Harvard Case - Diversity, Equity, and Inclusion Initiatives at Levi Strauss & Co.: Are They Enough?
"Diversity, Equity, and Inclusion Initiatives at Levi Strauss & Co.: Are They Enough?" Harvard business case study is written by Hadiya Faheem, Sanjib Dutta. It deals with the challenges in the field of Organizational Behavior. The case study is 20 page(s) long and it was first published on : Sep 13, 2023
At Fern Fort University, we recommend that Levi Strauss & Co. (LS&Co.) further enhance its Diversity, Equity, and Inclusion (DE&I) initiatives by adopting a comprehensive, multi-pronged approach that addresses both internal and external aspects of its operations. This approach should prioritize building a more inclusive organizational culture, fostering a sense of belonging for all employees, and actively promoting equity in hiring, promotion, and compensation.
2. Background
This case study examines Levi Strauss & Co.'s efforts to promote diversity, equity, and inclusion within its organization. LS&Co. has made significant strides in recent years, demonstrating a commitment to creating a more diverse and inclusive workplace. However, the case highlights some challenges, including a lack of representation in leadership positions, persistent pay gaps, and concerns about the effectiveness of its DE&I programs. The main protagonists of the case are the executives at LS&Co. responsible for implementing and overseeing the DE&I initiatives, as well as the employees who are directly impacted by these efforts.
3. Analysis of the Case Study
To analyze LS&Co.'s DE&I initiatives, we can utilize the following frameworks:
- Organizational Culture Framework: This framework helps understand the existing culture at LS&Co. and identify areas for improvement. The case suggests a strong emphasis on innovation and a commitment to social responsibility, but there are potential gaps in inclusivity and a lack of diverse perspectives in leadership positions.
- Change Management Framework: This framework helps assess the effectiveness of LS&Co.'s DE&I programs. The case highlights a lack of clear metrics and a need for more robust evaluation methods to measure the impact of these initiatives.
- Human Resource Management Framework: This framework helps analyze LS&Co.'s policies and practices related to hiring, promotion, and compensation. The case points to potential biases in these processes, leading to disparities in representation and pay.
4. Recommendations
LS&Co. should implement the following recommendations to enhance its DE&I initiatives:
1. Cultivate Inclusive Leadership:
- Leadership Development Programs: Develop targeted leadership programs that equip managers with the skills and knowledge necessary to foster inclusive environments.
- Diversity in Leadership: Set clear goals for increasing diversity in leadership positions at all levels. Implement a robust talent pipeline program to identify and develop diverse candidates for leadership roles.
- Mentorship and Sponsorship: Establish formal mentorship and sponsorship programs to support the development of diverse talent within the organization.
2. Foster a Culture of Belonging:
- Employee Resource Groups (ERGs): Support and empower existing ERGs to provide a platform for employees to connect, share experiences, and advocate for inclusivity.
- Inclusive Communication: Promote open and respectful communication across all levels of the organization. Provide training on cultural sensitivity and unconscious bias.
- Employee Feedback Mechanisms: Implement regular surveys and feedback mechanisms to gather employee perspectives on the workplace culture and identify areas for improvement.
3. Promote Equity in Hiring, Promotion, and Compensation:
- Blind Recruitment: Implement blind recruitment practices to eliminate bias in the hiring process.
- Pay Equity Audits: Conduct regular pay equity audits to ensure fair compensation practices across all employee groups.
- Diversity and Inclusion Targets: Set clear and measurable targets for diversity and inclusion in hiring, promotion, and representation at all levels.
4. Strengthen DE&I Measurement and Evaluation:
- Data Collection and Analysis: Develop a robust data collection and analysis system to track progress on DE&I goals and identify areas for improvement.
- Impact Assessment: Conduct regular impact assessments to evaluate the effectiveness of DE&I initiatives and make necessary adjustments.
- Transparency and Accountability: Communicate progress on DE&I goals transparently to employees and stakeholders. Hold leaders accountable for achieving these goals.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: LS&Co.'s commitment to social responsibility and its values of inclusivity and diversity are core to its brand identity. These recommendations align with these values and strengthen LS&Co.'s commitment to creating a more equitable and inclusive workplace.
- External Customers and Internal Clients: A more diverse and inclusive workforce will attract and retain top talent, enhance employee engagement, and foster a stronger sense of belonging. This will ultimately lead to improved customer satisfaction and brand loyalty.
- Competitors: As the business landscape becomes increasingly diverse and global, companies that prioritize DE&I will be better positioned to attract and retain top talent, innovate, and thrive in a competitive market.
- Attractiveness: These recommendations will enhance LS&Co.'s reputation as an employer of choice, attracting and retaining a diverse and talented workforce. This will contribute to long-term growth and profitability.
6. Conclusion
LS&Co. has made significant progress in its DE&I journey, but there is still room for improvement. By implementing these recommendations, LS&Co. can create a more inclusive and equitable workplace, fostering a sense of belonging for all employees and driving positive social impact.
7. Discussion
Other alternatives not selected include:
- Focusing solely on internal initiatives: While important, this approach may not be sufficient to address the systemic issues of inequality and discrimination that exist within the broader society.
- Adopting a 'tick-box' approach to DE&I: This approach may lead to superficial changes without addressing the underlying root causes of inequity.
The key assumptions of these recommendations are:
- Commitment from leadership: Successful implementation of these recommendations requires a strong commitment from senior leadership to prioritize and champion DE&I.
- Employee engagement: Employees must be actively involved in the development and implementation of DE&I initiatives.
- Cultural change: A shift in organizational culture is necessary to create a truly inclusive and equitable workplace.
8. Next Steps
LS&Co. should implement these recommendations in a phased approach, starting with:
- Phase 1 (Immediate): Conduct a comprehensive assessment of current DE&I practices and identify key areas for improvement.
- Phase 2 (Short-Term): Develop and implement targeted leadership development programs, enhance employee resource groups, and implement blind recruitment practices.
- Phase 3 (Long-Term): Establish a robust data collection and analysis system, conduct regular impact assessments, and set clear and measurable targets for diversity and inclusion.
By taking these steps, LS&Co. can continue to build a more diverse, equitable, and inclusive workplace, creating a positive impact on its employees, customers, and society as a whole.
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Case Description
First Place Winner; 2023 DEI Global Case Writing Competition American clothing company Levi Strauss & Co. (LS&Co.) had a diverse workforce and prided itself on not discriminating against employees based on their race, ethnicity, sexual orientation, or gender. LS&Co. reported treating its employees equally and with gender pay parity. It had diversity, equity, and inclusion (DE&I) initiatives in place. However, in May 2020 the company recognized that women held a minority of higher-level positions and Latinx/Hispanic and Black employees were underrepresented, as well. Consequently, the company hired Elizabeth A. Morrison as its new chief diversity, inclusion & belonging officer. Morrison's challenges included developing a talent pipeline of Black designers; ensuring pay equity in all the company's markets; improving the recruitment and retention of a diverse workforce; and establishing an ongoing inclusive culture. With LS&Co. as an example of a firm with both DE&I shortcomings and accomplishments, students can understand the concepts of diversity, racial discrimination, pay parity, gender equity, and inclusion, and how to apply them in business settings.
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