Name: TIAA CEO Roger Ferguson discusses Black Lives Matter movement, diversity needed in corporate leadership
Uploaded: 2020-07-16
Duration: 11 min 44 s
Description: Ferguson, one of just five Black Fortune 500 CEOs, says that a diverse leadership team is a proven smart business move, and Chief Diversity Officers are a 'tool, not a panacea.'

Ferguson, one of just five Black Fortune 500 CEOs, says that a diverse leadership team is a proven smart business move, and Chief Diversity Officers are a "tool, not a panacea."

TIAA CEO Roger Ferguson discusses Black Lives Matter movement, diversity needed in corporate leadership

Leadership

Ferguson also shares his own history with discrimination.

Roger Ferguson on diversity needed in the corporate world

Roger, thank you so much for joining us. You know, over the last couple of weeks there's been so much attention on race and social justice and many business leaders have been speaking up about um you know, their views on these issues and now the new york Times has come up with a headline saying that Black Lives Matter may be the largest movement in U. S. History. What are your thoughts on that? Is this a turning point for race relations in America? Well look, one can certainly hope it's a turning point for race relations in America. Many of us who have observed the deaths, the violence, even some of the smaller, you know, into what appear to be insignificant things that are real slights are probably you know, outraged to some degree, certainly tired and exhausted having to confront this issue. So I think let's hope that this is a turning point. It does feel to me somewhere different um from other movements that I've seen around this topic in my life. So I'm hoping that maybe this actually is the turning point in Australia move towards uh permanent solutions here. You say it's somewhat different than other experiences you've had in the past. What do you mean by that? But this one um strikes me as having three things that make a different one is it is simply a much larger. Um you know, if I think back to the civil rights movement when I was growing up in the late 50s and early 60s, well that was very large, this one has now become even global, um and so it's not just a us-based activity. Secondly, I would say this one seems to have energy not just for the black community, but more broadly. Um, we're finding, you know, sort of whites and other allies joining in this conversation that was true in the past. It seems to be even more so in this in this day and age. And finally I think it's really turned sort of very personal as well. You know, if I look back to the civil rights movement in the 60s, it really focused in on sort of institutions and institutional racism. This has some of that, but I'm also here a lot of dialogue about individuals and what they might be doing differently. Um and so on those three dimensions, it does feel to me as though this is a sea change. It does feel quite them. Right after the killing of George Floyd, you wrote a letter to your clients at T. I. A. And you titled it Standing together for Change and you told them that your company has a long history of quote opposing racism in all its forms and our resolve is stronger than ever today. What actions have you taken since then? Well, we started an activity in our organization called Be the Change And it's focused on four things. First, it's changed through understanding uh and so we're trying to help everyone understand what racism looks like. The second is a change through dialogue. And so we've had some internal town halls, we've had panel discussions, some are frankly Suzie, fairly raw um and and emotional. But to bring home the issue of what it is to confront racism, both in a large sense and also in a smaller personal sense. The third color has changed through leadership, where we actually are taking leadership activities and then change through action with respect to change through action. We have a summer of service underway right now where we're focusing in on financial literacy. We're focusing in on the digital divide. We're trying to help young african american students keep up with their school work through this pandemic and difficult times and roger. You've also been sharing your stories about a black kid growing up in Washington D. C. And going through a segregated elementary school. Why did you decide to talk about these personal experiences with your employees? Also your shareholders, even the public. Why now? Well, because I think it's really important that they don't understand that even uh you know, african americans who have lived and benefited from the american dream, who are as I am a beneficiary of the civil rights movement, we've had our moments as well. You know, racism does not a class only issue though there are class overtones to it. It has everything to do with what you look like. And yes, I started off life in a Associated elementary school and then went to an integrated uh junior high school. You know, I've been mistaken for a waiter, but I have to pick up some one spoon at a social event. I've been watched as I go into, you know, retail outlets, the way any african american might be. You know, I've seen people take a step aside when I've come by. So I think it's really important for people to understand that racism is not something that only happens to, you know, for uneducated black people. It happens to everybody. Uh, and you know, I've had trouble getting a taxi going uptown in Manhattan. You know, city that you and I both know Well, so the reason to speak out is to recognize that racism is endemic in our society. It affects all of us regardless of education or social position. And in that sense it makes more more honest dialogue and it forces people confront what they might have done to someone like me walking down the street in Manhattan. One thing we've been hearing a lot from Ceos recently, making promises To create diverse workplaces and actually T. I. A. has a pretty good track record on these sorts of things. And recently you were recognized as among the top companies in the country, the top 10 companies in the country uh in expelling and diversity and inclusion strategies. Your boardroom has a good balance between women and people of color. What advice do you have for Ceos who want to create diverse teams? What would you tell them? I tell them frankly to get on with it, so to speak and be very, very intentional about it. And so yes, you know, our boardroom now is I over 50% female. Uh I think the number is about 40% minority. Uh and that's not an accident. It was very intentional. The board chair and the head of the nominee gulf committee and myself, we went out to find new board members. We said, bring us people are highly qualified for sure. And let's make sure it's a very diverse late. So that's very important. You know, one of the things that we have to recognize in the business world is there's more and more data that shows that diverse boards, diverse teams lead to better outcomes. And so as a ceo you ought to say, this is not just the morally nice thing to do or right thing to do. It's a smart, savvy thing to do as well. And in that sense, get everyone to embrace the fact that diversity inclusion equity. These lead to better outcomes for your employees, for your shareholders, for your customers. Uh, and so, you know, probably embrace this as an important business imperative because it does lead to better outcomes as well as making for a better society. We're seeing that many companies are now rushing to hire chief diversity officers to deal with racial inequities in their organizations. Do you think this is the right way to go? I think it's a tool. It's not uh, have CIA, you know, appointing someone to now change our culture and to drive diversity, I think is putting too much weight on the shoulders of one person. We have a very, very strong chief diversity officer here, uh, and Corey pauline. She's doing a wonderful job. But at the end of the day, frankly, I think that I am chief diversity officer of the organization. You know, it's up to the ceo to say just really matters. This is not something that I delegated to somebody else. This is something where I am the, hopefully the leader and by what I say, what I do and have, uh, you know, a good ally to help drive it in a more tactical way. You are one of just four african american ceos running a fortune 500 Company you've been leading tia for 12 years now. Why aren't there more black Ceos, men and women? Very difficult but very important and troubling questions. So you can expect to have black CEOs, if you don't have black C suite executives, you can expect to have black C suite executives if you don't have a pipeline all the way through the organization. So it's really got to start at diversity in recruiting and then it's got to start or then continue with, you know, mobility opportunities in the organization. And finally, I think you need a certain amount of mentor ship. No one gets to these top slots without having someone at the very top of the organization, sort of identify you halfway along your career and help you maneuver through the career path. That is true in any organization. Mhm You know, roger people are looking for real change. They're very eager for it right right now. Um, looking ahead, let's say a year from now, what are some of the meaningful changes? Concrete actions that you'd like to see happen about the subject that we've been just talking about? Well, first there are, you know, important laws that are being considered in Congress and I think we continue to look in that space for sure. Obviously, you know, I think the focus in on what is the financial services sector can do to drive greater financial literacy, but would be an important milestone. Um, I would imagine that we'll watch not necessarily the next year or so. It over longer periods of time, next three or four years to see. Do we have more african americans, more women, more people of color, more diversity at the board table? Um, I think that has become a theme and a topic that really can be, you know, watch very, very closely. So there are a number of those, uh, sort of larger concrete things. And then obviously, you know, as we think about, you know, schools and society overall, one of the conversations, are we still continuing? They're the right kind of positive dialogue, um, that that will you bring this to the fore and hopefully, you know, start us on the path of resolution of this very, very tough issue that's been part of America or going back for hundreds of years. What are the chances of achieving those goals that you were just talking about? Well, I think the chances of getting more diversity at the board table? You know, art should be quite high. I mean, I look at what my own company has done. You know, a decision that we really wanted to have a broadly diverse board. I think every organization ought to be able to do that every c suite, every ceo and every norman golf chair, every board chair, we independent director ought to be able to say to the executive recruiting team, Bring me a diverse late. Don't just go back to the usual candidates. It makes them work harder, but it actually is doable. Other things, you know, hard to say. Let's be honest, let's be very real about this is my colleague. Just say, you know, America has been, you know, having ebbs and flows around racism from the very beginning. Um, so I don't expect us to have a sudden epiphany this year. That's when they 2021 better. But I'm looking forward to the question of, do we continue to have real honest dialogue, the type that we've had for the last several months and feel how to carry that through the school year? Um, and so I think being an intentional about the activity and leadership at the community level, at the national level. Those are things where I think we need to continue to see energy and progress. So something concrete at the board table ought to be looked at every year and say, yeah, that's gotten better. Other things. I think it's just sort of continuing slogging away because you can't expect something that's existed for hundreds of years in in America to suddenly swing and disappear in one year.