SOCIAL TOPICS (Archive): WORKPLACE

Published, November 1998

       Over the summer, the San Francisco Chronicle ran a story analyzing the equal employment opportunity (EEO) records of Silicon Valley’s high-tech firms. We were not surprised to learn that many companies refused to release their federally filed EEO reports. We were disappointed, however, that Applied Materials, Cisco, and Hewlett Packard (HP) declined – especially the latter two given their strong reputations on this issue. We wrote the three CEOs, urging them to change their policies on disclosure. HP confirmed that their information is publicly available. We also wrote Sanmina and Intel, firms that do disclose EEO data, thanking them for their leadership. We are especially pleased with Sanmina’s terrific record of incorporating diversity at every level of the company.

       When companies deny our requests for EEO information, we routinely seek this information from the Office of Federal Contract Compliance Programs (OFCCP), the federal agency authorized to disseminate company specific EEO information. Though the Freedom of Information Act explicitly requires a timely response to requests for EEO data, our experience has been to the contrary. It often takes years to receive the data, resulting in information that is three or four years out of date when it is finally obtained. Frustrated, we wrote to each of the members of the Massachusetts Congressional delegation, asking for their assistance. Massachusetts Congressman Barney Frank responded by crafting his own letter to the OFCCP asking several pointed questions of the agency’s director.

       We continue to find that by pooling resources within the social investment community and beyond, we have a greater voice in influencing corporate behavior. In October we joined representatives of the Interfaith Center on Corporate Responsibility, The Calvert Social Investment Fund, and Franklin Research & Development in a private meeting with a Home Depot board member and other executives. This discussion was prompted by a shareholder resolution we co-led last May asking Home Depot to disclose its EEO performance record in the wake of a $104 million sex discrimination settlement. That resolution was supported by more than 14 percent of Home Depot’s shareholders. Our group left the private meeting hopeful that there was now, perhaps for the first time, an internal voice for our position on the importance of disclosing EEO information. Now we are weighing various options to support and build upon this potential change in corporate sentiment.

       Walgreens has expressed sympathy for our position that marketing and promoting cigars, pipes, and other tobacco-related products in their holiday fliers is inconsistent with the company’s long-standing commitment to its customers’ health. Responding to our latest letter asking the company to adopt a policy prohibiting the advertising of all tobacco related products, company officials have asked our indulgence for a while longer.

       Atlantic Richfield (ARCO) recently announced it will not be renewing its exploration leases in Burma. ARCO had been subject to significant pressure from institutional shareholders and municipalities with selective purchasing legislation to end ties in Burma. However, the company claims the decision was based solely on the evaluation of the oil potential in Burma. Ericsson also announced that it will not renew its contract to operate in Burma — in this case admittedly bowing to pressure from customers and shareholders.

       We have written Heinz CEO Bill Johnson thanking him for his leadership in directing Heinz to be a founding sponsor of the U.S. Department of Labor’s Fair Harvest/Safe Harvest campaign. The campaign focuses on educating farm workers about their basic rights to fair wages and safe working conditions. Heinz has enjoyed a long-standing cooperative relationship with the Farm Labor Organizing Committee, which represents tomato and cucumber pickers in the northwestern Ohio and southeast Michigan region.

       British Petroleum (BP) continues to turn up the heat on industry competitors in the ongoing debate on climate change and global warming. This fall, BP announced a commitment to reduce carbon dioxide emissions to 10 percent below 1990 baseline levels by 2010. This is twice the level of reduction agreed to under the Kyoto Climate Change Accord. One of the most important tools in reaching these goals is an internal carbon dioxide emissions trading program. In addition, BP promised to grow its solar business tenfold by 2010. USTC is continuing our conversation with BP regarding its potential activities in the Arctic National Wildlife Refuge.

       Extending our previous work addressing executive compensation excesses and widening wage disparities, we have begun a discussion with Coca-Cola to advocate increasing the compensation of the average worker. In cooperation with United for a Fair Economy, a Boston nonprofit seeking to address income inequality, we are pushing the firm to consider offering universal stock options such that all employees can share in the wealth created by the enterprise. Should it be necessary, we are prepared to co-lead a shareholder proposal campaign, and have already provided a draft resolution to Coca-Cola. At this juncture, however, we are optimistic that the path of cooperative dialogue will prevail.