1. Hispanics are the largest minority in the nation. What does this mean to corporate America? How should corporate America respond to this changing demographic?
Obviously, it means that corporate America’s future success is increasingly dependent on how well it responds to this rapidly-growing segment of the market. Appropriate responses include: (1) Doing the obvious – developing more effective marketing strategies targeted to Latinos, but also the less obvious, including developing new products and services desired by this community. In the banking arena a good development was developing more affordable mortgage products; but to some extent this was undermined by not developing effective marketing strategies, which means that the good products are being under-used, while too many Latinos are being victimized by predatory lenders. (2) Increasing the numbers of Latinos in corporate America, especially at decision-making levels. Our experience is that it’s difficult for companies to conceive of and effectively implement new, Hispanic-focused strategies, unless they have Latinos in key positions. (3) Developing more partnerships with Hispanic organizations – and by this I mean not just money, but real engagement. Latino organizations have the expertise to help corporate America help itself, in developing new products, recruiting more Latinos, and implementing better marketing strategies. At the same time, Hispanic organizations need more support from corporate America, especially in the advocacy arena. Ultimately, if Latinos become better educated, healthier, earn higher wages, and have more assets, then our whole economy and the major corporations in that economy will benefit, but too many corporations want to stay on the sidelines on social policy issues.
2. What role should HACR have in representing the Hispanic community with corporate America?
HACR already does a good job in rewarding corporations that work well with the Latino community. In our judgment, it needs to do better in holding those who aren’t doing well accountable.
3. Do you think that corporate America is aware what advocacy organizations such as HACR or others do to promote inclusion and corporate responsibility?
It’s mixed. The most enlightened and aggressive companies, like the majority of the Fortune 100, already do extensive outreach and have substantive relationships with many Latino organizations. But some firms in the Fortune 100, and probably a majority of the companies in the Fortune 200-500 category, do not have extensive relationships with our community.
4. HACR is celebrating its 20th Anniversary. What would you like to see for the next 20 years of the organization?
A more coherent, shared vision among member organizations would be useful. To NCLR, more success would not necessarily be measured just by growth in the organization and the number of corporate members, but by:
More examples of aggressive advocacy campaigns highlighting lack of responsiveness or egregious acts by companies
Significant advancements in measurable outcomes in the business arena – like increased numbers of Latino Board members, CEOs, and senior executives – attributable in part to HACR’s work
Greater advances in the socioeconomic status, in part resulting from advocacy partnerships where business works with Latino organizations to advance shared priorities – immigration reform, education reform, and increased access to health care and housing
5. What is the business case for corporate responsibility or inclusion as it relates to employment opportunities?
We think much of it is self-evident, but there is now empirical evidence as well. A July 2006 New York University study (Lev, Petrovits & Radhakrishnan, “Is Doing Good Good for You?,” July 2006) shows that, holding other factors constant, companies that invest more in charitable contributions have greater sales growth than companies that make fewer charitable contributions.
