|Has the company disclosed the diversity of their workforce, including demographics such as race, gender, and ethnicity through the disclosure of EEO-1 data? What actions is the company taking to advance DEI and support an engaged workforce?|
|The Procter & Gamble Company||2021||US||Vote Bulletin||https://www.blackrock.com/corporate/literature/press-release/blk-vote-bulletin-procter-and-gamble-oct-2020.pdf|
BIS regularly reviews P&G’s governance structure and risk profile. BIS has held multiple engagements with the company’s board and management in recent years, in which we have discussed a range of material issues that, in our view, drive long-term shareholder value.
During our most recent engagement with P&G, we discussed the company’s response during the COVID-19 pandemic, the shareholder proposals on the company’s proxy statement, and human capital management, as well as recent updates to the company’s board structure.
- Shareholder Proposal
- Annual Report on Diversity
- Longstanding, multi-pronged initiatives, along with robust disclosures, place P&G at the forefront of DEI efforts in the market - the requested report would be redundant
In January 2020, we asked companies to publish disclosures aligned with the SASB standards, which for many sectors includes disclosing the racial and ethnic profile of their U.S. workforce. During the 2019-20 proxy season, we conducted numerous engagements on diversity in the workplace and supported shareholder proposals that addressed the issue.
In September 2020, P&G updated its workforce demographic disclosure including gender and ethnic diversity by level.9 This disclosure addresses the shareholder proposal’s request and enhances the company’s diversity, equity, and inclusion (DEI) efforts regarding talent and development initiatives. Currently P&G’s workforce includes 25% multicultural employees and 40% female employees. The company has stated their aspiration of 50/50 representation of women at all levels, all functions, and all geographies in the company. Similarly, they recently declared their aspiration to achieve 40% representation of multicultural employees in the U.S. workforce.
In addition to internal DEI efforts, for more than 40 years P&G’s Supplier Diversity program10 has been increasing economic inclusion for women- and minority-owned businesses—including military veterans, people with disabilities, and LGBTQ owners. P&G is a founding member of the Executive Leadership Council’s Game Changer initiative, focused on codifying best practices for developing African American Talent.
More broadly, P&G has led constructive dialogue promoting racial equity and understanding, largely by releasing several films publicly since 2017 about racial bias and racial inequality.11 They also established the P&G “Take on Race” Fund, with an initial contribution of $5 million.
In our assessment, these longstanding, multi-pronged initiatives, along with robust disclosures, place P&G at the forefront of DEI efforts in the market. As a result, we determined that the requested report would be redundant and therefore did not support it.