Disability:IN and the American Association of People with Disabilities (AAPD) have expressed deep disappointment in Nasdaq’s new board diversity reporting ruling, which fails to include people with disabilities.
AAPD, Disability:IN, institutional investors and more than 200 leading civil rights organisations strongly advocated for the inclusion of people with disabilities in the proposed rule; which in its current form includes women, racial and ethnic minorities and LGBTQ+.
However, the US Securities and Exchange Commission (SEC) “declined to recommend that Nasdaq include people with disabilities in a proposed rule; that requires US-listed companies to meet certain diversity objectives and report on the composition of their boards of directors”, highlighted Disability:IN.
PEOPLE WITH DISABILITIES ‘WRONGLY LEFT OUT’
“The disability community comprises 1.3 billion people worldwide, including nearly 33 million working-age Americans; and should be included in corporate diversity initiatives and in the national conversation around diversity and equality. We repeatedly engaged Nasdaq and the SEC to make the case that people with disabilities are a marginalised minority group akin to women, racial and ethnic minorities, and LGBTQ+,” stated Ted Kennedy, Jr, Co-Chair, Disability Equality Index; a joint initiative by Disability:IN and AAPD.
“While these populations were rightfully included, people with disabilities were wrongly left out”, noted Kenedy. “By omitting people with disabilities, Nasdaq sends the message to corporate America that people with disabilities don’t count in diversity metrics; in sharp contrast to the increasing number of civil rights organisations, CEOs, companies, institutional investors, and shareholders who say it does matter.”
SUPPORT FOR DISABILITY INCLUSION
In February, Disability:IN and AAPD issued a letter to the SEC; as well as to Nasdaq’s CEO Adena Friedman regarding the omission of people with disabilities in their board diversity proposal. They also submitted a subsequent letter to the SEC; outlining how there is economic evidence, investor interest, benefits to corporate culture, similar existing regulation, and ease of compliance for including people with disabilities in the definition.
Additionally, the Leadership Conference on Civil and Human Rights, a coalition of more than 200 civil and human rights organisations, wrote a letter to the SEC; and so did New York State Comptroller Thomas P DiNapoli. National LGBT Chamber of Commerce, National Veteran-Owned Business Association, US Black Chamber, United States Hispanic Chamber of Commerce, US Pan Asian American Chamber of Commerce, Women Impacting Public Policy and Out & Equal, also sent Nasdaq a joint letter voicing their support for disability inclusion in the ruling.
MISSED OPPORTUNITY
Disability:IN, the global organisation driving disability inclusion and equality in business, believes that Nasdaq “missed an important opportunity to demonstrate to corporate America that people with disabilities matter in diversity metrics; and that disability disclosure is a material issue for investors”.
“In July, we celebrated the 31st anniversary of the Americans with Disabilities Act (ADA), the civil rights law recognising people with disabilities as a discrete minority population that has been subjected to discrimination and denied access to employment based on myths, fears, and stereotypes; leading to extreme economic and social inequality,” stated Jill Houghton, President and CEO of Disability:IN. “The ADA defines disability as physical or mental impairment that substantially limits one or more major life activities for an individual. It is these very experiences that make people with disabilities vital assets to corporate boards. Boards govern better when members can lend their diverse abilities and perspectives. In fact, disability is the very definition of diversity, as it does not discriminate on the basis of sex, race, ethnicity, gender, gender identity or expression, sexual orientation, age or nationality.”
More than 65 CEOs have signed the Disability:IN CEO Letter on Disability Inclusion, citing independent analysis from an Accenture report, Getting to Equal: The Disability Inclusion Advantage; that companies that are more inclusive of persons with disabilities create more profit and long-term value. Over a four-year period, these companies reported 28% higher revenue, double the net income, and 30% higher profit margins; as well as higher total shareholder returns.
MORE WORK NEEDED TO IMPROVE DIVERSITY
Disability:IN said it will continue to work with the Nasdaq, SEC and other exchanges and organisations on future initiatives that impact board diversity in a positive manner. Advocating on behalf of the one billion people with disabilities, alongside 280 corporate partners and many allies, is at the heart of the organisation’s objective to build a global inclusive economy.
Although SEC Commissioner Allison Herren Lee and Commissioner Caroline A Crenshaw described Nasdaq’s new rules as a “positive first step for investors”, they also both pointed out that there is “more work to be done in improving both diversity and transparency” at public companies; and in the capital markets more broadly.
“For example, disability may be a relevant characteristic, as well as diversity among senior management and the workforce more broadly. There is a continued, harmful disparity in the representation of a wide range of communities in our capital markets. Because enhanced diversity is critically important for investors, the markets, and our economy, we hope this is a starting point for initiatives related to diversity; not the finish line,” they highlighted. Click here to read more.
Sign up for our newsletter
