Advancing Supplier and Governing Board Diversity
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Deadline for submissions is the 15th of every month.
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October 2019 Newsletter Preview
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I. What’s New:
- SB 534 Update: Bill is Signed by Governor!
- Latest Appointments to Insurance Diversity Task Force
- 8th Annual Diversity Summit Update
- National Disability Employment Awareness Month
II
.
In the Community:
- 2019 Supplier Diversity Summit - Service Disabled Veterans
III. Spotlight on Diversity:
- Supplier Diversity: Technological Trends in 2019: A New Look at Supplier Diversity
- Governing Board Diversity: Different Is Better: Why Diversity Matters in the Boardroom
IV. Announcements:
- Share your Success Story!
V. Diversity Events Calendar – Oct/Nov
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SB 534 Update: Bill is Signed by Governor!
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On September 5, 2019, California Governor Gavin Newsom
signed SB 534
, authored by Senator Steven Bradford, into law. This is a major victory that underscores the value of supplier and governing board diversity within the insurance industry. The key provisions of this bill will:
- Require insurance companies to report on their supplier diversity and governing board diversity efforts;
- Expand the diverse supplier categories to include LGBT- and veteran-owned businesses in addition to women-, minority-, and disabled veteran-owned business enterprises; and
- Codify the Insurance Diversity Task Force
The Insurance Diversity Initiative is excited about the future and appreciative of the energy, support and enthusiasm that you have provided during this legislative season. For more information on this important milestone, read Senator Bradford's
press release
.
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Latest Appointments to Insurance Diversity Task Force
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From top left: Mark Morales, Task Force Member; Rebecca Aguilera-Gardiner, Task Force Member; Milton Dellossier, Task Force Member; Phyllis Marshall, Task Force Member; Maria Salinas, Task Force Member
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In other exciting insurance diversity news, Commissioner Lara recently announced the latest appointments to the Insurance Diversity Task Force. The Task Force is comprised of a group of individuals committed to furthering diversity in the insurance industry. The Commissioner appoints a minimum of 12 and up to a maximum of 15 members, with at least:
- 2 Insurance Industry Representatives; including one who currently serves as a practitioner in the field of supplier diversity (i.e., Supplier Diversity Manager or Chief Procurement Officer)
- 2 Minority Business Enterprise (MBE) Advocates/Representatives
- 2 Women Business Enterprise (WBE) Advocates/Representatives
- 1 Disabled Veteran Business Enterprise (DVBE) or Veteran Owned Business (VOB) Advocate/Representative
- 1 Lesbian, Gay, Bisexual, Transgender Business Enterprise (LGBTBE) Advocate/Representative
- 2 Supplier Diversity Advocates/Experts
- 2 Governing Board Diversity Advocates/Experts
Term length: 2 years
Reappointment:
- Mark Morales - Vice President & SBA Development Officer, City National Bank
New appointments:
- Rebecca Aguilera-Gardiner, Executive Director, Veterans in Business Network
- Milton Dellossier - Vice President, Diversity & Inclusion, Morgan Stanley
- Phyllis Marshall - Chief Legislative Counsel of the Chief Executive Office, County of Los Angeles
- Maria Salinas - President & CEO, Los Angeles Area Chamber of Commerce
Read the
press release
from the California Department of Insurance.
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IMPORTANT UPDATE
8th Annual Diversity Summit
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With the recent exciting news of Governor Gavin Newsom signing CDI-sponsored
Senate Bill 534
authored by Senator Steven Bradford and Commissioner Ricardo Lara's
newest appointments to the Insurance Diversity Task Force, the Diversity Initiative is at a peak of making great strides. The Commissioner would like to build on this momentum and take the time to collectively plan and integrate the ideas of the full Task Force, including from its newest members, in planning for the 8th Annual Insurance Diversity Summit. Our hope, as it has been with every past Summit, is to work together with our Task Force to create an event that is responsive to the needs of our diverse communities. In light of this, and in consideration of the upcoming 2019 holiday season,
we will be rescheduling the Summit for a later date beyond this year.
Thank you for your patience and understanding as we continue to work on planning for the 8th Annual Insurance Diversity Summit together. We apologize for any inconvenience this may have caused, and appreciate your understanding and continued dedication to the Insurance Diversity Initiative.
Thank you for your support in advancing diversity in the insurance industry!
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National Disability Employment Awareness Month
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Disability Awareness Resources to Foster Inclusion in the Workplace
by Tracie DeFreitas, M.S., CLMS, Lead Consultant - ADA Specialist
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Many years ago, I wrote a blog about disability inclusion that shined a light on how attitudes about disability are often shaped early in life by way of exposure to adult perceptions about ability, value, and talent. When my own children were young, now 18 and 20, I was optimistic that by the time they would enter the labor force, attitudinal barriers and misconceptions about disability would be different and would cease to significantly impact employment opportunities for individuals with disabilities. Today, it remains true that there is still much to be done to foster inclusive workplaces where people are valued and respected for their abilities. The endeavor to re-shape a nation’s attitudes about disability and employment is a challenging one, but the effort we make now does matter, and the difference we make today CAN lead to fully inclusive work environments for everyone. We must keep trying.
Employers can foster inclusive workplaces by promoting disability awareness to help re-shape preconceived ideas about individuals with disabilities and what they CAN do at work. These workplace initiatives to raise awareness about disability employment issues often take place in October of each year – in observance of National Disability Employment Awareness Month (NDEAM). However, employers are encouraged to make a commitment to maintaining an inclusive workplace by promoting disability awareness year-round. Job Accommodation Network
(JAN)
offers resources to support this initiative. For example, the U.S. Department of Labor’s Office of Disability Employment Policy (ODEP) offers an
NDEAM
website that shares ideas for activities to be conducted by employers to raise disability awareness.
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2019 Service-Disabled Veterans Utilities Based Summit
September 17, 2019 | Downey, California
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The 2019 Service-Disabled Veterans Utilities Based Summit was held on Tuesday, September 17th, at the Southern California Gas Energy Resource Center. Over 100 people attended this amazing outreach event; a collaboration hosted by multiple utility companies and their partners to outreach to the DVBE Community. Attendees were able to pitch their businesses and corporate procurement representatives shared current available opportunities. Keynote speakers from the
Veterans in Business Network
,
Chairman Cole Woodman and Executive Director Rebecca Aguilera-Gardiner, gave tips and information on how to utilize the DVBE certification.
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ABOUT VETERANS IN BUSINESS NETWORK
The Veterans In Business (VIB) Network is a nonprofit 501(c)3 organization that advocates for all Veteran Businesses including SDVOSBs and DVBEs. We help build connections between Veteran Businesses, Corporations, Government Agencies and Prime Contractors looking to create business opportunities together. We provide FREE business resources, educational seminars, outreach opportunities, and a Veteran 2 Veteran Mentor/Protege Program. Our National Conference is widely considered one of the best veteran business networking events in the country.
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SUPPLIER DIVERSITY SPOTLIGHT
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Technological Trends in 2019: A New Look at Supplier Diversity
By: Daryl Hammett, CSMP, CSP, General Manager/Chief Operating Officer at ConnXus
(Originally
published
the week of March 11, 2019)
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In 2019, global supply chains are focused on technology and innovation. Today’s global supply chains are often complex, with many moving parts. However, procurement professionals are facing increasing pressure to manage them with efficiency and transparency. Creating a successful supply chain requires building a sustainable foundation. Though technology mobilizes supply chains to compete faster and better in today’s global economy, having a strategy to optimize your talent is just as important. Technology that gives business users more autonomy and security are reflected in a positive impact on your organization’s bottom line.
Based on my experience, many businesses have separate initiatives that fragment their supply chains and could benefit from pooling resources and aligning different stakeholders to the same common goals with the use of technology. For example, many businesses have separate supplier diversity processes. They have supplier diversity experts who don’t collaborate with their larger procurement teams. Sourcing and procurement professionals are often incentivized differently and often don’t communicate nor see eye to eye on the same overall strategy. With collaboration, your organization can streamline its supply chain and build a stronger foundation for process-driven results.
In today’s market, you can no longer ignore the rapidly changing landscape of digital transformation. Companies that are reluctant to embrace the technologies that bring better visibility and security to supply chains risk being left behind. To avoid that fate, here’s what companies can do in 2019 to improve supplier diversity and overall supplier relationship management process.
Find Common Ground
For many organizations, a big opportunity to save time and money lies in bringing procurement and sourcing professionals together to share the same vision. Key stakeholders from different departments should come together under the larger umbrella of sourcing and be incentivized under the same performance metrics. Buyers should have a high-level overview and understanding of every supplier, no matter the size. Procurement and sourcing professionals should always evaluate suppliers in the same manner to understand their company, no matter what they deliver to the door. Thoroughly vetting all suppliers, diverse and non-diverse, boosts data security, data validity and mitigates third-party risk.
Streamline RFx Processes
Category managers must have heightened awareness to make sure small and large businesses go through the same rigor. RFPs and RFQs need to be simple and nimble for all businesses to have equal opportunity to be included. It’s time for organizations to pivot and build out inclusive supply chain strategies. Supplier diversity and supplier inclusion has now risen to the point where it should be integrated with overall supplier management. Such an approach leads to improved collaboration and innovation, all contributing to your bottom line.
Invest in Cloud Technology
Cloud technology offers real-time data that prevents procurement teams from encountering outdated supplier certifications and inaccurate data. Real-time collaboration tools between business users helps teams share a common goal and gets rid of information silos. Promote a holistic and universal approach to procurement within your organization by asking more from your technology. Think strategically about inclusive sourcing and consider adopting technology that increases transparency and brings the demands of the supply chain together under one roof.
Mitigate Third-Party Risk
Ask all of your suppliers to be on-par with your security, code of ethics, financial management/reporting and audits. This requires building strong, symbiotic relationships with your vendors, challenging them to develop, and offering resources to foster competitive advantage through your most important buyer-supplier relationships. Spending the time to align your organization’s business needs and values with a partner increases transparency and trust. Ultimately, your organization can experience the high return on investment that diverse supply chains yield. With today’s growing tools, we’re able to provide a big-picture view of the way your procurement spend impacts the world.
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GOVERNING BOARD DIVERSITY SPOTLIGHT
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Different Is Better: Why Diversity Matters in the Boardroom
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Way back when, it all made sense. Having people on your board of directors who were reliable, like-minded and known entities was the most logical strategy to build a board. After all, the purpose of the board was to support the chief executive officer’s (CEO) plan and assure the shareholders that experienced, intelligent people were looking out for their interests.
Even if this strategy was well-intentioned, it came with a number of significant downsides. First, it created an environment in which directors were beholden to the CEO for their seat—something that clearly undermined board independence. Second, a board built on a handful of relationships has the inherent risk of insularity. This homogeneity can be a hindrance in an increasingly dynamic environment. As globalization, the rapid deployment of technology, an increasing need for risk management and the shifting demographics of workforces made businesses much more complex, boards began to broaden their composition. But diversity for its own sake falls short of both the need and the opportunity. An evolution is under way, and boards now are beginning to realize that it is the breadth of perspective, not the mere inclusion of various diverse traits, that benefits the organization.
Constructing a quality board is about the caliber and perspective of individual directors chosen as well as the deliberate creation of a dynamic and a chemistry that allow for the effective execution of corporate governance and strategic oversight. The board’s primary responsibilities can vary, yet typically include identifying and evaluating significant opportunities and risks, serving as informed counsel for major strategic decisions and assessing the CEO’s performance. Executing these changes requires two general conditions: (1) individuals who are experienced, responsible and collaborative and (2) an environment in which challenging issues can be confronted, opposing opinions are sought and trust is implicit.
This complicates the task of the board nominating committee, which has taken the lead in shaping the composition of the board. How does the board determine the characteristics sought in new directors—and the combination of them—whose service will be in the best interest of the company? Which candidates should be selected, especially in the context of those already on the board? What guideposts should nominating committees use given the wide latitude public companies have in who they place on their boards?
In view of the evolving responsibilities and influences of boards, we set about to study how boardroom heterogeneity is perceived and valued by directors. Our focus was gender, as there has been a significant amount of change regarding women in the boardroom over the last decade. We were less interested in the often-quoted statistics and “glass ceiling” issues that have been analyzed and discussed by many before us and instead set out to go further, to identify why it is important to have a diversity of perspective in the boardroom. As we began to probe, we realized that our findings on this issue transcend gender to address a broader subject. How does diversity of perspective in the boardroom lead to a good dynamic and better governance? How can boards better structure themselves to benefit their constituents? Finally, how can candidates and nominating committees respond to the opportunities and needs that already exist?
Our Learnings
"We have a hunger of the mind which asks for knowledge of all around us." —Maria Mitchell
Our conversations with women and men directors from a wide range of Fortune 250 companies focused on two central topics: (1) the way in which directors view having a diverse perspective and (2) the degree to which directorships are accessible to a diverse pool of candidates. We learned that:
- A wide range of perspectives, not merely token representation, is critical to effective corporate governance.
- The trend toward diversity is essential as boards look to navigate the complex and dynamic issues that companies now face.
- Boards become greater advocates for diversity as they have more direct beneficial experiences with it.
- It is incumbent upon board members and the candidates themselves to reach out to each other at a time when the adage of “who you know” is being replaced by “how you know them.”
What the Statistics Told Us
We found it a useful starting point to look into the composition of Fortune 250 companies’ boards of directors. We learned the following:
Fortune 250 boards include a large number of women directors from non-business sectors. Women from government service, academia, nonprofits and the legal profession currently account for nearly half of all women directors. Among women directors who have joined these boards more recently, however, we see an increase in those with corporate backgrounds. This trend is not surprising. A decade and more ago, women with significant professional accomplishment were more likely to be found in universities, foundations and government, sectors that were quicker to lower the barriers to their most senior leadership ranks. As more women gain C-suite experience, director candidate pools are bolstered.
The board committees on which directors sit often reflect numerous factors. We found that women are most likely to serve on nominating/governance committees and are least often seen on executive committees. Our anecdotal findings suggest that women are perceived as being particularly valuable on nominating committees because these directors represent a desired diversity group (the old reason), and they bring a broader perspective (the new reason). Notably, women are underrepresented among the ranks of those chairing committees. This, along with the underrepresentation on executive committees, may be a function of the influence that board tenure plays in determining these roles. Other factors could be at work here as well.
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Russell Reynolds Associates is a management consulting firm. Established in 1969, the firm provides a number of services; including executive searches, succession planning, development of culture and defining strategic vision.
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Do You Have a Success Story? We Want to Hear from You!
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Do you have a success story related to governing board diversity?
Do you have NEW or RENEWED Business Relationship/Networking opportunity that has created opportunities for your business within the Insurance Industry?
Do you have NEW or RENEWED Procurement or Contract Opportunity(ies) within the Insurance Industry?
If you said, "Yes," to any of these questions - we want to hear from you!
Please considering answering our
short survey
to tell us about it or contact us directly at
diversity@insurance.ca.gov.
Each step you take towards advancing governing board and supplier diversity within your company is a measure of your success, and you provide others with the opportunity to learn and grow from your experiences.
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DIVERSITY EVENTS CALENDAR:
October & November 2019
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OCTOBER
Hosted by: National Association of Women Business Owners (NAWBO)
October 13-15, 2019
Jacksonville, FL
Hosted by: National Minority Supplier Development Council (NMSDC)
October 13-16, 2019
Atlanta, GA
Hosted by: Veterans In Business Network (VIB)
October 28-29, 2019
San Diego, CA
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NOVEMBER
Hosted by: 2020 Women on Boards
Various Dates in November
Multiple Cities, Nationwide
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To submit a request to add your Supplier Diversity or Governing Board Diversity-related event, please contact us at:
diversity@insurance.ca.gov
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The Insurance Diversity Initiative was established in 2011 to address diversity issues within California's $310 billion insurance industry. Specifically, these efforts are meant to increase procurement from California’s diverse suppliers, as well as to increase diversity amongst insurer governing boards. To accomplish these goals, the Department conducts outreach, creates partnerships, hosts events, and most importantly, administers surveys to collect and publicly disseminate information about the state of diversity in the insurance industry.
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INSURANCE DIVERSITY INITIATIVE
Office of Insurance Commissioner Ricardo Lara
California Department of Insurance
(916) 492-3623
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