JPMorgan Chase: Diversity in the Workplace

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BE IT RESOLVED: Shareholders request that JPMorgan Chase & Co. 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 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.

SUPPORTING STATEMENT: Investors seek quantitative, comparable data to understand the effectiveness of the company’s diversity, equity, and inclusion programs.

WHEREAS: Numerous studies have pointed to the corporate benefits of a diverse workforce. These include:

Despite such benefits, significant barriers exist for diverse employees advancing within their careers. Women enter the workforce in almost equal numbers as men (48%). However, they only comprise 22% of the executive suite; as a percentage of representation, this indicates a drop of 26%. Similarly, people of color comprise 33% of entry level positions, but only 13% of the c-suite.

On its website, JPMorgan Chase states it “will recruit, hire, retain, develop and promote the best talent–with an emphasis on underrepresented groups–to ensure our businesses can continue to grow and provide sustained value for our clients, customers, employees and shareholders.”

However, the company does not disclose meaningful statistics that allow investors to determine the effectiveness of its human capital management as it relates to workplace diversity. Stakeholders may become concerned that JPMorgan Chase’s statements are corporate puffery, language described by the United States Federal Trade Commission as marketing exaggerations intended to “puff up” products and not able to be relied upon by consumers and investors.

Investors have reason to be wary, as JPMorgan Chase has settled at least three discrimination suits between 2017-2019, costing the company over $80 million. 

Investor desire for information on this issue is significant. In June, 2019, $1.74 trillion in represented assets released an Investor Statement which spoke to the importance of increased corporate transparency on workplace equity data. As 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.

Resolution Details

Company: JPMorgan Chase & Co.

Lead Filers:
As You Sow

Year: 2020

Filing Date: 
December 2019

Initiative(s): Diversity & Gender Equality

Status: Agreement Reached; Resolution Withdrawn

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