NCUA Outlines Diversity Best Practices

[Reporting from CUNA] A letter to credit unions from the National Credit Union Administration details best practices for advancing workforce and supplier diversity.

The letter, 15-CU-02, was sent—as promised by the regulator during its June open board meeting—after the agency approved an interagency policy statement for assessing diversity standards.

The NCUA emphasizes that the policy statement is not a new rule or regulation, nor does it create any legal compliance obligations. It also will not be incorporated into the review of diversity policies currently in the agency’s examination and supervision program. Credit unions can consider using this draft diversity assessment tool.

The NCUA’s practices for assessing diversity standards include:

  • Measuring the credit union’s overall, top-level commitment to diversity and inclusion in employment and contracting. The standards provide guidance on how to cultivate an environment that embraces diversity and inclusion throughout the organization;
  • Illustrating the efforts in promoting the fair inclusion of minorities and women in the applicant pool for vacancies within the workforce at all levels. All credit unions must ensure equal employment opportunities for all employees and applicants for employment, and must not engage in unlawful discrimination based on gender, race and ethnicity;
  • Promoting the fair inclusion of minority- and women-owned businesses in the participation of contracting opportunities. Credit unions are encouraged to provide an avenue for qualified minority- and women-owned businesses to bid on contracts;
  • Appropriately communicating information about diversity, inclusion efforts and progress made in a transparent manner through normal business methods. These methods may include displaying the results of a credit union’s diversity assessment, diversity metrics or profiles, and diversity efforts on its website, or within its written annual report to members, or both; and
  • Performing a self-assessment by comparing existing diversity and inclusion policies and practices against the above diversity standards; summarizing the information; communicating that information through normal business methods; and voluntarily providing such information to NCUA annually.

The NCUA will collect voluntary self-assessments and will aggregate the information for the purpose of monitoring progress and trends of the credit union system’s diversity and inclusion programs.

Questions about this story? Contact James Pearson: 206.340.4790, jpearson@nwcua.org.

Posted in Advocacy News, NCUA.