Goodyear Tire & Rubber Co: Disclosure of Key Diversity and Inclusion Metrics
BE IT RESOLVED: Shareholders request that Goodyear Tire and Rubber Company report on the effectiveness of the Company's diversity, equity, and inclusion efforts to create a workplace where all employees can contribute to the Company’s success. The disclosure should be done at a reasonable expense, exclude proprietary information, and provide transparency on outcomes using quantitative metrics for hiring, retention, and promotion of employees, including data by gender, race, and ethnicity.
SUPPORTING STATEMENT: Quantitative data is sought so that investors can assess and compare the effectiveness of companies’ efforts to ensure meritocratic workplaces. It is advised that this content be provided through existing sustainability reporting. An independent report is not requested.
WHEREAS: Racial discrimination is prohibited under the Civil Rights Act of 1964.
Research indicates that investors benefit from companies with more diverse management. As examples:
McKinsey studies have consistently found that companies with greater diversity in corporate leadership are more likely to outperform peers on profitability. This includes a 39 percent greater likelihood of outperformance for companies in the top quartile for gender or ethnic representation in their executive teams, versus those in the bottom quartile.[1]
Research from Whistle Stop Capital and As You Sow reviewed management diversity at over 1,600 companies. Linear regression found statistically significant positive correlations to key financial performance indicators, such as: return on equity, return on invested capital, revenue growth, and, as illustrated above, share price performance.[2]
A 2024 meta-analysis found that companies with diversity and inclusion initiatives experience a range of benefits that include increased innovation, enhanced employee engagement and satisfaction, and improved decision-making.[3]
Importantly, researchers have found that in an uncertain political and economic climate, more diverse teams demonstrate greater adaptability.[4]
Companies must protect their workplaces against discrimination, and investors must have meaningful data to monitor their effectiveness in doing so. Unfortunately, studies show that women and people of color face barriers in recruitment, hiring, and promotion.[5]
Investors have reason to be exceptionally concerned with Goodyear’s workplace equity practices. In a research study looking at hiring practices, Goodyear was identified as one of the companies with the “clearest preference for White candidates.”[6]
As of this resolution’s filing, Goodyear has yet to release its consolidated EEO-1 form, which shows its workforce diversity. In addition, the Company has not disclosed sufficient hiring, promotion, or retention data to allow investors to effectively assess the Company’s ability to build and maintain diverse management teams.
More than two-thirds of the S&P 500 and almost half of the Russell 1000 have released, or committed to release, their EEO-1 forms. AutoZone, O'Reilly Automotive, and Ford are just some of the companies that release more diversity and inclusion data than Goodyear.
[1] https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-matters-even-more-the-case-for-holistic-impact
[2] https://www.asyousow.org/report-page/2023-capturing-the-diversity-benefit
[3]https://www.researchgate.net/publication/380115625_ENHANCING_ORGANIZATIONAL_PERFORMANCE_THROUGH_DIVERSITY_AND_INCLUSION_INITIATIVES_A_META-ANALYSIS
[4] https://hbr.org/2023/05/how-investing-in-dei-helps-companies-become-more-adaptable
[5] https://www.bloomberg.com/opinion/features/2024-07-29/white-men-the-most-likely-to-get-hired-even-with-dei-finds-research; https://mitsloan.mit.edu/ideas-made-to-matter/women-are-less-likely-men-to-be-promoted-heres-one-reason-why
[6] https://www.bloomberg.com/opinion/features/2024-07-29/white-men-the-most-likely-to-get-hired-even-with-dei-finds-research
Resolution Details
Company: Goodyear Tire & Rubber Co
Lead Filers:
Amalgamated Bank, Represented by As You Sow
Year: 2025
Filing Date:
November 2024
Initiative(s): Social Justice
Status: Filed