wfn.org | [PCUSANEWS] MRTI questions Intel's record on diversity

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Note #8644 from PCUSA NEWS to PRESBYNEWS:

05081
February 9, 2005

MRTI questions Intel's record on diversity

Underemployment of women is subject of on-site visit in Arizona 	

by Toya Richards Hill

PHOENIX - Computer chip-maker Intel Corp. had some explaining to do at one of
its facilities recently when a committee charged with monitoring Presbyterian
Church (U.S.A.) investments paid the company a visit.

	Among the issues raised by the Mission Responsibility Through
Investment Committee (MRTI) during the Feb. 4 visit was Intel's record on
diversity. 

	In fact, one of the biggest things on MRTI member Bernice McIntyre's
mind was why only 24 percent of Intel's 2003 U.S. workforce was female.
That's 11,602 female workers out of 48,181 total domestic workers.

	McIntyre also wanted to know why the international company's
11-member board of directors had only two female members and no people of
color at all.

	"It's appalling when you look at it," said McIntyre, an at-large
member of MRTI from Washington, DC. "I think it's troubling."

	The Presbyterian Foundation has about 400,000 shares of Intel stock,
valued at about $9 million, according to Dennis Murphy, executive vice
president and chief investment officer for the Foundation. The Board of
Pensions has about 229,627 shares of Intel stock, valued at about $5.4
million, according to Judith Freyer, senior vice president, treasurer and
chief investment officer for BOP. 

	MRTI's on-site meeting with Intel officials was part of the
committee's regularly scheduled meeting here. 

Though much attention is being given to the committee's assignment from the
216th General Assembly to "initiate the process of phased selective
divestment" from corporations that profit from Israel's occupation of Gaza
and the West Bank, MRTI also has other ongoing business to attend to. 

	Cloistered in a meeting room within one of Intel's massive
fabrication plants near Phoenix, MRTI members heard up close and personal
just how well the high-tech company is living up to the church's principle of
social responsibility in business practices. The committee last met in person
with Intel in 2003.

	Diversity is an issue at Intel and the Board of Directors recognizes
it, Dave Stangis, director of corporate responsibility for Intel Corp., said
in response to McIntyre's queries. "It's something that we recognize
internally."

	Intel's 2003 Global Citizenship Report - its annual update on the
company's social and environmental performance - states that its U.S.
workforce that year was 63 percent Caucasian, 21 percent Asian/Pacific
Islander, 8 percent Hispanic, 3 percent African American and 1 percent Native
American. Four percent of its workforce declined to identify their race.

	Figures on the racial makeup of Intel's worldwide workforce were not
provided, but a breakdown of employment by gender was. Of the company's
79,430 total workers, 23,864, or 30 percent, were women and 55,566, or 70
percent, were men.

	"I don't have a good answer for you" as to why the numbers are what
they are, said Stangis. With the number of employees that Intel has, "it
takes a little while to turn it around."

	Shelly Esque, director of corporate public affairs for Intel Corp.,
echoed that thought. "It's a long, long process," she said. 

	She pointed to relationships Intel has with historically black
colleges and universities to recruit graduates, specifically those with
engineering degrees, and she also talked about how Intel is working with
grade school students both domestically and internationally to foster an
early interest in science.

	Yet Intel's own numbers show that the company hasn't gained much
ground in diversity hiring over time.

	In 2001, 43 percent of the U.S. workers that Intel hired were
minorities. That figure remained the same in 2002 and then dipped to 39
percent in 2003. 

	The record was better for women, although it still showed
fluctuations. In 2001, 20 percent of the U.S. workers Intel hired were women,
followed by 19 percent in 2002. The figure rose to 22 percent in 2003.

	 Digesting the information Intel had to share on diversity, MRTI
members clearly were concerned. And in MRTI's business meeting following the
Intel visit, members commented on the need to more closely scrutinize Intel's
actions on diversity.

	"Maybe they should work differently on the problem," said Elizabeth
Letzler, an at-large member of MRTI from Baldwin, NY. "I think what we should
do with Intel is pressure them for results."

	The Rev. Bill Somplatsky-Jarman, associate for MRTI and environmental
justice in the	PC(USA) National Ministries Division, said the committee will
continue to "meet with Intel on a regular basis, and we will keep the issue
up before them."

	He also noted that Intel's 2004 citizenship report is currently being
drafted, and once it is released the committee will again review Intel's
record. "When that comes out," he said, "we'll have a chance to follow up
with them."

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