Pentair – Implement Sexual Orientation Non Discrimination Policy
WHEREAS
Pentair does not explicitly prohibit discrimination based on sexual orientation in its written employment policy;
Our competitors Donaldson, Dover, Graco, Harsco, Illinois Tool Works, Tecumseh Products, Tennant and Timken Company explicitly prohibit this form of discrimination in their written policies, according to the Human Rights Campaign;
Over 86% of the Fortune 500 companies have adopted written nondiscrimination policies prohibiting harassment and discrimination on the basis of sexual orientation, as have 98% of the Fortune 100 companies, according to the Human Rights Campaign;
We believe that corporations that prohibit discrimination on the basis of sexual orientation have a competitive advantage in recruiting and retaining employees from the widest talent pool;
National public opinion polls consistently find more than three quarters Americans support equal rights in the workplace for gay men, lesbians and bisexuals.
According to a September 2005 survey by Harris Interactive and Witeck-Combs, 57% of heterosexual respondents consider it extremely or very important that a company have a written non- discrimination policy that includes sexual orientation, compared to only 43% in 2002. Additionally, only 47% believe that senior executives at their companies welcome, hire, and encourage a diverse workforce.
A March 2003 Gallup poll found 88% of respondents favored equal opportunity in employment for gays and lesbians.
Minneapolis, San Francisco, Seattle and Los Angeles have adopted legislation restricting business with companies that do not guarantee equal treatment for lesbian and gay employees;
Our company has operations in, and makes sales to institutions in states and cities that prohibit discrimination on the basis of sexual orientation;
Seventeen states, the District of Columbia and 167 cities and counties (including Houston), have laws prohibiting employment discrimination based on sexual orientation, and in Houston, at least 30 major employers have sexual orientation nondiscrimination policies and 25 grant same-sex domestic partner benefits (see www.hrc.org/worknet);
RESOLVED
The Shareholders request that Pentair amend its written equal employment opportunity policy to explicitly prohibit discrimination based on sexual orientation and to substantially implement the policy.
SUPPORTING STATEMENT
Employment discrimination on the basis of sexual orientation diminishes employee morale and productivity. Because state and local laws are inconsistent with respect to employment discrimination, our company would benefit from a consistent, corporate wide policy to enhance efforts to prevent discrimination, resolve complaints internally, and ensure a respectful and supportive atmosphere for all employees. Pentair will enhance its competitive edge by joining the growing ranks of companies guaranteeing equal opportunity for all employees.
Halliburton – Implement Sexual Orientation Non Discrimination Policy
WHEREAS
Halliburton does not explicitly prohibit discrimination based on sexual orientation in its written employment policy;
Our competitors Baker Hughes and Bechtel explicitly prohibit this form of discrimination in their written policies, according to the Human Rights Campaign;
Over 86% of the Fortune 500 companies have adopted written nondiscrimination policies prohibiting harassment and discrimination on the basis of sexual orientation, as have 98% of the Fortune 100 companies, according to the Human Rights Campaign;
We believe that corporations that prohibit discrimination on the basis of sexual orientation have a competitive advantage in recruiting and retaining employees from the widest talent pool;
National public opinion polls consistently find more than three quarters Americans support equal rights in the workplace for gay men, lesbians and bisexuals.
According to a September 2005 survey by Harris Interactive and Witeck-Combs, 57% of heterosexual respondents consider it extremely or very important that a company have a written non- discrimination policy that includes sexual orientation, compared to only 43% in 2002. Additionally, only 47% believe that senior executives at their companies welcome, hire, and encourage a diverse workforce.
A March 2003 Gallup poll found 88% of respondents favored equal opportunity in employment for gays and lesbians.
Minneapolis, San Francisco, Seattle and Los Angeles have adopted legislation restricting business with companies that do not guarantee equal treatment for lesbian and gay employees;
Our company has operations in, and makes sales to institutions in states and cities that prohibit discrimination on the basis of sexual orientation;
Seventeen states, the District of Columbia and 167 cities and counties (including Houston), have laws prohibiting employment discrimination based on sexual orientation, and in Houston, at least 30 major employers have sexual orientation nondiscrimination policies and 25 grant same-sex domestic partner benefits (www.hrc.org/worknet);
RESOLVED
The Shareholders request that Halliburton amend its written equal employment opportunity policy to explicitly prohibit discrimination based on sexual orientation and to substantially implement the policy.
SUPPORTING STATEMENT
Employment discrimination on the basis of sexual orientation diminishes employee morale and productivity. Because state and local laws are inconsistent with respect to employment discrimination, our company would benefit from a consistent, corporate wide policy to enhance efforts to prevent discrimination, resolve complaints internally, and ensure a respectful and supportive atmosphere for all employees. Halliburton will enhance its competitive edge by joining the growing ranks of companies guaranteeing equal opportunity for all employees.
Home Depot – Equal Employment Opportunity (EEO)
WHEREAS
Equal employment opportunity (EEO) is a fair employment practice and an investment issue. We believe that companies with a good EEO record have a competitive advantage in employee recruitment and retention. Moreover, U.S. customers are becoming increasingly diverse. A representative work force is more likely to anticipate and respond effectively to evolving consumer demand.
Conversely, allegations of discrimination in the workplace have created a significant burden for shareholders due to the high cost of litigation and the potential loss of government contracts. Such litigation may also damage a company’s reputation.Specifically, the cost to Home Depot shareholders for settling discrimination lawsuits has exceeded $100 million in the last 10 years. While Home Depot’s most significant EEO settlement of $87 million was in 1997, allegations of discrimination have persisted. In 2004, for example, Home Depot agreed to pay $5.5 million to settle U.S. Equal Employment Opportunity Commission charges of class-wide gender, race and national origin discrimination at its more than 30 Colorado stores.
In U.S. corporations, women and minorities comprise 47% and 27% of the workforce, respectively, yet they represent less than 19% and 11% of executive-level positions. Representation in management is better, but still disproportionately low at 36% for women and 17% for minorities (Peopleclick Research Institute, Feb. 2004, using U.S. Census Bureau’s Census 2000 Special Equal Employment Opportunity Tabulation).
We agree with a recommendation of the 1995 bipartisan Glass Ceiling Commission report that “public disclosure of diversity data—specifically data on the most senior positions—is an effective incentive to develop and maintain innovative, effective programs to break the glass ceiling barriers.”
Many major U.S. corporations provide diversity reports with detailed EEO information, including some that have experienced large discrimination lawsuits, such as Wal-Mart, Texaco and Coca-Cola.
In 2001 Home Depot, in an agreement with a coalition of more than two dozen institutional investors, began providing comprehensive EEO information to investors upon request. Since then, however, Home Depot has reversed its policy on disclosure of this information.
In 2006, 36% of Home Depot shareholders voted for a resolution requesting a comprehensive diversity report – the highest level of support ever on this issue – sending a strong signal to management that shareowners desire increased accountability on EEO.
Home Depot has demonstrated leadership on corporate social responsibility issues. We ask the company to expand upon that leadership by honoring its previous commitment to comprehensive EEO disclosure.
RESOLVED
The shareholders request that Home Depot prepare a diversity report, at reasonable cost and omitting confidential information, available to investors by September 2007, including the following:
1. A chart identifying employees according to their gender and race in each of the nine major EEOC-defined job categories for the last three years, listing numbers or percentages in each category;
2. A summary description of any affirmative action policies and programs to improve performance, including job categories where women and minorities are underutilized; and
3. A description of any policies and programs oriented specifically toward increasing the number of managers who are qualified females or minorities.
Expeditors International – Implement Sexual Orientation Non Discrimination Policy
WHEREAS
Expeditors International does not explicitly prohibit discrimination based on sexual orientation in its written employment policy;
Our direct competitors EGL and UPS explicitly prohibit this form of discrimination in their written policies; in Washington where Expeditors is headquartered, at least 37 major employers have this policy, including Microsoft, Starbucks, Safeco, Weyerhauser, Washington Mutual, Costco, Expedia, Nordstrom and others (see www.hrc.org/worklife);
Over 86% of the Fortune 500 companies have adopted written nondiscrimination policies prohibiting harassment and discrimination on the basis of sexual orientation, as have more than 98% of the Fortune 100 companies, according to the Human Rights Campaign;
We believe that corporations that prohibit discrimination on the basis of sexual orientation have a competitive advantage in recruiting and retaining employees from the widest talent pool;
National public opinion polls consistently find more than three quarters Americans support equal rights in the workplace for gay men, lesbians and bisexuals.
According to a September 2005 survey by Harris Interactive and Witeck-Combs, 57% of heterosexual respondents consider it extremely or very important that a company have a written non- discrimination policy that includes sexual orientation, compared to only 43% in 2002. Additionally, only 47% believe that senior executives at their companies welcome, hire, and encourage a diverse workforce.
A March 2003 Gallup poll found 88% of respondents favored equal opportunity in employment for gays and lesbians.
Minneapolis, San Francisco, Seattle and Los Angeles have adopted legislation restricting business with companies that do not guarantee equal treatment for lesbian and gay employees;
Our company has operations in, and makes sales to institutions in states and cities that prohibit discrimination on the basis of sexual orientation;
Seventeen states, the District of Columbia and more than 167 cities and counties (including the cities of Seattle, Olympia, Burien and Tacoma), have laws prohibiting employment discrimination based on sexual orientation;
RESOLVED
The Shareholders request that Expeditors International amend its written equal employment opportunity policy to explicitly prohibit discrimination based on sexual orientation and to substantially implement the policy.
SUPPORTING STATEMENT
Employment discrimination on the basis of sexual orientation diminishes employee morale and productivity. Because state and local laws are inconsistent with respect to employment discrimination, our company would benefit from a consistent, corporate wide policy to enhance efforts to prevent discrimination, resolve complaints internally, and ensure a respectful and supportive atmosphere for all employees. Expeditors International will enhance its competitive edge by joining the growing ranks of companies guaranteeing equal opportunity for all employees.
Equal Employment Opportunity
Confronting the Glass Ceiling
At the highest levels of business, there is indeed a barrier only rarely penetrated by women or persons of color. Consider: 97% of the senior managers of Fortune 1000 industrial and Fortune 500 companies are white; 95 to 97% are male….
The research also indicates that where there are women and minorities in high places, their compensation is lower.
The U.S. Glass Ceiling Commission, 1995
If the glass ceiling is to ever fade into history, it will require aggressive efforts by corporations to undermine old prejudices and residual institutional barriers to upward mobility faced by women and people of color. At Trillium Asset Management Corporation (“Trillium”), we seek to invest in companies that are striving hard to achieve diversity at all levels, from the clerical pool to the board room. Corporations of the 21st century will simply not be able to compete effectively in the global economy unless their employees are informed by diverse perspectives, backgrounds and experiences.
What We’re Doing About This Issue
How We Screen
When we consider investing in a company, Trillium considers its reputation regarding fair hiring and promotion practices. We will avoid investing in companies with egregious, pervasive or longstanding patterns of discriminatory behavior. If problems emerge at a company in which we are already invested, we will engage with management in dialogue to discern how well and how seriously the company is addressing its challenges. We generally view divestment on social grounds as a last resort, to be used only if dialogue and shareholder proposals fail to have a positive impact upon corporate behavior.
Recent Dialogue & Shareholder Proposals
Since 1997, Trillium has participated in dialogue with Home Depot to urge the company to disclose publicly its EEO-1 data. We were part of a shareholder coalition that has filed a shareholder proposal at the company for the last three years that formally requests this data, and were delighted to withdraw the proposal when Home Depot agreed to disclose EEO-1 data beginning this year.
This year, we joined a group of shareholders in filing a similar proposal at Bank of America, and filed another at Morgan Stanley Dean Witter. In both cases, the companies have agreed to release EEO-1 data and we withdrew our proposals. We applaud these three corporations for their responsiveness to shareholders’ desire for greater transparency and accountability.
Why Workforce Diversity Data?
Most of America’s leading corporations have programs in place to recruit and retain women and racial/ethnic minorities for managerial and leadership positions. But can outside stakeholders evaluate whether a corporation is doing enough to diversify its ranks?
Trillium tracks a number of qualitative indicators that provide insight into corporate culture (for example, the results of employee surveys; third-party rankings such as Working Woman magazine’ s annual “Best Companies For Working Mothers”; the strength of work-family benefits packages; mentoring initiatives; etc.). However, we also place great importance on companies’ workforce diversity statistics, and what they reveal about the long-term success or failure of corporate affirmative action initiatives.
We ask companies to provide us with copies of their most recent “EEO-1 consolidated data form.” This is a one-page worksheet that is submitted to the federal government by all private companies with 100 or more employees, and all companies that hold federal contracts. We look at the last several years’ worth of data to see if a company has made progress in meeting its goals over time, and we also compare it to workforce diversity statistics for the company/ s industry sector.
Corporations are required to submit the EEO-1 form on an annual basis to the federal government, but do not have to disclose it to the public at large (and are permitted, in fact, to block attempts to acquire the data through Freedom of Information Act requests). We believe, however, that transparency provides one of the most effective incentives to make progress in meeting equal employment goals. We therefore work with other concerned shareholders to press companies to voluntarily make this data available to the public for the asking.
Social Issues
At any given time, the social research and advocacy staff of Trillium Asset Management Corporation are actively working on numerous social and environmental issues of concern to our clients. (Please visit our Engagement page to read more about the means we use to influence corporations.)
The categories below link to more specific descriptions of our work on various issues. The information is provided in the form of Adobe Acrobat (PDF) files.
Animal Rights
Environmental Advocacy
Equal Employment Opportunity
Human Rights
Indigenous Rights
Media Responsibility
Sexual Orientation
You can view additional information about each issue by clicking on the Social Issues links in the sidebar on the left.
Issue Report on Equal Employment Opportunity – The Home Depot
Whereas: Equal employment opportunity (EEO) is a fair employment practice and an investment issue. We believe that companies with a good EEO record have a competitive advantage in employee recruitment and retention. Moreover, U.S. customers are becoming increasingly diverse. A representative work force is more likely to anticipate and respond effectively to evolving consumer demand.
Conversely, allegations of discrimination in the workplace have created a significant burden for shareholders due to the high cost of litigation and the potential loss of government contracts. Such litigation may also damage a company’s reputation.
Specifically, the cost to Home Depot shareholders for settling discrimination lawsuits has exceeded $100 million in the last 10 years. While Home Depot’s most significant EEO settlement of $87 million was in 1997, allegations of discrimination have persisted. In August 2004, Home Depot agreed to pay $5.5 million to settle U.S. Equal Employment Opportunity Commission charges of class-wide discrimination based on gender, race and national origin in its Colorado stores.
In U.S. corporations, women and minorities comprise 47% and 27% of the workforce, respectively, yet they represent less than 19% and 11% of executive-level positions. Representation in management is better, but still disproportionately low at 36% for women and 17% for minorities (Peopleclick Research Institute, Feb. 2004, using U.S. Census Bureau’s Census 2000 Special Equal Employment Opportunity Tabulation).
We agree with a recommendation of the 1995 bipartisan Glass Ceiling Commission report that “public disclosure of diversity data—specifically data on the most senior positions—is an effective incentive to develop and maintain innovative, effective programs to break the glass ceiling barriers.”
Many major U.S. corporations provide diversity reports with detailed EEO information, including some that have previously experienced discrimination lawsuits, such as Chevron-Texaco and Coca-Cola.
In 2001 Home Depot, in an agreement with a coalition of more than two dozen institutional investors, began providing comprehensive EEO information to investors upon request. Since then, however, Home Depot has reversed its policy on disclosure of this information.
In 2005, 30% of Home Depot shareholders voted for a resolution requesting a comprehensive diversity report – the highest level of support ever on this issue – sending a strong signal to management that shareowners desire increased accountability on EEO.
Home Depot has demonstrated leadership on corporate social responsibility issues. We ask the company to expand upon that leadership by honoring its previous commitment to comprehensive EEO disclosure.
RESOLVED: The shareholders request that Home Depot prepare a diversity report, at reasonable cost and omitting confidential information, available to investors by September 2006, including the following:
1. A chart identifying employees according to their gender and race in each of the nine major EEOC-defined job categories for the last three years, listing numbers or percentages in each category;
2. A summary description of any affirmative action policies and programs to improve performance, including job categories where women and minorities are underutilized; and
3. A description of any policies and programs oriented specifically toward increasing the number of managers who are qualified females or minorities.
Sexual Orientation Nondiscrimination Policy – Expediters International
WHEREAS: Expeditors International does not explicitly prohibit discrimination based on sexual orientation in its written employment policy;
Our competitors EGL and UPS explicitly prohibit this form of discrimination in their written policies, according to the Human Rights Campaign;
Over 84% of the Fortune 500 companies have adopted written nondiscrimination policies prohibiting harassment and discrimination on the basis of sexual orientation, as have more than 98% of the Fortune 100 companies, according to the Human Rights Campaign;
We believe that corporations that prohibit discrimination on the basis of sexual orientation have a competitive advantage in recruiting and retaining employees from the widest talent pool;
National public opinion polls consistently find more than three quarters Americans support equal rights in the workplace for gay men, lesbians and bisexuals.
According to a September 2005 survey by Harris Interactive and Witeck-Combs, 57% of heterosexual respondents consider it extremely or very important that a company have a written non- discrimination policy that includes sexual orientation, compared to only 43% in 2002. Additionally, only 47% believe that senior executives at their companies welcome, hire, and encourage a diverse workforce.
A March 2003 Gallup poll found 88% of respondents favored equal opportunity in employment for gays and lesbians.
Minneapolis, San Francisco, Seattle and Los Angeles have adopted legislation restricting business with companies that do not guarantee equal treatment for lesbian and gay employees;
Our company has operations in, and makes sales to institutions in states and cities that prohibit discrimination on the basis of sexual orientation;
Sixteen states, the District of Columbia and more than 178 cities and counties (including the cities of Seattle, Olympia, Burien and Tacoma), have laws prohibiting employment discrimination based on sexual orientation;
RESOLVED: The Shareholders request that Expeditors International amend its written equal employment opportunity policy to explicitly prohibit discrimination based on sexual orientation and to substantially implement the policy.
SUPPORTING STATEMENT
Employment discrimination on the basis of sexual orientation diminishes employee morale and productivity. Because state and local laws are inconsistent with respect to employment discrimination, our company would benefit from a consistent, corporate wide policy to enhance efforts to prevent discrimination, resolve complaints internally, and ensure a respectful and supportive atmosphere for all employees. Expeditors International will enhance its competitive edge by joining the growing ranks of companies guaranteeing equal opportunity for all employees.
Implement Sexual Orientation Nondiscrimination Policy – ExxonMobil
WHEREAS: ExxonMobil does not explicitly prohibit discrimination based on sexual orientation in its written employment policy;
Many of our peers, including Amerada Hess, BP, ChevronTexaco, ConocoPhillips, Marathon Oil, Occidental Petroleum, Shell Oil, and Sunoco explicitly prohibit this form of discrimination in their written policies, according to the Human Rights Campaign;
Over 80% of the Fortune 500 companies have adopted written nondiscrimination policies prohibiting harassment and discrimination on the basis of sexual orientation, as have more than 95% of Fortune 100 companies, according to the Human Rights Campaign;
We believe that corporations that prohibit discrimination on the basis of sexual orientation have a competitive advantage in recruiting and retaining employees from the widest talent pool;
According to a September 2002 survey by Harris Interactive and Witeck-Combs, 41% of gay and lesbian workers in the United States reported an experience with some form of job discrimination related to sexual orientation; almost one out of every 10 gay or lesbian adults also stated that they had been fired or dismissed unfairly from a previous job, or pressured to quit a job because of their sexual orientation;
Minneapolis, San Francisco, Seattle and Los Angeles have adopted legislation restricting business with companies that do not guarantee equal treatment for lesbian and gay employees;
Fourteen states, the District of Columbia and more than 150 cities and counties, including the city of Dallas, have laws prohibiting employment discrimination based on sexual orientation;
Our company has operations in, and makes sales to institutions in states and cities that prohibit discrimination on the basis of sexual orientation;National public opinion polls consistently find more than three quarters of the American people support equal rights in the workplace for gay men, lesbians and bisexuals; for example, in a Gallup poll conducted in March 2003, 88% of respondents favored equal opportunity in employment for gays and lesbians;
RESOLVED: The Shareholders request that ExxonMobil amend its written equal employment opportunity policy to explicitly prohibit discrimination based on sexual orientation and to substantially implement that policy.
SUPPORTING STATEMENT
Employment discrimination on the basis of sexual orientation diminishes employee morale and productivity. Because state and local laws are inconsistent with respect to employment discrimination, our company would benefit from a consistent, corporate-wide policy to enhance efforts to prevent discrimination, resolve complaints internally, and ensure a respectful and supportive atmosphere for all employees. ExxonMobil will enhance its competitive edge by joining the growing ranks of companies guaranteeing equal opportunity for all employees.
Implement Sexual Orientation Nondiscrimination Policy – Halliburton
WHEREAS: Halliburton does not explicitly prohibit discrimination based on sexual orientation in its written employment policy;
Our competitors FMC and Bechtel explicitly prohibit this form of discrimination in their written policies, according to the Human Rights Campaign;
Over 84% of the Fortune 500 companies have adopted written nondiscrimination policies prohibiting harassment and discrimination on the basis of sexual orientation, as have more than 98% of the Fortune 100 companies, according to the Human Rights Campaign;
We believe that corporations that prohibit discrimination on the basis of sexual orientation have a competitive advantage in recruiting and retaining employees from the widest talent pool;
National public opinion polls consistently find more than three quarters Americans support equal rights in the workplace for gay men, lesbians and bisexuals.
According to a September 2005 survey by Harris Interactive and Witeck-Combs, 57% of heterosexual respondents consider it extremely or very important that a company have a written non- discrimination policy that includes sexual orientation, compared to only 43% in 2002. Additionally, only 47% believe that senior executives at their companies welcome, hire, and encourage a diverse workforce.
A March 2003 Gallup poll found 88% of respondents favored equal opportunity in employment for gays and lesbians.
Minneapolis, San Francisco, Seattle and Los Angeles have adopted legislation restricting business with companies that do not guarantee equal treatment for lesbian and gay employees; Our company has operations in, and makes sales to institutions in states and cities that prohibit discrimination on the basis of sexual orientation;
Sixteen states, the District of Columbia and more than 178 cities and counties (includingHouston), have laws prohibiting employment discrimination based on sexual orientation, and in Houston, at least 30 major employers have sexual orientation nondiscrimination policies and 25 grant same-sex domestic partner benefits (see www.hrc.org/worknet);
RESOLVED: The Shareholders request that Halliburton amend its written equal employment opportunity policy to explicitly prohibit discrimination based on sexual orientation and to substantially implement the policy.
SUPPORTING STATEMENT
Employment discrimination on the basis of sexual orientation diminishes employee morale and productivity. Because state and local laws are inconsistent with respect to employment discrimination, our company would benefit from a consistent, corporate wide policy to enhance efforts to prevent discrimination, resolve complaints internally, and ensure a respectful and supportive atmosphere for all employees. Halliburton will enhance its competitive edge by joining the growing ranks of companies guaranteeing equal opportunity for all employees.
