NAACP Grades Telecommunications Industry With "C"

The telecommunications industry received an overall grade of "C" on July 15th in the NAACP Telecommunications Industry 2003 Report Card, issued by the National Association for the Advancement of Colored People (NAACP) during a press conference held at the 94th Annual Convention in Miami. The NAACP survey of the telecommunications industry, one of the largest in the country, grades diversity opportunity in five areas: employment, advertising and marketing, vendor relationships, service development and philanthropy within the African American market. This year 10 national telecommunications corporations were included in the survey.

NAACP President and CEO, Kweisi Mfume, said: "We are again disappointed in the poor report of the industry's lack of diversity opportunity in minority board member selections, advertising and marketing expenditures and outreach, and vendor relationships. Corporations who do not provide meaningful opportunities in the areas of hiring, promotion and procurement, do no warrant or deserve consumer support. While a little more than half of the surveyed companies are now using African American advertising agencies, only two out of the 10 surveyed have more than one African American on their board of directors. The results of the survey will be disseminated nationally to trade organizations, the national media and all 1700 NAACP branches nationwide, as well as thousands of others who are members of our 40-plus co-sponsoring organizations."

The companies surveyed were: Bellsouth, Verizon, AT&T, SBC, Cincinnati Bell, Alltel, Worldcom, Sprint, Qwest, and Excel. Eight out of the surveyed companies received grades of "C" or higher. Excel Communications did not respond to the survey for the second consecutive year and received an "F". The surveyed companies met the criteria of: Fortune 1000 telecommunications firms with revenues of $1 to $75 billion; the top 10 cellular service providers; and regional operating bell companies. The report card serves as a measuring tool for consumers to make informed choices about where to spend and invest their dollars, as well as a tool for the industry to measure itself for responsiveness to their given market.

This year, BellSouth ranked the highest overall with a grade of 3.24 (B). This compares slightly less than their grade last year of 3.38 (B). The number two ranking company this year is Verizon, with a final grade of 3.17 (B). Verizon also slipped this year, with an overall grade in 2002 of 3.24 (B). The remaining 2003 scores are: AT&T – 3.00 (B); SBC – 2.94 (B-); Cincinnati Bell – 2.76 (B-); Alltel – 2.72 (C+); Worldcom – 2.67 (C+); Sprint – 2.33 (C); Qwest – 1.47 (D); and Excel – 0.00 (F).

Mfume said, "The decreasing scores of some companies surveyed is just one example of how the report cards serve as a warning of caution to shore up their corporate responsibility in communities of color. It also serves as a tool for the selected industry to measure itself for responsiveness to a given market."

NAACP TELECOM FINAL GRADES 2003

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