My perspective on the diversity controversy at adidas
I originally intended on writing about my first week at adidas. But, this matter seems more pressing. Two weeks ago, the New York Times wrote a piece commenting on the diversity at adidas. If you haven’t yet, I encourage you to read the article, so you can gain your own perspective on the issue. Here are a few key points:
“Of the nearly 1,700 Adidas employees at the Portland campus, fewer than 4.5 percent identify as black.”
“Only three people, or about 1 percent, of Adidas’s roughly 340 worldwide vice presidents last year were black, according to two people with knowledge of the figures.”
“He [Zion Armstrong, Adidas North American President] said, the company’s demographics reflected those of Portland, which is 77 percent white and 6 percent black, according to 2017 Census Bureau statistics.”
In today’s culture of Political Correctness and Social Justice Warriors, it’s easy to act dismissive toward articles which can seem “too sensitive.”
Yet, its these articles which can lead to stimulating change within organizations.
As a two-week employee, I don’t believe I have the authority to deem these stories right or wrong. I can’t comment on the way Black employees are treated here. I can’t comment on the difference in hiring practices of Black candidates or the history of diversity at adidas. However, I can comment on what everyone else saw — this article.
Auto-ethnography shouldn’t be discounted. But, most media outlets and conversations I had, revolved around these numbers. So, I’ll also be focusing on them. It’s easy to think of a few arguments which defend the company, but I encourage you to think about the larger picture.
(1) If adidas hires 4.5% of Black employees and 6% of Portland’s population is Black, doesn’t that seem accurate?
Yes, the percentage of Black employees accurately reflects the demographics of Portland. And, on-boarding employees from states and regions outside of the HQ’s state, Oregon, can be difficult. Regardless, these numbers are not representative. adidas is a global brand, and its North American Headquarters is in Portland. Thus, it only makes sense that the people which are producing products, creating market campaigns, and dealing with product pricing, should be reflective of their North American consumers. While Black employees make up 4.5% of the North American adidas Headquarters, they make up 10% of North America. On the other hand, White employees make up 78% of employees and comprise of 57% of North America.
If we look even more narrowly, adidas’ North America key cities are Los Angeles and New York City. The intent of the key cities is to, “over-proportionally grow share of mind, share of market and share of trend.” The percentage of Black/African Americans in Los Angeles are 2 times greater than Black employees at adidas. On top of this, the makeup in New York City is 5 times greater.
(2) It doesn’t make sense and it’s not fair to others [namely White folk] to hire more Black employees just to fulfill a quota.
When it comes to hiring practices, racial quotas are actually considered unconstitutional by the US Supreme Court. Additionally, Affirmative Action can only be used in schools. (A racial quota provides an exact number for hiring, promoting, and admitting employees. Affirmative Action describes policies which support members of a disadvantaged group through education, employment, or housing.) A statement like this is technically correct, as these practices are illegal. But it doesn’t account for the difficult positionality Blacks encounter, as is explained below.
(3) If Black employees aren’t ready to be hired, then shouldn’t they not be not be hired?
This statement is rooted in misunderstanding to say the least. Black candidates are inherently at a disadvantage. Most Hiring Managers hire those that are culturally similar to themselves. Additionally, those with White sounding names are twice as likely to be hired compared to those with minority sounding names. Thus, Black candidates usually have less experience on their resumes than their White counterparts. By stating that these candidates aren’t ready to be hired, it doesn’t consider the reoccurring racism that can be found from before a resume is created up until the interview process.
It’s important to also consider the values these employees bring.
In an organization which is focused on products and creativity, diversity is necessary. The Boston Consulting Group found that diverse management led to 19% higher revenue, due to innovation. By increasing diversity of employees, there was an increase in innovation. This stemmed from better understanding their customer’s desires and needs. A McKinsey & Company study also found that diverse companies are more successful in “attract[ing] top talent, improve their customer orientation, employee satisfaction, and decision making.” With high numbers of diversity, companies also benefit through higher stock prices, lower litigation expenses, and higher company performance. This can be proven as investors use information like diversity to indicate how well a company is being managed. When a company has high rates of diversity, they can become candidates for diversity awards from the US Department of Labor. After receiving these awards, these companies stock prices have been found to increase.
This is why people were upset. This is why I was upset.
There seems to be a misalignment between the demographic the brand attracts (through partnerships Black celebrities like Kayne West, Beyoncé, Pharrell Williams, Donald Glover, and recently announced, Donovan Mitchell) and the people who are behind the brand.
On the upside, adidas is making strides to change the racial diversity here. In fact, the intern group I’m a part of hosts the largest diverse class. There’s Employee Resource Groups which seek to provide community for marginalized communities. And, there’s a whole department dedicated to Global Purpose, which includes positions for Diversity and Inclusion. As a two-week employee, I’m not sure what’s to come next. But, I strongly believe, or perhaps hope, that media attention like this has the power to stimulate and advance company change.
At the end of my internship here, I’m hoping to give insight into my experience as a Person of Color (POC) or mixed-race individual, so stay tuned for that! If you wish to follow my journey at adidas, make sure to subscribe :)
