WHEREAS: Following George FloydÕs murder by police officers on May 25, 2020, a majority of the largest 1000 public corporations made public statements expressing their plans to address racial justice, thereby taking an important step in acknowledging diversity, equity, inclusion (DEI) and racial equity as core to their businesses. Shareholders now seek quantitative, comparable data to understand if and how companies are promoting commitments to racial equity.

Unfortunately, it appears that Manhattan Associates Inc. is falling behind its peers in its DEI policies and practices. Manhattan Associates earned a low 6% score on As You SowÕs recent Racial Justice Scorecard.[1] Manhattan AssociatesÕ score ranks significantly below that of peer company Oracle Corp., which scored 30%.[2] Manhattan AssociateÕsÕ low score is due to a lack of publicly accessible DEI data and its failure to disclose information regarding its failure to disclose information regarding related practices.

Numerous studies have demonstrated the financial benefits of a diverse, inclusive workplace:

á A McKinsey study listing material benefits associated with corporate policies promoting racial justice found that companies with the strongest racial and ethnic diversity are 35% more likely to outperform their industry medians for earnings before interest and tax.[3]

¥ When evaluating companies for diversity, McKinsey found that teams in the top quartile for ethnic and cultural diversity outperformed those in the bottom quartile by 36% in profitability.[4]

¥ Companies that form Employee Resource Groups can increase the number of diverse job applicants they receive according to a survey by the U.S. Chamber of Commerce, which states that 70% of Gen Z respondents were more likely to apply to a job with an ERG.[5] According to a recent CNBC survey, 80% of workers prefer to work for a company that values DEI.[6]

Shareholders thus have a strong interest in access to information about a companyÕs DEI policies and quantitative data demonstrating the effectiveness of those policies. The failure to disclose this information raises material risk of reduced brand value and financial performance.

Manhattan Associates can improve its performance and reduce the material risks posed by inadequate DEI policies and practices, while also playing an important role in furthering corporate racial equity by promoting DEI both internally and publicly.