Case 6: NasCaR’s Drive for Diversity: Can They Reach the Finish Line?
(Ref Contemporary Organizational Behavior, From Ideas to Action – Kimberly D. Elsbach, Anna Kayes, D. Chris Kayes) p. 571
1 Sonya Jewell University of California, Davis Kimberly D. Elsbach University of California, Davis I t’s Sunday morning. You slowly wake up to the first sounds of life outside the walls of your camper and open the door to a sea of RVs and tents. Beer cans, beaded neck laces, and smoking fire pits remind you of the Mardi Gras-like partying that ended only a few hours ago. As more fans awake and gather themselves, eggs and beer cans are cracked open in perfect harmony. The familiar smells of barbeque and burning rubber remind you what’s happening today...it’s race day! From your seat in the grandstand at the Bristol Motor Speedway you can feel the an ticipation building. The smell of sweat and exhaust fills your senses. The grand marshal takes the stand and 170,000 fans catch their breath as they await those famous words. 1This case was prepared to stimulate class discussion. It is not intended as a policy statement or recommendation. flag, the race begins. Welcome to NASCAR. Deeply rooted in Southern tradition, NASCAR (or the National Association for Stock Car Auto Racing) is one of America’s most popular and well-attended sports. Many of the values embraced by NASCAR define much of contemporary American culture, including small-town and rural values, working-class ideals, and a deep respect for patriotism and the military. 1 NASCAR’s affiliation with the military is especially notable, and extends from team sponsorships (e.g., the Army and the National Guard both sponsor race cars), to military color guards and flyovers at every Sprint Cup event, to a large presence of military personnel in the stands. Because the military is so diverse in its membership, NASCAR’s strong affilia tion with it has increased the diversity of fans in the stands. Yet, in the last decade, NASCAR has been criticized for its lack of diversity on the track. 2 In fact, it has been almost 50 years since the only African-American to ever win a NASCAR Cup Series race claimed his victory.3 In 2004, executives at NASCAR launched Drive for Diversity, a program aimed at at tracting minority and female drivers and crew members to the sport of professional stock car racing. NASCAR said that the program was designed to bring drivers from under represented minority groups to the top echelons of the sport. Yet, by 2012 (the time of this case study), they had failed to bring in one such driver to their Cup Series. So why was a program labeled “NASCAR’s top corporate initiative” having such dif ficulty producing results? What follows is an in-depth look at the implementation of the Drive for Diversity program and the role of diversity in NASCAR’s culture. NASCAR4 At the time of this case study, NASCAR was a family-owned and operated business, founded in 1947, that sanctioned and governed multiple auto racing sports events, including the elite Sprint Cup Series, as well as the mid-level Nationwide Series and Camping World Truck Series. Annually, NASCAR sanctioned over 1,500 races at over 100 tracks in 39 states, and Canada. NASCAR was officially headquartered in Daytona Beach, Florida, but also maintained offices in four cities in North Carolina: Charlotte, Mooresville, Concord, and Conover. Due to its southern roots, all but a handful of NASCAR teams were still based in North Carolina, especially near Charlotte. NASCAR was one of the most-watched professional sports in the United States. In fact, in the year 2012, professional football was the only sport in the United States to hold more television viewers. Also, at that time, NASCAR held 17 of the top 20 attended single-day sporting events in the world, and claimed 75 million fans who purchase over $3 billion in annual licensed products. Fortune 500 companies sponsored NASCAR teams and drivers, and were instrumental in making it a $3 billion (in annual revenue) sport. Overview of Drive for Diversity Program According the program’s website, in 2012: “Drive for Diversity is the industry’s leading development program for minority and female drivers and crew members. The Drive for Diversity (D4D) program currently supports drivers in two of NASCAR’s introductory level racing series—the NASCAR K&N Pro Series and the NASCAR Whelen All-American Series (both regional stockcar racing series). D4D also supports crew member candidates through a year-long pit crew training program.” Much like Major League Baseball’s minor league system, D4D was attempting to recruit and develop new racing talent that could be moved through the circuit with the hopes of attracting new fans and sponsors to the sport. According to the NASCAR’s diversity website (nascardiversity.com), the mission of the D4D program was to “To engage women and people of diverse, ethnic and racial backgrounds in all facets of the NASCAR industry.”5 The program was also designed to further diversify NASCAR’s participant and audience base.”6 In this manner, NASCAR’s D4D program was positioned as the path to a more inclusive culture, a way to reinforce their commitment to diversity. NASCAR suggested that this move was not only the right thing to do, but made good business sense as well. Widening their audience would bring more people to the races and to their television sets on weekends. In line with the D4D program, NASCAR had attempted to remove controversial symbols from official NASCAR venues. For example, they decided not to display the Confederate flag at the NASCAR Hall of Fame, which opened in 2009, despite the flag’s role in the sport’s heritage. As Winston Kelley, executive director of the Hall of Fame and a longtime pit reporter for MRN (Motor Racing Network) Radio, said, in May of 2010: "The Rebel flag means different things to different people. Since it is offensive to some, that is the reason we don’t want it in there [the Hall of Fame].”7 Struggles in the D4D Program Despite the above claims and efforts, NASCAR’s D4D program had struggled to produce results. In its first year, 2004, the Drive for Diversity program invited four African American drivers, including Joe Henderson, and one female driver to try their hand at NASCAR’s weekly short track circuit. These drivers were selected based on their resume of experience and performance record as well as their minority status. By 2012, D4D drivers competed in nearly 200 events at NASCAR Home Tracks across the country each year.”8 Since its inception, 31 drivers had competed under the Drive for Diversity banner, winning 34 races combine. Yet, by 2010, no D4D driver had ever made it to the Promised Land, NASCAR’s big three: Sprint Cup Series, the Nationwide Series, and the Camping World Truck Series. Promises made to the young talent brought into the program remained unfulfilled. D4D drivers, like Henderson, recruited in 2004, were still waiting for their 15 minutes of fame. According to a New York Times article, Henderson was under contract from 2005 to 2006 and was used for publicity for NASCAR diversity efforts but was given poor equipment in 2005, and was not provided a racecar in 2006.” “It’s a sham,” Joe Henderson Jr. said in a telephone interview... The program is not designed to be successful because, No. 1, it’s not properly funded. They claim that it’s a pipeline. Well, nobody came out the pipe.”9 Some critics suggested that these problems stemmed from mixed signals that NASCAR sent about its commitment to diversity—including both racial and gender diversity. For example, in one of its first moves after starting D4D, NASCAR gave re sponsibility for creating, managing, and promoting the D4D program to an outside marketing agency and brought in, not a race car driver, but a basketball legend (Magic developmental program, Fueling Dreams, or D4D to their main website, creating a symbolic disconnec tion between the two. Finally, in one of the most-often quoted statements in recent years, NASCAR Vice President, Robin Pemberton—in telling reporters that NASCAR was go ing to stop policing drivers so strictly—said, “Boys, have at it and have a good time.”10 That statement, more than anything else, affirmed that NASCAR drivers were male. At the same time, other critics suggested that D4D struggled because NASCAR never put in the necessary resources for success. Joe Gibbs, owner of Joe Gibbs Racing, for exam ple, was heard commenting about the lack of funding for the program. Similarly executives from automakers as well as journalists for stock car racing routinely discussed the need for more funding in the D4D program. It appeared that these commentators liked the idea of the D4D program, but thought its initial rate of funding was not enough to help it take off. Finally, some argued that NASCAR would never have minority drivers in a sport that was perceived to appeal most widely to white audiences. Specifically, they argued that sponsors, who drove the sport, were wary of investing in minority drivers, when minority fans were not prevalent. As Kurt Roehring, of Roehring Engineering (a former team sponsor) mentioned: In marketing products, if you’re selling the product to primarily a black demographic group, well, blacks aren’t really in the stands right now in NASCAR. There are possibly other sporting events or sports marketing that you could do that could target a black demographic better than stock car racing.11 Moving Diversity Forward—Can D4D Succeed at NASCAR? By 2012, the question that remained for NASCAR and its leaders was “What will it take for the D4D program to succeed in placing more minority and women drivers into NASCAR’s top competitive levels?” Some, like team owner Joe Gibbs, said it would take the next Tiger Woods. As Gibbs noted, ’’I think that’s what we need [i.e., another Tiger Woods]. The reality is, I don’t care who finds the person, how you get him involved, I think the sport needs it. Once you open those doors up, I think there’s going to be a benefit for every team out there, not just the team that finds him.’’ Others suggested that NASCAR must change its deeply rooted traditions and cul ture to achieve success in its diversity programs. Further, they noted that traditions and cultures aren’t made in a day. In fact, according to researchers, most organizational cul tures are grounded in long-held and continually reinforced values.12 As sociologist and NASCAR enthusiast Jim Wright notes, “race is not something that is talked about” as a current issue in NASCAR.13 At the same time, there were hints that diversity may, yet, thrive on the track at NASCAR. First, diversity seemed consistent with NASCAR’s core values of Freedom and Individualism. As Wright also pointed out: The values of the NASCAR subculture are best described as the traditional American virtues.... Individualism, freedom, community, mobility—these are NASCAR values, important values, the things we stand for as a nation.14