Investing in diversity: Business, higher education can work together to meet challenge

President Brit Kirwan delivered the following address,"Investing in Diversity: A Social Responsibility and Economic Imperative," on Oct. 20 during the American Council on Education (ACE) Minority Higher Education Conference in Cincinnati. He shared the platform with Paul Chellgren of Ashland Inc., whom Kirwan called"one of America's most talented and enlightened business leaders É whose commitment to diversity is truly notable."

Among the most encouraging signs in our battle for greater diversity and inclusion is the support coming from Corporate America. When a university is under legal challenge for its affirmative action policies and another university offers its support, as for example Ohio State did in the University of Michigan case, that's one thing. But when America's largest and most respected employers weigh in with"friend of the court" briefs, as, for example, Ashland Inc. did in the Michigan case, it adds tremendous credibility to the arguments.

Incidentally, all eyes will be on Cincinnati in a few weeks as the 6th Circuit Court begins to hear appeals on this landmark case.

Paul has told you something about the Business-Higher Education Forum and its report on improving America's schools. My task today is to introduce you to another Forum report, this one entitled,"Investing in Diversity: Developing All of America's Talent on Campus and in the Workplace." This report is also the product of an initiative of BHEF. It was prepared by a group of academic and business leaders, which Steve Butler of KPMG and I were privileged to co-chair, and it will be issued next month.

'The Forum is convinced that by strengthening K-12 education, increasing financial aid, creating welcoming campus environments and improving minority access to higher education, America will take a giant step forward in developing all of its talent.' -- President Kirwan

I'm going to bring you up to date on why this study was undertaken, what we found in terms of present and future demographics and how we in the Forum think our nation needs to respond. While some of these facts will be familiar to you, I think one of the report's most important features is that it brings so much information into one convenient source.

I also will share our thinking on why diversity matters so much to our society, and on the challenges we face. And, I will cover our conclusions and next steps, closing with a few personal reflections on this subject.

To beginÉwe all know that diversity is a reality in the demographics of America today. Members of the Business-Higher Education Forum believe that making diversity a reality in higher education and in the workplace is a national imperative. By speaking out on this issue, we give voice to the strong linkage that exists between diversity and excellence in higher learning and the work force.

The members of the Forum are impressed by the evidence that depicts the breadth and depth of our changing nation as well as by the growing evidence of the rewards diversity brings to all of our citizens. It is more and more clear that with diversity, our work force will function more effectively, our education system will be enriched and our pluralistic society will be strengthened.

In short, we believe economic progress and social mobility can be achieved in the America of this century only through greater inclusivity in all aspects of American life.

The Forum decided to undertake the study on which our report is based for three reasons:

1. To review and summarize research evidence and other arguments that support the value of racial, ethnic and cultural diversity in business and higher education;

2. To call attention to the many programs and strategies that foster diversity and that serve as models for companies and universities that seek effective, legal tools to achieve such racial and ethnic diversity; and

3. To offer our ideas on how business and academe can more effectively develop all of America's talent.

We began with the baseline question of who we are now, relying especially on the 2000 Census. The numbers are striking -- even for a mathematics professor!

First of all, the 1990s were a high-growth decade. The U.S. population, some 281 million as of the year 2000, increased more in that period than in any other decade since the Census started.

More relevant to our discussion is that while the nation was growing by 13 percent over the decade, the minority population was increasing by almost three times that rateÉa whopping 35 percent! Hispanics and Asian Americans led this growth, increasing by 58 and 50 percent, respectively, while the number of African Americans increased by 16 percent. In contrast, the non-Hispanic white population grew by just 3.4 percent.

Clearly, our country is experiencing a sea change in demographics. While that comes as no surprise, these numbers are useful because they so starkly validate that fact.

The 2000 Census also illustrates the growing complexity of racial and ethnic identity. In addition to the categories I just cited -- African Americans, Hispanics and Asian Americans -- Question 6 on the Census allowed respondents to identify themselves as members of one or more of 14 racial categories -- or to write in a category not on the list.

We also learned that three states had become"majority minority," with less than half their populations describing themselves as"white, non-Hispanic." Those states are Hawaii, New Mexico and California, with Texas likely to reach this category within a few years. Further, nearly half of our largest cities no longer have majority white populations.

In short, our nation is becoming much more racially and ethnically diverse and the change is occurring more rapidly than at any time in our history. Moreover, the growth in minority population is expected to continue. Even before the latest numbers were reported, the Census Bureau had projected that the non-Hispanic white share of the U.S. population would continue to drop, from 74 percent in 1995 to 53 percent by 2050.

The Bureau also predicted that,"Every year from now to 2050, the race/ethnic group adding the largest number of people to the population would be the Hispanic-origin population. In fact," the Bureau continued,"after 2020 the Hispanic population is projected to add more people to the United States every year than would all other race/ethnic groups combined."

As one would expect, these trends extend to our school-age populations. But while the proportion of minority groups in the student population has increased significantly, there remains a great disparity in the rate at which members of minority groups finish high school, enter college and earn degrees.

Actually, the race gap in high school completion has narrowed substantially for whites and blacks, but not for Hispanics. While about 90 percent of whites and blacks completed high school in 1998, less than two-thirds of Hispanics did so. Further, these disparities increase at higher levels of education, with 28 percent of whites completing a bachelor's degree in 2000, compared with less than 17 percent of African Americans and just 11 percent of Hispanics.

Despite some progress, minorities lag even more in the receipt of degrees in many of the high-demand areas, such as business and management and in the health professions. Minority groups are also significantly underrepresented in tomorrow's frontier fields of biological and life sciences, computer sciences and engineering.

Among minority groups, only Asian youth attend college in numbers roughly proportionate to their share of the U.S. college-age population. African-American and Hispanic students remain behind. And because minority students are more likely to come from low-income families than their white counterparts, qualified minority students are less likely to be able to pay for higher education.

This gap in minority educational attainment is important in and of itself as a social and ethical issue for our nation. It also has grave implications for the nation's economic vitality. The National Alliance of Business predicts that the difference between the number of jobs to be filled and the number of people qualified to fill them will widen significantly.

Based on an analysis of Census and Labor Department statistics, unless dramatic changes occur, there will be 19 million more jobs than workers adequately prepared to fill them by the year 2025. Further, most of these jobs will require at least some education at the collegiate level. It is also estimated that close to 50 percent of those women and men who are available to fill these jobs will be members of minority groups.

The bottom line is this: Unless we correct inequities in elementary and secondary education resources and increase student financial aid so that much larger proportions of minority populations succeed in college, tomorrow's work force will be unprepared for the challenges of a knowledge-intensive workplace and unable to take advantage of the vast opportunities that our economy will offer.

I'll return in a minute to how diversity affects the economy. But first, let us consider how diversity benefits our democratic society as well as student learning.

Fortunately, a growing body of research -- much of it conducted by Professor Patricia Gurin and her colleagues at the University of Michigan -- allows us to speak with some certainty on this topic. What this research shows is that students who experience diversity on campus are more likely to participate in community, volunteerism and political activity. We also know they will demonstrate greater racial/cultural engagement and greater compatibility with differences.

But there's more. Among the most important findings of recent research is that racial and ethnic diversity on campus enhances the learning environment for everyone -- minorities and nonminorities alike.

• We know that students who are exposed to people with a range of backgrounds and ideas are better critical thinkers than those who have less contact with diversity;

• We know that students who are exposed to people with a wide range of backgrounds and ideas are more likely to show greater social involvement and interpersonal development than students with less exposure to diversity; and

• We know that students and faculty themselves perceive how campus diversity benefits learning.

Such findings are not limited to undergraduates. Surveys of faculty and graduate and professional students reveal very strong support for the idea that exposure to diversity enhances learning.

Moreover, the American public agrees. According to a nationwide survey that the Forum conducted in May of 2000, Americans believe by wide margins that it is important for colleges to enroll students of different races, cultures and backgrounds. The Forum report also documents that college graduates who are exposed to significant racial and ethnic diversity are more effective in the work environment. Such graduates demonstrate an improved ability to think critically, understand issues from various viewpoints and collaborate harmoniously with co-workers from a wide range of cultural backgrounds. Obviously, these skills enhance a worker's ability to contribute to his or her employer.

The report demonstrates that business leaders agree with this logic. I already alluded to the corporations that signed the Michigan briefs, based on their need for a diverse array of employees. In addition, many business leaders say that:

• The education of members of racial and ethnic minority groups benefits the economy as a whole by raising salaries and living standards;

• Education in a diverse environment enhances the creativity, innovation and problem-solving that graduates bring to their jobs;

• Employees who are exposed to people with a range of backgrounds and ideas are more likely to understand issues from different points of view;

• Employees of different racial and ethnic backgrounds can offer important perspectives to the development of products and services designed for an increasingly diverse marketplace. This is especially important in today's global economy;

• Finally, evidence shows that financial markets reward corporate diversity.

Given what we know, taking steps to enhance diversity in America seems like a no-brainer. Nonetheless, we know that formidable challenges stand in our way.

I would like to mention briefly four major challenges that the Forum believes must be overcome if we are to create an environment that builds on diversity as an asset and invests in diversity as a means to enrich our nation's civic, social and economic life.

The first challenge is to provide high-quality elementary and secondary education for every student.This requires high-performing teachers, which the American Council on Education has identified as"the single most important element in a child's success at learning." ACE's 1999 report, To Touch the Future, recommended a series of steps that college and university presidents should take to improve teacher preparation.

The corporate world has also lent its voice to efforts for improved teacher education. A joint report from the National Alliance of Business, National Association of Manufacturers and U.S. Chamber of Commerce offered a number of helpful suggestions.

Paul Chellgren discussed the Business-Higher Education Forum's recent report, Sharing Responsibility: How Leaders in Business and Higher Education Can Improve America's Schools. That document does an excellent job of describing the need for greater collaboration among all levels of education and the business community.

Personally, I am a strong advocate for the kind of K-16 approach proposed in this report. I likewise agree that it's essential for college and university presidents and chancellors to strengthen teacher education programs.

The second challenge identified by the Forum is to increase financial aid for students who need it. In relative terms, over the past decade, we have seen an alarming decline in need-based financial aid. Racially and ethnically diverse students from low-income families will account for most of the increase in college-age population in coming decades. So, this decline in need-based aid is a problem that must be addressed.

Our report documents an alarming fact: A low-income student who scores in the top quartile on standardized tests is no more likely to attend college than a high-income student who scores in the lowest quartile. Clearly, America cannot afford this talent loss.

The situation is perhaps best explained by looking at the decline in the relative value of the Pell Grant. In 1975, the maximum Pell Grant covered 78 percent of the average public university cost. Today, it covers just 39 percent. But the situation is even worse because other major federal need-based aid programs have fared even more poorly than the Pell Grant.

Challenge number three identified in the report is to create campus environments that truly value diversity and provide support that helps all students complete their studies.

Evidence shows that minority students on many campuses do not graduate at the same rate as white students. Reasons for this disparity include inequities in financial resources, the unequal quality of K-12 education and lack of access to financial aid. While we must remove these impediments, we must also recognize our responsibility to improve the campus climate to ensure that all students feel like they belong.

The fourth challenge is to intensify efforts to develop and implement thoughtful, innovative and results-oriented approaches to enrolling greater numbers of minority students in higher education, despite the uncertainty resulting from recent court rulings and referenda.

Many of us hope that the courts will reaffirm the Bakke decision. But no matter what the outcome of the court decisions, the Forum report is very clear: Our society must increase the access of minorities to higher education. Doing otherwise makes no practical or moral sense.

The Forum is convinced that by strengthening K-12 education, increasing financial aid, creating welcoming campus environments and improving minority access to higher education, America will take a giant step forward in developing all of its talent. To assist in this endeavor, the Forum identified a number of"next steps" it will take. Some of them include:

• Creating state and/or local coalitions between education and business leaders to promote discussion and joint action on issues of diversity;

• Promoting a learning outcomes curriculum as a means of strengthening our nation's elementary and secondary schools;

• Urging national policymakers to immediately increase Pell Grant maximums from $3,750 to the Congressionally authorized level of $5,800 per student;

• Encouraging university governing boards and state policymakers to give priority to much greater levels of need-based aid, even in these difficult economic times;

• Supporting and strengthening outreach programs that focus on the value of college, ways to prepare and help students apply to college and the importance of lifelong learning;

• Providing resources to ensure that teachers are prepared to work effectively with racially and ethnically diverse children;

• Identifying and promoting best practices for achieving greater diversity in universities and the work force;

• Advocating that colleges and universities take"the whole person" into account in admission decisions, considering all relevant qualities in assessing each applicant; and

• Urging corporate foundations to devote greater proportions of their resources in support of diversity initiatives.

Perhaps the most important aspect of this report, however, is not any one recommendation. It is that leaders of major American corporations and universities have come together on the subject of diversity and issued a clarion call for national action.

As Americans, we are all stakeholders in our nation's future. How our nation responds to the challenge of our increasing diversity will determine the quality of national life and economic success not just for some but for all of our citizens.

We have long known that increasing diversity is the right thing to do. This report confirms that insuring a vibrant civic, social and economic future is also the smart thing to do.

But no amount of data or analysis can substitute for leadership, the necessary precursor for positive change. It is leadership that has propelled us this far, and it will be leadership that assures our continued progress. Leaders in business and academia must continue to set the example, modeling behavior and pursuing what is both right and smart.

Let me close by saying that as the title of this session states, investing in diversity is in fact a social responsibility and an economic imperative. Together, business and higher education can do a lot to help meet our diversity challenge. If we succeed, America will be a better place for all and our global civic, economic and social leadership will extend throughout this century and beyond. Now that's an imperative worthy of our best and most dedicated efforts.

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