Oracle Corporation: Diversity in the Workplace
WHEREAS: Numerous studies have pointed to the corporate benefits of a diverse workforce. These include:
Companies with the strongest racial and ethnic diversity are 35% more likely to have financial returns above their industry medians.
Companies in the top quartile for gender diversity are 21% more likely to outperform on profitability and 27% more likely to have superior value creation.
Business teams outperform on sales and profits when their gender mix is equal.
Despite such benefits, significant barriers exist for diverse employees advancing within their careers. Women enter the workforce in almost equal numbers as men (48%). However, they only comprise 22% of the executive suite; as a percentage of representation, this indicates a drop of 26%. Similarly, people of color comprise 33% of entry level positions, but only 13% of the c-suite.
On its website, Oracle states, “At Oracle, we don’t just value differences—we celebrate them. We’re committed to creating a workplace where all kinds of people work together. We believe innovation starts with diversity and inclusion.” It also writes, “Transparency Is the Key to Progress. Creating the future calls for people with different backgrounds, experiences, and ways of thinking.”
However, Oracle does not disclose meaningful statistics that allow investors to determine the effectiveness of its human capital management as it relates to workplace diversity. Stakeholders may become concerned that Oracle’s statements are corporate puffery, language described by the United States Federal Trade Commission as marketing exaggerations intended to “puff up” products and which may not be reliable to consumers and investors.
Investor desire for information on this issue is significant. In June 2019, $1.74 trillion in represented assets released an Investor Statement which spoke to the importance of increased corporate transparency on workplace equity data. As the letter stated:
BE IT RESOLVED: Shareholders request that Oracle Corporation publish annually a report assessing the Company's diversity and inclusion efforts, at reasonable expense and excluding proprietary information. At a minimum the report should include:
the process the Board follows for assessing the effectiveness of its diversity and inclusion programs,
a report on the program’s effectiveness as reflected in any goals, metrics, and trends related to company promotion, recruitment and retention of protected classes of employees.
SUPPORTING STATEMENT: Investors seek quantitative, comparable data to understand the effectiveness of the company’s diversity, equity, and inclusion programs.
Resolution Details
Company: Oracle Corporation
Lead Filers:
As You Sow
Year: 2020
Filing Date:
May 2020
Initiative(s): Diversity & Gender Equality
Status: Resolution Withdrawn, Agreement Reached