What CRE Can Learn From The Boards At Amazon, Starbucks And Macy’s

NEW BRUNSWICK, NJ–JLL is part of a larger trend underway in corporate America: a push to have a more diverse board of directors. This trend is a variation of the Rooney Rule, which refers to a National Football League policy requiring league teams to interview ethnic-minority candidates for coaching and senior football operation jobs, and we’ve seen it at play recently at Amazon, Starbucks and Macy’s.

And JLL, which has been recognized as being one of the World’s Most Ethical Companies by the Ethisphere Institute for the tenth consecutive year as well as one of the 50 Best Companies for Diversity by Black Enterprise and The Executive Leadership Council. JLL has men of color on its board of directors and it continues to be a market leader in advisory services and investment management.

There have been several studies quantifying the benefits of having an ethnic and gender diverse board for companies, all of which basically come down to this: A mixture of perspectives, backgrounds, and areas of expertise make the business more profitable, innovative, and attuned to their customers.

But don’t take my word for it. Three of the world’s top brands worked to ensure that their boards are diverse. Here’s why:

Amazon

Earlier this Spring Amazon adopted a new policy to promote board diversity. Amazon acted in response to a shareholder proposal, which said that “shareholders have long believed that embracing diversity will benefit companies by providing greater access to talent, harnessing existing talent more effectively, and improving decision making by reducing groupthink and similar psychological biases.” As a customer-centric company, Amazon’s more diverse board will more accurately reflect the racial composition of its 300 million active user base.

Starbucks

The global coffee giant has assembled one of America’s most diverse corporate boards: it’s 29% female and 36% ethnic minority, and includes a range of ages from millennials to baby boomers. Starbucks recently closed all 8,000 company-owned stores in the US to racial bias training. The decision came about in response to an incident in which a Starbucks manager accused two black customers of trespassing at one of the company’s stores in Philadelphia.

Macy’s

The legacy retailer has one of the most diverse boards in the industry. CEO and Chairman Terry Lundgren seeks board members who have diverse perspectives and “reflect his customer base so he can stay attuned to trends in how different people shop”. Board member Craig Weatherup says that companies without digitally savvy and ethnic board members “are really going to fall behind. It’s a key part of staying relevant in today’s market.” Perhaps correlated with having a diverse, marketplace-attuned board is the fact that last week, Macy’s posted double digit sales growth and has boosted its outlook for the year.

Lyneir Richardson is the Executive Director of the Rutgers University Center for Urban Entrepreneurship and Economic Development in Newark, NJ. Richardson is also the CEO of Chicago Trend, a social enterprise that catalyzes retail development in an effort to strengthen urban neighborhoods.