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]

PulteGroup is lagging behind peers on diversity and inclusion policies and practices, despite retaining their corporate website page on the subject.[5] PulteGroup earned a 3% score on As You Sow’s Racial Justice Scorecard, compared with Owens Corning’s 19% and D.R. Horton’s 10% scores.[6] The Company’s low score reflects minimal transparency on workforce data and its failure to disclose related human capital management policies and practices.

Shareholders have a strong interest in gaining access to information about the company’s internal diversity and inclusion policies and the quantitative data demonstrating effectiveness of those policies. The failure to disclose this information raises material risk of reduced brand value and financial performance.

PulteGroup asserted in its last filed 10K that “diversity in the workplace produces unique perspectives which serve to drive innovation and change, which we feel benefits the overall organization.”[7] However, since 2024, the company has not provided continuing data on the success of its policies. PulteGroup identifies workforce stability as a material risk, noting that the loss of key employees could adversely affect performance.[8] The company’s weak diversity and inclusion disclosures heighten this risk by limiting transparency into how it attracts and retains diverse talent critical to long-term success. The company can improve its performance thereby reducing the material risks posed by the absence of transparency around its diversity and inclusion policies and practices.

[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] https://www.pultegroupinc.com/sustainability/diversity--nclusion/default.aspx

[6] https://www.asyousow.org/reports/racial-justice-june2024

[7] https://www.sec.gov/ix?doc=/Archives/edgar/data/0000822416/000082241625000007/phm-20241231.htm

[8] https://www.sec.gov/ix?doc=/Archives/edgar/data/0000822416/000082241625000007/phm-20241231.htm