CORPORATE EQUALITY INDEX 2O16 · 2017-06-30 · Corporate Equality Index scorecard, to go into...

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Criteria Updates & Toolkit for Success CORPORATE EQUALITY INDEX 2 O 16

Transcript of CORPORATE EQUALITY INDEX 2O16 · 2017-06-30 · Corporate Equality Index scorecard, to go into...

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Criteria Updates & Toolkit for Success

CORPORATE EQUALITY INDEX 2O16

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www.hrc.org/cei

3 Letter from HRC Foundation President Chad Griffin 6 2016 CEI Criteria Changes at a Glance 7 CurrentRatingCriteriaandChanges 9 PointAllocations 9 WhyisHRCdoingthisnow? 9 Timeline

10 Non-Discrimination

11 Global Non-Discrimination Policies and Codes of Conduct 11 Background 11 Q&A

14 Contractor and Vendor Standards 14 Background 14 Q&A

15 Corporate Giving Guidelines 15 Background 15 Q&A

17 General FAQs

CORPORATEEQUALITY INDEX 2O16Criteria Updates & Toolkit for Success

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Letter from HRC Foundation President Chad Griffin

Inthe2013CorporateEqualityIndex,we—theHumanRightsCampaignFoundationandourcorporateallies—reachedacriticaltippingpointinworkplaceequality.Forthefirsttimein

history, a majority of the Fortune 500 afford both sexualorientationandgenderidentityemploymentprotections.

Andtheprogressdidnotstopthere.

Over400majorbusinessesimplementedtransgender-inclusivehealthcarecoverageandamajorityhavepartnerbenefits.Recordnumbersofbusinessesstoodwithourcommunitytoendorsepro-equalitylegislation.InadditiontothedozensthatstoodformarriageinthestatesandspokeoutagainstthediscriminatoryDefenseofMarriageAct,stillmorestoodontherightsideofhistoryandontheprinciplesofgoodbusinessbyadvocatingforpassageofcriticalfederalandstateworkplaceprotections.

Sinceassumingleadershipofthisorganization,Ihaveheardfrombusinessleaders,lawmakersandthecommunityat-largeonthecriticalrolebusinesseshaveplayedinchampioningequality.AndIamconstantlyasked,“What’snext?Howdoweseizeonthismomentumforthegoodofbusinessesandthecommunityalike?”

NowitiswithgreatexcitementandconfidenceintheincredibleworkalreadytakingshapewithincorporateAmericathatIannouncethreekeychangestotheCorporateEqualityIndexscorecard,togointoeffectincalendaryear2015.

Allofthechangesstemfromoneguidingprinciple:thatdiscriminationhasnoplaceinatop-ratedCEIbusiness.

COR PORATE EQUALITY I N DEX 2O16 www.hrc.org/cei

LETTER FROM HRC FOUNDATION PRESIDENT CHAD GRIFFIN

CEI 2O16

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CEI 2O16

COR PORATE EQUALITY I N DEX 2O16 www.hrc.org/cei

Letter from HRC Foundation President Chad Griffin

Underthenewscorecard,abusinessmustensurethattheprinciplesofnon-discriminationandLGBTequalityinclude: • aglobalnon-discriminationpolicyand/orglobalcodeofconductthat

specificallyprohibitsdiscriminationonthebasisofsexualorientationandgenderidentity;

• arequirementthatsuppliersandvendorsmustabidebythebusiness’sownfullyinclusivenon-discriminationpolicy;andlastly

• arequirementthatatop-ratedbusinessdoesnotcontributefundingtoorganizationswithawrittenpolicyormissionofdiscriminationonthebasisofsexualorientationorgenderidentity.

Lastfall,whenwereleasedthe2013CEI,Ihadthepleasureofannouncinganexcitingtrendcrystallizing:businessesareimplementinganethosofLGBTinclusionthatgoesbeyondUSborders.Asyouwillsee,majorbusinessesareensuringthatwherevertheydobusiness,hereandabroad,LGBTpeopleenjoythesameworkplaceprotections.Inaddition,thesesamebusinessesarealigningtheircorporatevaluesofLGBTinclusionwiththeirsuppliers,fundersandwithinthecommunityatlarge.

It’suptoustolearnfromthesethoughtleadersandturnencouragingupwardtrendlinesintothenewbestpracticesforcorporateLGBTinclusion.

Intheenclosedguideyouwillseedetaileddescriptionsofthesechanges,informationonwhatbusinessesarealreadydoingandguidanceonhowtoimplementthechanges.OurWorkplaceEqualityteamwillbeholdingeducationalwebinars,consultativecallsandprovideyouwiththeresourcesyouneedtogettoa100percent.

WehavealwaysworkedtogethertoleadchangeincorporateAmerica,notbyrestingonourlaurels,butbyrisingtothetaskofgreaterequalitybecauseitistherightthingtodoanditisjust,plaingoodbusiness.Thankyou.

Sincerely,

ChadGriffinHumanRightsCampaignFoundationPresident

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Executive Summary

COR PORATE EQUALITY I N DEX 2O16 www.hrc.org/cei

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CEI 2O16

COR PORATE EQUALITY I N DEX 2O16 www.hrc.org/cei

2016 CEI Criteria Changes at a Glance

TheHumanRightsCampaignFoundationannouncesthatforthe2016CorporateEqualityIndexreport,allbusinessesmust:

• Havesexualorientationandgenderidentitynon-discriminationprotectionsexplicitlyincludedinallofitsoperations,bothwithintheUSandglobaloperations.

• RequireUScontractorstoabidebycompanies’existinginclusivenon-discriminationpolicy.

• Implementinternalrequirementsprohibitingcompany/lawfirmphilanthropicgivingtonon-religiousorganizationsthathaveawrittenpolicyofdiscriminationonthebasisofsexualorientationand/orgenderidentity.

Thesecriteriachangesfurtherbringintoalignment,themostcriticalfoundationofLGBTworkplaceinclusion–non-discriminationpoliciesanddiversitypractices–throughouttheoperationsofanemployer.

HRCwillbeapartnerintheeducationofourbusinessalliestoensureweworktogetheronupdatingexistingbestpracticesthatamajorityofourbusinesseshavealreadyimplemented.

Global Workplace Non-Discrimination Policy and/ Or Code of Conduct

Inclusive Non-Discrimination Requirements for Contractors and Vendors

Corporate Giving Guidelines

Non-Discrimination:

360°of Corporate Equality

2016 CEI CRITERIACHANGES AT A GLANCE

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CEI 2O16

COR PORATE EQUALITY I N DEX 2O16 www.hrc.org/cei

2016 CEI Criteria Changes at a Glance

CURRENT RATING CRITERIA AND CHANGES 2016CEIChangesareinblue.

1. Equal employment opportunity policy includes: Sexualorientation(15) Genderidentityorexpression(15)

2. Tenets of EEO Policy that Prohibits Discrimination on the Basis of Sexual Orientation and Gender Identity Extend to:(PointsTBD)

A.GlobalWorkforce: 1. EEOPolicyand/orGlobalCodeofConductincludesSexual

OrientationandGenderIdentity

B.Contractors 1. Parityinsupplierstandards

C.CorporateGivingStandards 1.Guidelinesinplacethatprohibitnationalcorporategivingtogoto

non-religiousorganizationswithawrittenpolicyofdiscrimination(orpermitteddiscrimination)againstLGBTpeople(e.g.membership,volunteerstructure)

3. Employment benefits (35) Tosecurefullcreditforbenefitscriteria,eachbenefitmustbeavailabletoall

benefits-eligibleU.S.employees.Inareaswheremorethanonehealthinsuranceplanisavailable,atleastoneinclusiveplanmustbeavailable.

A.Equivalentspousalandpartnermedicalbenefits(15)(moreinfo) B.Includesparitybetweenemployeeswithdifferent-sexspousesandsame-

sexpartnersorspousesintheprovisionofthefollowingbenefits:COBRA;dental;vision;legaldependentcoverage;bereavementleave;employer-providedsupplementallifeinsuranceforapartner;relocation/travelassistance;adoptionassistance;qualifiedjointandsurvivorannuityforpartners;qualifiedpre-retirementsurvivorannuityforpartners;retireehealthcarebenefits;andemployeediscounts(10)

C.Equalhealthcoveragefortransgenderindividualswithoutexclusionfor

medicallynecessarycare(10)(moreinfo)

4. Organizational LGBT competency (20) A.Competencytraining,resourcesoraccountabilitymeasures(10)

Businessesmustdemonstrateafirm-wide,sustainedandaccountablecommitmenttodiversityandculturalcompetency,includingatleastthreeofthefollowingelements:• Newhiretrainingclearlystatesthatthenondiscriminationpolicy

includesgenderidentityandsexualorientationandprovidesdefinitionsorscenariosillustratingthepolicyforeach

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CEI 2O16

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2016 CEI Criteria Changes at a Glance

• Supervisors undergo training that includes gender identity and sexual orientation as discrete topics (may be part of a broader training), and provides definitions or scenarios illustrating the policy for each

• Integration of gender identity and sexual orientation in professional development, skills-based or other leadership training that includes elements of diversity and/or cultural competency

• Gender transition guidelines with supportive restroom, dress code and documentation guidance

• Anonymous employee engagement or climate surveys conducted on an annual or biennial basis allow employees the option to identify as LGBT.

• Data collection forms that include employee race, ethnicity, gender, military and disability status — typically recorded as part of employee records — include optional questions on sexual orientation and gender identity.

• Senior management/executive performance measures include LGBT diversity metrics

B. Employee Group –OR– Diversity Council (10)

5. Public Engagement (15) Businesses must demonstrate ongoing LGBT-specific engagement that extends across the firm, including at least three of the following:

• LGBT employee recruitment efforts with demonstrated reach of LGBT applicants (required documentation may include a short summary of the event or an estimation of the number of candidates reached)

• Marketing or advertising to LGBT consumers (e.g.: advertising with LGBT content, advertising in LGBT media or sponsoring LGBT organizations and events)

• Philanthropic support of at least one LGBT organization or event (e.g.: financial, in kind or pro bono support)

• Demonstrated public support for LGBT equality under the law through local, state or federal legislation or initiatives

• Supplier diversity program with demonstrated effort to include certified LGBT suppliers

6. Responsible citizenship (-25) Employers will have 25 points deducted from their score for a large-scale official or public anti-LGBT blemish on their recent records. Scores on this criterion are based on information that has come to HRC’s attention related to topics including but not limited to: undue influence by a significant shareholder calculated to undermine a business’s employment policies or practices related to its LGBT employees; directing corporate charitable contributions to organizations whose primary mission includes advocacy against LGBT equality; opposing shareholder resolutions reasonably aimed at encouraging the adoption of inclusive workplace policies; revoking inclusive LGBT policies or practices; or engaging in proven practices that are contrary to the business’s written LGBT employment policies.

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CEI 2O16

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2016 CEI Criteria Changes at a Glance

POINT ALLOCATIONSBusinessesareratedonascalefrom0to100,withacertainnumberofpointsawardedformeetingeachcriterion.TheHRCFoundationwillcontinuetoawardpartialcredittoemployersthathavesatisfiedaportionofcertaincriterion.

Thepointsystemforthenewcriteriawillbedeterminedafterthecollectionofdatainthe2015CEItoensureascoringmechanismthatisfairandattainable.

WHY IS HRC DOING THIS NOW?WetakecriteriachangesveryseriouslyandwehaveseenagrowingappetitefromourcorporatepartnerstotranslatetheirsuccessintheCEItootheraspectsoftheirbusinessoperations.Fora100%-ratedcompany,therecanbenoroomforinconsistencieswhenitcomestoprotectionsagainstdiscriminationbasedonsexualorientationandgenderidentity.Thesechangesensurethatpoliciesandpracticesareconsistentacrossallbusinessoperations,andrepresentthenaturalextensionofvettedandacceptedbestpracticesforcorporateLGBTdiversityandinclusion.

TIMELINEWhat is the timeline for rolling out these changes and resources?

• Spring 2013:CriteriaChangeAnnouncement;HRCFoundationreleasesToolkitforSuccessandconductswebinars

• Spring 2013: CEI2014isfielded

• Fall 2013:CEI2014reportreleased

• Winter 2014:HRCFoundationcontinueseducationalandconsultativeoutreachtobusinesses

• Spring 2014:CEI2015isfielded

• Fall 2014:CEI2015releasedandparticipantsreceivepreliminaryscorecardbasedoncriteriaupdates

• Spring 2015:CEI2016isfielded

• Fall 2015:CEI2016reportreleasedwithnewscoring

What is the work plan for successfully moving businesses to meet these requirements?

• Winter/ Spring 2013:Conductwebinarsandcorporateforums;sitevisits;mediaoutlets

• Further outreach:Ongoing,includingconsultativecalls

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CEI 2O16

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Non-Discrimination

Wherefederallawsprotectpeoplefromworkplacediscriminationonthebasisofrace,color,religion,sex(includingpregnancy),nationalorigin,age(40orolder),disabilityandgeneticinformation,nosuchfederallawprotectsworkersfromworkplacediscriminationonthebasisofsexualorientationandgenderidentity.

Somestateshavepassedlawsandordinancestoestablishworkplaceprotectionsforlesbian,gay,bisexualandtransgenderemployees,butitremainslegalin29statestodiscriminateagainstjobapplicantsandemployeesbecauseoftheirsexualorientation,andin34statesbecauseoftheirgenderidentity.

Despitethispatchworkofstatelaws,privatesectoremployershaveimplementedfullyinclusivenon-discriminationpolicesatratesthatareleapsandboundsaheadoflawmakers.Today,98%ofCEIparticipantsprotecttheirU.S.employeesonthebasisofsexualorientation,and89%protectonthebasisofgenderidentity.

CorporateAmerica’sleadershiprecognizingthebasicnecessityofnon-discriminationforalloftheiremployees,anaturalextensionofthisdemonstratedsuccessistoensurethatthesestandardsapplyacrossallbusinessoperations.

NON-DISCRIMINATION

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Global Non-Discrimination Policies and Codes of Conduct

BACKGROUNDThemajorityofbusinessessurveyedintheCEI—64percentofratedemployers—haveoperationsoutsideoftheUnitedStates.Fortheninthyearinarow,theCEIincludedquestionsonemployers’levelsofLGBTinclusionwithintheirglobaloperations.

Eighty-fivepercentofemployersreportthattheirnon-discriminationpoliciesapplyacrosseachoftheirglobaloperations,and54percenthavedistinctglobalcodesofconductthatspecifyexpectationsonworkplaceinclusionandnon-discriminationstandardsalongthelinesofsexualorientationandgenderidentity.

Whileglobalpoliciesorcodesofconductareimportant,individualhumanresourcepoliciesareoftendecentralized,makingitcriticalthattherebeclearnon-discriminationpoliciesineveryoperatinglocation.Whetheranemployeeisbeingrelocatedinternationally,ormerelytravelinginternationallyonbusinessforafiniteperiodoftime,thenon-discriminationprotectionsthattheyareaffordedbytheirCEI-ratedU.S.employermustbeportable.Sexualorientationandgenderidentityprotectionsmustbeconsistentlyupheldeitherbyglobalcompanypolicy,ormustbeensuredbytheoperatingU.S.entityinaglobalpartnershipsponsoringthetravelingemployee.

Q&AWhat does the current CEI data show us about the feasibility of many businesses doing this? Basedonthemostrecent2015CEIdata,85%ofCEI-ratedemployerswithglobaloperations(64%ofthetotal)reportthattheirownUSnon-discriminationpoliciesareapplicablethroughouttheirglobaloperations.Ofthe64%ofbusinessesreportingglobaloperations,54%haveglobalcodesofconduct.

GLOBAL NON-DISCRIMINATION POLICIES AND CODES OF CONDUCT

54%

85% CEI-Rated Employers report that their non-discrimination policies apply across each of their global operations

CEI-Rated Employers have distinct global codes of conduct or employment standards that are inclusive of both sexual orientation and gender identity

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Global Non-Discrimination Policies and Codes of Conduct

Does HRC have any expertise in global non-discrimination policies and practices?Yes.Since2004wehavebeenaskingcompaniesabouttheirinternationalpoliciesandthenexpandedtobenefitsthataffectLGBTemployees.In2010weco-publishedthelandmarkAnchoringEqualityreportwithOut&EqualandCGE;wefirstpublishedourfindingsaboutglobalLGBTpracticesintheCEIin2011;and,staffhasbeenexchangingexpertisethroughprogrammingandtalkswiththeWorldBank,Inter-AmericanDevelopmentBankandothermajorinstitutionsinadditiontothevastexistingcorporatenetwork.

But there are multi-nationals, international, LLC and LLP configurations — many decentralized offices, how can a policy cover all?Thismandateisonesolidstepintherightdirectionofconsistentglobalequality.Wehavedeliberatelybuiltintheoptionsofanon-discriminationpolicyaswellasaglobalcodeofconducttocoverthediversityofbusinessesintheCEI.Furthermore,weareworkingwithexpertstoensureculturalcontextisaccountedfor(e.g.terminologyinLatinAmericaisoften“sexualdiversity”insteadoforinadditionto“sexualorientation”).

Forthosebusinessesthatareglobalpartnerships,thebestpracticeisglobalalignmentfromtheglobalcorporategovernanceleadership,buttheywillnotbepenalizediftheentityintheCEIislimitedtotheUSfirm.

But does this guarantee LGBT employees are comfortable being out everywhere?No,muchasisthecaseintheUS,thereisoftenadisconnectbetweenpolicyandeverydayexperiences.WhileamajorityoftheFortune500offergenderidentityandsexualorientationprotections,weknowthatover50%ofLGBTemployeesremainclosetedonthejob.

Thisdisconnectdoesnotlessentheimportanceofhavingpoliciesinplaceastheyarearticulatedstandardsandexpectationsfortheworkplace,andempowerLGBTemployeestotakeactionwhensomethingnegativeoccurs.Weoftenexplainthatfairandinclusivepoliciesarenecessary,butnotsufficientforcompleteworkplaceequality.

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CEI 2O16 Global Non-Discrimination Policies and Codes of Conduct

COR PORATE EQUALITY I N DEX 2O16 www.hrc.org/cei

What about social, cultural and legal barriers?CulturalandsocialbarrierstoworkplaceinclusionexistfromTexastoTurkeyasdoopportunitiesforchangeandevolvinglegislation.DozensofcountrieshaveexplicitlawsprotectingLGBTpeoplefromdiscriminationandourlegalcounselcoupleswithcasestudyexamplesshownoprohibitionontheseworkplacepolicies.Staffwillcloselymonitordevelopmentsonthisfrontandwould,asalways,neverpenalizeabusinessforworkingwithinthelaw.

Forcontext,whentheCEIwaslaunchedin2002,thelegislativelandscapeintheUSforLGBTworkerswasrathergrim:

• Inlieuoffederalworkplaceprotections,LGBTpeoplecouldbedeniedajoborfiredfortheirsexualorientationin37statesandin44becauseoftheirgenderidentity.

• ThelandmarkLawrencev.Texasdecisionthatwouldstrikedownsodomystatuteshadnotbeendecided,leavingcertainhomosexualactsliabletocriminalization.

• Nostatehadsame-sexmarriage,whiletheDefenseofMarriageAct(DOMA)wentunchallenged.

• StatessuchasFloridahadbansonLGBTpeopleadoptingchildren.• Hatecrimesonthebasisofsexualorientationandgenderidentitywerenot

federallyrecognizedashatecrimesagainstotherminoritygroupsweredefined.• LGBTpeopleintheArmedForcesfaceddischargesunderDon’tAsk,Don’t

Tellorhadtohidethemselves.

Still,withinthisclimatetheCEIwaslaunchedasthecornerstoneofanambitiousstrategytotransformAmericanworkplacesbycommunicatingdirectlywithmajorprivatesectoremployers,developingaroadmapandassessmentofpolicies,practicesandbenefitsthatwouldbemoreinclusiveofLGBTemployees.TheCEIbridgedbusinessgoalsofrecruitingandretainingtoptalentwiththatofLGBTequality.

What about businesses not headquartered in the US? ThosebusinesseshaveactivelybeenworkingwithHRCandtheCEIforyearsandthemechanismsforchangewillbelargelybethesame.Staffwillcontinuetoworkone-on-onewithcorporatecontactstoeffectchangeviatheUSentitycompletingtheCEIsurvey.

What recourse do employees have if they experience workplace discrimination in another country?Mediation,HRandotherprocessesvarybusinesstobusiness(astheydointheUS)andinthisregard,thisproposedstandardisnotdissimilar.

TitleVII(andtheproposedENDAbill)coversUSworkersabroad–itisstandardbusinesspracticeforworkplaceprotectionstobeportablewhenemployedbyaUSemployerabroad.

Wearesimplyextendingtheselong-heldstandardstoLGBTinclusion.

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Contractor and Vendor Standards

BACKGROUNDAbusinesstypicallyreliesonotherbusinessesforgoodsorservices.Inordertoensurethatsuppliersactinamannerthatadherestoabusiness’ownstandards,manybusinesseshavealreadyestablishedstandardsofconductthatsetexpectationsforbehavioroftheirsuppliers.Inthe2015CEI,61%ofratedemployersreportedthattheirsupplierswererequiredtoadheretothecompany’sownnon-discriminationpolicy.

Underthenewcriteria,wheresuppliermandatescurrentlyexistwithrespecttonon-discrimination,thesemandatesmustexplicitlyincludesexualorientationandgenderidentityalongsideothernamedcategories.Inotherwords,wewouldnotbeimposinganLGBTcarve-out,butinsteadestablishingthatwherethesesupplierstandardsexist,theyshouldincludesexualorientationandgenderidentityalongsideotherrelevantcategoriessuchasrace,gender,etc.

Q&AHow can a business control a contractor’s policies? Why would it matter? BusinessesofthesizeincludedintheCEI(aminimumof500fulltimeUSemployees)typicallyhavesetstandardsandguidelinesalreadyembeddedintheirprocurement.Thissimplyensuresconsistencyinthecorporatepoliciesandvaluesofnon-discriminationbetweentheemployeranditscontractors–thoseitdecidestorewardwithitsbusiness.Also,manyworksiteshaveemployeesfromdifferentbusinessesworkingsidebyside.Forexample,alargedefenseformmaybemadeupofthreeseparateprivatecontractorsworkingtogetheronthesameproject.Thischangemakestheexpectationsandpoliciesintheworkplacemoreconsistent.

Why is HRC scoring on the basis of US, but not global contractors? TheguidingprincipleoftheCEIhasalwaysbeenthatthescorecardbebothfairandattainable.HRCislayingthegroundworkfortheultimategoalofcompletenon-discriminationprovisionsacrosstheglobalsupplychainbystartingwithtwomanageableandfaircriteriachanges–updatestotheglobalemployeenon-discriminationpolicysothatitincludessexualorientationandgenderidentityandnon-discriminationprovisionsembeddedintotheU.S.procurementprocess.

CONTRACTOR AND VENDOR STANDARDS

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Corporate Giving Guidelines

BACKGROUNDTheCorporateEqualityIndexhasasystematictraditionofholdingcompaniesaccountableforwhatkindsoforganizationsreceivetheirphilanthropicdollars.Acompanywouldbecontacted,andpotentiallyreceivea25pointdeductionifHRCfoundinstancesoffoundationalcorporategivingtoanyorganizationwhoseexplicitmissionincludedeffortstoundermineLGBTequality.

Wearenowwideningthisframeworktoholdcompaniesaccountableforanygivingtoanon-religiousorganizationwithanexplicitpolicyofdiscriminationagainstLGBTpeople(e.g.TheBoyScoutsofAmerica).

CorporateAmericahaspolicyprecedentssettingthestandardsaroundresponsiblefoundationalgiving.

Therequirementisthatatopratedbusinessmust:Implementinternalrequirementsprohibitingcompany/lawfirmphilanthropicgivingtonon-religiousorganizationsthathaveawrittenpolicyofdiscriminationonthebasisofsexualorientationand/orgenderidentityand/orhaveapolicyexplicitlypermittingitsownchapters,affiliates,etc.todiscriminate.

Whileabestpractice,businesseswillnotberequiredtohavenon-profitsreceivingtheirfundingimplementtheseprotectionssincesomearefaith-based.Aslongasthereisnoexplicitdiscriminatorylanguageorpracticefoundinitsoperationsormembershiprequirements,andorganizationcanreceivefundingandthecompanyreceivefullcreditontheCEI.

Q&AWhat does this look like?LeviStrauss&Co.submittedtheirgrantspolicytotheHRCFoundationasanexampleofthetypesofguidelineswewillbelookingforunderthenewcriteria:

CORPORATE GIVING GUIDELINES

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Corporate Giving Guidelines

What companies are doing this? Companiesthathavetheirgivingpoliciesreadilyavailableonlineinclude(butarenotlimitedto):AlcoaInc.,BAESystemsInc.,CSXCorp.,ExelonCorp.,HiltonWorldwideInc.,IntelCorp.,LexmarkInternationalInc.,LockheedMartinCorp.,Merck&Co.Inc.,NikeInc.,TextronInc.,TDBankN.A.,TysonFoodsInc.,UnitedParcelServiceInc.,TheWaltDisneyCo.,WellsFargo&Co.

How can a business know if a non-profit receiving funding discriminates against LGBT people?Itisrarefornon-profitstoenshrinediscriminationintoitsmissionandpolicystatements.HRChashistoricallymonitoredcharitabledonationstoorganizationswithaspecificmissionofunderminingLGBTequality.Thiscriteriachangeextendsthatmonitoringtotherelativelysmallgroupofnon-religiousorganizationssuchastheBoyScoutsofAmericathathaveanexplicitwrittenpolicyofdiscrimination(e.g.,TheBoyScoutsofAmericado“notgrantmembershiptoindividualswhoareopenoravowedhomosexuals.”)

What about religious organizations? HRChasalwayssupportedreligiousexemptionsinlegislationandattheprogrammaticlevelwhereappropriate.Thiswillcontinueforcorporategiving.

What about United Way giving?HRCwillnotscoreonthebasisofUnitedWaygiving,butratherondirectorganizationalcontributions.

What about local gifts that are hard to manage from headquarters?Thisrequirementisintendedtoapplytonational,centralizedgiving.Independentsmall,localgivingisoutofthescopeoftheCEI.

Do these policies only apply to corporate foundations? Whilegivingguidelinestypicallyrefertocorporatefoundationalgiving,thesegivingstandardsshouldapplytocorporatein-kinddonationsandemployeematching-giftprogramsaswell.Thisconsistencyinpolicywillberequiredforcredit.

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CEI 2O16 General FAQs

COR PORATE EQUALITY I N DEX 2O16 www.hrc.org/cei

What is the change in CEI criteria?Currently,toscorea100percent,abusinessmusthavesexualorientationandgenderidentityinitsUSnon-discriminationpolicy.

• Theupdatetothecriteriameansthatthispolicymustbeexplicitlyincludedinalloftheemployer’soperations,includingglobaloperations,inadditiontotheUS.

• Thesecondchangemeansthatcontractorswouldberequiredtoadheretothebusiness’sowninclusivenon-discriminationpolicy.

• Lastly,thechangemeansthata100percentratedbusinessdoesnotcontributefundingtoorganizationswithawrittenpolicyormissionofdiscriminationonthebasisofsexualorientationorgenderidentity.

When will it go into effect?Businesseswillbescoredonthenewcriteriainthe2016CorporateEqualityIndexreport,releasedincalendaryear2015.

What are the point designations?HRCFoundationwilldeterminethefairpointdesignationincalendaryear2013andwillprovideallCEIbusinesseswithapreliminaryscorecard(senttoeachemployer,butnotpublicized)inthefallof2014,oneyearbeforescoresbasedonthenewcriteriawillbepublished.

Why is the scorecard changing? Theannouncedchangestothescorecardofferaclearer,morerobustpathforwardonhowbusinessescanandshouldimplementatenetofnon-discriminationandLGBTworkplaceequality.Theunderlyingprincipleisclear:Thereisnoplacefordiscriminationina100percentratedbusiness.

Furthermore,asthedatatrendlinesshow,amajorityoftheCEIratedbusinessesarealreadyimplementingthesebestpractices.

Itistruetoourmissionofleveragingmajorbusinesses’insupportofimpactingfarreachingchangeandgivingrealmeaningtothedesignationof100%.

Thisholisticchangeconveysasuccinctmessageandresolvesourcompanies’questionsregardingcorporatesocialresponsibilityandglobaloperationswithonecohesivemessageandaccompanyingresources.

GENERAL FAQs

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CEI 2O16

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General FAQs

Will businesses get to see a preliminary scorecard before the changes go into effect?Yes,allCEIparticipantswillreceiveapreliminaryscorecardincalendaryear2014togiveampletimetomakechangesaheadofthe2015publicscorecard.HRCFoundationstaffwillbeavailableforindividualconsultationandcanprovidebusinesseswithadditionalmodelguidelinesandeducationalresourcestomeetthenewCEIstandards.

Won’t this be a stretch for a lot of businesses? No,infactthenewcriteriaarenaturalextensionsoftheestablishedtrendlinesamongstCEI-ratedbusinesses.

Currentdataoneachofthecriteriaareasfollows:

• EEO/Non-DiscriminationPolicy(US-basedemployees) 98%CEIratedemployersinclude“sexualorientation”and 89%CEIratedemployersinclude“genderidentity”inU.S.

non-discriminationpolicies

• GlobalWorkplaceProtections 85%oftheCEIratedemployerswithglobaloperations(64%of

totalCEIparticipants)reportthattheirownUSnon-discriminationpoliciesareapplicablethroughouttheirglobaloperations.

• Contractors(US-based) 61%ofCEIratedemployersrequireitssuppliersandvendorsto

abidebytheirnon-discriminationpolicyprotections.

• FundingRecipients Itisanestablishedbestpracticetohavecorporategivingguidelines,

anddozensofemployersalreadyhaveinclusivelanguagewrittenintotheseguidelines.Severaldiscontinuedfundingtodiscriminatoryorganizations,suchastheBoyScoutsofAmericaadecadeago.

Is HRC over-reaching in its requirements of businesses? ThesechangesareanaturalextensionofthebestpracticesamajorityoftheCEIbusinessesandFortune500havealreadyimplemented,namelyinclusivenon-discriminationpolicies.Non-discriminationlaysthefoundationforLGBTequality.Theseupdatestothescorecardreflectbacktothosebusinessesthathavenotmadethetenetsofnon-discriminationconsistent,apathandrationaletodoingso.