WORKPLACE: Update: Albertson's Responds to EEO Shareholder Action, March 1993

Update: Albertson's Responds to EEO Shareholder Action

Published, March 1993

After negotiating an agreement for better disclosure on equal employment opportunity (EEO) practices, we have withdrawn our shareholder resolution against Albertson's, a chain of 650 supermarkets in 17 western and southern states. The agreement should provide us with information about whether the company treats its 60,000 employees in an acceptable manner for investors with strong workplace screens.

Our resolution requested the company to report on the breakdown of its workforce composition by race and gender using the government's EEO-1 report format, and on any programs it may have in place to improve workplace diversity and advancement opportunities for its female and minority workers. Our aim was to obtain this information in order to evaluate better Albertson's equal employment opportunity record, and also to draw top management's attention to this important area of corporate responsibility.

We targeted Albertson's because the company refused our repeated requests over the past year for EEO data. Moreover, the company is being sued in California by a group of employees for discrimination on the basis of gender and race. In 1989, Albertson's had to settle with the EEO commission in Seattle on a sex discrimination class action suit.

Many clients joined us in filing this resolution, adding strength to the effort: the Calvert Social Investment Fund, American Friends Service Committee, Catholic Healthcare West, and Glenmary Home Missioners. Other co-filers include Sisters of the Sorrowful Mother, the Board for Global Ministries of the United Methodist Church (Women's Division) and two individuals represented by Progressive Securities Financial Corporation of Portland, OR. Their participation conveyed the urgency and importance of the issue to top management.

Albertson's responded promptly and creatively to our resolution. Three senior managers flew to Boston on January 5th to discuss issues raised in the resolution with us and Jon Lickerman, director of social research at the Calvert Group. The three-hour meeting was cordial, offering an honest exchange of ideas and information.

The following week, Albertson's contacted us with a proposal offering to 1) devote at least a half page of their next annual report to employee relations issues including EEO 2) complete our equal employment questionnaire this year and next, and 3) meet with us again next year to discuss progress on the issue. We accepted the offer and withdrew the resolution on behalf of clients and co-filers.

We reiterated our interest in seeing Albertson's equal employment performance improve, and urged the company to consider a more detailed public report on the subject. Furthermore, we reserved the right to file a similar resolution in future years should the company not show significant signs of progress. It is our hope that this will not be necessary and that Albertson's will actively work to improve its EEO performance. We are encouraged by the cordial nature of our discussions with management, and by the company's willingness to acknowledge and respond to our concerns.

The information provided in the above article is for historical purposes only. Such information may no longer be current and therefore should not be relied upon.

The information contained herein has been prepared from sources and data we believe to be reliable, but we make no guarantee as to its adequacy, accuracy or completeness. We cannot and do not guarantee the suitability or profitability of any particular investment. No information herein is intended as an offer or solicitation of an offer to sell or buy, or as a sponsorship of any company, security, or fund. Opinions expressed herein are subject to change without notice.