Martin Marietta Material Inc: Disclosure on Plans and Policies Aligned with Achieving Racial Equality as Informed by As You Sow Scorecard
WHEREAS: Following George Floyd’s murder by police officers on May 25, 2020, a majority of Russell 1000 corporations made public statements expressing their plans to address racial justice, thereby taking the first step to becoming antiracist organizations. Antiracism is the practice of identifying, challenging, and changing the values, structures, and behaviors perpetuating systemic racism. Martin Marietta Materials, Inc. did not release a statement on racial justice, and has limited disclosure related to its diversity, equity and inclusion programs.
A McKinsey study cites material corporate benefits associated with corporate policies promoting racial justice:
Companies with the strongest racial and ethnic diversity are 35% more likely to outperform their industry medians for earnings before interest and tax
Companies with the most ethnically/ culturally diverse boards are 43% more likely to earn higher profits
For every 10% increase in racial and ethnic diversity among senior executives, EBIT rises 0.8.
Yet, inequities in the workplace continue:
People of Color comprise 33% of entry level positions, but 13% of the C-suite
Among the Russell 3000, in 2019 Black individuals accounted for 4.1% of board members versus 13.4% of the U.S. population.
Martin Marietta Materials is falling behind peers in its racial justice policies. Martin Marietta Materials scored negative 15 percent on a recent Racial Justice Scorecard. Martin Marietta Materials’ score ranks significantly below that of Vulcan Materials Co. and Eagle Materials which scored 13% and -4%, respectively. Martin Marietta Materials’ low score is due to the absence of a racial justice statement; lack of publicly accessible diversity, equity, and inclusion targets; and lack of disclosed data concerning recruitment, retention, and promotion rates of people of color within the Company.
Given heightened awareness around racism, failing to act on racial justice and disclose related policies and comparable, quantifiable data raises the material risk of revenue loss and reduced brand value. Martin Marietta Materials can reduce this risk and begin playing a critical role in ending systemic racism by promoting racial justice within our firm.
BE IT RESOLVED: Shareholders request that Martin Marietta Materials publish a report, at reasonable expense and excluding proprietary information, disclosing the Company's plan to promote racial justice, if any.
SUPPORTING STATEMENT: Proponents suggest the report include:
Policies the company could adopt to promote Racial Justice in its corporate workplaces and operations
Detailed quantitative information on diversity, equity, and inclusion, including recruitment, retention, and promotion rates and policies for people of color within the Company
Any plans to improve scores on key performance indicators on the above referenced Racial Justice scorecard
Resolution Details
Company: Martin Marietta Material Inc
Lead Filers:
As You Sow
Year: 2022
Filing Date:
December 2021
Initiative(s): Racial Justice
Status: Resolution Withdrawn, Agreement Reached