A Diverse Company:
American Express

HRM 799
August 11, 2008 In 1850 a company named American Express was launched not as a financial institution, instead it was known for making deliveries throughout the east coast as well as the west. Although large freight deliveries were made majority of the company’s profit came from delivering small parcels such as, stock certificates, notes, currency and other financial instruments. By the late 1800’s American Express branched out leaving the delivery service business behind. Their new expansion included money orders and travelers checks, which helped increase their banking relationships with European Banks. All of this led to the opening of European offices, first in Paris then London. In 1905 American Express brought their business to the United States. During the early 1900’s New York encountered a large amount of immigrants coming over from Europe. As they arrived at Ellis Island it had been discovered by the U.S. Immigration Department that the independent currency exchangers on site were robbing them. At that point a contract agreement was made for American Express to set up shop and become Ellis Island’s new currency exchange for the people. October 1, 1958 American Express created its first credit card, made on purple paper launched in the United States and Canada. It obviously had great success, accepted worldwide at about 30,000 institutions and carried by 500,000 customers. The following year Amex (American Express) graduated from paper to plastic to ensure durability. In the 1960’s they broaden their market beyond the United States and offered the credit card to other countries, as well as protection against fraud for cardholders. As an American Express cardholder myself, I have always found their customer service to be extraordinary. Regardless of whatever it is I need they’re always willing to accommodate me. This made me wonder does Amex have biases where their customers are concern or are they diverse. There are some credit card companies who base their decisions regarding your card on geographic as well as demographics. This means if you live in an undesirable zip code they will restrict your usage verses another person who is in the same income bracket, but a more desirable zip code. How am I aware of this practice, my aunt and I are both Bank of America Visa holders along with both being Amex holders. Neither one of us has any problems out of American Express but Bank of America is another story. My aunt lives in a neighborhood that was prestigious when my grandmother owned it but is now slowly deteriorating, therefore every time she makes a purchase over $500 it alerts them and blocks her charges whereas I have made purchases up to $1000 and have not had any problems. When she called to inquire about it they responded by telling her she lives in what is known as a high crime area and it is for her protection. After our discussion I started to think about how fair and just American Express is which made me decide to research them. The first discovery I made during my research was that the company made this year’s (2008) and last year’s (2007) top 50 diverse companies list. This made me wonder what does it really mean. According to diversityinc.com the programs Amex offers to their employees assisted in their name being added to the list, “Thirty-four percent of its work force are members of its 11 employee-resource groups, which have existed for more than 10 years.” (diversityinc.com) Melinda B. Wolfe is the Senior Vice President, Executive Talent, and Chief Diversity Officer responsible for ensuring American Express’ environment remains diverse. Melinda understands the importance of diversity in today’s society as she states, “We remain focused on the needs of our clients, customers and employees to inform our diversity strategy and our commitment to build an inclusive, compelling workplace." (divesityinc.com) Kenneth I. Chenault, Chairman and CEO of American Express also believe that diversity is an important practice and supports the company’s mission, which “is to be the world’s most respected service brand” (American Express.Com). Where most companies are concerned their mission statement is one of the most important aspects to keep the organization on track. As Chenault stated, “Building a diverse and inclusive organization strengthens our competitive advantage and is crucial to achieving our vision of becoming the world's most respected service brand” (divesityinc.com). American Express has eleven programs that employees are involved in which are as followed: AHORA- Association of Hispanics Organized to Raise Awareness, BEN- Black Employees Network, BAAN- Black and Asian Network, WIN- Women Interest Network, PASSAGES- Generational Awareness Network (employees over 40), PRIDE- Gay, Lesbian, Bisexual, Transgender Network, NATION- Native Americans Network, DAN- Disability Awareness Network, PEACE- Muslim Employee Network, SALT- Christian Employee Network, and CHAI- Jewish Employee Network. They also issue bimonthly magazine for employees, the context features profiles of employees. Amex also has mandatory diversity training for the whole staff called Valuing Diversity Practicing Inclusion. This training is available for an entire day each month. Another way American Express implements diversity is through the community, they have a program promoting community service in neighborhoods where their employees and customers work and live. There are two ways in which Amex applies this philosophy, through financial contributions and volunteer work. Some activities consist of building homes for the homeless, feeding the hungry, cleaning up the environment, mentoring for students, and offering grants. There are three major program areas, which offers grants cultural heritage, leadership and community service. This also includes the American Express Foundation and particular corporate gifts. One example of Amex’s community service program is New York Restoration Project (NYRP), New York, NY
This project works to restore, develop and rejuvenate underrated parks, community gardens and various open spaces around New York City. The grant supported community programs include workshops, music performances, and outdoor learning sessions in the parks and gardens that NYRP restores. “In 2007, 366 American Express employees volunteered with New York Restoration Project for a total of 2,196 hours” (American Express.com).
Another way American Express demonstrates diversity is through the products and services they offer their customers. They have a different credit card designed to meet the many needs of their customers. For example there is the green and white corporate card for those organizations that have corporate accounts for their employees to expense business related transactions. The small business account for those individuals that started their own businesses, or the blue card for people like me under 30 years old and trying to establish their selves. Last example is the black card, only an elite few belong to this group this is the exclusive executive level, choose celebrities and wealthy customers carry this card. If there were anything else I would recommend for American Express to implement in their quest for diversity it would be child hood obesity. In today’s society this is the number one problem for children and adults in the United States. For adults I would set up a program division within the company making it number twelve on the list of eleven. For children I would incorporate into the community service program. I would have employees go into the communities where obesity is on a rise and create physical activities and nutrition plans.

References:

1. WWW.DiversityInc.com, July 20th, 2008, Top 50 Diverse Companies. American Express Profile

2. WWW.AmericanExpress.com, August 2nd, 2008, Corporate Responsibility pps. 1-3

3. WWW.AmericanExpress.com, August 2nd, 2008, History