CDOs

CDOs Plenty has been written about the CDO and its role as a central character in the housing bubble that ushered in the credit crisis. This week I am not writing about Collateralized Debt Obligations, but instead, a different CDO – the Chief Diversity Officer, a role that some companies are adding to their C-Suite lineup. The CDO is charged with laying the foundation and promoting an environment where women and minorities can flourish. Without a focus on diversity and advocacy for change, it is likely that a company’s majority of white males will continue to dominate the organization. Unfortunately, real estate lags behind corporate America, having little diversity among executives and even less focus on change. Aside from a positive image, some say diversity impacts the bottom line by reducing employee turnover, enhancing innovation and attracting new business. I’m not sure exactly how one can account for the benefits, but there is no doubt that it is the good, right, and very smart business thing to do.