MGM Mirage making strides on diversity

Alana Roberts

Wednesday, March 30, 2005 | 10:55 a.m.

MGM Mirage announced its diversity statistics Tuesday and emphasized the progress the company, the state's biggest employer, has made in its initiative to employ more minorities and spend more on minority-owned vendors and contractors.

After taking criticism from some minority leaders the company's chief executive, Terry Lanni, vowed to implement a comprehensive diversity initiative shortly following the merger of MGM Grand and Mirage Resorts in 2000.

Those same minority leaders heralded the company as a leader in diversity Tuesday at the company's fourth annual diversity presentation at the Mirage.

MGM Mirage bosses want to expand and improve diversity into all of the company's major areas of operations including human resources, purchasing, retail, construction, sales, marketing advertising, public relations and advertising.

"In May 2000, our united company MGM Mirage made a voluntary commitment to extend our common heritage to a formal diversity initiative that would not only infuse our culture but transform the way that we do business," Lanni said at the Tuesday presentation. "Today we celebrate with pride the milestones that mark the initial years of our diversity initiative."

Gene Collins, state chair of the National Action Network and former president of the NAACP's local chapter, was previously a sharp critic of the company's diversity practices. Collins spoke out publicly before the two companies merged and spoke out as recently as 2002 criticizing the company's diversity efforts.

In contrast Collins said Tuesday that MGM Mirage is now a leader in diversity.

"I want to thank you for putting the template together for everybody in the valley," Collins said during a question and answer session following the presentation.

Lanni in turn thanked Collins for his previous criticisms, adding that it was the impetus that motivated the company to approach diversity comprehensively.

"You deserve credit for bringing this matter to our attention," Lanni told Collins.

Lanni said MGM Grand and Mirage Resorts both had "diversity practices" but that they weren't companywide.

"We had diversity practices -- not then known by that name -- in pockets throughout the organization, but we did not have an overall framework to govern this work," Lanni said.

Since 2000, the company has created a list of departments and committees to help oversee the company's diversity initiative along with the implementation of a company-wide diversity education program in March 2004.

The company's report compares the company's diversity statistics in 2001 and 2004.

The portion of the company's workforce identified as minorities jumped from 50.48 percent in 2001 to 54.38 percent in 2004.

Minorities made up 31.16 percent of the company's management and higher staff members in 2004, up from 26.31 percent in 2001.

In the area of minority contractors the company spent $79.3 million with minority, women, and disadvantaged business enterprises in 2004 compared with $8 million in 2001.

In 2004 the company spent $451.2 million on construction, up from $56.3 million in 2001.

In the area of purchasing the company spent $77.4 million on minority, women and disadvantaged business enterprises in 2004, up from $24.3 million 2001.

The company purchased goods and services totaling $847.8 million in 2004 and $445 million in 2001.

Employees and minority and women contractors and suppliers commended the company's diversity efforts.

Richard Copeland, owner of Thor Construction, said when his company first entered the Las Vegas market as a general contractor, he had a tough time finding work. He said a few years ago in his first year of working as a contractor in Las Vegas his company did $20,000 in business.

That number skyrocketed to $20 million in 2004 because of his work for MGM Mirage. Copeland said MGM Mirage's efforts to use more minority-owned contractors has encouraged other companies to use his company.

"We've parlayed that into work with Caesars, Harrah's and probably 10 different properties," Copeland said. "That is economic development for the entire community."

He said he hopes he can participate in the company's future plans including its giant-scale CityCenter project planned south of Bellagio.

Laurie Valente, an assistant pastry chef at MGM Grand, is a graduate of the REACH program, one of the company's leadership programs that helps train workers with the potential to move up for higher positions. Valente started as a baker at MGM Grand in 1994.

She credits her participation in the REACH program with helping her to obtain her current position. She said the program signifies the company's efforts to retain good employees.

She added that the company's diversity initiatives have been successful.

"I see it in the vendors, I see it even in the faces that come through the door for orientation," Valente said.