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CEO Statements Media Center
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Hispanics Today 2004 - Overview
December 1, 2004
We have heard it all. The Hispanic community is the wealthiest, the largest, the fastest growing. We can turn elections. We are the labor force of today and tomorrow. We account for just about 10% of U.S. GDP with a trillion dollars of spending forecasted. The number of Hispanic businesses continues to flourish growing employment and revenues at record-pace.

Corporations and The Hispanic Community - The Bottom Line
November 9, 2004
The Hispanic community is now the largest minority group in the history of the United States. With a population of over 44 million (including Puerto Rico) and an estimated purchasing power of over $700 billion, the domestic Hispanic population on a global scale would qualify as the 8th largest economy in the world surpassing that of Canada, Spain, Mexico, Brazil, and India.

2004 Symposium Directors Dinner
May 11, 2004
Buenas Noches! Good evening and welcome to the Hispanic Association on Corporate Responsibility 2004 Symposium FORTUNE Directors Dinner. I am very pleased that you can join us this evening to honor an outstanding group of leaders who really are an inspiration to us all.

2004 Symposium Welcome Reception
May 10, 2004
Welcome to the HACR's 12th Annual Symposium: The Power of Hispanic Inclusion.

Corporate Governance Report 2004
February 4, 2004
The mission of HACR is to advocate for full Hispanic inclusion in corporate America at a level commensurate with our economic contributions. We do so by advocating for full inclusion in the areas of employment, philanthropy, procurement, and governance. Today specifically is about the research. The research we produce is presented in objective fashion and serves as the foundation and rationale for much of our advocacy work.

New HACR President and CEO Welcome Speech
February 3, 2004
A transcript of the welcome speach of for the new HACR President.


http://www.hacr.org/about/


HACR History

Founded in 1986 as an association of some the most prominent national Hispanic organizations, the Hispanic Association on Corporate Responsibility is a nonprofit, tax-exempt, 501(c)3 organization, headquartered in Washington, D.C. HACR strives to ensure that there is an equitable participation of the Hispanic community in corporate America commensurate with Hispanic purchasing power. Responsible corporations endeavor to include Hispanics in employment, procurement, philanthropy, and corporate governance.
As corporate America sets out to create shareholder value, HACR will continue to be at the forefront in supporting corporations that make a commitment, do the work, and produce favorable results relative to total Hispanic inclusion. The Hispanic community is the largest minority group and the fastest-growing consumer segment in the nation. With over 44 million people, Hispanics represent 14 percent of the population in the United States, including Puerto Rico, and by 2008 will have an estimated annual purchasing power of $1 trillion or 9.6% of the U.S. GDP.

For HACR and the Hispanic community, a company’s reputation and goodwill is based on its ability to promote reciprocity in all areas of the company’s business model. To ensure the continued support and patronage of the Hispanic community, a company should strive to employ Hispanics, contract with Hispanic-owned businesses, support Hispanic-serving organizations, and utilize Hispanic talent to lead its operations in roughly the same proportions that Hispanic consumers support the company.

Through the HACR Research Institute, HACR publishes annual studies on the state of the Hispanic community and corporate best practices in governance, philanthropy, procurement and employment. The HACR Leadership Institute prepares highly experienced Hispanic leaders for corporate directorship appointments. Moreover, the HACR Corporate Index ranks FORTUNE 100 corporations in the United States relative to their total Hispanic inclusion practices. By providing information on the status of Hispanics in corporate America, HACR can focus on issues relevant to Hispanics and investigate solutions to the inequity that exists.

Translating Economic Strength into Political Power

Published on December 1, 2004

We have heard it all. The Hispanic community is the wealthiest, the largest, the fastest growing. We can turn elections. We are the labor force of today and tomorrow. We account for just about 10% of U.S. GDP with a trillion dollars of spending forecasted. The number of Hispanic businesses continues to flourish growing employment and revenues at record-pace.

On a global scale, no other Hispanic community has greater purchasing power. Moreover, the Hispanic community is framed as a super sized economic growth vehicle that no corporation can do without. In fact, the language of Hispanic inclusion evolves so often that it would appear that inclusion in corporate America is evolving simultaneously with our own advancements. Originally, Hispanic inclusion was seen as "the right thing to do", yet moved on to include "business opportunity" and "reputation management" to the more current "corporate responsibility". In other words, Hispanic inclusion requires a comprehensive corporate commitment, full community engagement, specific and actionable reciprocity, and classic brand management strategies to secure a fair share of a unique and hyper-growth market.

After all, there really should not be much of a problem since ten states account for 81% of the Hispanic population. So, not only are there a lot of us…we seem to have a lot of money and we are really easy to find.

But for all of the accolades, the Hispanic community still faces substantial barriers. Hispanic poverty remains severe to the degree that one out of five Hispanics lives in poverty, and account for roughly one quarter of all people living in poverty in the U.S. The Hispanic unemployment rate is twice that of non-Hispanic whites and Hispanic net worth is ten times less when compared to that same population.

The top 100 U.S. money managers control 83% of U.S. tax-exempt assets while only .5% of these assets are managed by Hispanic owned firms. Less than 2 % of corporate directors are Hispanic and less than 1% are identified as executive officers. Moreover, Hispanics comprise 10.7% of the private sector workforce yet are less than 5% of all officials and managers.

Many companies and industries do not yet track Hispanic consumer performance or Hispanic vendor usage. Less than 2% of foundation dollars are targeted specifically to the Hispanic community and that trend has held steady for fifteen years. Nearly half of us do not graduate from high school and we are disproportionately represented in prisons.

How important is the Hispanic consumer market? Well two-thirds of the top 671 advertisers made minimal shifts from general market to Hispanic market advertising while allocating approximately 2.4% of media resources to target the Hispanic community.

How can these be the actual realities afflicting the 8th largest global economy?

The fact is that this so-called "purchasing power" should really be referred to as "purchasing ability" because it simply has not translated into real power. Real power would ignite meaningful solutions to pressing realities. The disparity between Hispanic economic contributions and Hispanic decision-making power has given rise to skepticism and cynicism about equity and inclusion. While not insurmountable, this perception inhibits any institution or industry's ability to create trust with the Hispanic community.

Some corporations have addressed this issue, many have not. The historical absence of in-culture product and service offerings has conditioned the Hispanic consumer to be cautious and perhaps surprised when suddenly and vigorously courted. The legacy of corporate America's absence in the community coupled with Hispanic sub-culture nuances, language preference, and issues of institutional distrust complicate an already uneven corporate interest to cultivate new consumers and talent.

A distinct story line is building however. A story line that if converted into representative wealth, educational achievement, and leadership bodes so very well for the Hispanic community. The six authors of The HACR Research Institute's 2004 Hispanics Today provide analysis and data that trend positive for the Hispanic community. You will read that in certain urban centers, Hispanics are the new "general market". In fact, 40% of all Hispanic households earn more that $40,000 per year and Hispanic households earning more that $100,000 per year have grown by 125 percent to 3.7 million. Hispanic household income is at its highest ever at almost $35,000 while our poverty rates are at an all time low. Hispanic buying capability will grow 362 % from 1990 to 2008, which is 162% faster when compared to all non-Hispanics. Moreover, 41% of Hispanic households are identified as middle class, growing at an 80% rate.

Our community can also celebrate new Hispanic representation in the U.S. Senate and nominations for the President's Cabinet. The Hispanic community can now point to one more manifestation of our importance to U.S. culture through its representation at the highest levels of public policy decision-making.

But don't just take my word for it. Let our six distinguished authors and organizations published within the HACR Research Institute's 2004 Hispanics Today report walk you through their perspective. We can all learn a lot, as I did, regarding the most critical aspects of the Hispanic condition.

The Pew Hispanic Center Study; The Rise of the Second Generation: Changing Patterns in Hispanic Population Growth by Roberto Suro and Jeffrey S. Passel will offer you new insights that reflect important developments regarding immigrants, first and second generation Hispanics and how the present and future looks better than the past. Business professionals will gain target marketing insights that will impact who you direct product to, how and why.

Alfonso Morales, PhD and Roberto Pedace, PhD who together wrote Wage Labor, Entrepreneurship, and the Economic Assimilation of Latinos focus on the labor market and the economic assimilation dimensions of the Latino experience. Additionally, the authors fully assess the issue of wealth and its direct correlation to our own educational performance as well as key public policy measures that can positively impact this issue.

Jeffrey M. Humphreys of The Selig Center for Economic Growth authored The Multicultural Economy 2003: America's Minority Buying Power provides an actionable overview to the hyper economic growth affecting the minority community and the Hispanic community in particular.

The New America Alliance; An American Latino Business Initiative authored an important look at American Latinos in Financial Services depicting our community's investment capacity juxtaposed to our corresponding decision making power over how money is managed.

Santiago Solutions wrote The Value of Customer Service on Hispanic Consumers' Brand Reputation, Choice, Loyalty, and Optimal Corporate ROI Growth. This article provides five key insights regarding corporate brand image, builds on the analysis that six of ten new customers are Hispanic, and that in-culture customer service trumps in-language advertising. This piece also offers the marketer the building blocks to creating the most effective Hispanic customer relationship management model.

Euro RSCG Worldwide wrote Prosumer Pulse and The U.S. Latino Prosumer. This study describes Prosumers as the front end of a demographic group and as "proactive information-empowered men and women…providing an indication as to where that population is headed at any given time." The study reveals that Prosumers are more likely to be found among Cuban Americans and that the term "Latino" is fast becoming the preferred moniker over "Hispanic" and "Chicano" for Latino Prosumers. Interestingly, our "Latinidad" is in part manifested by our desire to experience American life in bi-lingual fashion.

The aggregate knowledge of our authors will remind you of the extraordinary Hispanic power that is as of yet, unrealized. The research may generate more questions than answers. In the end, this analytical exercise should move us to contemplate why the Hispanic community has not translated its economic strength into representative power. What are the long-term ramifications of poor educational achievements? Why corporations that otherwise master customer relationship management seem unable to apply the same competency to the Hispanic community. Why some corporations "get it" and others simply do not. If the Hispanic market were really all that lucrative, why are in-culture brand offers so rare? Why, with so many facts in, doesn't the Hispanic community say something and …vote with our dollars? Is there really a "Hispanic community" or is our American experience so distinct from each other that we really do approach life in America very differently. Is the Spanish language enough of a bond among us…even though everyone else has an accent?

In the end, corporations, which choose to engage the community in a comprehensive partnership as opposed to competing on the traditional basis of pricing and distribution, will differentiate themselves. Creating trust with the Hispanic community through a comprehensive and sustained market presence will translate into market dominance. This will be achieved by truly investing in Hispanic brand management initiatives, proactively seeking and employing Hispanic talent in the boardroom and executive leadership, buying from Hispanic businesses, and giving back to the Hispanic community.

The inclusion of Hispanics throughout a corporation's business model is a key opportunity and responsibility of a board of directors and senior leadership seeking to ensure the long-term viability of their business. A strong American consumer and talent market will be dependant on creating a strong Hispanic community particularly as the Hispanic population grows in size and wealth.

As corporations continue to enjoy the fruits of Hispanic labor, consumption, and political influence, reciprocity through meaningful corporate responsibility actions should grow as well.

What will it take? Will it take a strategic mandate from the board of directors? Will it require the existence of a charismatic CEO who motivates the brain through the heart? Will it take just one brand reputation nightmare, which can instantly impact a brand that has taken a lifetime to build? The facts are in. Hispanics are the wealthiest, the largest, and the fastest growing minority group in the nation. Converting our attributes to a real seat at the table will benefit us all. Our future is America's future, and America's future depends on the Hispanic community.

For more information, please contact:
Rima Matsumoto
National Director of Development
Phone: 202.835.9672
Fax: 202.457.0455
ovelarde@hacr.org


http://www.hacr.org/mediacenter/pubID.25/pub_detail.asp

HACR Alliance HACR Alliance

Coalition Members

Corporate Members

Board Access

The Hispanic Association on Corporate Responsibility has developed strong partnerships at two levels. Coalition Partners consist of 13 national Hispanic organizations that form the backbone of HACR and whose executive directors, presidents and CEOs serve as board members to the organization. HACR has 30 Corporate Members, who have taken a leadership position among other FORTUNE 1,000 companies and made a serious long-term commitment to the Hispanic community, work very closely with the organization and its board of directors on issues that are important to their constituents -- the Hispanic community.

2005 BOARD OF DIRECTORS

Alfonso E. Martinez, President and CEO
Hispanic Association on Corporate Responsibility

Alma Morales Riojas, President and CEO
MANA, A National Latina Organization
Chairwoman

Hector Flores, President and CEO
League of United Latin American Citizens
Vice Chairman

Ron Blackburn-Moreno, President and CEO
ASPIRA Association, Inc.
Treasurer

Raul Araujo, President and CEO
MENTóR, The National Hispanic Employee Association
Secretary

Congressman Lincoln Diaz-Balart, Chairman
Congressional Hispanic Leadership Institute, Inc.

George Foyo, Chairman
Cuban American National Council

Antonio R. Flores, President and CEO
Hispanic Association of Colleges and Universities

Lupita Colmenero, President
National Association of Hispanic Publications

Manuel Mirabal, President and CEO
National Puerto Rican Coalition

Janet Murguia, President and CEO
National Council of La Raza

Congresswoman Grace Napolitano, Chairwoman
Congressional Hispanic Caucus Institute

Armando Ojeda, President and CEO
United States Hispanic Chamber of Commerce

David Rodriguez, National Commander
American GI Forum of the United States

Ignacio Salazar, President and CEO
SER-Jobs for Progress National, Inc.

Agustin De Goytisolo
Cuban American National Council
Board Member Emeritus

Raul Yzaguirre, President
National Council of La Raza
Board Member Emeritus