Pilgrims Pride Corp: DEI Disclosure and Racial Justice Scorecard Results

WHEREAS: Following George Floyd’s murder by police officers on May 25, 2020, a majority of the largest 1,000 public corporations made statements expressing their plans to address racial justice, thereby taking an important step in acknowledging diversity, equity, inclusion (DEI) and racial equity as core to their businesses. Shareholders now seek quantitative, comparable data to understand if and how companies are following through on their commitments to racial equity.

Pilgrim’s Pride Corp. appears to be falling behind its peers in its DEI policies and practices. For example, Pilgrim’s earned a 2% score on As You Sow’s latest Racial Justice Scorecard.[1] The Company’s score ranks below that of peer company Hormel Foods Corp., which scored 24%. Pilgrim’s low score is primarily due to a lack of publicly accessible DEI data and the Company’s failure to disclose information regarding its DEI policies and practices.

Numerous studies have demonstrated the financial benefits of a diverse, inclusive workplace, highlighting the fact that a lack of public disclosure of DEI policies and practices and related quantifiable data raises material risk of reduced brand value and financial performance:

A McKinsey study listing the material benefits associated with policies promoting racial justice found that companies with the strongest racial and ethnic diversity are 35% more likely to outperform their industry medians for earnings before interest and tax.[2]

According to CEO Action, fostering inclusivity is a strategic advantage for businesses and research has shown that “organizations that lead with inclusion are eight times more likely to have better business outcomes.”[3]

A U.S. Chamber of Commerce survey found that companies that form identity-based Employee Resource Groups (ERGs) can increase the number of diverse job applicants they receive, noting that 70% of Gen Z respondents were more likely to apply for a job at a company with an ERG[4]

According to a recent CNBC survey, 80% of workers prefer to work for a company that values DEI[5]

Given recent negative press Pilgrim’s has received regarding workers’ rights issues,[6] shareholders are strongly interested in understanding Pilgrim's internal DEI policies and reviewing quantitative data demonstrating their effectiveness. Pilgrim’s failure to disclose this information raises a material risk of reduced brand value and financial performance.

Pilgrim’s Pride can improve its performance and reduce material risks posed by inadequate DEI policies and practices, while also playing an important role in furthering corporate racial equity, by disclosing its DEI policies and data regarding their success.

BE IT RESOLVED: Shareholders request that Pilgrim’s Pride issue a public report on the effectiveness of the Company’s diversity, equity, and inclusion efforts.

SUPPORTING STATEMENT: Proponents suggest the public report disclose existing DEI policies and practices, as well as relevant information, such as: