Companies Leading and Lagging on Racial Equity Disclosures from JUST’s 2022 Corporate Racial Equity Tracker
Last week, JUST Capital launched an update to our Corporate Racial Equity Tracker – a comprehensive accounting of the state of disclosure from the 100 largest public U.S. employers on the commitments and actions they are taking to advance racial equity in their workplaces and communities, from pay equity analyses by race/ethnicity to workforce demographic disclosure to local community investments.
This year, we saw disclosure increase overall on workforce and board diversity data, as well as a 33% increase in the number of companies that disclosed conducting pay equity analyses. But corporate America continues to lag when it comes to disclosing the results of their pay equity analyses, racial and ethnic diversity targets, and details on anti-harassment training – additionally, few companies disclose commitments to advancing racial equity in the communities they most impact, like spending on local suppliers and whether they have re-entry or second chance policies. While our Tracker doesn’t reveal the lived experiences of employees, it shines an important light on the companies that are striving to do more in a time when advancing racial equity has become an increasingly urgent national priority of the public – as well as the work that still needs to be done.
Today, we’re looking under the hood of our 2022 Tracker to highlight companies – including Accenture, Intel, JPMorgan Chase, and Target – that stand out for having high numbers of disclosures (15 or more out of the 23 we track) or unique reporting practices, as well as some of the companies that disclosed the least.
“At Intel, we believe disclosure and action are not only important for our own advancement and accountability, but for creating change across the industry,” shared Dawn Jones, Intel’s Chief Diversity and Inclusion Officer and VP of Social Impact. Intel embodies these principles with its robust disclosure of diversity targets by race and ethnicity as well as its pay equity analyses. The company also discloses average hours of training and career development for employees, provides tuition assistance and anti-harassment training, and supports its communities by working with the Vera Institute of Justice and local governments to create more equitable outcomes for all in the criminal justice system. Since 2017, Intel has donated $3.25 million in grants for hands-on STEM education for middle schoolers.
Accenture stands out for its detailed race and ethnicity targets, which focus on increased representation across both management and non-management roles. By 2025 Accenture aims to increase representation of African American and Black employees from 9% to 12% and representation of Hispanic American and Latinx employees from 9.5% to 13%. The company strives to double the number of African American and Black and Hispanic American and Latinx managing directors. Additionally, Accenture reports its race and ethnicity pay ratio, discloses its diverse and local supplier spend amounts, and provides apprenticeship programs.
According to David Miree, JPMorgan Chase’s Global Head of Diversity, Equity & Inclusion, JPMorgan aims “to be the bank of choice for all” and believes that “Building diverse teams not only strengthens our business and our culture, but also broadens the range of ideas and solutions we can offer.” As part of its efforts to bring diversity to its workforce, JPMorgan discloses internal hiring rates and detailed racial/ethnic data on promotions and pay ratios and provides anti-harassment training, tuition assistance, and apprenticeship programs to employees. The company also works to support its communities through a robust second chance agenda for hiring formerly incarcerated candidates and by disclosing how much it spends on diverse suppliers as well as goals for increasing that spend.
While Target is among seven companies that disclose 15 of 23 metrics, the company stands out for its unique disclosure practices and efforts to connect racial equity issues back to socioeconomic inequities. Target discloses highly disaggregated EEO-1 level workforce data by gender, race, and job category like some of its peers, but it also departs from the typical EEO-1 reporting structure by inclusively counting workers who prefer not to report their gender or race. “At Target, we understand we all have a role to play in creating a more equitable and inclusive society,” shared Kiera Fernandez, Target’s SVP of Talent & Change and Chief Diversity & Inclusion Officer, “So when we’re successful, the wins are everybody’s.” The company also announced in February that it was increasing its starting wage range from $15 to $24, depending on job and local market, striving to pay a living wage to all its workers – the #1 priority for the American public, according to our survey research.
Other companies with high numbers of metric disclosures include IBM, Wells Fargo, Microsoft, and Anthem. On the other end of the spectrum, those with the fewest disclosures include Berkshire Hathaway and Tesla, respectively disclosing just two and three of the 23 metrics we track. According to our estimates, Berkshire Hathaway is among the top 10 largest U.S. employers, but its two disclosures reflect the racial/ethnic representation on its board rather than employees. Meanwhile, Teslas has faced serious allegations of racism and a slew of lawsuits from former employees, further indication that the electric automaker has significant work to do, not only in disclosing on and advancing racial equity but also addressing concerning practices.
These companies, like all of corporate America, are facing our nation’s collective reckoning with system racism sparked two years ago by the deaths of multiple Black Americans at the hands of police. While Tesla and poor performing peers are clearly at different points in their journey than companies like Target, JPMorgan, Intel, and Accenture, we hope that this moment – while revealing difficult truths about racism in corporate America – will compel more and more companies to act, disclosing the current state of their practices and setting goals for improvement. Our country has a long way to go to rebalance the scales, and the actions of our nation’s largest companies must play a key part in building an economy and society that truly serves all Americans.