Final answer:
The correct criterion for effective ERGs is that the group sets and signs off on metrics and goals. Leadership within ERGs is not required to be the CEO or a direct report but is vital for group dynamics and avoiding discrimination, as guided by federal bodies like the EEOC.
Step-by-step explanation:
Considering the criteria for effective Employee Resource Groups (ERGs) as per Diversity Inc., several aspects come into play. Key features of successful ERGs include having set metrics and goals, possessing a formal charter, and the provision of members serving as mentors. However, it is not a criterion for the leader of the group to be the CEO or a direct report to the CEO. Leadership styles and functions play a crucial part in the dynamics of ERGs, with some leaders focused on expressive functions like emotional health, while others are more instrumental, emphasizing concrete results.
ERGs should create an environment that combats discrimination and encourages diversity, as mandated by federal laws such as those enforced by the U.S. Equal Employment Opportunity Commission (EEOC). The leadership within ERGs might also utilize various incentives to engage members, leaning on the solidary benefits of associating with like-minded individuals, such as what the NAACP provides to its members. The correct answer aligns with the idea that a well-structured ERG should have clear metrics and goals to be effective.