FFC Supports Corporate Workplace Equity Transparency

Friends Fiduciary has signed onto an investor statement supporting corporate workplace equity transparency. The value and benefits of a diverse workforce has been proven time and again through numerous studies finding, among other things, “companies with the strongest racial and ethnic diversity are 35 percent more likely to have financial returns above their industry medians” and “companies in the top quartile for gender diversity are 21 percent more likely to outperform on profitability and 27 percent more likely to have superior value creation.” It is now common for companies to develop diversity, equity, and inclusion programs, however the effectiveness of these programs cannot be gauged without company transparency on recruitment, retention, and promotion rates of diverse employees.

Lack of company transparency and disclosure makes it difficult for investors to determine if there is a divergence between the public commitments companies make on workplace equity and the disclosures they provide to investors showing if, and how, they are meeting their stated goals. This results in significant investor concern for company reputation if a company is willing to make promises regarding workplace equity and yet unwilling to provide the data that supports and shows that these commitments are integrated into their human capital management systems. Friends Fiduciary will continue to support diversity in the workplace at all levels and supports company transparency on the effectiveness of diversity, equity, and inclusion programs and policies.