This report contains fifteen presentations from a workshop on best practices in managing diversity, hosted by the NAE Committee on Diversity in the Engineering Workforce on October 29-30, 2001. NAE (National Academy of Engineering) president William Wulf, IBM vice-president Nicholas Donofrio, and Ford vice-president James Padilla address the business case for diversity, and representatives of leading engineering employers discuss how to increase the recruitment, retention, and advancement of women and underrepresented minorities in engineering careers. Other speakers focus on mentoring, globalization, affirmative action backlash, and dealing with lawsuits. Corporate engineering and human resources managers attended the workshop and discussed diversity issues faced by corporations that employ engineers. Summaries of the discussions are also included in the report.