U.S.-based companies with more than 100 employees are already required to submit EEO-1 report annually. However, companies are not required to release the report to the public. A recent survey found that only 32 firms in the Russell 1000 index make the EEO-1 public. Some companies do not release the information because of concerns about legal liability, bad publicity and attracting rivals’ recruiters if they have many minority employees.
Calvert Research and Management’s chief John Streur said the EEO-1 is not the holy grail, but he believes that once companies began releasing information it would create competition to improve diversity. Aviva Investors’ Global Head of Governance Mirza Baig agreed and said public disclosure of EEO-1 is inevitable.
The data from companies that released public diversity reports reveal contrasting pictures. For example, at Uber Technologies Inc., out of its 290 executives and top leaders, only seven were Black and only nine were Latino or Hispanic. In contrast, at Bank of America Corp., Black people held 5% of top-level position and Latino or Hispanic held another 4%. This is in line with the aggregated data from the Equal Employment Opportunity Commission.
Many companies have pledged to make their workforce profiles following the controversial murder of George Floyd in police custody in Minneapolis. Now, New York City Comptroller Scott Stringer is calling on firms that voiced support for racial equality to back up their talk by releasing their EEO-1 data. He said he is asking companies that condemned racism to walk the walk.