The Most Racially Diverse Fortune 500 Companies are the Least Equitable

NEW YORK, Feb. 28, 2023 /PRNewswire/ -- The most racially diverse Fortune 500 companies are also the least equitable in executive representation, according to a recent report from Ascend Foundation. The study, The Diversity-Equity Gap in the Fortune 500: Too Few Racial Minority Executives, also found a large gap between White and racial minority (Hispanics, Blacks, and Asians/Pacific Islanders) executive representation, pointing to ongoing and persistent glass ceilings and advancement challenges for minority men and women.

Using the latest publicly available U.S. Equal Employment and Opportunity Commission (EEOC) workforce data, the study found that companies with higher racial diversity in its professional levels generally also have higher racial diversity in its executive levels. However, there is no evidence that a more diverse professional workforce results in a more equitable racial representation in the executive workforce. In fact, the opposite may be true as the data shows that the most racially diverse Fortune 500 companies analyzed are the least equitable. In the Top 20 lists of the "Most Diverse" and "Most Equitable" companies, there is not a single company that is present on both lists.

Using the Executive Equity Gap metric, the study also found a glaring gap in executive equity between racial minorities and Whites. Almost a third of Fortune 500 companies analyzed have fewer than 10 Hispanic, Black, and Asian/Pacific Islander (HBA) executives; 38 companies have four or fewer HBA executives, and three companies have zero HBA executives.

"Ascend's studies have consistently shown over time that racial minorities continue to be underrepresented at the highest executive level relative to their lowest professional level," noted Anna W. Mok, President and Executive Board Chair of Ascend and Ascend Foundation. "This latest study reaffirms that gap. At a time when many highly talented and qualified minorities are ready and waiting in the pipeline, the persistent glass ceiling for them points to a need for companies to undertake a deeper challenge of company policies and practices to remedy any structural deficiencies or systemic bias that may be limiting advancement for minorities."

Mok added, "We commend companies on their work to increase diversity, but clearly different metrics are needed to measure diversity and equity. We look forward to continued transparency, conversation, and collaboration on the next steps and efforts to improve equity in representation and advancement."

The full report is available at https://www.ascendleadershipfoundation.org/research/the-diversity-equity-gap-in-the-fortune-500-too-few-racial-minority-executives.

About Ascend Foundation

The Ascend Foundation is a non-profit 501(c)3 organization with a mission to educate, advocate, and enable Asian/Pacific Islander (API) business leaders to reach their full potential and make greater positive societal impacts. The Foundation delivers educational initiatives and campaigns, publishes research and thought leadership papers and reports, and awards scholarships to enable and elevate Pan-Asians in the community to become better leaders, innovators, role models, and catalysts for workplace and societal change. Ascend Inc. is the largest global network advancing Pan-Asian professionals in the workplace, with a mission to empower Pan-Asians throughout their careers to rise to their full potential.

Visit https://www.ascendleadershipfoundation.org for more information.

CONTACT: [email protected]

SOURCE Ascend Foundation