Resolution askConduct due diligence, audit or risk/impact assessment
ESG sub-theme- Diversity, equity & inclusion (DEI)
Type of voteShareholder proposal
Company HQ countryUnited States
Resolved clauseRESOLVED: Shareholders request that the Board commission a racial equity audit conducted by an independent third-party with input from civil rights organizations, employees, communities in which Salesforce operates, and stakeholders that will analyze Salesforce’s impacts on civil rights, equity, diversity and inclusion, and impacts of those issues on Salesforce’s business. A report on the audit, prepared at reasonable cost, and omitting confidential or proprietary information and information that could be construed as an admission in pending litigation, should be publicly disclosed on Salesforce’s website.
Supporting statementSupporting Statement
Salesforce can better manage the risks to our company through assessment of products, services, or practices that may be discriminatory, racist, or increase inequalities.
In 2021, two Black women in prominent positions left Salesforce citing “rampant microaggressions and gaslighting”:1
A manager resigned, claiming Salesforce lacks accountability regarding diversity, equity, and inclusion, and its “disingenuous marketing around equality” does not align with internal practices.2 She alleged Salesforce lacks a proactive action plan to prevent underrepresented minorities from suffering “unchecked harm and trauma.”A senior manager resigned, claiming she was “manipulated, bullied, [and] neglected.”3 She asserted there is a “big gap from how Salesforce portrays itself and the lived experience,” citing Salesforce’s “toxic environment.”Despite hiring two Chief Equality Officers,4 Salesforce fails to meaningfully improve workforce diversity for Latinx and Black employees:
The percentage of Latinx and Black employees barely improved, going from 4 to 5.3% and from 2 to 4.8%5 from 20156 to 20227 respectively.
Salesforce’s goal of “doubling” representation of Black leaders by 2023 leaves Black leaders vastly underrepresented since only 2.3% of Salesforce’s leaders were Black in 2020; Salesforce acknowledged these numbers are being doubled “from a small base.”8
In 2022, Salesforce reported representation of Black leaders has doubled,9 but currently Black leaders comprise 3.4% of Salesforce’s leadership.10
While Salesforce’s goal of 50% of its workforce consisting of “underrepresented groups” by 2023 is commendable, its decision to place all such groups (Women, Black, Latinx, Indigenous, Multiracial, LGBTQ+ employees, People with Disabilities, and Veterans11) into one broad category diminishes accountability at Salesforce.
Salesforce reports underrepresented minority “attrition is currently slightly higher than total company”12 despite its diversity programs, and does not disclose key inclusion data like retention or promotion rates.
Salesforce’s global and American leadership representation remains about 70% white, male.13
Following controversies, Facebook and Starbucks conducted civil rights and equity audits that yielded significant improvements. These audits model an effective approach: an audit by a third-party, supported by experts in civil rights, with engagement of stakeholders, which would elucidate the efficacy of Salesforce’s existing diversity programs.
1 https://www.fastcompany.com/90608433/vivianne-castillo-leaves-salesforce-citing-rampant-microaggressions- and-gaslighting2 https://www.linkedin.com/posts/vccastillo_vivianne-castilloresignation-letter21521-activity- 6770470033694035968-sWJR3 https://www.linkedin.com/posts/activity-6763264995485728768-aRii4 https://www.businessinsider.com/salesforce-push-to-improve-equality-yielded-slow-results-tony-prophet-2020-11; https://www.salesforce.com/news/stories/equality-leadership-update/5 https://www.salesforce.com/news/stories/quarterly-equality-update-inclusive-employee-experience/6 https://www.salesforce.com/content/dam/web/en_us/www/assets/pdf/datasheets/sustainability-report-fy1516.pdf7 https://sf-equality-data-vis-dev.herokuapp.com/2021/8 https://sf-equality-data-vis-dev.herokuapp.com/20209 https://www.salesforce.com/company/equality/10 https://sf-equality-data-vis-dev.herokuapp.com/2021/11 https://www.salesforce.com/company/equality/12 https://sf-equality-data-vis-dev.herokuapp.com/202113 Id.