Shareholders target 'white man's world' with record demands for diversity data

[DonViejo]

U.S. companies are coming under intense pressure to diversify their executive ranks.

By LORRAINE WOELLERT, CATHERINE BOUDREAU and KELLIE MEJDRICH

04/06/2021 12:01 PM EDT

U.S. companies are coming under intense pressure to diversify their executive ranks, with shareholders more than doubling their formal demands for audits and increased scrutiny on hiring and promotions.

But even as the Derek Chauvin murder trial grips the nation and race rises to the top of the social and legislative agenda, some executives who publicly praise the power of workforce diversity are pushing back against efforts to make their own hiring more transparent.

Amazon, JPMorgan, Johnson & Johnson and other household-name companies are fighting shareholder proposals to put diversity questions up for a vote. An effort by Nasdaq to require diversity reporting has been mired at the Securities and Exchange Commission. And activist investors, unable to shine a light on corporate hiring, are relying on algorithms to suss out which boards meet their metrics for racial, ethnic and gender diversity.

“It’s still a white man's world at the top,” said Michael Passoff, CEO of Proxy Impact, a shareholder advocacy group that tracks resolutions on environmental, social and governance issues. “Companies came out making statements in support of racial justice, and now shareholders are going to hold them to it.”

more
https://www.politico.com/news/2021/04/06/shareholders-diversity-data-479159

[Johnny2X2X]

1. Good, this will strengthen US companies

Diversity makes any organization stronger and more able to adapt to changing conditions in the market.