I. Introduction Section 342(b)(2)(C) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank
Act) requires the Directors of the Offices of Minority and Women Inclusion
(OMWI) to develop standards for assessing the diversity policies and
practices of the entities regulated by the Office of the Comptroller
of the Currency, the Board of Governors of the Federal Reserve System,
the Federal Deposit Insurance Corporation, the National Credit Union
Administration, the Consumer Financial Protection Bureau, and the
Securities and Exchange Commission (collectively, the “agencies”).
To promote consistency, the agencies worked together to develop joint
standards for assessing diversity policies and practices. This interagency
policy statement announces those standards.
This document is a general statement of policy under the
Administrative Procedure Act, 5 U.S.C. 553. It does not create new
legal obligations. Use of the standards by a regulated entity is voluntary.
The agencies will not use their examination or supervisory processes
in connection with these standards.
For purposes of this policy statement, the agencies define
“diversity” to refer to minorities, as defined in section 342(g)(3)
of the Dodd-Frank Act (that is, Black Americans, Native Americans,
Hispanic Americans, and Asian Americans), and women. This definition
of diversity does not preclude an entity from using a broader definition
with regard to these standards. In addition, as used in this policy
statement, the agencies define “inclusion” to mean a process to create
and maintain a positive work environment that values individual similarities
and differences, so that all can reach their potential and maximize
their contributions to an organization. The standards set forth below
may be used to assess policies and practices that impact the inclusion
of minorities and women in the regulated entity’s workforce and the
existence of minority-owned and women-owned businesses among a regulated
entity’s suppliers of products and services.
II. Joint Standards The agencies designed these standards to provide a framework
for an entity to create and strengthen its diversity policies and
practices, including its organizational commitment to diversity, workforce
and employment practices, procurement and business practices, and
practices to promote transparency of organizational diversity and
inclusion. The agencies recognize that each entity is unique with
respect to characteristics such as its size, location, and structure.
When drafting these standards, the agencies focused primarily on institutions
with more than 100 employees. The agencies know that institutions
that are small or located in remote areas face different challenges
and have different options available to them compared to entities
that are larger or located in more urban areas. The agencies encourage
each entity to use these standards in a manner appropriate to its
unique characteristics. Finally, the agencies intend that the standards
will address an entity’s U.S. operations.
(1) Organizational Commitment to Diversity
and Inclusion The leadership of an organization
with successful diversity policies and practices demonstrates its
commitment to diversity and inclusion. Leadership comes from the governing
body, such as a board of directors, as well as senior officials and
those managing the organization on a day-to-day basis. These standards
inform how an entity promotes diversity and inclusion in both employment
and contracting and how it fosters a corporate culture that embraces
diversity and inclusion.
Standards
In a manner reflective of the individual entity’s size
and other characteristics,
- The entity includes diversity and inclusion considerations
in both employment and contracting as an important part of its strategic
plan for recruiting, hiring, retention, and promotion.
- The entity has a diversity and inclusion policy that
is approved and supported by senior leadership, including senior management
and the board of directors.
- The entity provides regular progress reports to the
board and senior management.
- The entity regularly conducts training and provides
educational opportunities on equal employment opportunity and on diversity
and inclusion.
- The entity has a senior level official, preferably
with knowledge of and experience in diversity and inclusion policies
and practices, who oversees and directs the entity’s diversity and
inclusion efforts. For example, this official may be an executive-level
diversity officer (or equivalent position) with dedicated resources
to support diversity strategies and initiatives.
- The entity takes proactive steps to promote a diverse
pool of candidates, including women and minorities, in its hiring,
recruiting, retention, and promotion, as well as in its selection
of board members, senior management, and other senior leadership positions.
(2) Workforce Profile and
Employment Practices Many entities promote
the fair inclusion of minorities and women in their workforce by publicizing
employment opportunities, creating relationships with minority and
women professional organizations and educational institutions, creating
a culture that values the contribution of all employees, and encouraging
a focus on these objectives when evaluating the performance of managers.
Entities with successful diversity and inclusion programs also regularly
evaluate their programs and identify areas to be improved.
Entities use various analytical
tools to evaluate a wide range of business objectives,
including
metrics to track and measure the inclusiveness of their workforce
(e.g., race, ethnicity, and gender). Entities that are subject to
the recordkeeping and reporting requirements of the Equal Employment
Opportunity Commission (EEOC) and the Office of Federal Contract Compliance
Programs currently collect and maintain data and supporting documentation
that may assist in evaluating and assessing their policies and practices
related to workforce diversity and inclusion. Specifically, entities
that file EEO-1 Reports
1 required under title VII of the Civil Rights Act of 1964 routinely
track and analyze employment statistics by gender, race, ethnicity,
and occupational group. Entities that develop and implement the affirmative
action programs required under the regulations implementing Executive
Order 11246 track and analyze employer-created job groups. Entities
also are encouraged to use other analytical tools that they may find
helpful.
Standards
In a manner
reflective of the individual entity’s size and other characteristics,
- The entity implements policies and practices related
to workforce diversity and inclusion in a manner that complies with
all applicable laws.
- The entity ensures equal employment opportunities
for all employees and applicants for employment and does not engage
in unlawful employment discrimination based on gender, race, or ethnicity.
- The entity has policies and practices that create
diverse applicant pools for both internal and external opportunities
that may include:
- Outreach to minority and women organizations;
- Outreach to educational institutions serving significant
minority and women student populations; and
- Participation in conferences, workshops, and other
events to attract minorities and women and to inform them of employment
and promotion opportunities.
- The entity utilizes both quantitative and qualitative
measurements to assess its workforce diversity and inclusion efforts.
These efforts may be reflected, for example, in applicant tracking,
hiring, promotions, separations (voluntary and involuntary), career
development, and retention across all levels and occupations of the
entity, including the executive and managerial ranks.
- The entity holds management at all levels accountable
for diversity and inclusion efforts, for example by ensuring that
such efforts align with business strategies and individual performance
plans.
(3) Procurement and Business
Practices— Supplier Diversity Companies
increasingly understand the competitive advantage of having a broad
selection of available suppliers to choose from with respect to factors
such as price, quality, attention to detail, and future relationship
building. A number of entities have achieved success at expanding
available business options by increasing outreach to minority-owned
and women-owned businesses.
As in the employment context, entities often use metrics
to identify the baseline of how much they spend procuring and contracting
for goods and services, how much they spend with minority-owned and
women-owned businesses, and the availability of relevant minority-owned
and women-owned businesses, as well as changes over time. Similarly,
entities may use outreach to inform minority-owned and women-owned
businesses (and affinity groups representing these constituencies)
of these opportunities and of the procurement process.
In addition, entities’ prime contractors
often use subcontractors to fulfill the obligations of various contracts.
The use of minority-owned and women-owned businesses as subcontractors
provides valuable opportunities for both the minority-owned and women-owned
businesses and the prime contractor. Entities may encourage the use of
minority-owned and women-owned subcontractors by incorporating this
objective in their business contracts.
Standards
In a manner reflective of the individual entity’s
size and other characteristics,
- The entity has a supplier diversity policy that provides
for a fair opportunity for minority-owned and women-owned businesses
to compete for procurement of business goods and services. This includes
contracts of all types, including contracts for the issuance or guarantee
of any debt, equity, or security, the sale of assets, the management
of the entity’s assets, and the development of the entity’s equity
investments.
- The entity has methods to evaluate its supplier diversity,
which may include metrics and analytics related to:
- Annual procurement spending;
- Percentage of contract dollars awarded to minority-owned
and women-owned business contractors by race, ethnicity, and gender;
and
- Percentage of contracts with minority-owned and women-owned
business sub-contractors.
- The entity has practices to promote a diverse supplier
pool, which may include:
- Outreach to minority-owned and women-owned contractors
and representative organizations;
- Participation in conferences, workshops, and other
events to attract minority-owned and women-owned firms and inform
them of contracting opportunities; and
- An ongoing process to publicize its procurement opportunities.
(4) Practices to Promote
Transparency of Organizational Diversity and Inclusion Transparency and publicity are important aspects
of assessing diversity policies and practices. Greater awareness and
transparency give the public information to assess those policies
and practices. Entities publicize information about their diversity
and inclusion efforts through normal business methods, which include
displaying information on their websites, in their promotional materials,
and in their annual reports to shareholders, if applicable. By making
public an entity’s commitment to diversity and inclusion, its plans
for achieving diversity and inclusion, and the metrics it uses to
measure success in both workplace and supplier diversity, an entity
informs a broad constituency of investors, employees, potential employees,
suppliers, customers, and the general community about its efforts.
The publication of this information can make new markets accessible
for minorities and women and illustrate the progress made toward an
important business goal.
Standards
In a manner reflective of the individual entity’s size
and other characteristics, the entity is transparent with respect
to its diversity and inclusion activities by making the following
information available to the public annually through its website or
other appropriate communication methods:
- The entity’s diversity and inclusion strategic plan;
- The entity’s policy on its commitment to diversity
and inclusion;
- The entity’s progress toward achieving diversity
and inclusion in its workforce and procurement activities (which may
include the entity’s current workforce and supplier demographic profiles);
and
- Opportunities available at the entity that promote
diversity, which may include:
- Current employment and procurement opportunities;
- Forecasts of potential employment and procurement
opportunities; and
- The availability and use of mentorship and developmental
programs for employees and contractors.
(5) Entities’ Self-Assessment The agencies interpret the term “assessment”
to mean self-assessment. Entities that have successful diversity policies
and practices allocate time and resources to monitoring and evaluating
performance under their diversity policies and practices on an ongoing
basis. Entities are encouraged to disclose their diversity policies
and practices, as well as information related to their assessments,
to the agencies and the public. Entities submitting information may
designate such information as confidential commercial information
as appropriate, and the agencies will follow the Freedom of Information
Act in the event of requests for particular submissions.
Standards
In a manner reflective of
the individual entity’s size and other characteristics,
- The entity uses the standards to conduct self-assessments
of its diversity policies and practices annually.
- The entity monitors and evaluates its performance
under its diversity policies and practices on an ongoing basis.
- The entity provides information pertaining to the
self-assessments of its diversity policies and practices to the OMWI
director of its primary federal financial regulator.
- The entity publishes information pertaining to its
efforts with respect to the standards.
III. Use of Assessment Information
by Agencies The agencies may use information
submitted to them to monitor progress and trends in the financial
services industry with regard to diversity and inclusion in employment
and contracting activities and to identify and highlight those policies
and practices that have been successful. The primary federal financial
regulator will share information with other agencies when appropriate
to support coordination of efforts and to avoid duplication. The OMWI
directors will also continue to reach out to regulated entities and
other interested parties to discuss diversity and inclusion practices
and methods of assessment. The agencies may publish information disclosed
to them, such as best practices, in any form that does not identify
a particular entity or individual or disclose confidential business
information.
Issued jointly by the Board, the Consumer Financial
Protection Bureau, the Federal Deposit Insurance Corporation, the
National Credit Union Administration, the Office of the Comptroller
of the Currency, and the Securities and Exchange Commission June 10,
2015.
