Workplace Equity Report

PROMOTING DIVERSITY, EQUITY, AND INCLUSION THROUGH EDUCATIONAL SCORECARDS

As You Sow’s workplace equity shareholder engagements are informed by the data within the Workplace Equity Disclosure Scorecard. When we speak with companies, they are asked to release hiring, promotion, and retention rates for diverse employees, as well as two, or more, years of EEO-1 forms.

To allow companies to effectively gather this data and present it in an accurate and meaningful way, we acknowledge the need for some time to publicly release these metrics. The release of the data is important from a transparency perspective; from a communications perspective we also recommend that companies place it within a tailored narrative context specific to their organization. Tracking the data, reconciling the numbers, and crafting communications can take some time.

**CLICK IMAGE TO VIEW Scorecard / Data Visualization**

With this in mind, in our shareholder resolution withdrawal conversations with companies, we generally ask that they release their hiring, retention and promotion rates (gender globally, race and ethnicity within the United States) within the next two years. The workplace equity data visualization tool tracks both released data and data that companies have committed to release.

WORKPLACE EQUITY METHODOLOGY, SCORING, AND KEY PERFORMANCE INDICATORS

As You Sow, in collaboration with Whistle Stop Capital, has examined the websites and sustainability reports for each company in the Large-Cap 3000 to determine their current levels of transparency. Corporate disclosures of the aforementioned data contributed to companies’ scores, all of which were identified on a binary yes/no. That is, if a company releases the data set identified, it receives all of the possible points for that set. The weighting of each data set is a reflection of how important the information is from a transparency perspective, relative to an investors’ ability to understand the effectiveness of a corporate DEI program.

Our researchers visited corporate websites, looking through company reporting, blogs, sustainability/ corporate responsibility/ DEI/ annual reports, and career pages as well as the companies’ social media sites. It is possible that they missed some reporting, or that the company has increased its reporting since our review. To inform us of corporate reporting not captured here, please send a note to [email protected].

Our findings are presented on As You Sow’s website using a data visualization tool that enables dynamic analysis and sorting. The data is updated each quarter, with a major update annually.

LEADERS: TOP 10

LAGGARDS: BOTTOM 10

QUARTERLY KEY FINDINGS

98% of the S&P 100 companies release, or have committed to release, their consolidated EEO-1 forms, a good first step for sharing workplace composition. In August 2020, when this benchmarking project began, only 20% of the S&P 100 did so.
More than 15% (17%) of Large-Cap 3000 companies release or have committed to release their EEO-1 report, whereas almost half (42%) of Russell 1000 companies do.
More than half (56%) of the Large-Cap 3000 companies release gender/racial demographic data on their workforce in some form, whereas 81% of Russell 1000 companies do.
Within the Large-Cap 3000 constituent companies, the Financials sector has the most companies releasing their EEO-1 forms.
Within the Large-Cap 3000 constituent companies, the Healthcare sector has the most companies releasing promotion rate data by gender, hiring rate data by gender and race, and retention rate data by race.
Within the Large-Cap 3000 constituent companies, the Consumer Discretionary sector has the most companies releasing promotion rate data by race.
Within the Large-Cap 3000 constituent companies, the Information Technology sector has the most companies releasing retention rate data by gender.
Of the inclusion factors, hiring rates are the most reported on, while promotion rates are the least.
Companies were most likely to release hiring rates of their Black and female employees. They were least likely to share data related to their Native American and Pacific Islander employees.
Disclosure rates of recruitment, retention, and promotion data by race and ethnicity is still catching up to gender data, likely a reflection of the #metoo movement gaining traction in 2017, while the protests in the aftermath of George Floyd’s murder began in late May, 2020, far more recently.
Companies that have made future, time-bound commitments to release at least two of the three inclusion factors are: Albertsons, Bank of America, Bank of New York Mellon, Baxter International, Biogen, Charter Communications, The Walt Disney Co., eBay, Electronic Arts, Estee Lauder, Ford Motor, General Dynamics, NCR Voyix, Philip Morris International, Raytheon Technologies, Simon Property Group, Southern Co, Sprouts Farmers Market, T-Mobile, Target, Texas Instruments, Thermo Fisher Scientific, and Victoria's Secret, among others.

The Workplace Equity Disclosure Initiative has reviewed the Large-Cap 3000 constituent companies to identify which companies are currently releasing standardized, comparable and meaningful workplace equity data.

The intention of this initiative is to provide a public resource showing the current level of DEI disclosure from companies. Transparency and reporting, in and of itself, is an important best-practice to be celebrated. When a company releases meaningful data on its workforce composition alongside its rates of promotion, recruitment or hiring, and retention or turnover of diverse employees it illustrates a number of things to its stakeholders:

It shows that it takes seriously that discrimination is a systemic problem in corporate America, and that it is willing to do its part in addressing it openly;
It illustrates the depth of its commitment to be accountable to its employees;
It acknowledges its own imperfections honestly; and
It provides data which allows investors and other stakeholders to assess and compare the effectiveness of its programs.

KEY PERFORMANCE INDICATORS AND SCORING RUBRIC

   
         PILLAR
         
         KEY PERFORMANCE INDICATOR
         SCORING RUBRIC
         WEIGHTING
      

   
         Workforce Compensation
         1
         Release of workforce composition
         0 or 1
         5.00%
      

         Workforce Compensation
         2
         Release of EEO-1 form
         0 or 1
         20.00%
      

         Pay Equity Data Reporting
         3
         Mean pay gap data by gender
         0 or 1
         1.25%
      

         Mean pay gap data by race/ethnicity
         4
         Solicits from Black employees
         0 or 1
         1.25%
      

         Median pay gap data by gender
         5
         Solicits from Black employees
         0 or 1
         1.25%
      

         Median pay gap data by race/ethnicity
         6
         Solicits from Black employees
         0 or 1
         1.25%
      

         Promotion
         7
         Male
         0 or 1
         2.20%
      

         Promotion
         8
         Female
         0 or 1
         2.20%
      

         Promotion
         9
         White
         0 or 1
         2.20%
      

         Promotion
         10
         Black
         0 or 1
         2.20%
      

         Promotion
         11
         Hispanic
         0 or 1
         2.20%
      

         Promotion
         12
         Asian
         0 or 1
         2.20%
      

         Promotion
         13
         Native American
         0 or 1
         2.20%
      

         Promotion
         14
         Pacific Islander
         0 or 1
         2.20%
      

         Promotion
         15
         Two or more races
         0 or 1
         2.20%
      

         Recruitment or Hiring
         16
         Male
         0 or 1
         2.20%
      

         Recruitment or Hiring
         17
         Female
         0 or 1
         2.20%
      

         Recruitment or Hiring
         18
         White
         0 or 1
         2.20%
      

         Recruitment or Hiring
         19
         Black
         0 or 1
         2.20%
      

         Recruitment or Hiring
         20
         Hispanic
         0 or 1
         2.20%
      

         Recruitment or Hiring
         21
         Asian
         0 or 1
         2.20%
      

         Recruitment or Hiring
         22
         Native American
         0 or 1
         2.20%
      

         Recruitment or Hiring
         23
         Pacific Islander
         0 or 1
         2.20%
      

         Recruitment or Hiring
         24
         Two or more races
         0 or 1
         2.20%
      

         Retention or Turnover
         25
         Male
         0 or 1
         2.20%
      

         Retention or Turnover
         26
         Female
         0 or 1
         2.20%
      

         Retention or Turnover
         27
         White
         0 or 1
         2.20%
      

         Retention or Turnover
         28
         Black
         0 or 1
         2.20%
      

         Retention or Turnover
         29
         Hispanic
         0 or 1
         2.20%
      

         Retention or Turnover
         30
         Asian
         0 or 1
         2.20%
      

         Retention or Turnover
         31
         Native American
         0 or 1
         2.20%
      

         Retention or Turnover
         32
         Pacific Islander
         0 or 1
         2.20%
      

         Retention or Turnover
         33
         Two or more races
         0 or 1
         2.20%
      

         Explicit and quantifiable DEI goals
         34
         Quantitative, time-bound diversity goals
         0 or 1
         10.00%
      

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