Not all shareholders and bottom line: Columbus CEOs speak out on race

Quarterly corporate conference calls are normally a one-hour affair in which CEOs and other top executives review the previous quarter’s finances and talk about their vision for the future.

This week, two central Ohio CEOs broke that mold, saying that more needs to be done to address issues of race and inclusion in the workforce. Their comments come two months after the killing of a Black man, George Floyd, at the hands of Minneapolis police.

“We have a great culture at this company, but we can always do better by understanding the impacts of stereotypes, different perspectives based upon life experiences, the burden placed on employees of color in our organization, and what systemic racism versus individual racism acts actually means,” Nick Akins, American Electric Power’s chairman, president and CEO, told analysts on a call Thursday to discuss the company’s second-quarter results.

“I believe the dialogue will enable a much deeper discussion that will benefit our diversity and inclusion efforts, as well as enable AEP to be a better partner to our communities as we effectuate lasting change.”

Mike LaRocco, chairman, CEO and president of State Auto Financial, made similar comments on the insurer’s conference call, also on Thursday.

“As individual companies and as an industry, we must recognize the reality of racism in this country. We cannot turn away from this moment,” he said. “It is critical that we have open, candid and transparent dialogue about the reality of racism, which we have already done at State Auto.”

LaRocco called on the insurance industry, which has been accused of discrimination in the past, to do more to "ensure that diverse perspectives lead us into the future and that we reflect the diversity of our country and our customers. This extends not only to race, but bias against and lack of inclusion related to gender, sexual orientation and religious beliefs.“

Companies have been reacting in different ways since the death of Floyd and the subsequent protests in Columbus and cities around the world.

In June, Nationwide held a rally in front of Nationwide Arena in which staffers could come together and mourn the loss of Floyd. The company also pledged $1 million to local and national programs dedicated to social justice and fighting racism.

Before that, John Lowe, CEO of Jeni’s Splendid Ice Creams, led an effort in which more than 1,200 city business, institutional and nonprofit leaders and other individuals signed a letter of support of a Columbus City Council resolution declaring racism a public health crisis in the city.

Floyd’s death has companies evaluating their policies on race, sex and diversity, said Eleanor Bloxham, a corporate-governance expert based in Westerville.

“This is a big issue,” she said. “It’s an issue that many companies are speaking out about. The real question for companies is not just speaking out, but what they’re doing about it.’’

Akins said AEP has created what he calls a “seize-the-moment action plan.”

"This plan includes engagement with our leaders and employees in the organization through internal discussions, external speakers, webcasts ... and process changes that will continue to make AEP a strong, committed company that enables all of our employees to contribute in an open and transparent fashion,“ he said.

Bloxham said there is some history of companies using their quarterly calls to talk about important issues beyond the bottom line.

More recently, companies have announced initiatives to improve the environment and cut carbon dioxide emissions, for example.

More companies realize that speaking out and taking significant steps are important, not just token measures, she said.

“You are part of the society and the community 365 days a year,” Bloxham said. “Are you making it better or are you making it worse?”

mawilliams@dispatch.com

@BizMarkWilliams