The merits of diverse and inclusive workforces are well-documented. They drive innovation, bolster financial performance, capture new markets, and increase customer loyalty. Fair and equal compensation is the prerequisite of cultivating an inclusive company culture, and is an issue that is receiving attention increasingly from policymakers, corporate leaders, and the popular media.
The negative effects of inequality are felt across our entire economy. As income and wealth become concentrated at the top, fewer can participate fully in the economy. This hampers growth at all levels. The American Dream, once thought to be a birthright, has proven to be available more readily to children of the educated and affluent than to others. Income equality is a corporate citizenship and economic imperative. Corporate citizenship is not what happens in the corporate citizenship department. Good corporate citizenship is reflected across the operations of the company in how the company exercises as an entity its rights, responsibilities, obligations, and privileges
Research shows that racial and gender income inequality affects every country, industry, and field. For example, respondents to the Boston College Center for Corporate Citizenship’s Profile of the Professionals 2018 study report that women fill most corporate citizenship positions. Their representation drops off, however, in more highly compensated executive positions (see Figure A). Women respondents also reported earning less than their male counterparts, and receiving lower bonuses (See Figure B).