Special Report:
Examining the Cracks in the Ceiling

Are Companies Prepared to Deal With Diversity—the New Reality?

Earlier this year, a new milestone was set—women outnumbered men on the nation’s payrolls for the first time.¹  While this majority status continues to shift between men and women, the long-term trend clearly signals the importance of women in the workplace and underscores the growing case for diversity. As a result, we are once again compelled to assess whether companies are adequately prepared to deal with this new reality.

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.

In this second edition of Examining the Cracks in the Ceiling, Calvert continues to evaluate how well corporations understand and manage the risks and opportunities diversity offers. In 2008, this report analyzed the diversity practices of all companies whose securities were held in the Calvert Social Index®. This year, Calvert narrowed the universe to the companies in the Standard & Poor’s 100 Index (S&P 100). We have retained the report's in-depth methodology, which addresses diversity policies, programs, and performance metrics; identifies leaders and laggards; and provides companies with a road map 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. No disclosure = no accountability
   37% of companies disclose no demographic data on employees, such as race, ethnicity, and gender.
2. C-suite still hard to reach 
   56% of companies have no women and/or minorities in the highest paid executive positions.
3. Integration and innovation abound
   30% of companies include some oversight of diversity issues at the board level and 34% of companies include diversity measures within their compensation plans.
4. Corporate commitment remains the "x” factor 
   38% of companies demonstrate a robust commitment to diversity, both internally and externally.

1. Source: U.S. Bureau of Labor Statistics, February 2010 Report.

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 Asset Management Company, Inc. 4550 Montgomery Avenue, Bethesda, Maryland 20814.

#10587 (10/2010)