A new analysis of data from nearly 300 companies has found more evidence of a positive link between diverse workforces and management and the financial performance of companies. A report published Thursday by As You Sow, a shareholder advocacy group that has long pushed companies to release information about their workplace demographics, includes findings based on 277 companies’ workforce data compared against more than a dozen financial metrics. Read More →
Read MoreAt least 94 firms on the S&P 100 have released or promised to share the figures about the demographics of their workforces that the U.S. Equal Employment Opportunity Commission collects each year, which is a huge jump from the 23 that did so two years earlier, according to a report this month by nonprofit shareholder advocacy organization As You Sow. In the past two years, the largest companies have bulked up public disclosure of data about the gender, race and ethnicity of their workforces by 300% or more in several categories. Read More →
Read MoreIn its supporting statement, As You Sow writes: ‘Quantitative data is sought so that investors can assess, understand and compare the effectiveness of companies’ [DE&I] programs and apply this analysis to investors’ portfolio management and securities’ selection process.’
The group cites studies including ones finding that companies with the strongest racial and ethnic diversity are 35 percent more likely to have financial returns above their industry medians, and that the 20 most diverse companies had an average annual five-year stock return 5.8 percent higher than the 20 least-diverse companies. Read More →
Read MoreBeyond its habit of putting polluting infrastructure in predominantly nonwhite neighborhoods, another reason the energy sector underperformed on the scorecard was what As You Sow called a “serious lack of diversity, equity, and inclusion disclosure.” Read More →
Read MoreThe nonprofit, As You Sow, collected and analyzed data from S&P 500 companies showing what it says is the environmental impact of operations on communities of color. It said it scrutinized their products, environmental violations and fines and corporate actions. Read More →
Read MoreFollowing the police killing of George Floyd in May 2020, many companies released statements supporting the Black community or calling for action to fight systemic racism. The As You Sow scorecard aims to measure whether these companies are actively working to “ensure that the statements of support for racial justice are translated into concrete actions that truly promote equity,” As You Sow stated in its announcement of the scorecard. Read More →
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