Equity-based policies and programs that promote diversity and inclusion strengthen workforce effectiveness and corporate performance. Numerous studies have demonstrated the financial benefits of a diverse, inclusive workplace, while others demonstrate the risk of failing to establish human capital management policies that support and retain a diverse workforce:

A McKinsey study 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.[1]

According to CEO Action for Inclusion & Diversity, “organizations that lead with inclusion are eight times more likely to have better business outcomes.” [2]

According to a recent CNBC survey, 80% of workers prefer to work for a company that values DEI.[3]

A recent study by As You Sow of EEO-1 forms found a “positive association between diverse representation in management and positive financial performance.” [4]

Pilgrim’s Pride is lagging its peers on diversity and inclusion policies and practices. Pilgrim’s Pride earned a 3% score on As You Sow’s Racial Justice Scorecard, compared with Tyson Foods’ 11% and General Mill’s 12%.[5] The Company’s low score reflects minimal transparency on workforce data and its failure to disclose related human capital management policies and practices, as well as issues with workers’ rights and treatment.

Despite providing a general, public, diversity, equity, and inclusion statement, shareholders have a strong interest in gaining access to information about our Company’s internal diversity and inclusion policies and quantitative data demonstrating the effectiveness of those policies. Particularly important is the ability to understand whether they are sufficient to attract and retain the diverse talent critical to long-term success and avoid issues that create reputational harm or reduced financial performance.

As an example, in 2024, Pilgrim’s Pride faced serious reputational damage after reports of dangerous and abusive work conditions for undocumented workers facility.[6] These issues signal weak internal accountability on related issues. The Company can improve its performance and reduce material risk by increasing transparency around its diversity and inclusion policies and practices.[7]

[1] https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/delivering-through-diversity

[2] https://www.ceoaction.com/purpose/

[3] https://www.cnbc.com/2021/04/30/diversity-equity-and-inclusion-are-important-to-workers-survey-shows.html

[4] Report — As You Sow

[5] Racial Justice Data Visualization — As You Sow

[6] https://www.business-humanrights.org/en/latest-news/usa-migrant-workers-incl-undocumented-workers-face-abusive-working-conditions-at-pilgrims-prides-west-virginia-chicken-factory-incl-cos-comments/; https://mountainstatespotlight.org/2024/06/05/pilgrims-pride-moorefield-immigrant-workers/

[7]https://assets.ctfassets.net/zedzgminpdhk/39LsaE4mJDD1AKxpHFBPU1/1fa1580944d02c15586b69a274276f07/PPC_DiversityEquityInclusion_Global_Policies_2.pdf