(FORTUNE Magazine) – The companies below are committed to a multicultural work force--from the mailroom to the boardroom. And they're doing what it takes to open opportunities for minorities at every level.

[% minorities] [A] OFFICIALS AND MANAGERS [B] WORK FORCE [C] ASIAN [D] BLACK [E] HISPANIC [F] NATIVE AMERICAN

No. of minorities % minorities MINORITIES Rank 2001 TOP- [A] [B] [C] AS A % OF COMPANY BOARD OF PAID [D] NEW HIRES 2000 revenues (millions) DIRECTORS 50 [E] [F]

1 (1) 4 of 11 7 31.1% 48.0% 4.3% 48% ADVANTICA 11.2% Spartanburg, S.C. 32.2% $1,526 0.3% The owner of Denny's proves its commitment to minorities is no flash in the pan: Once plagued by discrimination suits, the restaurant company tops our list for the second year in a row.

2 (3) 4 of 18 11 28.6% 41.9% 10.3% 47% FANNIE MAE 27.0% Washington, D.C. 4.3% $44,089 0.3%

Run by African-American CEO Franklin Raines, the mortgage financier uses minority investment firms to manage bond issues. Its diversity goals flow both ways: It aims to create five million new minority homeowners by 2010. 3 (15) 2 of 16 7 39.5% 54.3% 4.4% 36% MCDONALD'S 20.9% Oak Brook, Ill. 25.5% $14,243 3.6%

Would you like salsa with that? McDonald's is diversifying what it sells--as well as what it buys. It's the list's top purchaser from minority suppliers, spending $3 billion a year--27% of its total--at minority-owned firms. 4 (14) 3 of 12 8 25.3% 42.5% 8.2% 50% SOUTHERN CALIF. EDISON 8.5% Rosemead, Calif. 25.0% $11,635 0.9%

The energy crisis has pushed the California utility to the brink of bankruptcy, but its diversity efforts are still on track: It recently completed a ten-year plan that increased the number of minority managers and suppliers. 5 (4) 4 of 13 5 28.9% 47.6% 8.0% 47% SEMPRA ENERGY 10.6% San Diego 28.2% $7,143 0.8%

The San Diego power company hired minority investment firms to manage $50 million of its pension plan assets. It's also a big purchaser, buying natural gas and temporary services from minority-owned firms. 6 (11) 2 of 15 9 23.6% 29.8% 5.1% 40% XEROX 16.1% Stamford, Conn. 7.9% $18,632 0.7%

True, black employees have filed a class-action lawsuit against Xerox, but the company's top guns have reiterated their commitment to diversity. With minorities accounting for 40% of new hires, Xerox moves up five notches. 7 (39) 0 of 3 14 24.7% 25.5% 13.8% 28% SGI 4.9% Mountain View, Calif. 6.4% $2,331 0.4%

Despite the tech crunch, the workstation maker improved its record across the board. It has the greatest number of minorities among the 50 best-paid employees and has increased the percentage in management. 8 (10) 3 of 21 3 29.1% 37.2% 4.2% 47% SBC COMMUNICATIONS 19.7% San Antonio 12.6% $51,476 0.7%

SBC spent $2.4 billion with minority-owned companies in 2000--16% of all its purchases. The telco also provides scholarships for its suppliers to attend classes at top B-schools. 9 (25) 1 of 7 7 21.7% 27.7% 10.5% 32% LUCENT TECHNOLOGIES 11.3% Murray Hill, N.J. 5.4% $41,420 0.7%

Management stumbles and industry woes pushed Lucent's stock down 90% in the past year, but the telecom equipment maker still climbs 16 places on our list. Minorities account for half of all management-track employees. 10 (21) 2 of 13 9 27.6% 31.0% 0.8% 41% BELLSOUTH 25.6% Atlanta 4.4% $26,151 0.2%

This Baby Bell sponsors several "affinity groups"--people who choose to associate based on a common ethnicity, religion, or gender--and asks each to undertake at least one business project a year. 11 (5) 1 of 7 11 42.9% 48.8% 4.9% 67% DOLE FOOD 1.8% Westlake Village, Calif. 41.6% $4,763 0.4%

With operations in multi-culti states like Florida and California, it stands to reason that Dole has the highest percentage of minority hires and managers. It's also one of the top five companies for Hispanics. 12 (41) 1 of 14 4 28.8% 57.0% 7.8% 59% HILTON HOTELS 20.6% Beverly Hills 28.1% $3,451 0.5%

The majority-minority hotelier jumps 29 spots. Hilton retains Rhumbline Advisors, a minority-owned firm in Boston, to manage $30 million of its pension fund assets, about 10% of its total. 13 (24) 3 of 13 11[1] 14.5% 25.4% 2.1% 31% PEPSICO 13.2% Purchase, N.Y. 9.8% $20,438 0.4%

One of our 50 Most Powerful Women in Business, Indian-born CFO Indra Nooyi became even more powerful when she was named president of this soft drink and snack food giant in May.

14 (12) 2 of 10 12 27.3% 40.1% 22.9% 45% APPLIED MATERIALS 6.5% Santa Clara, Calif. 10.4% $9,564 0.3%

The Silicon Valley maker of chip-manufacturing equipment earns its place with strong numbers in almost all categories. It's one of our top five companies for Asian Americans, and counts 12 minorities among its 50 best-paid employees.

15 (2) 2 of 14 11 34.6% 56.4% 7.8% 49% LEVI STRAUSS 9.9% San Francisco 38.3% $4,645 0.4%

The jeans maker has struggled in the marketplace, but it remains a great fit for minorities. It's once again one of the top five companies for minority managers and one of the best companies for Asians. 16 (6) 4 of 15 4 35.5% 55.3% 26.2% 60% UNION BANK OF CALIFORNIA 8.4% San Francisco 20.3% $3,148 0.4%

Union Bank recently bought 40% of a company that specializes in payday loans in underserved--and largely minority--areas of Los Angeles. Translation: service for the neighborhood, fat profit margins for the bank. 17 (-) 3 of 17 8 22.2% 30.1% 10.7% 45% FREDDIE MAC 15.9% McLean, Va. 3.3% $30,000 0.2% The mortgage lender's most notable efforts are in the community: It doles out nearly $21 million to charities that benefit minorities and partners with five historically black colleges to fill its internship program. 18 (9) 2 of 11 13[2] 30.6% 35.9% 6.7% 48% U.S. POSTAL SERVICE 21.5% Washington, D.C. 7.3% $64,540 0.5%

The postal service is a good place to be a manager today--and probably will be an even better place to be one tomorrow. Almost half of the employees identified as management candidates are minorities. 19 (13) No 4 35.5% 58.9% 11.1% 60% HYATT board 21.2% Chicago 26.4% $3,950 0.3%

The hotel group has the second-most-diverse work force on the list. Every year Hyatt sponsors hospitality management students from historically black colleges to attend a major trade show in New York City. 20 (7) 3 of 9 9 29.8% 47.6% 0.7% 52% PUBLIC SERVICE CO. OF N.M. 1.7% Albuquerque 40.9% $1,611 4.3%

A third of PNM's board is Hispanic, as is 41% of the company's work force. The utility provides paid summer externships to teachers in minority areas, hoping they'll bring what they have learned back to the classroom. 21 (16) 2 of 10 8 11.7% 12.2% 1.5% 21% SC JOHNSON 5.9% Racine, Wis. 4.4% $4,200 0.4%

The 115-year-old family-owned company, maker of products like Saran Wrap and Windex, is making a concerted effort to improve diversity in its upper ranks by recruiting minorities and offering them full-tuition MBA fellowships. 22 (-) 2 of 15 4 25.8% 40.2% 6.9% 46% J.P. MORGAN CHASE 22.5% New York 10.5% $60,065 0.3%

Investment bank J.P. Morgan and retail giant Chase Manhattan Bank both made our list last year. Little surprise, then, that the combination of the two, formed in a $35 billion deal last December, is also a standout. 23 (-) 2 of 8 5 18.8% 38.9% 0.8% 42% NEWPORT NEWS SHIPBLDG. 37.4% Newport News, Va. 0.5% $2,072 0.2%

The shipyard hired the greatest number of minority interns of any company in Virginia from the Inroads business training program. Pending the deal's approval, Newport News will be acquired by General Dynamics. 24 (47) 6 of 28 4 26.4% 46.2% 8.4% 42% TIAA-CREF 27.1% New York 10.5% $38,063 0.1%

The pension company prepares minorities for executive jobs with rotations through various departments, including the chairman's office. It has also provided summer jobs for disadvantaged New York City youth for 18 years.

25 (28) 6 of 12 5 17.8% 35.7% 2.5% 38% DARDEN RESTAURANTS 13.5% Orlando 18.2% $3,701 1.4%

The operator of the Olive Garden and Red Lobster restaurants has the most diverse board for the second year in a row. It also doubled the amount it purchased from minority suppliers in the past year. 26 (31) 2 of 12 5 27.1% 35.7% 2.2% 53% UNITED PARCEL SERVICE 22.3% Atlanta 10.6% $29,771 0.7%

Latina Jovita Carranza became UPS's first-ever female international regional president, overseeing operations in 50 Latin American and Caribbean countries. Over half of UPS's new hires are minorities. 27 (44) 2 of 15 9 17.9% 25.5% 8.4% 25% SCHERING-PLOUGH 10.3% Kenilworth, N.J. 6.5% $9,815 0.4%

The drug company recruits and trains inner-city minorities to be lab technicians. It also sponsors university health sciences programs at historically black colleges. 28 (23) 3 of 13 4 19.2% 33.7% 3.5% 46% CONSOLIDATED EDISON 19.3% New York 10.8% $9,457 0.1%

Part of every Con Ed manager's performance evaluation is based on diversity goals. And to further employee education, the company shelled out millions to build and run a training center in Queens, N.Y. 29 (-) 2 of 9 5 26.6% 38.9% 10.6% 43% NORDSTROM 13.0% Seattle 14.2% $5,528 1.1%

The tony department store chain holds special previews of big construction projects to encourage bids from local minority suppliers. It also uses minority investment firms to manage some of its debt issuance. 30 (-) 3 of 16 3 19.9% 28.5% 3.4% 40% VERIZON 18.6% New York 6.1% $64,707 0.4%

The telecom company targets and prepares low-ranking employees--of all colors--for advancement. Verizon also provides training programs specifically for black, Hispanic, and Asian managers. 31 (22) 2 of 18 10 27.5% 37.6% 10.7% 44% WASHINGTON MUTUAL 7.7% Seattle 18.6% $15,766 0.6%

The nation's biggest savings bank has advisory boards in minority neighborhoods to keep tabs on community banking needs. WaMu is targeting non-English-speaking communities, running ads in Spanish and Chinese. 32 (-) 2 of 7 8 14.0% 19.7% 1.6% 23% ADOLPH COORS 8.4% Golden, Colo. 9.0% $2,414 0.8%

America's No. 3 beermaker seeks out minority farmers to supply the brewery with barley. It also encourages its suppliers to subcontract to minority-owned businesses. 33 (-) 2 of 12 6 18.0% 27.0% 4.8% 36% AMERICAN EXPRESS 13.8% New York 7.8% $23,675 0.5%

The financial services company is back on the list after a one-year hiatus. The board named COO Kenneth I. Chenault to the top job, making him one of only two black FORTUNE 500 CEOs. 34 (35) 2 of 11 6 21.5% 41.9% 5.1% 49% PITNEY BOWES 26.8% Stamford, Conn. 9.6% $4,522 0.3%

The postage-meter maker uses the Internet to attract minority suppliers. A high percentage of minorities among the new hires has helped maintain its place on the list. 35 (26) 2 of 14 8 12.0% 18.7% 2.8% 28% NEW YORK TIMES 10.7% New York 5.0% $3,489 0.2% Newsrooms generally have spotty records with diversity. The New York Times fills half its intermediate reporter positions with minorities. It also recruits students from historically black colleges for jobs at all its papers.

36 (29) 3 of 12 3[3] 22.0% 31.7% 10.9% 42% UAL 11.1% Elk Grove Township., Ill. 9.3% $19,352 0.4%

Money and mouths are aligned: Bonuses are tied directly to minority and female representation in management. And the airline has hired 2,000 welfare-to-work grads, many of whom are minorities. 37 (20) 2 of 10 7 18.8% 29.9% 3.9% 32% AVON PRODUCTS 15.7% New York 10.0% $5,715 0.3%

Diversity extends beyond the executive suite (occupied by Asian-Canadian CEO Andrea Jung). Avon features African-American tennis phenoms Venus and Serena Williams in its ads. 38 (-) 1 of 15 0 16.5% 16.5% 2.3% 18% PROCTER & GAMBLE 11.2% Cincinnati 2.6% $39,951 0.4%

P&G makes our list for the first time this year. The consumer products behemoth sends dozens of executives to work with nonprofits like the Urban League on the company's dime. 39 (30) 1 of 14 6 15.1% 23.4% 1.7% 35% FORD MOTOR 18.5% Dearborn, Mich. 2.7% $180,598 0.5%

In partnership with a Michigan public school system, the carmaker opened the Henry Ford Academy charter school, where 57% of the 383 students are African American. The first class graduated this year. 40 (40) 2 of 12 8 12.2% 15.2% 4.3% 18% ELI LILLY 8.7% Indianapolis 2.0% $10,862 0.1%

Hoping to attract minorities to science, Lilly flies about a dozen high-schoolers a year to Florida A&M on the corporate jet to expose them to the university and the company. Half of the jet setters now attend A&M. 41 (37) 2 of 10 2[4] 24.2% 59.3% 8.7% 63% MARRIOTT INTERNATIONAL 25.7% Bethesda, Md. 24.6% $10,017 0.4%

Hospitality giant Marriott boasts the most diverse work force on our list. It also has more than 3,000 graduates of its government-subsidized welfare-to-work program on its payroll. 42 (33) 1 of 11 5 14.1% 20.2% 3.1% 33% E.I. DU PONT DE NEMOURS 14.0% Wilmington, Del. 2.6% $29,202 0.5%

The chemical company spends more than $300 million with minority suppliers and a couple of million more promoting science education among minorities. 43 (-) 2 of 8 7[5] 12.3% 20.7% 11.3% 26% COMPUTER ASSOCIATES INTL. 5.5% Islandia, N.Y. 3.5% $6,103 0.5%

Run by Taiwanese-American Charles Wang, Computer Associates is one of the top five companies for Asians. It focuses on minority communities, providing playgrounds, housing, tutoring, and self-esteem classes. 44 (-) 1 of 10 9 22.4% 28.4% 3.9% 29% AFC ENTERPRISES 14.4% Atlanta 9.6% $725 0.4%

The owner of such chains as Church's Chicken and Cinnabon makes its debut on our list by retaining a minority-owned underwriter and upping minority representation on its board. 45 (38) 2 of 13 6 15.1% 29.8% 9.2% 36% ABBOTT LABORATORIES 12.5% Abbott Park, Ill. 7.2% $13,746 1.0%

Abbott Labs--which makes everything from drugs to medical devices to nutritional drinks--has increased the number of minorities in management. But spending with minority suppliers is slipping. 46 (32) 1 of 12 4 20.9% 28.8% 3.8% 37% ALLSTATE 16.8% Northbrook, Ill. 7.8% $29,134 0.4%

Minority employees are in good hands with Allstate, where nearly half of them are heading toward management jobs. The insurer allocates half its charitable budget to minority causes. 47 (46) 1 of 10 8 12.4% 16.1% 2.3% 16% CUMMINS ENGINE 11.5% Columbus, Ind. 1.8% $6,598 0.4%

Cummins is on track to nearly double the number of minorities in the ranks of management: Almost a third of the employees it has identified as future leaders are nonwhite. 48 (48) 0 of 8 4 19.9% 22.9% 5.0% 43% COLGATE-PALMOLIVE 10.6% New York 7.2% $9,358 0.1%

The number of new minority hires jumped by 43% over the past year, and the company does a great job promoting minorities. But the toothpaste maker still has one of the least diverse boards on our list. 49 (-) 1 of 12 3 17.7% 30.2% 3.1% 39% COCA-COLA 19.4% Atlanta 6.6% $20,458 1.2%

Coke makes our list for the first time--thanks in part to measures launched in the wake of its $192 million discrimination settlement. Among the improvements: more well-paid minorities and a greater number of minority suppliers. 50 (27) 2 of 11 3 26.9% 41.6% 3.0% 60% FEDEX 28.5% Memphis 9.4% $18,257 0.6%

The shipping company dropped from No. 27, in part because it reported a broader set of figures. But the number of minorities on its board of directors increased from zero to two.

- Not on last year's list. [1] Of 51. [2] Of 77. [3] Of 42. [4] Of 49. [5] Of 48.

REPORTED BY FABIANA ESPOSITO, SARAH GARMAN, JONATHAN HICKMAN, NOSHUA WATSON, ALYNDA WHEAT