MCI and Greenlining Announce New Commitment on Diversity as Part of Responsible Corporate Governance Practices
SAN FRANCISCO, November 11, 2003 -- MCI and the Greenlining Institute, a public policy organization and leader in promoting corporate diversity and philanthropy, announced a unique agreement driven by MCI's newly-enhanced corporate governance standards. The agreement - filed with the California Public Utilities Commission late Friday - seeks to encourage excellence in corporate governance through a greater commitment to diversity and expanded philanthropic outreach in California.
To ensure the effectiveness of its diversity and philanthropy commitment, MCI has set up, with the assistance of Greenlining, a minority consumer council that will meet regularly to discuss issues and monitor the company's performance.
Under the agreement, which will commence once the company emerges from bankruptcy, MCI expects to achieve the following over the next five years:
- A goal of ensuring that all levels of MCI's workforce will reflect the racial, ethnic and gender diversity of the adult workforce nationwide, including the top 50, top 100 and, if possible, the top eight executives;
- A goal of awarding 25 percent of vendor contracts for California to minority-owned businesses. As a separate goal, MCI will strive in the same timeframe to award 30 percent of vendor contracts for California to women-owned, minority-owned and disabled veterans-owned business enterprises;
- Making a good faith effort, starting in 2004, to fill open Board positions with minority representatives, with a goal of reaching 50 percent minority representation of such new Board seats;
- Committing a minimum of $15 million in philanthropy in California over the next five years aimed at benefiting racial and ethnic minority groups, including low income and underserved communities. Depending on the financial performance of the company and its California market share, this commitment may be adjusted; and
- Meeting with Greenlining in California semi-annually for the purpose of discussing the parties' performance under this agreement. MCI's CEO will attend at least one of these meetings each year.
Greenlining's Executive Director, John Gamboa, stated, "We are pleased that MCI recognizes that corporate governance can be most effective when there is a truly diverse workforce at the board of directors and upper management and when a company has a specific philanthropic strategy directed at low-income and underserved communities."
"We applaud Greenlining's efforts and are pleased to join with them in this mutual goal of helping MCI pave the way in good corporate governance in California," said Nancy Higgins, MCI Executive Vice President of Ethics and Business Conduct.
Mary Ann Mitchell, Board Chair of the National Black Business Council, said, "This unique partnership between MCI and Greenlining is likely to lead to a paradigm shift in corporate policies. Today, most corporate Fortune 500 Boards have few, if any, minorities. Within a decade or less, if the MCI model is followed, these Boards will truly reflect the great diversity of America."
Philip Nguyen, Executive Director of the Southeast Asian Community Center, noted, "MCI's philanthropy efforts are to be commended for their focus on low-income communities, rather than, for example, the opera and ballet."
Agreement is included with this release. Please see below.
About MCI
WorldCom, Inc. (WCOEQ, MCWEQ), which currently conducts business under the MCI brand name, is a leading global communications provider, delivering innovative, cost-effective, advanced communications connectivity to businesses, governments and consumers. With the industry's most expansive global IP backbone, based on the number of company-owned POPs, and wholly-owned data networks, WorldCom develops the converged communications products and services that are the foundation for commerce and communications in today's market. For more information, go to http://www.mci.com.
About Greenlining
The Greenlining Institute is a 39-member, multiethnic California-based coalition of consumer, church, civil rights and business organizations that promotes corporate responsibility and economic development through increased corporate diversity, philanthropy and minority contracting. For more information, please visit http://www.greenlining.org.
The following is the text of an agreement signed by James L. Lewis
of MCI and John C. Gamboa of The Greenlining Institute:
MCI's Commitment to Diversity and
Underserved Communities In California
MCI has established new standards of corporate governance that aim to be the highest and best practices of healthy corporate governance in the United States. The company is now in the process of implementing these new policies, practices and procedures. Through these efforts, MCI aims to become a model of excellence in corporate governance.
MCI's new management believes that improving diversity throughout its business is an important attribute of corporate governance. In particular, MCI endorses the conclusion reached by Richard Breeden, MCI's Corporate Monitor, that assuring a diverse workforce at all levels of the organization is part and parcel of proper corporate governance practices. MCI will strive to ensure that its internal practices for recruitment, training, promotion and opportunity meet the same standards of excellence and priority that are set for other areas of governance. Improving the diversity of MCI's workforce is thus among the top priorities of the company and its top management. To that end, MCI has initiated a thorough and wide-ranging review of its diversity practices, with a goal of ensuring that in time all levels of its workforce will reflect the racial, ethnic and gender diversity of the adult workforce nationwide.
MCI also desires to improve its record in contracting with minority-owned vendors and suppliers in California. MCI intends to increase substantially the overall percentage of contracting dollars spent with minority-owned contractors, and to distribute its purchases in a more representative manner across the various racial and ethnic categories of vendors specified by the California Public Utilities Commission’s General Order 156.
MCI seeks to work with the Greenlining Institute and its coalition members to enable it to reach the goals and targets set forth herein. The Greenlining Institute has taken an extraordinary leadership position in promoting and advancing diversity and philanthropy throughout Corporate America. Therefore, the Greenlining Institute is well-positioned to make available to MCI information about the identity and qualifications of minority-owned vendors supplying services in California, and to identify potential candidates for certain positions within the company.
MCI recognizes the intrinsic value and business opportunity that is made possible when contributing to the diverse communities of California. MCI will strive to assure that its services are beneficial for low-income consumers and underserved communities. MCI also seeks to expand its commitment to corporate philanthropy and, in particular, to philanthropic efforts intended to benefit members of racial and ethnic minority groups, as well as low income and underserved communities in California.
MCI will exercise all commercially reasonable efforts to achieve the goals and commitments identified in this agreement.
MCI's specific commitments to improving diversity and increasing philanthropy, coupled with the fact that MCI's top management has embraced a new and innovative system of corporate governance, have alleviated the concerns that the Greenlining Institute and the Latino Issues Forum (LIF) previously expressed in connection with the company's application for exemption from the requirements of sections 851 and 854 of the Public Utilities Code with respect to its bankruptcy reorganization (A. 03-08-016) pending before the California Public Utilities Commission. Accordingly, Greenlining and LIF agree now to affirmatively support the expeditious and unconditioned approval of A. 03-08-016, as well as the company's prompt emergence from protection under Chapter 11 of the Bankruptcy Code.
The specific terms of the agreement between MCI and Greenlining are as follows:
(1) Time Frame. MCI agrees to a five-year commitment. The five years will commence as soon as the company emerges from bankruptcy.
(2) Supplier Diversity. For California, MCI establishes a goal of awarding at least 25% of all vendor contracts specifically to minority-owned businesses by the end of the five-year term of this agreement. As a separate goal, MCI will strive in the same time frame to award 30% of all vendor contracts to women, minority-owned and disabled veterans-owned business enterprises. At the company's request, Greenlining will assist MCI in reaching these goals by making available to MCI data concerning the identity and qualification of vendors supplying services and the racial and ethnic makeup of the vendor community in California.
(3) Workforce Diversity. MCI endeavors to ensure that all levels of its workforce reflect the racial, ethnic and gender diversity of the adult workforce nationwide, including the top 50, top 100 and, if possible, the top 8 executives. Beginning in 2004, MCI will make good faith efforts to fill at least 50% of available Board positions with minority Board representatives. At the company's request, Greenlining and its members will assist the company in identifying qualified employee and Board member candidates.
(4) Industry Leadership. Recognizing the benefit of benchmarking its progress in achieving its diversity goals, MCI will make a good faith effort of striving to be placed in the top ranks of companies for their support of and relationship with minorities, as rated by independent organizations, such as Fortune Magazine and similar surveys.
(5) Philanthropy. MCI commits to a minimum of $15 million in philanthropy over five years intended to benefit racial and ethnic minority groups, including low income and underserved communities in California. Depending on the financial performance of the company and its California market share, this commitment may be increased.
(6) Minority Consumer Council. MCI will form a Minority Consumer Council to advise the company on marketing its services to ethnic and racial minority communities, on issues relating to diversity, on other issues in the agreement, and on general public policy as it affects the minority community. The Minority Consumer Council will be made up of leaders in the minority community. At the company's request, Greenlining and its members will assist the company in identifying qualified Minority Consumer Council candidates.
(7) Semi-Annual Meetings in California. MCI and Greenlining will hold meetings in California semi-annually for the purpose of discussing the parties' performance under this agreement. MCI's CEO will attend at least one of these meetings each year.
Entered into on this 7th day of November, 2003.
James L. Lewis
Senior Vice President
MCI
John C. Gamboa
Executive Director
The Greenlining Institute
| Area: | Global |
| Name: | Peter Lucht |
| Tel: | +1-617-535-5533 |
| E-mail: | peter.lucht@verizon.com |
