Corporate diversity is no accident

Milwaukee dodged a corporate bullet.

Emerson Electric Co. withdrew its unsolicited bid to acquire Rockwell Automation Inc. Tuesday after the Milwaukee company’s board of directors had rejected Emerson’s three buyout offers.

South side commuters who work in downtown Milwaukee tell time on their rides to and from work by Rockwell’s Allen Bradley clock. If Rockwell were to be bought by a St. Louis company, who’s to say the clock that is such a familiar beacon in Milwaukee’s skyline would be appreciated, maintained or even retained by its new owner?

But there was much more than a clock at stake here.

Aside from the prestige of having its global headquarters and jobs here, Rockwell gave $4.7 million in cash and in-kind philanthropic donations in Wisconsin in 2016.

We all have been reminded in the past year that political elections have consequences. So, too, do corporate board compositions and their decisions.

“We are disappointed that the Rockwell board refused even to discuss the potential combination of our two great companies,” Emerson CEO David Farr said in a statement.

Emerson had sweetened its bid for Rockwell to $29 billion, which the Rockwell board rejected, saying the $225-a-share offer presented “significant long-term risk” for its shareholders.

In a statement Tuesday, Rockwell said, “We thank our shareowners for their input and support, our employees for their focus and dedication, and our partners and customers for their continued confidence in Rockwell Automation throughout this process.”

The announcement of the rejection came just hours before a team of top executives at Rockwell conducted a community discussion about the company’s “Journey to a Culture of Inclusion” Tuesday in Milwaukee.

That journey surely would have been jeopardized by the loss of the Milwaukee headquarters.

Rockwell was among the companies highlighted in a recent research report titled “Measuring Change 2017,” conducted by Milwaukee Women inc.

The organization applauded Rockwell for the diversity of its 12-member corporate board.

“Diversity on our board brings broader perspectives to help us make better decisions. Research also shows that diversity on boards leads to stronger financial performance. Our board, which currently includes three women and one African-American man, demonstrates that we value diversity and diversity of thought. We believe our board is a role model for diverse representation at all levels in our organization,” Rockwell CEO Blake Moret said in the report.

“The Culture of Inclusion (COI) Journey at Rockwell Automation is a culture-change initiative that comprises programs and strategies executed throughout the company’s businesses and functions,” Moret said.

I asked Susan Schmitt, senior vice president of human resources at Rockwell, to outline the key components of Rockwell’s inclusion journey. Here they are:

Engage the white men on the staff as allies and full partners in the journey.

Create an understanding of “dominant/subordinated” group dynamics and recognition and awareness of white male privilege.

The message and the practice of inclusion must start at the top of the corporate hierarchy.

View inclusion as a business imperative.

Create a human resources framework that includes awareness, learning and removal of barriers.

Build a “diverse pipeline” of talent throughout the organization.

Extend the awareness of the inclusion priorities to the company’s corporate partners.

In most cases, corporate diversity does not occur by accident or happenstance. It is a deliberate, intentional outcome.