Embracing Equity to Reach Equality: Redefining Corporate America

This year’s International Women’s Day theme is Embrace Equity – shedding light on the notion that equal opportunities aren’t enough. Even though we make up about half of the population, women are still struggling to be seriously considered when it comes to positions of power in government, business and communities. By shifting the focus to creating equitable opportunities for women to found, lead and direct companies, businesses can cultivate more inclusive environments. And when it comes to corporate America, equitable action is absolutely essential to create the change we want to see in the world and build a better future for all.

I often spend time reflecting on my own experience as a Latina entrepreneur. More than a decade ago, I was pitching the idea of The Honest Company to rooms full of male investors. I was one of so few women – and women of color – in this type of environment. I wasn’t immediately taken seriously in my own boardroom, maybe because I was known primarily for my career as an actor, maybe because I didn’t have a traditional business background, but also because I’m a woman. I often think about how different the journey of getting my business off the ground would have been if there were more women in leadership roles, making investment decisions, holding C-suite titles across all business critical functions and in the boardroom.?

Last year, I wrote about how women-led startups raised only 2.4% of all VC funding in 2021. In 2022, that amount actually declined to 1.9% – a shocking drop that can be attributed to the uncertainty around the economy last year. At the same time, we can acknowledge the other influences at play, including the fact that investors still see women-led ventures as high-risk – even though data shows that diverse teams lead more successful, profitable companies.

Corporate America has recently turned its focus on increasing the number of women holding seats on corporate boards. Some states – including Honest’s home state of California – have begun requiring public companies to have at least one female board director and one board director who is a racial or ethnic minority or a member of the LGBTQ+ community. These policies ensure that marginalized communities have a seat at the table when making business decisions for some of the world’s largest companies.?

At the end of 2021, women held 25.6% of corporate board seats at public companies in the U.S., even though women slightly outnumber men in the U.S., making up over half of the population. And when looking at the breakdown of the women on boards, the inadequate representation of women of color demonstrates the necessity for action.

Among public companies in the Russell 3000, Black women hold 2.7% of total board seats, and Asian American / Pacific Islander (AAPI) women make up just under 2%. This is despite Black women making up 6.5% of the U.S. population, and AAPI women accounting for about 3%.?

In the past few years, progress toward more women of color joining corporate boards has been accelerating. According to the Wall Street Journal, between May 2021 and April 2022, 12% of new directors named to boards for S&P 500 companies were Black women – a promising increase that organizations like Black Women on Boards are helping make possible.

Amidst this progress, it’s important to call out that Latinas were the least-represented group on corporate boards for Fortune 500 companies in 2021, making up 1% of corporate board seats, according to a report from the Latino Corporate Directors Association (LCDA) and KPMG. Latinas make up nearly 10% of the U.S. population, and that percentage is growing quickly. In order to fairly represent our population, it is imperative that we make it a priority to grow the number of Latinas on corporate boards..\

So while there’s still a long way to go, I believe that setting an example is a powerful form of leadership. It becomes easier for others to embrace equity once they’ve seen it in action. I’m so proud that Honest has been ahead of the curve with a diverse leadership team and board – our leadership is composed of more than 60% women at the director level and above, and our board is 50% women and 60% people of color.

I am so inspired by Carla Vernón , our new CEO (and Board Director) – and she’s the first Afro-Latina to become the CEO of a publicly traded company in the U.S. She’s been part of the Honest fam for just a few months and is already bringing her holistic, authentic and visionary leadership approach to how we engage with our customers and embrace diversity in our community. It’s motivating us to redefine corporate America together.

What does it look like to have an inclusive company culture made up of women, people of color, LGBTQ+ people, and other marginalized communities – all of whom are given equitable opportunity to contribute and show up authentically? How can we best support a diverse workforce, and ultimately deliver safe, high-quality, effective products for an increasingly diverse world?

At Honest, our employee resource groups (ERGs) are key to supporting our diverse employees. Our ERGs focus on specific groups within Honest and promote meaningful allyship: WELL supports the personal and professional development of women at Honest; Parents & Friends provides a network and resources for working parents; BLAC uplifts and empowers Black employees; HAAPI engages Asian American and Pacific Islander employees; and we have more ERGs launching in the coming months. Leading with empathy and understanding of our employees’ full lives outside of work leads to a more engaged, content and inclusive workforce.

And that’s what matters most. All too often, corporate America loses sight of the most important end goal of doing business: to provide goods and services to people. And the people Honest serves are diverse – inspiring us to champion equity, equality and accessibility within our own company.

Along with Carla, our Honest family, women and allies around the world, I unwaveringly #EmbraceEquity this #IWD2023. I pledge to continue to fight for a better world for my daughters and girls all over the world.

Acting with equity leads to equality. We call on everyone to join us in providing equitable access and opportunities to all women. As we redefine corporate America together, elevating women in the workplace will ultimately bring us closer to gender equality everywhere.