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A Personal Letter from Molly D. Shepard - August 2004In the last few months, we have seen a proliferation of lawsuits from women alleging sexual discrimination against corporations. Wal-mart Stores, Inc. is the most recent -and largest--entrée with 1.6 million current and former female employees participating in a class action suit against the retail giant. Earlier this month, Morgan Stanley reached a $54 million sexual discrimination settlement-the second largest behind Publix Super Markets which agreed to pay $81 million in 1997. And, Boeing Co. recently agreed to pay between $40.6 million and $72.5 million to settle a sexual discrimination class action suit. These cases are nothing new; simply the most recent in a long line. But given the on-going and destructive nature of these cases to the women and corporations involved, I believe it warrants a closer look. Reading about the cases I was struck by how much corporate culture and the lack of strong CEO directives contributed to creating the problems. Many women stated that their firms were committed to maintaining discrimination free workplaces but that the men in charge did not seem to recognize their own insensitivities and the inequities in their operations. According to the women, the men's perceptions of the "successful profile" did not seem to include women, African Americans or Hispanics yet most, if not all, of the corporations involved repeatedly stated their commitment to a workplace free from discrimination. In our research studies, we found that the number one reason why executive women leave their high-level positions is corporate culture. We also learned how crucial it is for the CEO to be actively involved in order for real change in the culture and people's perceptions to occur. Sensitivity training and diversity programs are doomed to failure without a strong top-down approach and a refusal to accept any unequal treatment of employees. Holding managers accountable for hiring, promoting and retaining of women executives is only the beginning. Understanding stereotypes, having an idea of the big picture and the consequences and finally, having all managers know and be accountable for the clear directives set down by top management is essential. Lawsuits of this nature are costly and unfortunate for all concerned. Women have the skills, knowledge and expertise to contribute significantly to their corporations. Having a corporate culture that allows them to flourish and a CEO fully engaged in the company's diversity initiatives is in the best interest of all.
Molly D. Shepard Visit the archive of Molly's Personal Letters
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