Dollar General Corp: Disclosure on Plans and Policies Aligned with Achieving Racial Equality as Informed by As You Sow Scorecard
WHEREAS: In the wake of the George Floyd murder by police officers on May 25, 2020 a majority of Russell 1000 corporations made public statements expressing their plans to address racial justice, thereby taking the first step to becoming antiracist organizations. Antiracism is the practice of identifying, challenging, and changing the values, structures, and behaviors perpetuating systemic racism. While Dollar General, Inc. released a statement, it did not specifically address racial injustices inside or outside of the Company.
Dollar General scored a 2% on a recent Racial Justice Scorecard. This score is significantly below peers Walmart and Dollar Tree which scored 37% and 12%, respectively. Dollar General’s low score is due to a weak statement on racial justice; lack of publicly accessible diversity, equity, and inclusion targets; and lack of disclosed data concerning recruitment, retention, and promotion rates of people of color within the Company. Given heightened awareness around racism, failing to act, disclose policies, and provide quantifiable data on success of such policies, raises the material risk of revenue loss and reduced brand value.
A McKinsey study cites to material corporate benefits associated with adopting corporate policies promoting racial justice:
Companies with the strongest racial and ethnic diversity are 35% more likely to outperform their industry medians for earnings before interest and tax
Companies with the most ethnically/ culturally diverse boards worldwide are 43% more likely to earn higher profits
For every 10% increase in racial and ethnic diversity among senior executives, EBIT rises 0.8.
However, inequities in the workplace continue:
People of Color comprise 33% of entry level positions, but 13% of the C-suite
Among the Russell 3000, in 2019 Black individuals accounted for only 4.1% of board members versus 13.4% of the U.S. population.
Dollar General can play a critical role in ending systemic racism by promoting racial justice within its firm.
BE IT RESOLVED: Shareholders request that Dollar General publish a report, at reasonable expense and excluding proprietary information, disclosing the Company's plan to promote racial justice.
SUPPORTING STATEMENT: Investors seek quantitative, comparable data to understand if and how the Company is promoting a commitment to Racial Justice. Proponents suggest the report include:
Potential policies the company could adopt to promote Racial Justice in its corporate workplaces and operations
Detailed quantitative information on diversity, equity, and inclusion, including annual recruitment, retention, and promotion data
Any plans to address key performance indicators on the above referenced Racial Justice scorecard
Resolution Details
Company: Dollar General Corp
Lead Filers:
As You Sow
Year: 2022
Filing Date:
November 2021
Initiative(s): Racial Justice
Status: Resolution Withdrawn, Agreement Reached