent workforce consists of
management practices to
ensure they mirror the diverse
consumers and candidates
individuals from five
generations, including
Traditionalists (1900-1945),
32%
they’re trying so hard to reach. Baby Boomers (1946-1964), More likely to focus on
Generation X (1965-1980), respecting identities
3
Millennials (1981-1997), and when defining diversity
THE WORKFORCE IS Generation Z (1998 forward).
71%
COMPRISED OF MORE Millennials have surpassed
GENERATIONS THAN EVER Generation X as the largest
BEFORE, EACH WITH ITS demographic of the U.S.
OWN VIEW OF D&I workforce, and are projected to More likely to focus on
make up 75% of the global teamwork when asked
A generation is defined as “a working population by 2025. about the business
group of people born around impact of diversity
the same time and raised With each generation,
around the same place, with preferences, beliefs,
similar influences. This affects experiences, ideals, and
the way we look at the world expectations shift. This means their own expectations, rather
around us, our responses, and employers must evaluate their than that of their employee
expectations. [It is] a tool employee value proposition in base. It also means that beliefs
through which you can deduce order to attract and retain regarding D&I may vary
very powerful clues to begin employees of all generations, significantly across a single
connecting with and and build a D&I strategy that workforce.
influencing people of different includes age among its
ages.” definitions of diversity These differences are evident,
(alongside race, gender, veteran for example, when you consider
Based on this definition, it’s status, etc.). There is a risk perceptions of public policy
not surprising that when the majority generation issues facing the LGBTQI+
generational models do not in leadership is developing community, where Millennials
necessarily transcend programs and policies around and Generation Z are at the
D&I STRATEGY 2030 - GENDER & RACE EDITION | 10forefront of shifting opinions. Generation X and 33% of most desirable employers on
A March 2019 article in Harvard Boomers. They are also more Glassdoor, a website for current
Business Review found that 67% likely to be actively engaged and former employees to
of U.S. young adults do not with their organization when it anonymously review companies
believe a small business owner fosters an inclusive culture and their management.
can refuse to provide service to (with engagement at 83%
LGBTQI+ customers on the basis compared to 60% when an According to the 2018 Deloitte
of religious reasons, compared inclusive culture is not Millennial Survey, Millennials
to only 53% of U.S. senior fostered). and Generation Z employees do
citizens/mature generation not have faith in business
(and 60% of all Americans). It remains to be seen how leaders’ commitment to
Generation Z, which is still only creating an inclusive culture.
Even the way generations a small percentage of the The survey found that “roughly
define D&I is different. workforce, will view D&I. It is two-thirds of respondents from
Boomers and Generation X look highly likely, however, “since both generations not only
at diversity as a moral and legal diversity is the norm for Gen Z, believe leaders simply pay “lip
imperative that is the right [that] it’s not a value that they service” to diversity and
thing to do for reasons related particularly celebrate or even inclusion, they also believe
to fairness, representation, and think a whole lot about.” It is that only formal legislation can
assimilation. Millennials, on simply something they expect. adequately advance workplace
the other hand, are more in A 2016 EY study of Gen Zers diversity.”
tune to the value that increased employed full-time in Brazil,
collaboration and different China, Germany, India, Japan, Diverse leadership teams are
perspectives offer a business. Mexico, the U.K., and the U.S. viewed by Millennials to be
found that respondents most more successful, more
With Millennials so attuned to value employers that provide motivating, and more
D&I, it’s not surprising that equal opportunity for pay and stimulating. The Deloitte
they are the most likely promotion, as well as survey found that 78% of
generation to consider it an development and advancement Millennials who describe their
important factor when opportunities. They have executive team as diverse also
contemplating a job identified Apple, Google, report strong profits, a
opportunity. Forty-seven Microsoft, Morgan Stanley, 13-point increase over those
percent of Millennials factor Facebook, In-N-Out Burger, with leadership teams unlike
D&I into their employment StudySoup, Costco, Nike, and the diverse society they
decisions compared to 37% of Nordstrom as the top ten support. Though Boomers and
11 | MANY SPIRITS, ONE BROWN-FORMANGeneration Xers still has escalated rapidly. In fact, with their employer for 13
outnumber Millennials at the war for diverse talent may months or more in 2016,
Brown-Forman, in many represent the single greatest compared to 60% of Gen Xers
organizations, Millennials are challenge to an organization’s in 2000. Regardless if it’s a
already among the leadership ability to attract and retain a generational trend, or a
ranks, holding approximately diverse workforce. difference in life stage, the
20% of all leadership positions simple fact remains: the
in 2017. The People 2025 Strategy average tenure for workers
published by Brown-Forman in decreases substantially in
As the balance of generations August 2016 highlights the younger employees. The
shift within the workforce, increasing competition for average tenure of 10.1 years for
organizations must ensure they talent in all sectors of the employees aged 55-64, to 7.6
can build (or maintain) a workforce as the labor supply years for ages 45-54 and
culture and employee value continues to tighten and global 4.9 years for ages 35-44, to
proposition that attracts and trends indicate a decade-long finally only 2.8 years of service
retains talent with talent shortage. Among the most for employees aged 25-34.
backgrounds and beliefs as significant trends is the change
diverse as they are. in workforce composition, with As McKinsey pointed out in a
4
retiring Boomers being replaced 2017 article, “everything
THE WAR FOR TALENT with smaller (Gen X) or less- suggests that the war for talent
INTENSIFIES WHEN experienced (Millennials) will rage on. ‘Failure to attract
ATTRACTING & RETAINING generations who are unable to and retain top talent’ was the
DIVERSE TALENT meet the demand for executive- number one issue in the
level talent. In addition, Conference Board’s 2016
In today’s economic climate, Millennials are more likely to survey of global CEOs, before
with some of the lowest switch jobs, a 2016 Gallup poll economic growth and
unemployment rates in nearly found 60% of the generation is competitive intensity.” The
50 years, the war for talent is open to new job opportunities article went on to share that
real – and it’s magnified (the highest of any generation). “employers in Europe and
exponentially when it comes However, this may be a factor North America will require 16
to diverse talent. As companies of their age, not necessarily to 18 million more college-
have begun to recognize the their generation. A Pew educated workers in 2020 than
significant value a diverse Research study compared are going to be available.
workforce can create, the Millennials to Gen X and found Companies may not be able to
demand for diverse talent that 63% of Millennials stayed fill one in ten roles they need,
D&I STRATEGY 2030 - GENDER & RACE EDITION | 12much less fill them with top responsibilities, including child and eldercare. Research
and/or diverse talent.” consistently shows that working women continue to bear the
burden of household and dependent care responsibilities, in
The global talent shortage is addition to carrying the “mental load” associated with each.
further exacerbated when you
consider a diverse talent pool,
specifically women (at the
manager level and above) and
People of Color (POC). According to LinkedIn’s 2019 Gender
The talent pool for the U.S. Insights Report, 71% of talent
market was 56% male and 44% professionals have identified gender
female in 2018. During the
same period, from an ethnicity parity as a top priority for their
standpoint, it was 82% White, company.
10% Hispanic, 8% Black, and 7%
Asian. (Note: Percentages are
rounded to the nearest whole
number and do not equal 100%.
U.S. policy defines “Hispanic”
as an ethnicity, not a race,
therefore Hispanics may be U.S. TALENT POOL
classified as White and/or 2018 U.S. BUREAU OF LABOR STATISTICS
Hispanic.)
The below figures represent the U.S. talent pool, or
The talent pool also shifts by individuals who are qualified and able to fill professional
career level, as the percentage roles. Additional references to talent pools are estimates
of diverse talent will vary at based on additional, supporting data
each management level within
an organization. This is
particularly relevant for
gender. Because women are
graduating at a higher rate
than men today, the talent pool
for professional, entry-level
positions is greater than 50%.
56% Male
44%
Female
However, women represent
only about 35% of the senior GENDER
leader talent pool. Over time,
82% 10%
this number may increase as
these younger women mature
into senior leadership roles,
though it may never reach White Hispanic
equal representation if
organizations don't adjust their
culture, processes, and policies
to adequately accommodate
8% Black ETHNICITY*
7%
Asian
the challenges women face in
*Percentages are rounded to the nearest whole number and do not equal 100%. U.S. policy
effectively integrating defines “Hispanic” as an ethnicity, not a race, therefore Hispanics may be classified as
White and/or Hispanic
professional and personal
13 | MANY SPIRITS, ONE BROWN-FORMANMany companies are publishing public statements and reports Bacardi has stated its goal of
regarding their diversity objectives and progress; and while many having at least 45% women in
start with gender, there is evidence that similar efforts are being its workforce by 2025. Pernod
made for other diversity characteristics as well. Ricard, the world’s second
largest wine and spirits
Goldman-Sachs, a leading global investment banking, securities producer, announced on April
and investment management firm, which operates in a field 3, 2019, as part of its Good
largely dominated by White men, has committed to having 50% Times from a Good Place 2030
representation of women in its incoming analyst class by 2021, Sustainability and
with Blacks representing 11% and Hispanics representing 14% of Responsibility Roadmap, that
its analyst and entry-level positions. Moreover, they have stated its top management teams will
that they’re looking for ways to increase representation among be gender balanced by 2022 (at
LGBTQI+, disabled, and veteran communities. Diageo, the world’s the same time it ensures pay
largest producer of spirits, publishes an annual Gender Pay Gap equity across the business).
Report that provides significant transparency into its gender
diversity metrics and progress. It has also made a public Similarly, other global
commitment to having 35% of its senior leadership roles held by companies have announced
women by 2020 and increasing the number to 40% by 2025. general statements regarding
representation, yet do so
without declaring formal target
dates. Procter & Gamble (P&G)
DEFINING INCLUSION issued a goal to achieve 50/50
representation in all parts of its
company and Coca-Cola
in __clu sion regularly publishes its gender
representation data while
/in 'klooZH n/
e
emphasizing its focus on
“increasing multicultural
Noun. The action or state of including or of being included talent in mid- and senior-level
within a group or structure. leadership roles.”
synonyms: incorporation, addition, encompassing
While these bold, blanket
statements sound impressive
and are highly motivating,
Inclusion, like health and happiness, when you dig a little deeper
is not something that you arrive at into P&G’s activities, you can
one day and say, 'We’re done!' It’s see that they are taking a
something that you work at every day, pragmatic, multi-year approach
a process. Inclusion happens when to increasing representation.
your recruiting process casts a wider Its “Staff to Win” strategy is
net for qualified candidates. It focused on building a pipeline
happens when you give credit to of diverse talent and its 2020
people for their ideas and goals are described as “sales
contributions...Inclusion happens goals, to accelerate progress in
when people in power use that power gender balance at all levels.
This includes yearly targets; a
to bring people in rather than keep
talent pipeline with focus on
people out.
– AMBER BALDET high potential candidates;
holistic plans based on
retirement outlook, historical
D&I STRATEGY 2030 - GENDER & RACE EDITION | 14attrition and projections; and Millennial/Generation Z including Brown-Forman –
names/potential promotion workforces, by adding new must properly balance
timing for [its] global talent benefits or perks to their total premium benefit design with
pool.” rewards portfolio. For many the need for financial
employers, this includes stewardship and cultural
This global competition for expanding their parental leave relevance.
diverse talent means that policies to allow both women
employers that want to attract and men, who are expressing As employers build their
and retain highly skilled, an increased desire to play a employer brands they should
diverse talent must work more active role in family life, always keep current and
harder and smarter to find the more time to adjust to life with potential employees at the
talent, get them in the door, a new child. Among some of center. As Jim McCoy, Vice
and then keep them engaged the most unique benefits President and Global Practice
and committed (i.e. included) offerings recently trending Leader for ManpowerGroup
when other employers try to include student loan repayment Solutions said, “Candidates
lure them away. programs, “fur”-ternity and want to be aligned with
pet bereavement leave, organizations they feel good
In addition to robust D&I reproductive egg freezing, paid about. Their personal brand is
programs that impact the travel, game breaks, and breast tied to the employer they
culture and employee milk shipping. While paying work for. Candidates, like
experience, employers are careful attention to these consumers, are now voting
also looking to attract diverse trends and employee with their talents, as well as
talent, and the preferences, employers – their wallets.”
No one of us is as smart as all of us.
– Brown-Forman company lore often credits this quote to W.L. Lyons Brown, Sr.
who was said to have a plaque with this inscription on his desk
15 | MANY SPIRITS, ONE BROWN-FORMAN5 EMPLOYEES &
CONSUMERS ARE DRIVING
across eight markets including
Brazil, China, France, Germany, “Social
CHANGE THROUGH India, Japan, the U.K., and the
U.S., also found that 67% of
activists.
INCREASED EXPECTATIONS
belief-driven buyers bought a Environmental
There is increasing pressure brand for the first time
for organizations, and because of its position on a activists.
therefore employers, across the
world to take a stand on social
controversial issue and 65%
will not buy a brand that stays
Consumer
and political issues. The recent silent on an issue. activists.
rise in consumer activism –
catapulted to the mainstream This phenomenon was evident Activist
in large part by social media when Nike, the U.S.-based
movements, such as #MeToo multinational athletic shareholders.
and Black Lives Matter – has
created an environment where
footwear, apparel, and
accessories company, created
Today, there is
consumers expect companies advertising featuring Colin no shortage of
to publicly address issues they Kaepernick, the controversial
have previously avoided, from former NFL quarterback who activists
sexual harassment and gender first kneeled in 2016 during
discrimination to racial the U.S. national anthem in
affecting
injustice and immigration. protest against racial injustice business
and police brutality. The ad,
While companies may have which ran as part of Nike’s operations in
shied away from controversial 30th anniversary celebration in
issues in the past, it is 2018, resulted in a 30% some way.
becoming increasingly
difficult to do so. Recent
increase in sales and a spike in
social media posts nearly 50
These stand-up-
research suggests that times Nike’s average rate. for-what-
consumers are starting to
“speak with their pocketbooks” These belief-driven buyers are is-right
and spend their money on the not confined to one market,
brands and companies that one generation, or one income campaigners
align with their own values and
beliefs. In 2018, Edelman, one
level – consumers across all
markets, generations, and
may either be
of the world’s most respected income levels are buying an employer’s
communications firms, brands that align with their
published the Edelman Earned beliefs. The challenge for best advocates
Brand Study that found “nearly
two-thirds of consumers
organizations and brands,
however, is determining what
or its worst
around the world now buy on issues are most important to opponents. In
belief, a remarkable increase of their core target audience,
13 points since 2017. These since beliefs themselves may either case,
‘belief-driven buyers’ will differ dramatically. When you
choose, switch, avoid, or take a position on an issue, it they are change
boycott a brand based on where
it stands on the political or
stands to reason that you are
just as likely to gain favor with
agents.”
social issues they care buyers as you are to alienate
about.” The study, which those that fall on the opposite – Weber Shandwick
surveyed 8,000 respondents end of the belief spectrum.
D&I STRATEGY 2030 - GENDER & RACE EDITION | 16In Nike’s case, it understood its (at 57%), business (at 56%), and
core target audience, which the media (at 47%).
skews disproportionately
younger and more liberal. This trust is granted with the
According to Entrepreneur expectation that the employer-
magazine, “Surveys show that employee relationship is built
younger, liberal audiences on more than just traditional
EDELMAN prefer companies to take a components like job
TRUST stance on important issues...so opportunities. In fact, 67% of
BAROMETER the brand had good reason to the responding employees
believe that a bold, politically- expected “prospective
The 2019 study found minded ad would ultimately employers will join them in
that employees place
have a positive impact on its taking action on societal issues”
significant trust in
core audience.” When featuring and 71% believe it’s “critically
their employer, and
Kaepernick, Nike was speaking important for ‘my CEO’ to
have high
to its core long-term consumer, respond to challenging times.”
expectations
rather than a vocal, but less This expectation is consistent
valuable, secondary consumer. with the general population,
with 75% looking to CEOs to
Interestingly, another study lead change versus waiting for
75%
Trust their employer
from Edelman highlights how
these changing consumer
expectations may impact
the government to take action.
The potential rewards for
organizations from an employer building trust are significant.
to do what is right perspective. The 2019 Edelman Employees who have strong
Trust Barometer, the trust in their employers report
71%
company’s 19th annual trust higher levels of engagement,
and credibility survey that loyalty, advocacy, and
captured the sentiments of commitment. So, similar to the
Believe it's critically 33,000 respondents in 27 consumer perspective,
important for their markets, found that “trust has organizations must determine
CEO to respond to changed profoundly in the past what issues are important to
year” with 75% of global their employees, and find the
challenging times
respondents trusting their best way to address them in a
67%
employer to do what is right over way that builds trust, creates
nongovernmental organizations engagement, and drives growth.
Expect employers
will join them in “We are committed to creating a fully inclusive and
taking action on diverse workforce and we strongly believe that
societal issues businesses play a significant role in shaping the future
of society. Global businesses like Diageo must make
47%
bold moves on policies and the environments in which
their employees work to ensure that the progress
people deserve happens.”
Trust the media to
– Mairéad Nayager, Diageo’s Chief HR Officer explaining the
do what is right company’s global roll-out of a 26-week parental leave policy as
part of its goal to create an inclusive, diverse workforce
17 | MANY SPIRITS, ONE BROWN-FORMAN6
TECHNOLOGY IS than 12 million posts, While much of the impact of
ACCELERATING D&I comments, and likes. The #MeToo was played out in the
CONVERSATIONS, WHILE hashtag even transcended media headlines, it impacted
SUPPORTING TALENT cultures and countries, the corporate boardrooms as
MANAGEMENT becoming #YoTambien in well. According to the U.S.
PRACTICES THAT Spain, #BalanceTonPorc in Equal Employment
ADVANCE D&I OBJECTIVES France, #WoYeShi in China, Opportunity Commission,
#QuellaVoltaChe in Italy, claims of workplace sexual
Just as technology has touched among others. As the harassment increased more
almost every industry and movement continued over the than 12% in its 2018 fiscal year
changed every human coming months, it would be and it recovered $70 million
interaction and experience, it credited with the “fall” of some from corporations for victims
has been a driving force of the world’s most well-known of sexual harassment (up from
behind the recent acceleration businessmen, journalists, and $47.5 million the year prior).
of D&I movements and celebrities, including Harvey
conversations. Weinstein and Matt Lauer. Furthermore, employees can
The invention and explosion of
social media, in particular, has
changed the speed and manner
in which people communicate,
given a voice and platform to
any individual with access to
the internet, and ensured
messages can reach people
24 hours a day, seven days a
week, 365 days a year, all
across the world. Placeholder:
The #MeToo movement, in
particular, illustrates the
Table: 2018 U.S. Bureau of Labor Statistics -
power of social media and its Management, Business and Financial
ability to create a global
Operations Occupations
phenomenon, raise awareness
and advocacy, and drive
change. The movement started
with a single tweet from
actress Alyssa Milano, who was
inspired to take action by the
experience of Tarana Burke, a
civil rights activist. Milano
used her social media presence
to rally all victims of sexual
harassment or assault through
use of the hashtag #MeToo.
According to Facebook, in the
24-hour period after Milano’s
tweet, the hashtag was used by
more than 4.7 million people
worldwide and generated more
D&I STRATEGY 2030 - GENDER & RACE EDITION | 18use social media platforms their margins, and grow the demands and needs of today’s
(e.g. Facebook, Instagram, and business. As the Brown-Forman workforce and the workforce of
Twitter) and technology to People 2025 strategy points the future.
7
increase awareness for issues out, “digital disruption and
of importance to them, social networking have ORGANIZATIONS &
potentially creating a public changed the way organizations INDIVIDUALS ARE MOVING
relations and legal nightmare hire, manage, and support ALONG THE D&I CONTINUUM
for the organizations they people.” AT DIFFERENT PACES IN
target. Google employees, for DIFFERENT PLACES
example, conducted a massive It goes on to say, “Data can
international walkout in identify what attracts and While the business case for D&I
November 2018 to boycott the retains employees, what drives has made it a key strategic
company’s approach to sexual strong performance, which imperative for many
harassment and general employees will be successful, organizations across the world,
fairness with five demands what makes the best leaders, the reality is that many
related to sexual misconduct, and what capabilities are organizations – and the
pay equity, and the reporting required to deliver high-quality individuals within them and
relationship of the chief customer service and the countries in which they
diversity officer. innovation...Technology can operate – are at vastly different
also help companies meet places on their D&I journey.
Employees are using employee expectations for Even more, the continuum
mainstream social media flexibility by simplifying looks different for each aspect
channels while also leveraging remote work, facilitating of diversity. It is quite possible,
platforms designed specifically collaboration of remote teams, and even highly likely, that
to evaluate employers. and reducing costs.” This may individuals and organizations
Glassdoor, for example, even include deploying tools sit at different places on the
receives 64 million unique specifically designed to combat spectrum for one aspect of
visitors per month. On any D&I obstacles, from the free diversity, say gender, while
online platform, individuals GenderDecoder, a simple site being at a completely different
are much more raw, more that identifies potentially place for another aspect, such
honest, and more transparent biased language in job ads and as sexual orientation and
in their beliefs and opinions job descriptions, to the more identity. Complicating this
than in traditional face-to-face sophisticated Greenhouse, a reality further, the ideas,
communications. In fact, our comprehensive talent concepts, mindsets, and
society is becoming so acquisition platform with an experiences regarding
accustomed to people, inclusion offering that reduces diversity characteristics are
including political leaders, unconscious bias across the constantly shifting and
speaking out in ways that were entire hiring process. This adjusting, thus making the
previously considered taboo means that employers that journey a continuous,
that many worry we will effectively leverage advances never-ending process.
become desensitized to hateful, in technology may have a
divisive rhetoric. competitive advantage in the Early adopters of D&I strategies
war for talent. They will be were heavily focused on
At the same time, however, better equipped to identify and diversity, or “the mix” of
technology –and the massive build connections with diverse people in an organization. As
amount of data it has talent, design people efforts evolved, the focus has
generated – can help employers management capabilities that shifted to inclusion, or
enhance their D&I efforts, grow strong, inclusive leaders, “making the mix work.”
support their talent and provide a culture and Organizations have realized
management practices, protect infrastructure that meets the that it isn't sufficient to get
19 | MANY SPIRITS, ONE BROWN-FORMANdiverse talent in the door, they growth won’t happen.” The first step is raising
needed to focus on the awareness to the concept of
employee experience. They To achieve inclusion objectives, privilege and doing so in a way
must create an environment organizations must support that encourages healthy, open
and culture where each employees in their individual dialogue. This is critical
individual – regardless of journeys by creating the because “whenever a power
gender, race, nationality, organizational structure, structure feels under threat, it
sexual orientation, religion, or employee programs, and is likely to resist. History has
any other diversity leadership tools that can move proven this repeatedly;
characteristic – feels truly employees along the diversity advances in equal rights are
valued, respected, and continuum. According to almost always met with a
supported. Additionally, they Harvard Business Review, this pendulum swing of backlash.”
are also aware of the means “today’s diversity
importance of metrics and challenge isn’t getting more For example, Harvard Business
accountability to ensure people to adapt to obsolete Review points out that “many
progress towards inclusion norms of leadership...the white people avoid
outcomes. As Harvard Business challenge is to get all managers conversations about race out
Review stated, “without – and especially current of fear of ‘saying the wrong
inclusion, however, the crucial leaders – skilled and ready to thing.’ And many POC in
connections that attract lead vastly more diverse predominantly white
diverse talent, encourage their businesses and respond to companies may avoid these
participation, foster increasingly diverse customer conversations out of fear of
innovation, and lead to business groups.” being seen as a complainer,
I think diversity is a hallmark of the last 20 to 25 years of
Brown-Forman. And I expect it to be a foundation for the next 20 years too.
– Paul Varga, Brown-Forman President and CEO, 2005 - 2018
D&I STRATEGY 2030 - GENDER & RACE EDITION | 20or worse. But pretending the themselves and their Also important is recognizing
elephant in the room isn’t colleagues. With an agile work that diversity isn’t confined to
there won’t make it go away.” environment and six employee characteristics that are readily
resource groups, we provide visible to the eye (such as race,
One common element of many our employees with an gender), or common in D&I
D&I strategies that helps to environment where they can conversations (such as sexual
facilitate conversations is the thrive and succeed in.” orientation, gender identity or
creation of employee resource expression, and/or veteran
groups (also called ERGs, or While ERGs and other status). Equally important is
affinity/business network employer efforts targeted at “cognitive diversity,” or the
groups), or groups of D&I are a critical step in the differences in perspectives and
employees who join together journey, change will also processing styles, and
in their workplace based on require shifting the mindsets “neurodiversity,” or the
shared characteristics or life of individuals to ensure lasting recognition that differences in
experiences. These groups, impact will be realized. As neurological functioning
which are traditionally started Michael Kimmel, a sociologist should be respected and
independently by employees, at Stony Brook University who treated the same as any other
serve as a venue for diverse specializes in gender studies, human differentiator. In fact, a
talent to discuss career pointed out in his TED Talk number of organizations are
development opportunities entitled Why Gender Equality already developing
and challenges, build networks, is Good for Everyone, recruitment campaigns to hire
create advocacy and “privilege is invisible to those neuro-diverse talent into
awareness, and eventually who have it” and “making positions for which their skills
drive true cultural change gender visible to men is the are particularly beneficial. Yet,
within their organizations. In first step in engaging men to “to be successful, the
addition, because ERGs are support gender equality.” The organization needs to make it
open to everyone – not just same is true for race, for ‘safe’ for associates to try new
those employees that belong to sexual orientation, for things in new ways without
the particularly affinity group religion, for marital and fear of repercussions.”
they support – they can veteran status, and every other
increase cultural competency aspect of diversity that makes Organizations that want to
across the organization. Nike, individuals unique. create inclusive cultures – and
for example, has a collection of ultimately retain the diverse
ERGs under the NikeUNITED Sometimes this even requires talent they are able to attract –
brand that includes eight navigating environments must stay on the front lines of
Employee Networks focusing where the laws of a country the diversity conversations
on employees of various work against both the while ensuring they have the
abilities, race, ethnicity, sexual organization’s D&I objectives strategy, structure, and
orientation, veteran status, and personal values and processes in place to bring
and gender. beliefs. This is the case for their leaders and employees
LGBTQI+ rights, which is along on the journey.
This emphasis on inclusion complicated by the fact that in
through ERGs is also evident in some countries, including
the diversity model of Pernod many in which Brown-Forman
Ricard. The company’s website operates, it is illegal to be gay
states, “We believe in or even talk about LGBTQI+
championing an inclusive topics. The spectrum is vast,
culture that embraces from being punishable by
differences and encourages death in some locations to
employees to challenge marriage equality in others.
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