UNITED PARCEL SERVICE, INC. | Greater Disclosure of Material Corporate Diversity, Equity and Inclusion Data at UNITED PARCEL SERVICE, INC.

Status
33.73% votes in favour
AGM date
Previous AGM date
Proposal number
9
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
Shareholders request that United Parcel Service, Inc. (UPS) publish annually a report assessing the Company's diversity and inclusion efforts, at reasonable expense and excluding proprietary information. At a minimum the report should include: the process that the Board follows for assessing the effectiveness of its diversity, equity and inclusion programs; the Board's assessment of program effectiveness, as reflected in any goals, metrics, and trends related to its promotion, recruitment, and retention of protected classes of employees.
Whereas clause
Numerous studies have pointed to the corporate benefits of a diverse workforce. These include:
- Companies with the strongest racial and ethnic diversity are 35 percent more likely to have financial returns above their industry medians.
- Companies in the top quartile for gender diversity are 21 percent more likely to outperform on profitability and 27 percent more likely to have superior value creation.
- A 2019 study of the S&P 500 by the Wall Street Journal found that the 20 most diverse companies had an average annual five year stock return that was 5.8 percent higher than the 20 least-diverse companies.

Despite such benefits, significant barriers exist for diverse employees advancing within their careers. Women enter the workforce in almost equal numbers as men (48 percent). However, women comprise only 22 percent of the executive suite. Similarly, people of color comprise 33 percent of entry level positions, but only 13 percent of the c-suite.

UPS states on its website "UPS has a unique opportunity to effect positive change in the world through a commitment to diversity and inclusion within our own workplace ... UPS views diversity and inclusion as a top business priority. By cultivating a diverse and inclusive environment, we can increase talent engagement, foster innovation, enhance customer service, and ultimately drive better financial performance."

UPS, however, has not released meaningful information that allows investors to determine the effectiveness of its human capital management policies related to workplace diversity. Stakeholders may become concerned that UPS' statements are corporate puffery, language described by the United States Federal Trade Commission as marketing exaggerations intended to "puff up" companies or products and not able to be relied upon by consumers and investors.

Investor desire for information on this issue is significant. As of October, 2020, USD1.9 trillion in represented assets released an Investor Statement on the importance of increased corporate transparency on workplace equity data. It stated: It is essential that investors have access to the most up-to-date and accurate information related to diverse workplace policies, practices, and outcomes.
Supporting statement
Investors seek quantitative, comparable data to understand the effectiveness of the company's diversity, equity, and inclusion programs.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Boston Partners Global Investors, Inc. For
Boston Trust Walden For
Universities Superannuation Scheme - USS For USS would support additional information on the Company's diversity policies and practices.

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