Organizational Behavior Weekly News Update February 2, 2019 – February 8, 2019

Amazon Names Starbucks COO Rosalind Brewer to Board of Directors

Wiener-Bronner, Danielle
CNN.com

Posted 2/4/2019

Key words and Definitions

Board of directors – a group of elected or appointed individuals who provide broad oversight of the activities of an organization.

Diversity – the state of being different.

Selective perception – a tendency to selectively interpret what you see based on your interests, background, experience or other characteristics.

Summary: Key Points of the Article

Amazon added a new member, Rosalind Brewer, to its board of directors. Brewer is the former CEO of Sam’s Club and current Starbuck’s COO. She was also immediately appointed to the “board’s leadership development and compensation committee.” Brewer’s appointment makes her the “second black woman to have ever served as a director of Amazon.”

Brewer distinguished herself as the chief executive officer of Walmart’s Sam’s Club division from 2012 to 2017. In that role she was committed to increasing the diversity of her team and partners. She is a strong proponent of using her position as a platform for change and always leads by example. Brewer previously served as a board member for Lockheed Martin and Molson Coors Brewing Company. Other tech firms vow to follow Amazon’s lead and increase board diversity.

News Topic

#05 Diversity

Exercise 1 Multiple Choice Questions

  1. Rosalind Brewer is a current or former board member for which of these firms?
    a. Amazon
    b. Lockheed Martin
    c. Molson Coors Brewing
    d. all of these
    Answer: Rosalind Brewer currently serves on Amazon’s board of directors and was a former board member for both Lockheed Martin and Molson Coors Brewing Company.
  2. Brewer is currently the _________ black female to serve on Amazon’s board.
    a. second
    b. first
    c. third
    d. all of these
    Answer: Brewer is currently the second black female to serve on Amazon’s board. Myrtle Potter, the former president of Genentech became the first black woman to serve on Amazon’s board. Her tenure spanned from 2004 to 2009.
  3. Brewer is the former CEO of Sam’s Club.
    True
    False
    Answer: Sam’s Club is a division of Walmart that is a warehouse sales chain. She was CEO from 2012 to 2017.

Exercise 2 Critical Thinking Questions

  1. Why is it important to have diversity among an organization’s board of directors?
    Answer: Different backgrounds bring different perspectives and viewpoints. Any firm can benefit from a diverse board that challenges existing assumptions. Given the diversity among consumers it makes sense to have diversity of thought, backgrounds and experiences at the top level.
  2. What perspectives will Rosalind Brewer bring to the position?
    Answer: Rosalind Brewer brings business experiences cultivated during her time at Walmart, Kimberly Clark, and Starbucks. In addition, her perspective as a minority female committed to diversity will shed light on how Amazon needs to change or shift positions to be more inclusive of all demographic groups.
  3. Amazon has a 10-member board. Should they strive for even more diversity?
    Answer: Amazon’s board should mirror the population. Only one person of color on the board limits the firm’s ability to see all perspectives and can lead to groupthink where existing opinions are not challenged.