General Mills Diversity and Inclusion Program Analysis

Introduction

Diversity is increasingly becoming a serious HR issue for companies in the 21st-century marketplace. Organizations have been forced to develop strategies for increasing the representation of minority groups and making their workplaces more welcoming. General Mills was recently named one of the 50 most inclusive workplaces by DiversityInc. This paper examines the company's diversity program with the aim of identifying what it does differently from other companies, whether there are areas that need improvement, and the positive elements that other companies could emulate to gain competitive advantage in their respective industries.

The paper explores, among other things, the strategies General Mills uses to implement its diversity and inclusion program, the specific areas it emphasizes, and how it designs its organizational structure to facilitate strategy implementation. Although diversity and inclusion are the primary focus, the paper also covers the company's growth and marketing strategies and corporate strategies, recognizing that these too play a role in the company's continued success.

Company Overview and History

General Mills is America's leading producer of packaged foods, dealing in a wide range of breakfast cereals, prepared mixes, snack foods, and flour (General Mills Company Overview Report, 2014). Some of its popular brands include Wheaties, Trix, Chex, and Cheerios in the breakfast cereal category; Hamburger Helper, Betty Crocker, and Bisquick in the mixes category; and Nature Valley Granola, Pop-Secret Popcorn, and Yoplait Yogurt in the snack category (General Mills Company Overview Report, 2014). Headquartered in Minneapolis, Minnesota, the company grew from a simple flour mill in the 1860s into one of the world's largest food companies, serving more than 90 countries worldwide. Much of its global activity stems from two joint ventures — Snack Ventures Europe, a venture with PepsiCo in which GM enjoys a 40.5% stake, and Cereal Partners Worldwide, where it holds a 50-50 ownership stake with Nestlé.

Not only does it have a diverse customer base, GM also maintains a diverse workforce by recruiting talent from different communities and cultural backgrounds as a way to foster innovation and ensure that food choices and ideas brought to the table can effectively address the unique needs of its diverse customer base (General Mills, 2015). The company's diversity strategy focuses not only on the primary areas of sexual orientation, race, gender, and religion, but also on cultural aspects such as communication style, beliefs, and preferences (General Mills Diversity and Inclusion Segment, 2015). Its inclusion program is grounded in the core values of developing, respecting, and investing in employees.

GM began to trade publicly on the NYSE in 1928 under the leadership of James Ford. Even before that, its founder Cadwallader Washburn had shown great interest in diversity and being accommodative of people from different cultures (Funding Universe, 2001). In the very early years of the company's formation, Washburn sought the services of a French engineer to upgrade the production processes and improve the quality of the company's flour, making it the best available in the American market (Funding Universe, 2001).

Upon assuming control of the company from his father, James Ford continued the strategy of diversification — this time focusing more on the product range and geographic presence. He began by consolidating the company with twenty-seven other milling companies in different parts of the country and, within five months in office, had made GM the world's largest flour-milling company (Funding Universe, 2001).

Product-wise, the company ventured into packaged consumer foods to cater to the growing postwar demand among urban dwellers. Bisquick, the company's first baking mix, was introduced in 1931, before Kix and Cheerioats were launched as the company's first ready-to-eat breakfast cereals in 1937 and 1941, respectively (Funding Universe, 2001). By 1946, Cheerioats had grown to become the number one cereal in America.

Riding on its success in the consumer product market, the company diversified its commodity range further during World War II by venturing into the production of dehydrated foods, animal feed formulas, medicinal alcohol, bags, and war equipment for the Navy. Edwin Rawlins, an outsider, was appointed president of the company in 1959, a move taken to symbolize the company's commitment to diversity. Under his leadership, the company not only ventured into the snack foods category but also diversified its consumer base into the European market, forming joint ventures with PepsiCo and Nestlé and diversifying its operations to include restaurants and specialty retailing.

By 1977, the company was operating internationally with a diversified business range that included specialty retailing, fashion, games and toys, restaurants, and food processing. In the 1980s, most of these non-food activities were dropped, and the company chose to refocus on food. Today, GM operates in over 90 countries with a highly diversified food product range and an equally diverse employee base.

Analysis of the Diversity and Inclusion Program

GM's diversity and inclusion program is well captured in two of its key public representations: its corporate mission, which emphasizes nourishing lives and making life richer, easier, and healthier for consumers across different cultures (GM Diversity Brochure, 2012); and its corporate website, which symbolizes the depth of gender and cultural diversity among employees and top management. At GM, diversity is not only a value but a business strategy for attracting and retaining top talent (GM Diversity Brochure, 2012). Unlike most established companies, which focus only on the primary elements of diversity such as sexual orientation, race, gender, and culture, GM's program also addresses cultural aspects including communication styles, beliefs, preferences, and values. According to Chairman and CEO Ken Powell, this all-round approach makes GM a "better employer, a better supplier… and a better world citizen" (GM Diversity Brochure, 2012).

The company fosters inclusion by listening to employee voices, respecting their views, and investing in their personal and professional development (I-Sight Inc., 2013). It maintains strong affinity networks and diversity councils for mentoring employees from different cultures and raising awareness of issues surrounding diversity and inclusion. These affinity networks include:

The company understands the varying needs and styles of its workforce and runs a variety of employee initiatives and programs to address them. These include workplace wellness programs recognized as best-in-class; employee benefits such as eldercare and childcare resources, domestic partner coverage, and adoption and parenting benefits; and workplace flexibility options that give employees the power to define when, where, and how work gets done (GM Diversity Brochure, 2011). Flexibility options include the flexible user-shared environment (FUSE), everyday flexibility, extended time off, and flexible work arrangements (GM Diversity Brochure, 2011).

Based on its comprehensive diversity program, GM has been named among the top-100 best places to work, and also recognized as: (i) one of the best companies for working mothers by Working Mother magazine; (ii) one of the best companies for multicultural women; (iii) one of the best places for LGBT employees by the Human Rights Campaign; (iv) one of the best companies for diversity by DiversityInc; and (v) one of the best companies for Latinas by Latina Style magazine (GM Diversity Brochure, 2011).

This focus on employees as a means of appreciating diversity is the strong point of the company's program; however, it also carries a key risk. Focusing too much on keeping employees happy and satisfied could be misunderstood as a desperate attempt to retain talent, and if the autonomy given to employees is not appropriately managed, it could create conditions for laxity (Johnson, 2005). Moreover, despite stating its commitment to diversity in its mission statement and on its corporate website, GM does not give sufficient attention to the disability dimension — the images presented on its corporate website do little to demonstrate commitment to including persons with disabilities in its workforce.