Increase 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 more

Companies 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 more

Board 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 more