Asian Americans are vastly underrepresented in the leadership ranks of large US

Asian Americans are vastly underrepresented in the leadership ranks of large US corporations, a study released last month by a New York-based think tank revealed. In fact, the percentage of Asian Americans holding leadership positions in corporate America is well below their overall population percentage, the study, “Asians in America: Unleashing the Potential of the ‘Model Minority,'” by the Center for Work-Life Policy, found. Less than “two percent of Fortune 500 CEOs and corporate officers” are from Asian American communities, who form roughly 5 percent of the US population, according to the study.

The underrepresentation of Asian Americans in corporate boardrooms is surprising given their high academic accomplishments. According to the study, they account for 15 to 25 percent of Ivy League enrolment. Their ubiquitous presence in elite schools and high representation at entry levels don’t translate into the highest corporate jobs. A big culprit: “subtle workplace biases.” The study said only 28 percent of Asians reported feeling very comfortable “being themselves.” In comparison, 40 percent of African Americans, 41 percent of Hispanics and 42 percent of Caucasians said they felt comfortable being themselves at work.

Sujeet Rajan spoke to Ripa Rashid, executive vice president at the Center and one of the authors of the study. Here are the excerpts:.

What was the basis for this study?

It was prompted by some of our companies that are a part of our “Hidden Brain Drain” Task Force. It is a consortium of 67 organizations mostly Fortune 500 companies. We are really working together to address issues around new streams of talent – women, ethnic minorities and individuals who are not really getting to the top – in the global workforce. Three percent of Fortune 100 global CEOs are women. So our work really focuses on understanding the dynamics that hold these new streams of talent back. The Asian Americans study really came out of realizations from many of the industries in the US, financial services, pharmaceuticals, professional services, which were recruiting Asian Americans in huge numbers at entry levels. But, they are just not making it to the top.

Is it fair to equate all the Asians under one ethnic umbrella?

It’s a fair point. Asians make up only about five percent of the US population. Asians in the US come from countries that comprise about 60 percent of the world population. So we are trying to generalize across a vast number of cultures, vast number of ethnic and linguistic groups. Obviously that’s a challenge. One surprise from our research is that the similarities are where the differences between the different groups of Asians.

One of the areas where people assumed South Asians are much strong in communications whereas East Asians may be not so. We actually found that when it comes to sharing a new idea there is not much difference. We exploded a lot of myths around the differences.

When it comes to corporate America, Asian-origin students really don’t rise to the top and hit a roadblock?

I think there are a couple of dynamics going on here. The first piece is, the Asians we are talking about are the first people in their entire families to enter corporate America. Many Asians who came here particularly from South Asia were engineers, doctors – professions that were not mainstream in corporate America. So the rules of the game are pretty unfamiliar. As someone in one of our interviews said, regardless of where you are born, whether in Mumbai or San Francisco, you have to start from zero in corporate America. That’s one challenge. The other piece is the myth of meritocracy. When it comes to the workplace we heard loud and clear that it was much harder to fit in. There was a big divide between the person and the profession and there was a big struggle in navigating up, finding sponsors for you, building that relationship capital that’s really essential. There a lot of unwritten rules there in corporate America. It’s like a separate tribe, separate culture we enter into.

It is like a white male bastion in corporate America? Is it difficult to break into that?

Absolutely. When you look at Fortune 500 CEOs, over 90 percent are white males. The culture is set at the top. And when they look down for their successors… they are looking for people whom they are comfortable and can be trusted with. They may trust Asians but they are not – which is one of the important discoveries here [in the study] – they are not that comfortable with Asians. Hence, Asians still feel like outsiders. Asians are hugely valued for the expertise, skills and dedication they bring to the workplace. But when it comes [to the top level] and the pipeline immediately below that, it’s a struggle because that still remains vastly Caucasian America.

People in India have the impression that Asians in America are doing quite well for themselves. It’s conventionally thought that they are well represented in corporate America, especially when they hear success stories like that of Vikram Pandit. Is that a wrong impression?

The truth, as our research indicates, is a complicated one. Asians are indeed doing very well in certain areas and up to a particular point. Take their representation in elite universities in America, which ranges from 15 percent-25 percent of Ivy League colleges, MIT, Stanford, etc. and their growing presence in the entry and junior levels of many professions such as investment banking, management consulting, technology, professional services and medicine. However, the study finds that Asians encounter very real barriers when aspiring to senior leadership roles, regardless of sector or discipline. While [Citigroup CEO] Vikram Pandit and [Pepsico CEO] Indra Nooyi are highly visible success stories, overall Asians remain a mere 1.4 percent of Fortune 500 CEOs and 2 percent of corporate board members and officers. Overall the pipeline is weak at the senior management level and above on account of a range of subtle biases and workplace experiences that contribute to their feeling like outsiders in corporate America.

One of the key findings of the study seems to be actually contradictory. It says that Asians are more likely than Caucasians to aspire to hold a top job….Is that contradictory thing to be over ambitious?

The contradiction pointed out is a very interesting one. Asians are highly ambitious – not surprising at all, given that they are succeeding so well academically. The ambitions that take them to schools and other programs continue on into the workplace. That’s not going to evaporate overnight.

For the future, do you see more Asian Americans breaking into top echelon of corporate America?

Absolutely. But, we need to be very cognizant about navigating the system. It’s a two-way streak. Firstly, Asians needs to understand the system and move a little towards being able to navigate it in a more savvy way. Don’t be afraid to self promote, think of it as advocating for self. But, organizations also need to shift. Having so many Asian CEOs, though small in numbers, in prominent companies is going to slowly shift corporate leadership types. A lot of business opportunities are going to happen in India and China. So what better opportunity for Asian Americans to thrive in corporate America by being cultural bridges. (Global India Newswire)

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