In conversations earlier this year, a to-remain-nameless company commented that it recognized it was time to finally release its consolidated EEO-1 form. When asked to also release data related to its recruitment, retention and promotion rates of diverse employees, however, it demurely declined. Afterall, it explained, its EEO-1 looked fine and its recruitment efforts were strong. Retention, the company representative commented, was their big problem. Diverse employees leave soon after joining.

Per research hosted by As You Sow, 43 percent of the S&P 100 companies now release their EEO-1 forms, the current best-in-class standard for showing workforce composition. Within the last twelve months, we spoke with most of Nia Impact Capital's portfolio companies about their diversity, equity and inclusion (DEI) practices. Whistle Stop, on behalf of other clients, also spoke with an additional 20 members of the S&P 500. Almost all of these companies, from Nia's innovative small caps to the S&P blue-chips, accepted that EEO-1 disclosure is now a broadly held investor expectation for US companies.

The EEO-1 provides essential data detailing employees' gender, race and ethnicity, at various career levels. It is not able to, however, show how well a company’s workplace equity programs are working. Broader disclosure is needed.

For 2021’s proxies, Whistle Stop supported the filing of 21 resolutions asking company boards to report on their assessment of diversity, equity and inclusion efforts, including the release of goals, metrics, and trends related to their promotion, recruitment and retention of diverse employees. Filers include Nia, As You Sow and Nathan Cummings Foundation.

Within the S&P 500, per As You Sow’s database, at least 19 percent of companies share gender recruitment rates; only 4 percent share even one race-related recruitment statistic. For retention data, 11 percent share gender yet barely 1 percent share anything by race or ethnicity. Promotion data has the lowest disclosure rate: only 6 percent of companies even share gender data.

Promotion and retention data provide key insights. Do female and Black, Indigenous, and people of color employees have opportunities to move up, while also reaching true pay equity? Do diverse employees stay at the company, or do they leave at higher rates than their white male counterparts?

These questions aren’t just philosophical, as significant barriers exist for companies seeking to diversify their workforce and leadership, and for non-white-male employees seeking to advance during their careers. Women enter the workforce in almost equal numbers as men (48 percent ) yet they make up only 22 percent of the executive suite. Similarly, people of color make up 33 percent of entry level workers, yet only 13 percent of the c-suite.

No one company is the cause of systemic bias and discrimination on its own. Companies can, however, show they are willing to honestly discuss, assess, and improve their workplace equity programs. Now is the time for corporations to step into leadership roles in sharing their efforts to create positive and inclusive company cultures. We, as investors, have both the right and the responsibility to speak up for diversity, equity and inclusion within corporate America and beyond.