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Hispanics still making boardroom inroads

By ANNA ESCOBEDO CABRAL, Special to UPI

WASHINGTON, Oct. 18 (UPI) -- Despite the tremendous population growth that the Hispanic community has enjoyed in the past 10 years, Hispanics continue to be underrepresented in the boardrooms of the largest companies in the nation.

Since 1993, the Hispanic Association on Corporate Responsibility has examined Hispanic representation at the highest levels of corporate America. The 2001 HACR Corporate Governance Study, released Thursday, revealed that despite an upward trend, the rate of increase is too modest to achieve full Hispanic inclusion within the next 10 to 20 years.

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According to the study, Hispanics occupy less than 2 percent of all board seats in Fortune 1,000 companies, but they comprise nearly 14 percent of the nation's population, including Puerto Rico. In fact, 85 percent of these companies have no Hispanic representation in their governing bodies. In addition, 20 key industries, including health care, sporting goods, food and grocery wholesalers, and securities firms, have no Hispanic board members. These are industries in which the Hispanic community is a large part of the consumer market.

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Hispanics are the largest minority group, and the youngest and fastest growing segment of the population. One of every five children born in the United States is Hispanic and by the year 2050 Hispanics will represent 25 percent of the nation's population. According to the Bureau of Labor Statistics, Hispanics comprised 10.8 percent of the civilian labor force in 2000, and they have the highest labor participation rates in the workforce among all groups. Undoubtedly, more and more Hispanic workers and consumers will be contributing to the economy of our nation.

With an annual purchasing power of $560 billion that, as congressman Bob Menendez D-N.J. says, "equals the purchasing power of 14 Rocky Mountain and Central states combined," companies that ignore the Hispanic community are more than likely to see their bottom lines greatly affected.

Hispanic inclusion in governance and at all levels of the workforce is, therefore, a good, if not necessary, business practice. Companies with a diverse executive team will find business opportunities that may not be obvious. They will capitalize on the team's different experiences, manage better the company's increasingly diverse workforce and build trust and loyalty from employees.

On the other hand, as consumers Hispanics will be more inclined to purchase goods and services from companies that have embraced Hispanic inclusion. Hispanic representation in corporate boardrooms and decision-making positions is a win-win proposition for any business in America.

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We are seeing some signs of increasing diversity in the boardrooms of Corporate America. The HACR study found that a few more Fortune 1,000 companies this year have recognized the need of Hispanic inclusion and appointed Hispanics to their governing boards and highest executive positions. These companies are casting wider nets to ensure a diverse pool of candidates for the highest positions within their organizations.

According to the study, 146 Fortune 1,000 companies have Hispanics on their boards, while 120 of these companies boasted Hispanic representation last year. Some individuals, such as Linda G. Alvarado, who is president of her own construction company, now sits on the board of six companies, including Minnesota Mining and Manufacturing Company and Pitney Bowes. Hector de J. Ruiz, president and chief operating officer of Advanced Micro Devices, has joined the boards of Eastman Kodak Company and Darden Restaurants. And, Raul Yzaguirre, president of the National Council of La Raza, (the longtime Hispanic anti-poverty advocacy organization) now serves on the board of Sears, Roebuck and Co. These individuals are helping to redefine and reshape the direction of the largest companies in the nation.

The challenge to corporate America is to implement business practices that will result in higher representation of Hispanics in governance and at all levels of their workforce. The Hispanic Association on Corporate Responsibility stands ready to work with companies that are committed to Hispanic inclusion.

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The future of America depends largely on the Hispanic community. And their contributions to the largest companies in the country will strengthen our nation's prosperity for years to come.

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(Anna Escobedo Cabral is president and chief executive officer of HACR.)

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