The Effects of Disclosing Diversity in the Workplace

Forbes conducted a research into the disclosure of diversity data by the 500 companies on their Fortune 500 list. This is what they found. Of the 500 companies on the list, 80 percent did not disclose their data, 20 percent disclosed some of their data, 4 percent fully disclosed their data, and 3.2 percent of the companies submitted an EEO-1 form for public disclosure.

Facebook

Facebook has 17,048 full-time employees. As of June 2017, according to Statista.com, Facebook’s diversity report disclosed the following distribution on the technical level based on race:

  • 45 percent – white
  • 49 percent – Asian
  • 8 percent – Hispanic
  • 6 percent – African-American
  • 4 percent – Two or more different races
  • 1 percent – Other

Facebook’s reaction towards building a diverse workplace was their adaptation of the Rooney Rule in 2015. The Rooney Rule states that only candidates from underrepresented backgrounds should be interviewed for open and available positions.

Google

According to the NY Times, Google was the first technology company to publicly disclose their diversity data. Google wanted to be publicly accountable for not looking “the way we wanted to.”

Google has 88,110 total full-time employees. According to Statista.com, 56 percent of Google’s U.S. employees are White, 32 percent are Asian, 4 percent are Hispanic, and 2 percent are African-American. On the technical level, 53 percent are white and on the senior level, 68 percent are white.

In 2015, in an effort towards building diversity, Google started a program called Respect@. is a platform for employees to file complaints of about the behavior of coworkers. Although the program is focused on inappropriate behavior, many employees who do not support the diversity efforts accuse the diversity supporters of verbal harassment by using out-of-context statements.

Who Must Disclose a Diversity Report?

The Employer Information EEO-1 report (Standard Form 100) is a compliance survey mandated by the Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Labor Office of Federal Contract Compliance Programs (OFCCP). The EEO-1 report collects the following diversity data: race, ethnicity, job category, and gender.
Companies with 100 or more employees who are subject to Title VII of the Civil Rights Act of 1964 are required to submit an EEO-1 report every March 31rd. Government entities and educational institutions are excluded because they are reported elsewhere. A copy of the report must be posted at the companies headquarter location.

We have seen how the degree of diversity in the workplace a negative or positive effect can have when the diversity report is disclosed. Google’s lack of diversity had a negative effect when the diversity was disclosed. This negative effect has resulted in two discrimination law suits. Workplace discrimination lawsuits include commercial litigation lawyer New Haven CT.

A workplace that demonstrates diversity will not only save the employees money but will increase the company’s revenue. Ethnically diverse companies tend to have employees who earn 35% higher than their peers in their industry. Companies with diversity programs in place will earn 2.3 times higher cash flow for each employee.