However, many leading corporations have not been successful in training, retaining
and promoting women and minorities (Goodman et al. 2003). Managers in organizations
where there is a lack of effective HR diversity polices are likely to promote or rate highly
subordinates who have similar cultural backgrounds and experience. In the US whites
hold 88.4% of managerial positions while comprising only 75% of the population
(US Department of Labor 2003). The Executive Leadership Council’s Institute for
Leadership Development and Research conducted the 2004 census of African Americans
on corporate boards. The survey revealed only 8.1% of the board members are African
Americans in the 500 largest publicly traded American corporations (Alleyne 2005).
A similar study conducted by Fortune magazine reported that people of colour made up
only 19% of corporate board rooms and 26% of management in the Fortune 1000 plus the
largest privately held companies (Hickman, Tkaczyk, Florian and Stemple 2003). Cited in
a CNN report (CNN 2007), Fortune magazine revealed that, in 2006, only 2% of CEOs
in the Fortune 1000 were women. Elsewhere, Allen et al. (2004) argued that the minority
representation in middle and senior management positions in Australian organizations is
inadequate.