UNITED PARCEL SERVICE, INC. | Disclosure of key diversity and inclusion metrics at UNITED PARCEL SERVICE, INC.

Status
Filed
Previous AGM date
Resolution details
Company ticker
UPS
Lead filer
As You Sow
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Industrials
Company HQ country
United States
Resolved clause
RESOLVED: 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 workforce diversity, hiring, promotion, and retention of employees, including data by gender, race, and ethnicity.
Whereas clause
WHEREAS: As of the date of the filing of this proposal, UPS had not yet shared sufficient hiring, promotion, or retention data to allow investors to determine the effectiveness of its diversity and inclusion programs.

Of public American companies, UPS is the second largest employer who has not agreed to provide any hiring, promotion, or retention data by their employeesÕ race or ethnicity. Large employers that provide, or have committed to provide, more inclusion factor data than UPS include, but are not limited to: Alphabet, Boeing, Comcast, CVS Health, Gap, General Motors, General Dynamics, Honeywell International, IBM, McDonald's, Microsoft, Procter & Gamble, Raytheon, Union Pacific, Walt Disney, and Walmart.

As You Sow and Whistle Stop Capital released research in November 2023[1] that reviewed over 4,500 EEO-1 reports, which show corporate workforce diversity. The data shows a positive correlation between manager diversity and corporate performance. Additional research includes:

Hiring: Studies conducted by economists at the University of Chicago and UC Berkeley found that Òdiscriminating companies tend to be less profitable,Ó stating Òit is costly for firms to discriminate against productive workers.Ó[2]

Promotion: Without equitable promotional practices, companies will be unable to build the necessary employee pipelines for diverse management. Women and employees of color experience Òa broken rungÓ in their careers; for every 100 men who are promoted, only 87 women are. Whereas women of color comprise 18 percent of the entry-level workforce and only 6 percent of executives.[3]

Retention: Retention rates indicate if employees believe a company represents their best opportunity. Morgan Stanley has found that employee retention above industry average can indicate a competitive advantage and higher levels of future profitability.[4]

UPS itself says: ÒUPS views diversity, equity and inclusion (ÕDEIÓ) as an imperative that enables the Company to attract, develop and retain talented employees, foster innovation, and bring strength and stability to businesses and communities.Ó[5]

UPS is called on to provide data that allows investors to assess how effectively its human capital management systems are meeting the business imperative to provide a diverse, inclusive, and equitable workplace.
Supporting statement
SUPPORTING STATEMENT: Quantitative data is sought so that investors can assess and compare the effectiveness of companiesÕ diversity, equity, and inclusion programs.

It is advised that this content be provided through UPSÕs existing sustainability reporting infrastructure. An independent report specific to this topic is not requested.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Kutxabank Gestion SGIIC SAU. For
Anima Sgr For 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 diversity, equity, inclusion goals, and the success of its related programs.

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