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332 PART 4: THE LEADER AS A RELATIONSHIP BUILDER

IN THE LEAD Ernst & Young LLP
Ernst & Young’s commitment to “building an inclusive environment” has been recog-
nized with a number of awards, including eight consecutive years as one of Hispanic
Business magazine’s Top 50 Companies for Hispanics, Fortune’s 100 Best Compa-
nies to Work For, and DiversityInc magazine’s Top 50 Companies for Diversity.
More than a decade ago, leaders launched two diversity initiatives aimed at
increasing the recruitment and retention of women and minorities and began in-
vesting heavily in training, mentoring, and career development. These programs
have had a positive impact, leading to a 79 percent increase in the fi rm’s percent-
age of minority employees between 1995 and 2005 and a 100 percent rise in the
number of diverse partners and principles. In mid-2006, Ernst & Young (E & Y) took
the groundbreaking step of inviting Mitchell & Titus, the nation’s largest African-
American–owned accounting company, to join the Ernst & Young global fi rm.
What is equally important is that E & Y is aiming toward the future by giving
minority high school and college students greater opportunities. E & Y has provided
more than $1 million in scholarships for undergraduate and graduate minority stu-
dents majoring in accounting, information technology, engineering, finance, and other

disciplines. An innovative program called Your Master Plan (YMP) gives recent
college graduates a chance to work at E & Y while they pursue a master’s degree in

accounting, paid for by the firm. For several years, Black Collegian, a magazine and
career Web site for students of color, has recognized Ernst & Young as one of its Top
100 Diversity Employers. 35

In an industry that is one of the least racially-diverse in the nation, Ernst &
Young is taking solid steps to build a pipeline of minority candidates to be the
leaders of tomorrow. In addition, E & Y is striving to create a corporate environ-
ment where all people have equal opportunities and are treated with respect,
dignity, and fairness.

Diversity Today
Attitudes toward diversity are changing partly because they have to as leaders re-

spond to significant changes in our society, including globalization and the chang-
ing workforce. The average worker is older now, and white males now make up
36
less than half the U.S. workforce, with many more women, people of color, and
37
immigrants seeking employment opportunities. The U.S. Bureau of Labor Statis-
tics projects that women and minorities will make up 70 percent of new entrants
to the workforce by 2008. 38
The other factor contributing to increased acceptance of diversity is global-
ization. Leaders are emphasizing cross-cultural understanding so that people can
work smoothly across borders. Some large multinational corporations, includ-
ing Canada’s Northern Telecom, U.S.-based Coca-Cola, Switzerland’s Nestlé, and
France’s Carrefour, all get a large percentage of their sales from outside their
home countries. Companies like Starbucks and MTV Networks are fi nding that
the only potential for growth lies overseas. These organizations need diversity of

leadership and sometimes find that U.S. managers don’t have the broad experi-
ence needed to succeed in a global environment. An unprecedented number of
foreign-born CEOs now run major companies in the United States, Britain, and
several other countries. Employees with global experience and cultural sensitiv-
39
ity are in high demand in many industries, and almost every employee is dealing
with a wider range of cultures than ever before.