Diversity, equity and inclusion (DEI) efforts look to ensure all employees, regardless of race or sex, get a fair shot. The recent Supreme Court decision to end affirmative action in college admissions does not affect companies’ abilities to run DEI programs – although it may impact their pipeline of incoming talent.
Read moreBoard Diversity Disclosure Identifies Leaders and Laggards
Boards are becoming more diverse and detailed disclosure provides a critical window into progress. Boards that are both diverse and inclusive offer multiple ways to look at strategy and risk and a lower likelihood of groupthink. Their selection process extends beyond the board’s immediate network and diverse boards connect companies to communities that represent large swaths of its customers, employees and/or business locations. For investors and also for researchers, the more specific the company’s disclosures, the easier it is to assess board composition compared to the demographics of key stakeholders and society at large.
Read moreCompanies Taking a Closer Look at How Racial Inequity Affects Their Workers, Customers and Shareholders
The third anniversary of the murder of George Floyd at the hands of the Minneapolis police officers is fast approaching. We are reminded of the work we began nearly three years ago by filing Racial Equity Audit (REA) shareholder proposals and how much work remains. The police killings of Black people across the U.S. continue to galvanize the movement for racial justice, and corporations continue to be held accountable socially and legally for their role in furthering the economic and political repression of nonwhite communities.
Read moreShareholders and Local Communities Join to Demand Racial and Environmental Justice
Often, companies have no “business-case rationale” to listen to the communities negatively affected by their operations and no incentives to act. As shareholders, we have legal standing to engage the executives and boards of these public companies.
Read moreIncrease in EEO-1 Data Reporting Shows Positive Link Between Diversity and Financial Performance
A report released by As You Sow and Whistle Stop Capital in November 2022 assessed the data from 277 EEO-1 reports, looking at the link between workforce diversity and corporate financial performance. In line with our hypothesis and others’ previous research, the analysis found that financial metrics, like return on equity and net profit, were associated with higher levels of diversity in management.
Read moreGrowing Support for Racial Justice Audits
Interfaith Center on Corporate Responsibility (ICCR) members have a long history of supporting calls for diversity and justice, including respect for the rights of Indigenous Peoples and addressing the negative impacts of policies and practices on communities of color.
Read moreChanging Corporate Attitudes on Racial Justice
After George Floyd’s murder in May 2020, stakeholders in public companies asked management and boards what they could do about racial injustice. Without any metrics to define best practices and separate leaders from laggards, there was no way to measure and therefore manage this critical social issue.
Read moreData Transparency Key to Improving Diversity, Equity and Inclusion in the Workplace
As the great resignation rages on and businesses struggle to retain top talent, shareholders argue that more transparency about diversity and inclusion data will help companies drive need advancements in social and racial equity. Some 65 shareholder proposals this year seek information on decent work, and another four dozen ask for workforce diversity data.
Read moreConcealing Harassment and Discrimination Claims Hinders Diversity Efforts
In 2020, after George Floyd’s murder, we monitored many of the CEO statements and company pledges to support the Black Lives Matter movement and to increase their diversity, equity, and inclusion efforts. Now, in 2022, employees and investors want to see real progress on these pledges.
Read moreCost Externalization: A Bad Trade for Diversified Shareholders
The Shareholder Commons has filed or otherwise supported 19 shareholder proposals in 2022 that focus on systematic risks, including mis/disinformation, climate change, and antimicrobial resistance. The common thread running through these proposals is how a company’s externalized costs affect shareholders by reducing the value of other assets in their portfolios.
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