Diversity is what will keep companies alive in the coming years:
A dialogue with Luis Ubiñas
By Luana Ferreira
Currently, Latinos represent 17.3% of the workforce in the United States, and the number will rise to 30% by 2060, according to research released by McKinsey & Company. However, the presence of Latinos in the leading positions is still scarce. They represent 4% of board seats, and only 20 Latino CEOs are among the Fortune 500 companies.
Luis Ubiñas, chairman of Statue of Liberty-Ellis Island Foundation and board member of several organizations, believes the world is undergoing an intense transformation. According to the executive and investor, companies looking for a workforce in the coming years will end up hiring Latinos even if they are not focusing on diversity.
"It's hard to imagine an economy driven by Latino and Latina growth, but leadership at the board level and in the C-suite remaining far less than 5% Latino and Latina. That gap - between the face of leadership and the face of the economy to come - is a vast strategic issue for corporations," says Luis.
According to the executive, having more Latinos in the business isn't a "cultural imperative, it is a business imperative." Luis highlights that corporations need to understand that it's in their best interest to have more representation of Latinos on their boards and in their C-suite positions. Ubiñas reflects, "how will companies address the large percentage of the economy that Latinos will drive if they are absent in decision-making processes?"
Corporations aiming to have more Latinos on leading positions and boards won't struggle to find capable people. "There is no shortage of Latino and Latina board candidates across this country. I've seen the lists myself. These are people who have led organizations and driven change," adds Luis.
Luis Ubiñas was the first member of a Puerto Rican family born in the United States. As part of an immigrant group, he knows that those groups face many challenges. “The question isn't whether we face challenges. The question is how do we work to overcome them, as have those many immigrants who've come before us."
The executive was a senior partner at McKinsey and Company. Later, he was the president of the Ford Foundation, which he led through the 2007 recession. Since then, Luis has been part of multiple boards, including AT&T, Electronic, and Tanger Outlets. He is also an investor and spends his time on nonprofit activities.
"I spend my time doing the range of things I did across my career, but now I get to do them all at once," he says.
In the last decades, Luis has been closely following the corporate world changes and analyzing the new issues they face. He explains that supply chain decisions can no longer be made based on cost, there has to be a return to a layered analysis of the risk associated with lowest cost suppliers. "We need to make supply chain decisions based on the likelihood of those economics being available on a sustained basis -over decades. The lost art of country risk analysis is now back as an everyday discussion for companies," adds Luis.
Another challenge for the boards is understanding that they live in a multi-stakeholder world. They must consider employees, customers, and suppliers as partners in the company's long-term well-being.
Companies must also consider environmental issues before making decisions, which wasn't common years ago. For example, Corporations now have to analyze environmental rules before building a chemical plant or making other long-term decisions. "We must stop thinking of environmental issues as political matters, as they are business issues. Anyone involved in business knows that climate is changing and managing that climate risk requires action," Luis says.
Personally, Luis Ubiñas will continue to passionately work aiding companies. “As time goes, I want to continue to support CEOs leading change. It is of great satisfaction when companies change for the better, deliver shareholder value, create a better community.”
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Editor’s pick:
“Focus on being successful in your career, and opportunities will come to you - including board positions,” advises Luis to new generations.
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Photo credit: Courtesy of Luis Ubiñas