Procter and Gamble: 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.
However, significant barriers exist for diverse employees advancing within their careers. Women enter the workforce in almost equal numbers as men, yet they only comprise 22% of the executive suite. Similarly, people of color comprise 33% of entry level positions, but only 13% of the c-suite.
As Shelly McNamara, P&G’s Chief Diversity & Inclusion Officer states in the company’s “2019 Citizenship Report,” “We believe in using our voice in advertising and media to call attention to bias and equality, spark dialogue and motivate change in the world... Many of our brands are advancing diversity and inclusion perspectives through accurate and positive portrayals in everyday advertising, and by calling attention to issues like racial and LGBT+ biases.”
P&G has held #WeSeeEqual forums around the world, championed the #SeeHer Movement and built advertising around equality themes for brands including Fairy, Gillette, Pantene, Safeguard, Secret, and Vicks.
On its website, P&G states “We know the importance of diversity in the workplace. That's why we attract, hire, and keep diverse people on our team so that we can better understand our world and our consumers. To keep that talent here, we’re creating opportunities and investing in plans for hiring, retaining, and developing them—to the executive level.”
However, P&G provides no quantitative data or 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 P&G’s statements are corporate puffery, language described by the United States Federal Trade Commission as marketing exaggerations intended to “puff up” products and not able to be relied upon by consumers and investors.
BE IT RESOLVED: Shareholders request that Procter and Gamble Co. (“P&G”) 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 that the Board follows for assessing the effectiveness of its diversity and inclusion programs,
the Board’s assessment of program effectiveness, as reflected in any goals, metrics, and trends related to its 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: Procter and Gamble
Lead Filers:
As You Sow
Year: 2020
Filing Date:
April 2020
Initiative(s): Diversity & Gender Equality
Status: 37.1%