Equal Employment Opportunity (EEO) – Home Depot (2012)

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 recruiting/retaining employees. We believe Home Depot customers are increasingly diverse; therefore a similarly diverse work force is more likely to anticipate and respond effectively to consumer demand. EEO reporting has economic relevance.

Home Depot shareholder votes in favor of a Diversity Report surpassed 23%, 26%, 22%, and 25% in 2011, 2010, 2009 and 2008 respectively – sending a consistent signal to management that shareowners desire increased accountability.

The Company annually files an EEO-1 report with the Equal Employment Opportunity Commission. This information could be made available to shareholders at a minimal additional cost.

Allegations of discrimination in the workplace burden shareholders with costly litigation that can damage a company’s reputation.

Home Depot has paid out more than $100 million to settle discrimination lawsuits in the last 15 years.  The most significant EEOC settlement of $87 million was in 1997. In 2004, Home Depot agreed to pay $5.5 million to settle charges of class-wide gender, race and national origin discrimination at more than 30 Colorado stores. In 2009, Home Depot paid $84,750 to settle retaliation charges related to a 2004 discrimination suit.

RESOLVED: The shareholders request that Home Depot prepare a diversity report, at reasonable cost and omitting confidential information, available to investors by September 2012, 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;

3. A description of any policies and programs oriented specifically toward increasing the number of managers who are qualified females or minorities.

Supporting Statement: In 2009, the U.S. Equal Employment Opportunity Commission reported racial minorities comprised 34% of the private industry workforce, but just 11% of executives and managers.  Likewise,women represented 48% of the workforce, but just 28% of executives and managers. Employment and advancement barriers persist.

Several major U.S. corporations provide diversity reports with detailed EEO information including Walmart, Hewlett Packard, Nike, Costco and Intel.

In 2001, Home Depot began providing EEO information to investors upon request.  Since then, Home Depot reversed its policy on disclosure of this information. 

We agree with a recommendation of the 1995 bipartisan Glass Ceiling Commission 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.” Home Depot has demonstrated leadership on many corporate social responsibility issues.  We ask the company to again demonstrate leadership in diversity by committing to EEO disclosure.

Home Depot Shareholders Urge Company to Improve Diversity Disclosure

Boston, MA, June 1, 2011

Investors will cast their votes tomorrow at the annual meeting of The Home Depot (NYSE: HD) on a shareholder proposal calling on the company to prepare a diversity report. The resolution, filed by members of the Interfaith Center on Corporate Responsibility requests that the report include the following:

1. A chart identifying employees according to their gender and race,

2. A summary description of any affirmative action policies and programs, and

3. A description of any policies and programs oriented specifically toward increasing the number of managers who are qualified females or minorities.

“Employment barriers persist for women and minorities. Understanding how companies break down those barriers is a shareholder issue. Companies without effective programs designed to break glass ceiling barriers can face allegations of discrimination leading to costly litigation and the erosion of shareholder value,” says Susan Baker from Trillium, the lead proponent of the resolution.

Home Depot annually files an EEO-1 report with the Equal Employment Opportunity Commission but does not make the information public. Investors can’t readily access reports through the Freedom of Information Act process because of long processing times and the ability of a company to circumvent EEOC disclosure.

“Providing EEO-1 data to investors is not a financial burden to shareholders. Wal-Mart, Intel, IBM and Coca-Cola report diversity data to their shareholders and have been doing so for at least four years,” said Judy Byron, OP, spokesperson for the Camilla Madden Charitable Trust. “Home Depot provided diversity data for a very short period of time ten years ago. Now, Home Depot is lagging other major brands making it impossible to track progress on hiring, retaining and promoting women and minority employees,” added Susan Vickers, Vice President of Community Health at Catholic Healthcare West.

Home Depot recommends that shareholders vote against the proposal, maintaining that shareholders should be satisfied with descriptions of its internal programs that cover diversity issues.

“As investors, we commend the efforts Home Depot is making internally, but these programs do not obviate the need for transparency.  EEO-1 data gives investors an important tool for measuring the effectiveness of corporate diversity programs. In the absence of meaningful disclosure, investors cannot fully assess potential risks Home Depot faces, nor for that matter, identify successful diversity efforts,” concluded Susan Baker.

The lead proponent of the Home Depot proxy resolution is Trillium Asset Management Corporation.  The co-proponents include Benedictine Sisters of Mount St. Scholastica, Benedictine Sisters of Virginia, Camilla Madden Charitable Trust, Catholic Healthcare West, Clean Yield Group, Congregation of Benedictine Sisters Boerne TX, Evangelical Lutheran Church in America Board of Pensions, and Missionary Oblates of Mary Immaculate.

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About Trillium Asset Management Corporation

Trillium Asset Management manages equity, balanced and fixed income portfolios for high net worth individuals, foundations, endowments, religious institutions and other non-profits.  Our investment approach emphasizes quality growth at a reasonable price, with integrated ESG (environmental, social and governance) analysis.  Trillium has offices in Boston, Durham and San Francisco.

About the Interfaith Center on Corporate Responsibility (ICCR)

Currently celebrating its 40^th year, ICCR is the pioneer coalition of active shareholders who view the management of their investments as a catalyst for change.  Its 300 member organizations with over $100 billion in AUM have an enduring record of corporate engagement that has demonstrated influence on policies promoting justice and sustainability in the world.

Home Depot – Equal Employment Opportunity Disclosure

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 recruiting and retaining employees. Moreover, we believe Home Depot customers are increasingly diverse; therefore a similarly diverse work force is more likely to anticipate and respond effectively to consumer demand. EEO reporting has economic relevance.

Home Depot shareholder votes in favor of a diversity report surpassed 27%, 22%, and 25% in 2010, 2009 and 2008, respectively – sending a consistent signal to management that shareowners desire increased accountability.

The Company annually files an EEO-1 report with the Equal Employment Opportunity Commission. Hence, this information could be made available to shareholders at a minimal additional cost.

Allegations of discrimination in the workplace burden shareholders with costly litigation that can damage a company’s reputation.

Home Depot has paid out more than $100 million to settle discrimination lawsuits in the last 14 years.  The most significant EEOC settlement of $87 million was in 1997. In 2004, Home Depot agreed to pay $5.5 million to settle charges of class-wide gender, race and national origin discrimination at more than 30 Colorado stores. In 2009, Home Depot paid $84,750 to settle  retaliation charges related to a 2004 discrimination suit.

RESOLVED

The shareholders request that Home Depot prepare a diversity report, at reasonable cost and omitting confidential information, available to investors by September 2011, 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.

SUPPORTING STATEMENT

In 2008, the U.S. Equal Employment Opportunity Commission reported racial minorities comprised 34% of private industry, but just 12% of executives and managers.  Likewise, women represented 48% of the workforce, but just 29% of executives and managers. Employment and advancement barriers persist.

Several major U.S. corporations provide diversity reports with detailed EEO information including Wal-Mart, Hewlett-Packard, Nike, Costco, Intel, and AllState.

In 2001, Home Depot began providing EEO information to investors upon request.  Since then Home Depot reversed its policy on disclosure of this information.

We agree with a recommendation of the 1995 bipartisan Glass Ceiling Commission 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.”

The Social Investment Forum and RiskMetrics concluded in a 2008 study of corporate disclosure of EEO data that corporate transparency on EEO progress is necessary to assess investment risk.

Home Depot has demonstrated leadership on many corporate social responsibility issues.  We ask the company to again demonstrate leadership in diversity by committing to EEO disclosure.

Home Depot- Equal Employment Opportunity Report

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 recruiting and retaining employees. Moreover, we believe Home Depot customers are increasingly diverse; therefore a similarly diverse work force is more likely to anticipate and respond effectively to consumer demand. EEO reporting has economic relevance.

Home Depot shareholder votes in favor of a diversity report surpassed 22%, 25%, and 25% in 2009, 2008 and 2007, respectively – sending a consistent signal to management that shareowners desire increased accountability.

The Company annually files an EEO-1 report with the Equal Employment Opportunity Commission. Hence, this information could be made available to shareholders at a minimal additional cost.

Allegations of discrimination in the workplace burden shareholders with costly litigation that can damage a company’s reputation.

Home Depot has paid out more than $100 million to settle discrimination lawsuits in the last 13 years.  The most significant EEO settlement of $87 million was in 1997. In 2004, Home Depot agreed to pay $5.5 million to settle charges of class-wide gender, race and national origin discrimination at more than 30 Colorado stores. In 2006, Home Depot paid $125,000 to settle a racial discrimination suit.

RESOLVED

The shareholders request that Home Depot prepare a diversity report, at reasonable cost and omitting confidential information, available to investors by September 2010, 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.

SUPPORTING STATEMENT

In 2006, the U.S. Equal Employment Opportunity Commission reported racial minorities comprised 32% of private industry but just 17% of executives and managers.  Likewise, women represented 48% of the workforce, but just 36% of executives and managers. Employment and advancement barriers persist.

Several major U.S. corporations provide diversity reports with detailed EEO information including Wal-Mart, IBM, Intel, Merck, Costco and Coca-Cola.

In 2001, Home Depot began providing EEO information to investors upon request.  Since then Home Depot reversed its policy on disclosure of this information.

We agree with a recommendation of the 1995 bipartisan Glass Ceiling Commission 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.”

The Social Investment Forum and RiskMetrics concluded in a 2008 study of corporate disclosure of EEO data that corporate transparency on EEO progress is necessary to assess the risks and opportunities of an investment.

Home Depot has demonstrated leadership on many corporate social responsibility issues.  We ask the company to again demonstrate leadership in diversity by committing to EEO disclosure.

Home Depot and the Endangered Forests of Patagonia

Ancient forests in South America…Home Depot…environmental groups protest. It may sound like a Hollywood script about the timber battles of the 1990s, but unfortunately it describes the players in the latest chapter in the ongoing battle to protect remaining endangered forests in the world.

In the heart of the Patagonia region of Chile, the multinational consortium of financiers, HidroAysén, is proposing to build five hydroelectric dams on the Pascua and Baker Rivers. The dams, if built, would flood two pristine rivers and nearly 11,000 acres of Chile’s most biologically rich forest, agricultural and ranching lands. Included in this area would be some of the world’s rarest forest types and the habitat of a critically endangered species – the huemul deer, a Chilean national symbol.

Beyond the direct impact of the dams, the dams’ transmission lines would require clear-cutting forested areas for at least a thousand miles. The route would traverse 64 Chilean communas, including some indigenous communities, and would damage fourteen areas that have been granted protected status under Chilean law because of their unique environmental values and vulnerabilities.

Most Chileans oppose these plans. Over 30 Chilean governmental agencies have joined Chile’s forestry agency in publicly expressing strong concern about the potential environmental and social impacts of the plans – and many of them have called for the outright rejection of HidroAysén’s inferior environmental study.

In response, a group of Chilean and American environmental organizations including International Rivers, Friends of the Earth, ForestEthics, Rainforest Action Network, Environmental Defense, Sierra Club, Natural Resources Defense Council and Pacific Environment, have been fighting the dams for many years. The campaign has included the usual tactics employed by the environmental community over the years, but this year they have begun to put pressure on the network of companies that are both directly involved and indirectly implicated by the project.

One of those relationships includes Home Depot. CMPC and Arauco are two Chilean timber companies that play a pivotal role in the project consortium. They also happen to be suppliers of wood products to Home Depot – in fact, the company is by far the largest source of sales for the two companies.

Now you may be saying to yourself, didn’t we already cross this bridge with Home Depot years ago? And you would be right. In 1999, as part of a broad settlement involving a number of organizations including Trillium Asset Management Corporation (“Trillium”), Home Depot committed to eliminate the purchase of wood and wood products from endangered regions around the world by year-end 2002.

In 2003 as a part of that process, CMPC, Arauco and Home Depot made widely publicized, written commitments to protect Chilean forests. In that agreement, Home Depot committed “to provide for the protection of native forests in Chile.”

Trillium, in cooperation with a group of other shareholders, is leading an engagement with Home Depot focused on Home Depot’s commitments to protect the native forests of Chile. Home Depot’s relationships with the timber companies offer an important leverage point that can add to the growing pressure on the proposed dams.

The situation also presents serious reputation risk to the company. Not only have some of the best-known environmental groups come out publicly and forcefully in calling attention to Home Depot’s relationship with the proposed dams, but in the past sixty days more than 5,000 customers have written to the company to say they will no longer shop at Home Depot because of the proposed dams controversy.

For both of these reasons we believe that Home Depot must take a positive, meaningful and public stand against these proposed dams.

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 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 11 years. While Home Depot’s most significant EEO settlement of $87 million was in 1997, allegations of discrimination have persisted. In 2004, 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 more than 30 Colorado stores. Most recently, in 2006, Home Depot paid $125,000 to settle a racial discrimination suit.

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, 02/04, 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 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 EEO information to investors upon request. Since then, however, Home Depot has reversed its policy on disclosure of this information.

Home Depot shareholder votes in favor of a comprehensive diversity report surpassed 26%, 36% and 30% in 2007, 2006 and 2005, respectively – 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 its leadership by honoring its previous commitment to 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 2008, 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 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.

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.