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CNN Live At Daybreak
Affirmative Action: Bottom Line for Business
Aired June 23, 2003 - 05:37 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The U.S. Supreme Court is expected to rule this week, perhaps as early as today, on whether affirmative action programs at the University of Michigan are constitutional. The ruling could have a major impact on diversity programs in corporate America as well.
CNN's Chris Huntington explains.
(BEGIN VIDEOTAPE)
CHRIS HUNTINGTON, CNN CORRESPONDENT (voice over): This vacant lot in Harlem, New York, is the foundation for the major affirmative action project by General Motors.
Last Thursday, GM Chief Executive Rick Wagoner, along with Reverend Jesse Jackson and New York City Mayor Michael Bloomberg, unveiled plans for a massive minority run auto mall. It will be Harlem's first car dealership in more than 40 years.
REV. JESSE JACKSON, RAINBOW PUSH : What Harlem really represents is market, and money and talent and growth. When there is growth, everybody wins.
HUNTINGTON (on camera): Jesse Jackson has long preached that diversity is good for business and increasingly U.S. companies are joining the choir. More than 60 major corporations, including 3M, Boeing, Microsoft, and General Motors, recently wrote to the Supreme Court supporting the University of Michigan's right to consider race as a factor in its admissions policy.
RICK WAGONER, CHAIRMAN & CEO, GENERAL MOTORS: In order to make sure we can really reflect the face of America, from inside the company, which helps us do a better job outside, we really need to have a large pool of highly qualified minority students graduating from college. And that's really been where we've been putting our efforts. Because we think frankly that's going to pay off big in the longer term, just like this investment here in Harlem.
HUNTINGTON (voice over): Diversity Inc., tracks minority programs at U.S. companies, and this year Ford Motor topped the annual list for diversity based on it hiring procurement and dealerships. Founder Henry Ford pioneered equal pay for black workers.
And it is that kind of leadership, says Fenimore Fisher, who pushes U.S. companies to do more with minorities, that separates real diversity programs from public relations. R. FENIMORE FISHER, EXECUTIVE DIRECTOR, WALL STREET PROJECT: If there isn't a key support from top-line management, from the CEO of the company, then those programs do appear to be at least surface.
HUNTINGTON: Fisher says minorities are making some progress and the latest government figures support that. In 2001 African-Americans made up 6.5 percent of management at companies with 100 or more employees. That's up from 5.9 percent in 1998. Latino managers in 2001 accounted for 4.7 percent, up from 3.9.
Even those who opposed the University of Michigan's affirmative action program concede that diversity is good for business.
PROF. SAM ESTREICHER, NY UNIV. SCHOOL OF LAW: It is really the ongoing sensitization process that is very beneficial to corporate America. And most companies understand that they have to be proactive in this area.
HUNTINGTON: And any company with a diverse clientele knows the value of opening up new markets.
WAGONER: Do you want to negotiate a discount?
HUNTINGTON: Chris Huntington, CNN, New York.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired June 23, 2003 - 05:37 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The U.S. Supreme Court is expected to rule this week, perhaps as early as today, on whether affirmative action programs at the University of Michigan are constitutional. The ruling could have a major impact on diversity programs in corporate America as well.
CNN's Chris Huntington explains.
(BEGIN VIDEOTAPE)
CHRIS HUNTINGTON, CNN CORRESPONDENT (voice over): This vacant lot in Harlem, New York, is the foundation for the major affirmative action project by General Motors.
Last Thursday, GM Chief Executive Rick Wagoner, along with Reverend Jesse Jackson and New York City Mayor Michael Bloomberg, unveiled plans for a massive minority run auto mall. It will be Harlem's first car dealership in more than 40 years.
REV. JESSE JACKSON, RAINBOW PUSH : What Harlem really represents is market, and money and talent and growth. When there is growth, everybody wins.
HUNTINGTON (on camera): Jesse Jackson has long preached that diversity is good for business and increasingly U.S. companies are joining the choir. More than 60 major corporations, including 3M, Boeing, Microsoft, and General Motors, recently wrote to the Supreme Court supporting the University of Michigan's right to consider race as a factor in its admissions policy.
RICK WAGONER, CHAIRMAN & CEO, GENERAL MOTORS: In order to make sure we can really reflect the face of America, from inside the company, which helps us do a better job outside, we really need to have a large pool of highly qualified minority students graduating from college. And that's really been where we've been putting our efforts. Because we think frankly that's going to pay off big in the longer term, just like this investment here in Harlem.
HUNTINGTON (voice over): Diversity Inc., tracks minority programs at U.S. companies, and this year Ford Motor topped the annual list for diversity based on it hiring procurement and dealerships. Founder Henry Ford pioneered equal pay for black workers.
And it is that kind of leadership, says Fenimore Fisher, who pushes U.S. companies to do more with minorities, that separates real diversity programs from public relations. R. FENIMORE FISHER, EXECUTIVE DIRECTOR, WALL STREET PROJECT: If there isn't a key support from top-line management, from the CEO of the company, then those programs do appear to be at least surface.
HUNTINGTON: Fisher says minorities are making some progress and the latest government figures support that. In 2001 African-Americans made up 6.5 percent of management at companies with 100 or more employees. That's up from 5.9 percent in 1998. Latino managers in 2001 accounted for 4.7 percent, up from 3.9.
Even those who opposed the University of Michigan's affirmative action program concede that diversity is good for business.
PROF. SAM ESTREICHER, NY UNIV. SCHOOL OF LAW: It is really the ongoing sensitization process that is very beneficial to corporate America. And most companies understand that they have to be proactive in this area.
HUNTINGTON: And any company with a diverse clientele knows the value of opening up new markets.
WAGONER: Do you want to negotiate a discount?
HUNTINGTON: Chris Huntington, CNN, New York.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
