Unveils 2005 Diversity Report
|May 11, 2006 - MGM MIRAGE today heralded its diversity education program
as a key factor in helping create a unified company vision and a culture
of shared values following its merger with Mandalay Resort Group (MRG).
At the time of the merger in April 2005, MGM MIRAGE grew from 11 to 23
hotel and casino properties, and increased from 40,000 to 70,000 employees
throughout the U.S.
Speaking at the company's Annual Diversity Meeting that attracted more than 1,500 suppliers, employees, and community and business leaders from throughout the U.S., MGM MIRAGE Chairman & CEO Terry Lanni said the company's momentum is fueled by the integration of diversity values into its workforce. "In an increasingly competitive industry, we need all of the tools possible for enhancing our performance, our efficiency, and our competitive strength. Refined business systems are not enough because people are the engine of our business.
"To excel in the future, it is essential that we continually develop our company culture to harness the potential of every single employee, no matter what his or her position or level in our company," Lanni said. "Diversity is key to tapping maximum motivation and maximum performance from our teams at every level, top to bottom; in all of our disciplines; across all of our properties and businesses. Our premise is simple: an organization that values the contributions of all people will derive the contributions of its entire workforce."
Since 2002 more than 1200 MGM MIRAGE employees have completed Diversity Champion workshops -- an industry-training first that fuses leadership, diversity and professional development during three days of intense classroom instruction.
In addition to the impact of diversity education, the company reported its corporate diversity accomplishments over a year of challenges that included a major merger, a devastating hurricane, and the development of Project CityCenter, the largest privately-funded construction project in the U.S.
The annual meeting included a Diversity Expo, allowing more than 1000 minority, disadvantaged, and women-owned enterprises to meet company buyers and to learn about business opportunities with MGM MIRAGE and its properties.
"In 2005, beyond moving the needles or gauges, beyond building buildings, our efforts stretched beyond the bounds of our enterprise," said Lanni. "We are evolving with the recognition that the values of diversity are the values of the community and, ultimately, the values on which America has prospered."
Since launching the diversity initiative in 2000, MGM MIRAGE has been recognized as a leader in diversity both within the gaming industry and beyond. By 2005, MGM MIRAGE was credited with launching the gaming industry's first voluntary diversity initiative; of leading the gaming industry with unique diversity programming, including Diversity Champion training; and for being the first in the gaming industry to report publicly its annual diversity performance.
The summary below highlights the company's diversity performance in 2005. Due to reporting variances, the summary does not merge human resources data, purchasing and construction expenditures and philanthropy contributions from the former MRG properties. In 2007 the MGM MIRAGE Annual Report will merge diversity performance data from the former Mandalay Resort Group to produce a report that reflects the entire company.
The MGM MIRAGE workforce reflects the rich diversity within society. As of year-end 2005, the company's minority employee representation rose to 56 percent from 54 percent in 2004. Currently, women comprise approximately 50 percent of the workforce. Within ethnic minority populations: 26.48 percent is Hispanic; 12.38 percent is African American; 15.21 percent is Asian and 0.54 percent is Native American. Of minority managers and above: 11.68 percent is Hispanic; 9.95 percent is African American; 9.70 percent is Asian and 0.50 percent is Native American.
Within MRG at year-end 2005, minorities comprised approximately 54.64 percent of the workforce. Of this number, Hispanics comprised 28.6 percent; African Americans comprised 10.69 percent; Asians represented 14.49 percent and Native Americans were 0.58 percent.
MGM MIRAGE maintains pro-active outreach to identify minority, women and disadvantaged enterprises (MWDBEs) with which to work. As a result, the number of registered MWDBEs in the MGM MIRAGE Supplier Diversity program continues to expand. The company's overall purchasing spend remained consistent when compared to 2004, however, the total expenditures with MWDBEs increased. In purchasing last year, the company spent $847 million in biddable goods and services. Of this amount, a total of $95 million in biddable goods and services were spent with minority enterprises and $24 million were spent with women-owned companies. Within minority-owned enterprises: 31.3 percent was spent with Hispanic-owned enterprises; 32.3 percent was spent with African American enterprises, 33.2 percent was spent with Asian enterprises; and 3.2 percent was spent with Native American enterprises.
MGM MIRAGE has dedicated diversity managers whose responsibility is to help ensure that MWDBE participation is represented within capital improvement and related projects. As a result at year-end 2005, total construction expenditures totaled $386 million of which $11 million were spent with women-owned businesses. Of the total spend, $90 million were expended with MWDBEs: 48.5 percent was spent with Hispanic-owned firms; 41.6 percent was spent with African American businesses; 4.5 percent was spent with Asian-owned companies; and 5.5 percent was expended with Native American-owned firms.
Giving back to the communities in which its employees live and work is a cornerstone of MGM MIRAGE's corporate citizenship. In 2005, of total donations from its employee-directed charity the Voice Foundation, contributions to nonprofit entities serving diverse communities and organizations increased to 71 percent from 49 percent in 2004. Since its inception in 2002, the Voice Foundation has dispersed more than $12 million dollars in employee donations to charities and places where MGM MIRAGE does business.
Additionally, MGM MIRAGE's total corporate contributions in 2005 increased to 63 percent from 49 percent in 2004 to benefit nonprofit organizations serving diverse and underserved communities.
According to Lanni, tangible gains have been experienced among the pre-merger properties of MGM MIRAGE. "Every needle in every category that we monitor shows upward movement. However, as heartened as we are by the statistical measures of our progress in 2005, mere numbers do not capture our most significant diversity accomplishments. Our most notable development is the progress we are making in using diversity as a medium for evolving our company culture and maturing our value system," he said.
About MGM MIRAGE:
MGM MIRAGE , one of the world's leading and most respected hotel and gaming companies, owns and operates 23 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. MGM MIRAGE has also announced plans to develop Project CityCenter, a multi-billion dollar mixed-use urban development project in the heart of Las Vegas, and has a 50 percent interest in MGM Grand Macau, a hotel-casino resort currently under construction in Macau S.A.R. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE also has been the recipient of numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. For more information about MGM MIRAGE, please visit the company's website at http://www.mgmmirage.com/.
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about future financial and operating results. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. The pertinent risk factors for each company can be found in its Form 10-K on file with the SEC.
|Also See:||MGM MIRAGE Reports Significant Incremental Progress in its Diversity Efforts in Employment, Purchasing, Construction, Sales, Diversity Relations and Philanthropy / April 2004|
|Low Diversity Enrollment at UNLV College of Hotel Administration Hinders MGM Mirage Minority Recruitment / Feb 2003|
|With 44,711 Employees, MGM Mirage Addresses Affirmative Action Statistics / Sept 2001|