When Xerox named Ursula Burns its CEO in 2009, it became the first Fortune 500 company to have a successive female CEO. Burnss ascendency to the top position at the $22 billion company is evidence of the diversity and inclusion efforts that began at Xerox more than 40 years before.

In 1964, as race riots were occurring near Xeroxs Rochester, New York, headquarters, the companys founder, Joe Wilson, met with Black leaders and learned that one of the reasons people were rioting was because they didnt have access to jobs. Xerox pledged to change that, sending out a company-wide directive, condemning racial discrimination, mandating racial-minority recruitment, and holding managers responsible for the success of the minorities they hired (Xerox a Success, 1991). In addition, Xerox funded and provided consulting to a minority-owned and -operated plant in Rochesters Black community, which made parts for Xerox, to provide jobs for the communitys unemployed (Friedman & Deinard, 1990).

Xeroxs program was about more than recruitment; it was about a company-wide commitment to diversity and inclusion on all levels from the manufacturing floor to the executive offices. By 1974, Xerox had increased its racial-ethnic minority workforce from 3% to 14.6% (Friedman & Deinard, 1990).

It wasnt as simple as hiring more Black employees, however. Despite the company-wide mandate, Black employees at Xerox still experienced unequal treatment, especially when it came to promotions. In addition, Black employees werent part of the informal networks that white employees enjoyed where they shared support, information, and mentoring, which often inhibited the Black employees knowledge of job openings and promotion opportunities. Because of this, Black Xerox workers in various company locations began meeting together at one anothers homes as informal support groups. These Black caucuses not only advocated and fought for equal treatment for Black employees within the company, but they also created what would become a hallmark of the companys Managing for Diversity program: minority caucus groups.

Caucus groups engage in self-advocacy, informing management on issues that keep minority group members from progressing within the company. The company now has seven caucus groups to meet the needs of employees who are Black, Hispanic, Asian, women, Black women, LGBTQ, and veterans.

By 1991, the companys efforts had succeeded in increasing the racial-ethnic minority ranks of Xeroxs U.S. workforce to 25.7%. Among its senior executives, 17% were from underrepresented groups. But even though the program had been effective, there was more to be done. Only 8.5% of the companys senior executives were women, and more [Page 219]people of color and women were employed in lower- and middle-level jobs than upper-level jobs. Burns, who is African American and was recruited by Xerox in 1980 as part of its summer minority internship program, said that back then the diversity efforts didnt extend to gender.

We looked up one day, and all the African American men were doing better . . . they were leaders of the company. But there were very few women of any race. So we said, Oh my God, then we have to do something about women, says Burns. What weve learned during that time is this idea of inclusion cant be inclusion of one group. Because as soon as you focus on one group only, then you actually exclude the other groups (Solman, 2014).

It was through a womans caucus group that Xerox management learned one obstacle in the way of women obtaining and retaining top positions in its manufacturing divisions was the rigid hours of shift schedules. These schedules made it difficult for women who were also primary caregivers to their children to work in manufacturing. Executives learned that women werent dumb in manufacturing, [but] they need more flexibility than the company allowed them, says Burns (Solman, 2014).

Burns stepped down from her role as CEO in 2017. When she left, Xerox had 140,000 employees and conducted business in more than 180 countries. In the United States, people of color make up 31% of the companys workforce. Among company officials and managers, 19% are people of color. Women make up nearly 37% of the companys executives and senior management (Xerox, 2017).

Xerox rose to dominance as a maker of copy machines, but watched that market shrivel with competition from digital imaging. As a result, Xerox dramatically changed its business model. It is now in the business of client services and has become more globally oriented. In doing so, the company found that its suppliers, customers, and partners came from diverse cultures, backgrounds, and experiences. In order to be able to connect with them, Xerox had to connect with the diverse employees within its own ranks.

Xerox officials contend that its diversity has allowed the company to successfully shift to new markets because it is able to approach issues and challenges from different perspectives. Xerox found out a while ago that including more of the resources of the world to attack problems or address opportunities is better than including fewer, says Burns.

The entire approach here is not to have diversity just because we think its a nice thing to do. Its a good business result. The way to stay in front, if you are a tech company, is to engage as much difference and as much breadth as you can in thinking and approach and background and language and culture (Solman, 2014).

1) For this company, what was the primary impetus/motive for these efforts?

2) What was done in the company in recognition that, while they had succeeded in creating a diverse employee base, they still had work to do to make the climate/culture one that is truly inclusive?