WASHINGTON, Oct. 18 (UPI) -- Although Hispanics are now the largest and fastest-growing minority group in the United States -- and an increasingly lucrative business demographic -- the inroads of this group of Americans into U.S. boardrooms has been fractional, according to a new study.
A study released Thursday by the Hispanic Association on Corporate Responsibility revealed that Hispanics hold only 1.7 percent of the total board seats in the largest companies in the nation, an increase of 0.3 percent from the previous year.
Also, 85 percent of all Fortune 1,000 companies have no Hispanic representation on their board of directors, according to the HACR's 2001 Corporate Governance Study.
"Although the representation of Hispanics in the governance of the largest companies in the nation has increased since 1993, the rate of increase is too modest to achieve full Hispanic inclusion within the next 10 to 20 years," said Anna Escobedo Cabral, president and chief executive officer of HACR.
According to recent census figures, Hispanics represent nearly 14 percent of the United States population, including Puerto Rico.
HACR is a coalition of the largest national Hispanic organizations in the nation representing the interests of more than 35 million Hispanics in the United States and 4 million in Puerto Rico.
According to the study, Hispanics hold 181 of 10,597 board seats in all Fortune 1,000 companies, an increase of 29 seats since 2000 and 97 seats since 1993.
To reach a level of inclusion that mirrors Hispanic population figures, Hispanics would hold 1,484 seats across all companies.
"To remain successful, companies must be more responsive to the Hispanic community and ensure Hispanic inclusion in their governing bodies, workforce, procurement and charitable contributions," said Rep. Ileana Ros-Lehtinen, R-Fla., noting the growing buying power of Hispanic Americans.
Hispanics are the fastest-growing minority group in the nation with an annual purchasing power of more than $560 billion. According to the Bureau of Labor Statistics, Hispanics represented 10.8 percent of the civilian labor force in 2000.
The study indicated that 146 Fortune 1,000 companies have Hispanic representation on their boards. This number has increased by 26 companies when compared to 2000 data and by 88 since 1993, when HACR first began this study.
In addition, the study ranked companies for their record of Hispanic inclusion. Twenty-three companies received a "triple A rating" from HACR for having Hispanics on their boards at a rate equal to or higher than the Hispanic population in the United States and Puerto Rico -- 14 percent or above.
Those companies receiving the highest rate were Adobe Systems, Adolph Coors, Belo, Darden Restaurants, Edison International, Granite, Home Depot, KB Home, Kellogg, Kimberly-Clark, MasTec, National Semiconductor, Peoples Energy, PG&E Corp., Pitney Bowes, Popular, Public Service Co. of New Mexico, Raytheon, Republic Services, Scholastic, Valero Energy, Warnaco Group, and Watsco.
HACR chairman Ronald Blackburn-Moreno said given the growing buying power of Hispanics in America, that inclusion of Hispanics in the boardroom and workforce would increase the bottom line.
"As consumers, Hispanics will be more inclined to purchase goods and services from companies that have embraced Hispanic inclusion at all levels of their workforce as well as in their economic activities," Blackburn-Moreno said. "To remain competitive in an increasingly diverse market, corporations must cast a wider net to ensure Hispanic inclusion in their boardrooms and decision making positions."
