Back-Pedaling on EEO Disclosure

by Heidi Soumerai

Walden co-authored a new SIRAN (Sustainable Investment Research Analyst Network) report, A Renewed Call for Action: For greater disclosure of equal employment opportunity (EEO) information, a follow-up to a study published three years ago that documented the disclosure rates of companies in the S&P 100 (http://www.siran.org/projects_eeo_project.php). The new study revealed that not only was the level of disclosure of EEO data disappointingly low, but there was also a distinct trend toward less disclosure than in the past among companies that participated in the study.

According to the report, “Companies that confirmed a policy to provide investors with comprehensive EEO data, either in public reports or on request, decreased from 54 percent in 2005 to 36 percent of responding companies in 2007-2008. While partial EEO data providers increased from 13 percent to 21 percent, those confirming that they do not disclose such information increased from 33 percent to 43 percent over the same period.”

This trend is troubling given the persistent under-representation of women and people of color in management. In 2006, the most recent year for which national EEO-1 data is available, racial minorities held 17 percent of official and manager positions across the U.S., despite accounting for nearly one-third of private industry employment. Women represented 36 percent of company officials and managers, even though they comprise close to half of the workforce. Moreover, in the current climate of a shrinking U.S. job market, these disparities may get worse.

Eight companies participating in the study provided full EEO information in public documents–American Express, Citigroup, Coca-Cola, Hewlett-Packard, IBM, Intel, Merck, and Wal-Mart. We commend these companies for their high level of EEO accountability, in our view a necessary commitment, among others, to be a recognized leader in promoting workplace equality.