New York, NY, June 28, 2004—Most employees believe that diversity is good for business, but fewer than a third believe that their company has an effective diversity initiative. What's more, 12 percent of employees surveyed said they believe that their company is at risk for a diversity-related lawsuit.

Those are just some of the findings of a study released today by the National Urban League, the country's oldest and largest community-based organization devoted to advancing equal opportunity.

The two-year study, called "Diversity Practices that Work: The American Worker Speaks," surveyed more than 5,500 American workers to capture employees' views on diversity. To provide guidance to employers as they seek to attract and retain a diverse mix of employees, the study also outlined some diversity practices the employees deemed most effective.

Fully 80 percent of survey respondents report being comfortable working in diverse teams, and a great majority (65 percent) believes diversity improves creativity and innovation. Still, fewer than half (45 percent) believe that diversity is part of the corporate culture of their respective employers, and only 32 percent believe their company has an effective diversity initiative. Moreover, executives' perceptions about diversity are 28 percent more favorable than those of the overall workforce.

"After decades of well-intentioned investment by businesses, it's clear we still have a long way to go," said Marc H. Morial, president and chief executive officer of The National Urban League. "This study will help the National Urban League offer effective guidance to business developing diversity practices because we've gone right to the source - the employees for whom companies design such initiatives."

The study, thought to be the most comprehensive survey of employee opinions on the topic, found that workers tended to have more favorable perceptions of diversity initiatives at companies where:

• Leaders demonstrate a personal commitment to diversity and hold themselves and others accountable.
• Diversity training increases diversity awareness and provides a link to improving business results.
• There is an established track record for recruiting people of diverse backgrounds.
• Employees earn rewards for their contributions in diversity.

The study highlights eight companies demonstrating highly valued diversity practices. It randomly chose more than 400 employees at each such company to share views on their company's diversity initiatives. The study then compares these views to a stratified random sampling of more than 2,100 American workers.

Performing the study for the National Urban League was Global Lead, a full service management consulting firm specializing in diversity and organizational transformation. Funding came from Enterprise Rent-A-Car, the largest rental car company in North America. The full report is available here.