CHICAGO - Consumer product manufacturers and retailers who create and maintain a diverse workforce are more likely to increase innovation and meet consumer needs than those who don't, according to a new report by the Network of Executive Women.

As the buying power of diverse consumer segments ?" including women, Hispanics, African Americans, and the lesbian, gay, bisexual and transgender community ?" continues to grow, these segments represent a marketplace opportunity too big for retailers and consumer product manufacturers to ignore, according to "The Changing Consumer and the Workforce Imperative."

"This report focuses on how the retail and consumer products industry can unleash our multicultural workforces to achieve results that benefit our employees, our communities and our companies," said Network Chair Michelle Gloeckler, senior vice president for merchandising execution at Walmart Stores. "Research for this project began at last year's NEW Multicultural Workforce Conference and the results were previewed at this year's conference in March. The Network believes that diversity and inclusion is critical to the future of our business."

The report, based in part on one-on-one interviews with more than two-dozen leading U.S. consumer goods and retail executives, explores the correlation between workforce diversity and the ability of the consumer goods and retail industries to engage the changing U.S. consumer.

"Cultural connections are critical to understanding what drives purchasing decisions and brand loyalty across different market segments," said Alison Paul, immediate past president of the Network of Executive Women, and vice chairman and U.S. retail sector leader, Deloitte LLP. "Making these connections rely on retailers' and manufacturers' ability to not only become more culturally aware-which are increasingly table stakes--but harness and value diverse perspectives as a source of innovation."

Consumer insights most often come from those who share a consumer's cultural experience, the report concludes. As such, recruiting, retaining and advancing a diverse workforce are integral to creating a brand/consumer connection, as consumers feel most comfortable doing business with companies whose employees mirror their communities.

According to the report, consumer product manufacturers and retailers may be able to achieve an inclusive culture by first understanding the bottom-line business opportunity, then making a commitment to diversity that touches all company departments. Top management should view workforce diversity not as a stand-alone program, but as an essential element for business survival. Achieving cultural competency involves leadership commitment and communication, employee accountability, strong talent recruiting and retention programs, progressive succession planning and diverse supplier relationships.

Also, the Network of Executive Women, Consumer Products and Retail, is accepting applications for its annual merit scholarships awarded to outstanding women students in food, retail and consumer products-related studies in the United States. Qualified female graduate and undergraduate students interested in a career in food, retailing or consumer products management may download the application at newonline.org/scholarships. The deadline is May 1, 2011.

"The generous scholarships NEW awards to deserving students have been instrumental in attracting the best and brightest women into the CPG and food retail industry," said NEW Scholarship Chair Joy Nicholas, national account executive for WorldPay. "The scholarship recipients are introduced to the industry at the annual NEW Leadership Summit and are great ambassadors for the Network when they return to their universities."