Opening Case: Developing a diverse global workforce at Colgate-Palmolive

Since its founding in 1806 in New York City, Colgate-Palmolive has become one of the world's most venerable multinational enterprises. In addition to its well-known oral care line, the company manufactures shampoos, shower gels, deodorants, and home care products that are sold in over 200 countries around the world. International sales account for about 70 percent of the company's $16.5 billion in 2020 annual revenues, with 50 percent being derived from emerging markets. Colgate's worldwide market share in the toothpaste business is over 33 percent. It has a 40 percent share in India, 65 percent in Brazil, and 29 percent in China. The company's success is based on a long tradition of product innovation, development, and brand management. As is the case with many multinational consumer products companies, the marketing mix used to sell its offerings in different nations and regions has to be adjusted to account for differences in local conditions.

One of the things that has always distinguished this multinational enterprise is its commitment to building a globally diverse workforce. In total, as of December 2020, Colgate had some 34,200 employees based in over 100 countries. Approximately 36 percent of employees are based in Asia Pacific, 30 percent in Latin America, 15 percent in North America, and 15 percent in Europe. The company emphasizes that all of its employees are part of a global team, committed to working together across countries and throughout the world. Colgate believes that only by sharing ideas, technologies, and talents across countries and regions can the company achieve and sustain profitable growth.

As a truly global company, Colgate is working to ensure that the workforce reflects the diversity of the communities in which its employees live and work. As of December 2020, 60 percent of the global workforce was male and 40 percent female, with women accounting for 41 percent of the company's executives. While measuring the race and ethnicity of the workforce on a global basis is challenging, in the United States the company reported that its workforce self-identified as 67 percent White, 11 percent Hispanic, 9 percent Black, 8 percent Asian, and 5 percent other. The company has programs in place to try and improve this mix, not just in the United States, but globally. The company's talent management process incorporates the advancement of women and people of all cultures, including underrepresented communities. To help further foster inclusiveness, Colgate has established employee resource groups for team members of many different underrepresented communities. Each of these resource groups contributes to the work environment by developing and implementing programs to promote business and community involvement as well as cultural awareness.

Colgate's development of a globally minded executive team starts when it fills its entry level positions. The company recruits students from universities or business schools around the world who can demonstrate an ability to handle cross-cultural situations. They may have already worked or lived abroad and will at the very least have traveled extensively; they will often be able to speak a foreign language. Initially, instead of sending young hires off on long assignments abroad, it sends them on a series of training stints lasting 6–18 months. This development strategy means the company can provide young managers with a broad range of overseas experience. One manager hired in the United States, for example, spent time in the Czech Republic and the Baltic states before becoming a country manager in Ukraine—all before celebrating his 30th birthday.

The impact of this development process can be seen in the composition and background of the five-person top executive team. The current CEO, Noel Wallace, joined the company in 1987 and progressed through a series of senior management roles around the world, which included a stint as President of Colgate's Latin American operation. Two other members of the executive team are from outside the United States. Prabha Parameswaran started her career in India and held senior positions in Asia and Mexico. Today she is Group President of the company's Global Innovation Group. Panagiotis Tsourapas joined Colgate-Palmolive in Greece in 1992 and rose through a series of positions in Greece and Europe before becoming President of Colgate Africa/Eurasia in 2012. Today he is Group President for Latin America, Asia Pacific, and Africa-Eurasia.

Test Your Understanding: Read the case and then select the right answer to the multiple choice questions below.

Q1: Colgate-Palmolive recruits employees with a demonstrated ability to handle cross-cultural situations. This approach to hiring-

A. implies that the company has a polycentric approach to staffing.

B. suggests that the company follows an ethnocentric approach to staffing.

C. should minimize the potential for expatriate failure.

D. indicates that the company provides little, if any, cross-cultural training for managers.

E. will increase the potential for trailing spouses.

Q2: Colgate-Palmolive is using a ________blank approach to staffing.

A. transvectional

B. transnational

C. ethnocentric

D. geocentric

E. polycentric

Q3: Colgate-Palmolive often sends employees on foreign assignments for 6–18 months. The employees on foreign assignment can best be described as -

A. impatriates.

B. outsourced employees.

C. translational managers.

D. host nation employees.

E. expatriates.

Q4: Colgate-Palmolive’s practice of rotating employees through foreign assignments

A. reduces the chance they will develop cultural toughness.

B. increases the likelihood that they will become more globally minded.

C. reduces the perceptual ability of managers.

D. minimizes the need for others orientation.

E. suggests the manager will have low self-esteem.