Facebook’s got one. So do Apple and Microsoft. And, as of this month, Uber will also have one: a chief diversity officer (CDO). Bo Young Lee, formerly the global diversity and inclusion officer at Marsh & McLellan, will now be steering diversity and inclusion policies at the runaway start-up as Uber’s first CDO.
The circumstances under which Uber has acquired its first CDO are not ideal. The decision to hire Lee was the result of just one of many recommendations made in a report of Uber’s company culture by former U.S. Attorney General Eric H. Holder Jr. Holder had led an internal investigation of the company convened after one of Uber’s former engineers, Susan Fowler, described discrimination and sexual harassment at the company in a February 2017 blog post.
The recent flood of harassment and discrimination claims swirling around celebrities, corporate executives, and politicians all over the world—and the MeToo# movement in particular—means that employers must be aware of issues surrounding diversity and inclusion. And, if they haven’t already done so, they also must closely examine those issues in their own workplace cultures, if only to enhance employee engagement, acquire new talent, and brand themselves as a “best place to work.”
But it is not just about improving the work environment—diversity and inclusion make for good business. A 2015 McKinsey report found that companies in the top quartile for ethnic and racial diversity in management were 35 per cent more likely to have higher financial returns than the industry average.
These initiatives also make for more creativity within an organization. A study published in 2015 by U.K.-based researchers concluded that businesses run by culturally diverse leadership teams were more likely to develop innovative products than those with homogenous teams.
Some organizations may opt not to hire a CDO but, instead, to implement internal diversity and inclusion policies and to promote conferences and events. This is the approach taken within the CFA Institute.
But one thing is clear: organizations should not wait for harassment and discrimination complaints to appear before acting, or ignore problems such as those identified by Fowler at Uber: “When I joined Uber, the organization I was part of was over 25 per cent women. By the time I was trying to transfer to another eng[ineering] organization, this number had dropped down to less than 6 per cent….There were two major reasons for this: there was the organizational chaos, and there was also the sexism within the organization.”
With their new CDO, at least Uber is now driving in the right direction.