UNITED PARCEL SERVICE, INC. | Greater disclosure of material corporate diversity, equity, and inclusion data at UNITED PARCEL SERVICE, INC.

24.96% votes in favour
AGM date
Previous AGM date
Proposal number
Resolution details
Company ticker
Lead filer
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Company sector
Company HQ country
United States
Resolved clause
Shareholders request that United Parcel Service Inc. (“UPS”) report to shareholders on the effectiveness of the Company’s diversity, equity, and inclusion efforts. The report should be done at reasonable expense, exclude proprietary information, and provide transparency on outcomes, using quantitative metrics for hiring, retention, and promotion of employees, including data by gender, race, and ethnicity.
Whereas clause
UPS has not shared sufficient quantitative hiring, retention, and promotion data to allow investors to determine the effectiveness of its human capital management programs. Between September 2020 and September 2022, S&P 100 companies increased by 298 percent their release of hiring rate data by gender, race, and ethnicity; retention rate data by 481 percent; and promotion rate data by 300 percent.[1] Companies that release, or have committed to release, more inclusion data than UPS include Boeing, McDonald’s, Procter & Gamble, Union Pacific, and Wal-Mart.

Numerous studies have pointed to the benefits of a diverse workforce. Their findings include:
- There is a positive association between diversity in management and cash flow, net profit, revenue, and return on equity.[2]
- The 20 most diverse companies had an average annual five year stock return that was 5.8 percentage points higher than the 20 least diverse companies.[3]
- Similar to how an income statement pairs with a balance sheet, hiring, promotion, and retention rate data show how well a company manages its workforce diversity. Without this data, investors are unable to assess the effectiveness of a company’s human capital management program.

Companies should look to hire the best talent. However, Black and Latino applicants face hiring challenges. Results of a meta-analysis of 24 field experiments found that, with identical resumes, White applicants received an average of 36 percent more callbacks than Black applicants and 24 percent more callbacks than Latino applicants. Promotion rates show how well diverse talent is nurtured at a company. Unfortunately, women and employees of color experience “a broken rung” in their careers; for every 100 men who are promoted, only 86 women are. Women of color are particularly impacted, comprising 17 percent of the entry-level workforce and only four percent of executives.[5]
Retention rates show whether employees choose to remain at a company. Morgan Stanley has found that employee retention above industry average can indicate a competitive advantage and higher levels of future profitability.[6] Companies with high employee satisfaction have also been linked to annualized outperformance of over two percent. In 2020 and 2021, over 35 percent of UPS' investors voted in favor of increased diversity and inclusion data disclosure. The Company has not yet meaningfully increased its reporting. Investors have reason to be concerned as UPS has faced allegations of race, age, and gender discrimination.
Supporting statement
Quantitative data is sought so investors can assess and compare the effectiveness of companies’ diversity, equity, and inclusion programs

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr For Given the non-disclosure of some data (e.g., recruitment, retention and promotion data by race and ethnicity) and the recent controversies related to alleged discrimination against employees, increased disclosure on the company's diversity, equity and inclusion efforts, including quantitative, comparable data, would benefit shareholders in assessing the company's oversight of associated risks, progress towards its DEI goals, and the success of its related programs.
VidaCaixa For
Rothschild & co Asset Management For

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