Examining the Cracks in the Ceiling
A survey of Corporate Diversity Practices

Are Companies Capitalizing on Today's Diverse Workforce?

Download the new report:  Examining the Cracks in the Ceiling: A Survey of Corporate Diversity Practices of the S&P 100 (PDF)

Listen to a Replay of the Teleconference

In 2012, a political milestone was set as more women were elected to the U.S. Senate than ever before. In addition, states across the country took major strides toward LGBT equality as a result of broad voter support for equal marriage rights. While diversity advocates commend this progress, few would argue that equality has been fully achieved. As Calvert examines diversity in corporate culture, it is critical that companies embed diversity throughout their operations and reflect national trends toward bolstering the status of women, minorities, and the LGBT community in the workplace.

Calvert recognizes that corporate diversity is a key ingredient to succeeding in an increasingly complex global marketplace.  The ability to draw on a wide range of viewpoints, backgrounds, skills, and experience is critical to a company's success. As an investor, Calvert views diversity as both a social and strategic business and investment imperative.

Calvert's view of corporate diversity is rooted in our investment platform, which is focused on long-term, sustainable growth and value. As an investor, Calvert believes that companies with a diverse corporate structure are poised for greater success in today's increasingly complex global markets. We are confident that robust corporate diversity policies and programs enhance a company's long-term value and are critical for sustainable bottom line performance.

In this third edition of Examining the Cracks in the Ceiling, Calvert continues to evaluate the degree to which large-capitalization companies are hiring, promoting, and investing in a diverse workforce. In 2008, this report examined the diversity practices of all companies whose securities were held in the Calvert Social Index®. In 2010, Calvert narrowed the scope of this report to examine the largely multinational companies in the Standard & Poor's 100 Index (S&P 100).

Our 2013 edition re-examines companies in the S&P 100 and allows us to gauge their progress since 2010. Using the same in-depth methodology as previous years, we examine the diversity policies, programs, and performance metrics that these companies employ; identify corporate leaders and laggards; and provide companies with a roadmap to identify gaps in their own internal practices.

A preview of the report's key findings and methodology is highlighted below. 

The entire report is available for free download here.

Key Findings

  1. A "Leaky" Pipeline to Management Persists
    While women are often now hired as frequently as men, their representation in management roles decreases with each step up the corporate ladder. Well over half (56%) of S&P 100 companies have no women or minorities in their highest-paid senior executive positions.
  2. Some Improvements in Policies and Performance
    S&P 100 companies were found to be making progress in implementing diversity best practices and gaining ground in almost all of the areas examined. Six out of nine S&P 100 Index sectors improved their average diversity ratings since 2010, with industry average scores increasing by 2.1%.
  3. LGBT Policies Gain More Ground
    Ninety-six companies in the S&P 100 now implement policies prohibiting discrimination based on sexual orientation, and 33 have voiced public support of the Employment Non-Discrimination Act (ENDA) that would offer universal protection against this type of discrimination. In addition, these employers are increasingly recognizing nontraditional lifestyles, as domestic partner benefits are now offered by 80 companies, more than any other family-friendly benefit.
  4. Disclosure Problems Remain
    In the S&P 100, 39 companies do not disclose any employee demographic data publicly, leaving consumers and investors unable to determine the effectiveness of corporate diversity initiatives.

Methodology: A Look at the 10 Indicators of Corporate Performance

  1. EEO Policy
    Examines whether companies support equal employment opportunity policies that explicitly address sexual orientation and gender identity and/or expression
  2. Internal Diversity Initiatives
    Examines whether companies require diversity training and offer leadership development, mentoring, or employee resource group programs 
  3. External Diversity Initiatives
    Examines whether companies offer recruitment, outreach, and supplier diversity programs
  4. Scope of Diversity Initiatives
    Examines the breadth of a company's internal and external diversity initiatives by identifying the extent to which such programs specifically reference LGBT, disability, race/ ethnicity, and gender programs
  5. Family-friendly Benefits
    Examines whether companies offer benefits such as flex-time, adoption assistance, dependent care or domestic partner benefits
  6. EEO-1 Disclosure
    Examines whether companies provide a comprehensive breakdown of their workforce by race and gender across employment categories
  7. Highest Paid Executives
    Examines the representation of women and minorities within a company's five highest-paid positions 
  8. Board Diversity 
    Examines the representation of women and minorities on a company's Board of Directors 
  9. Director Selection Criteria
    Examines newly required SEC disclosures to determine the degree to which companies consider diversity in the selection of director candidates 
  10. Overall Corporate Commitment
    Examines whether a company has demonstrated a robust commitment to diversity, both internally and externally 

Calvert Investment Management, Inc. 4550 Montgomery Avenue, Bethesda, Maryland 20814.


Publication Date: March 7, 2013

Corporate Diversity Report Archives

Calvert has published two earlier versions of this report on Corporate Diversity.  Download them here.

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