Workplace concepts such as diversity, equity, and inclusion as well as environmental, social, and governance, or ESG, factors pop up frequently these days. Business students will need to grapple with them when they enter the workplace. A group of senior business majors at FGCU recently got to hear from a professional who has worked to implement these concepts in several blue-chip companies.
Donna Zarcone is a corporate and nonprofit board director. She spoke last week to two finance classes and one economics class at the University. She believes that diversity is not just a corporate buzzword, but an important value for a company’s performance.
“I firmly believe that diversity in groups and organizations leads to better and more robust discussions, when you get exposure to many different experiences and perspectives. And it leads to better outcomes,” said Zarcone.
FGCU Senior Adam Mirzoev was impressed by one such example Zarcone mentioned. It was about a garage-door company that previously hadn’t allowed for much innovation.
“Most of the older gentlemen on the board, they kind of wanted to continue the same business model of manufacturing the garage door openers with the engine at the top and the pulley system. But as you began to introduce more diverse and younger Board of Directors members, they managed to pivot into more of a technological focus. She talked a lot about how the goal is to change it from a garage door company into a digital key-to-the-home company,” Mirzoev said.
Mirzoev went on to say that the innovation enabled the company to increase its valuation from the millions into the billions.
Senior Andrea Santana said that she appreciated that Zarcone pointed out that governance issues don’t necessarily cost a company profits.
“A lot of people think that there's a trade-off between the bottom line and ESG. But the way that Donna framed things today helped me understand how complying with ESG can also benefit the bottom line in very tangible ways, such as by implementing diverse leadership in the company,” said Santana.
Zarcone emphasized that she wanted the students to understand the many ramifications of the concepts.
“I'm trying to communicate to them that there is a changing awareness and understanding of the evolving role of the corporation. And I believe that there's a better understanding that success is not determined just by short term financial results and outcomes for the shareholders, but rather, there's an increased appreciation and valuing of the many different interrelationships that drive long term value,” Zarcone said.
Senior Aaron Nadel was glad that it was being discussed in his business classroom at FGCU.
“I think it's important to keep talking about, because there's always going to be changes. And if something like this is so big, and it doesn't get talked about, I think we'll take one step forward, but three steps back. So I think it’s an interesting topic that needs to stay on the table,” said Nadel.
See The Future of the American Board,a report from The National Association of Corporate Directors, for more details.
WGCU is your trusted source for news and information in Southwest Florida. We are a nonprofit public service, and your support is more critical than ever. Keep public media strong and donate now. Thank you.
