SOCIAL TOPICS (Archive): WORKPLACE

Published, December 1996

       In recent months, Sister Doris Gormley of The Sisters of St. Francis of Philadelphia wrote to T.J. Rodgers, Chairman and CEO of Cypress Semiconductors Corp., informing him of her organization’s policy to withhold support for nominees to board of directors that do not include women and minorities. Noting only white, male directors at Cypress, she encouraged the board to seek female and minority nominees.

       Mr. Rodgers responded with a six-page diatribe critical of social investors and Sr. Gormley, and sent a copy to every shareholder of record. The Wall Street Journal article that followed suggested that there was significant support from corporate leaders for Mr. Rodgers, and the stand he took.

       USTC has sent a letter similar to Sr. Gormley’s to approximately 250 companies each year for the last several years, but never has it elicited such a strong, negative attack. In fact, many companies use it as an opportunity to restate their commitment to diversity. For instance, Gillette wrote the following in response to our annual survey, “...we at Gillette recognize and value the diversity of people, ideas and cultures.”

       Unswayed by Mr. Rodgers’ argument, we were encouraged by the voices that weighed in at Cypress in support of Sr. Gormley’s point of view. We offer here a sampling of excerpts from responses to Mr. Rodgers that support diversity and the work of social investors like Sr. Gormley.

       “Often, what a woman or minority person can bring to the board is some perspective a company hasn’t had before, adding some modern-day reality to the deliberation process. Those perspectives are of great value, and often missing from an all-white male gathering.” Robert H. Campbell, Chairman, President & CEO, Sunoco

       “Sister Doris was wise to write of concern about broader representation on the board, and Mr. Rodgers was short-sighted in his response. The issues raised are not about political correctness but about corporate accountability...Mr. Rodgers would do well to broaden his vision, for it is not enough to make semi-conductors well. It is to make them well while at the same time contributing to making this country and its people stronger and more productive.” Margaret B. Wilson, Former Chair, National Board, NAACP

       “On behalf of all ‘unqualified women’ founding and managing their own electronics companies, I thank you profusely for your assistance and clarification of your corporate policy.” Ms. T.J. Schousek, President, Vital Innovations, Inc.

       “The Council of Institutional Investors, as you may or may not know, is a group of one hundred large pension funds, whose assets together exceed $900 billion...If the chairman and the board of a company are unable to understand the impact of a company’s mindset and actions on its female or minority employees and customers, the company, its employees, and its shareholders all suffer...Our members don’t give a hoot for political correctness—but do care about performance and genuine accountability. And we’re not going away.” S. Teslick, Executive Director, Council of Institutional Investors