US States News, May 1, 2007, Tuesday

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US States News

May 1, 2007 Tuesday 4:08 AM EST

HEADLINE: 'DIVERSITY IN THE WORKPLACE' FORUM ADDRESSES KEY TRENDS, LEGAL IMPLICATIONS

BYLINE: US States News

DATELINE: ITHACA, N.Y.

BODY:

The Cornell University College of Industrial and Labor Relations issued the following news release:

Firms with few racial minorities in leadership may experience diminished decision making, while those with a highly diverse leadership team could ultimately experience stronger financial performance.

Quinetta Roberson These are just some of the research findings of Quinetta Roberson, ILR School professor of human resource studies. Roberson's study and her perspectives on diversity and its real-world consequences for employers formed the basis of a panel discussion on Diversity in the Workplace sponsored by Cornell ILR's Labor and Employment Law Program, in cooperation with the Cornell Law School, on April 17, in New York City. The panel featured Roberson; Michael Delikat, Esq., ILR '74, of the management firm Orrick, Herrington & Sutcliffe LLP; and Debra Raskin, Esq., of the plaintiff firm of Vladeck, Waldman, Elias & Engelhard, P.C.

Roberson began by discussing her research, which shows that organizations with few racial minorities in leadership positions may experience decreases in organizational financial performance, since such individuals may serve as tokens without having their unique perspectives and skills integrated into decision-making processes. In addition, low to moderate levels of leader racial diversity may weaken strategic decision making through decreased communication and increased conflict among organizational leaders, thus negatively influencing firm performance.

Conversely, firms with highly diverse leadership teams may have a broader range of perspectives and skills, which may enhance strategic problem-solving and decision-making capabilities, as well as the development of broader networks that can increase access to resources and diverse stakeholder groups. Consequently, such firms may experience higher financial performance.

Quinetta Roberson and Michael Delikat, Esq.Attorneys Raskin and Delikat offered insights into the legal questions surrounding various strategies for increasing and improving diversity efforts. They also discussed whether plaintiffs are entitled to materials prepared by companies as they institute diversity programs, which could be used in litigation to prove discrimination. This raises questions of who prepares the materials and under what circumstances confidentiality and attorney-client privilege prevent reports and plans from being turned over to plaintiffs in a lawsuit.

Esta R. Bigler, ILR '70, director of the Labor and Employment Law Program and program moderator, said: "This is one of the most important areas facing U.S. companies today as they deal with the challenges of globalization and managing a workforce that is increasingly comprised of ethnic minorities and women. The human resources and legal issues will become more complicated and intertwined."

This forum is part of the Labor and Employment Law Program's efforts to merge faculty research with the law and with the needs of practitioners to keep the legal community up-to-date on workplace trends.