Good morning.
Almost all CEOs will tell you today that diversity and inclusion are a top strategic concern for them. But which CEOs are actually doing well at it, and which are just talking about it?
That’s the question we asked, in partnership with data company Refinitiv, as part of this year’s Fortune 500 exercise. Fortune and Refinitiv recently launched “Measure Up,” designed to encourage companies to disclose their diversity data along 14 key metrics, including things like the percentage of minorities on boards, percentage of employees who are women or Black, Hispanic or Asian, etc. Full transparency on diversity data is still a rarity, but Refinitiv was able to get some data for 256 of the 500. Extra credit was given to companies that have made the decision to more fully disclose.
And the results? The top five on our top 20 list for 2021:
1. Microsoft (No.15 on the 500 list)
2. Centene (No.24 on the 500)
3. Target (No.30 on the 500)
4. Gap (No.221 on the 500)
5. Biogen (No.228 on the 500)
You can find the entire list here. Fortune and Refinitiv intend to stay on top of this issue until disclosing diversity data becomes a widely accepted practice, because we believe that what gets measured gets managed. And while most companies still are not fully disclosing such data, our recent survey of Fortune 500 CEOs found that 79% believe “companies should voluntarily disclose diversity statistics about their employees.” Only 21% said they don’t believe in such disclosure.
More news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
TOP NEWS
Cyberattacks continue
As meat giant JBS mops up after its targeting, more evidence emerges that (possibly Russian) cyberattackers are going after transportation services. A ransomware attack yesterday disrupted ferry services in Massachusetts, and New York's Metropolitan Transportation Authority revealed an April hack. (Bonus read: the cost of cyber insurance is surging, as insurers get tougher on their corporate customers.) Wall Street Journal
Hey Harmony
Huawei has finally detailed its HarmonyOS operating system, which the Chinese telecoms giant hopes will provide a worthwhile alternative to Android and iOS. The software is designed to work across smartphones and various household gadgets—previous rivals to the big two mobile operating systems have ultimately failed, but Huawei hopes its focus on the Internet of Things will carry it through. HarmonyOS's development was accelerated by the Trump administration's ban on Huawei using key Google services. Bloomberg
NFL racism
The NFL has promised to stop a practice called "race norming" that has been used in assessing former players' brain injury claims—essentially, Black retirees were assumed to have had lower cognitive function to start with. A senior U.S. district judge has ordered a report into how the practice may have influenced previous payouts. Associated Press
Digital tax
The U.S. has announced and immediately suspended 25% tariffs on more than $2 billion in British, Italian, Spanish, Turkish, Indian and Austrian imports. Call this the big stick in the Biden administration's negotiations over "digital taxes" on Big Tech—earlier this year, the U.S. also suspended tariffs on French imports to allow for more talking time. Fortune
Correction: This post was updated on June 3 to note that it was JBS, not JBL (an audio firm) that fell victim to a cyberattack.
AROUND THE WATER COOLER
Bye-bye Bibi?
Benjamin Netanyahu may finally be heading for the exit after an extraordinary coalition coalesced against his 12-year rule in Israel. The centrist Yair Lapid is the lynchpin here, but the anti-Bibi group he's managed to assemble includes both the Jewish far right—with the Orthodox Naftali Bennett set to become prime minister for the next two years, before Lapid assumes the role—and Arab Islamists. Lapid told President Reuven Rivlin an hour before a midnight deadline that he had the support he needed to form a government. Lawmakers still need to vote for the new government next week. Guardian
Marc Benioff
Salesforce CEO Marc Benioff has to show that his risky Slack buy was worth the $27.7 billion price tag, but he's also enthusiastically tackling other challenges such as cleaning up the oceans and planting 1 trillion trees. "I'm pivoting in my life," he tells Fortune's Michal Lev-Ram in this fascinating interview. Fortune
SPACtastic
Blank-check-company king Chamath Palihapitiya aims to raise $800 million for four special purpose acquisition companies (SPACs) that will try to buy up biotechnology businesses. SPACs have lost their luster recently, though SoFi's listing this week, via a Palihapitiya-run SPAC, did go well. Financial Times
YouTube ads
Fortune's Aaron Pressman (who is sadly leaving us this week) has written a great analysis of YouTube's booming ad business. "If YouTube were a stand-alone entity, that would make it the world’s fourth-largest seller of digital ads, after its parent company, Alphabet, Facebook, and Amazon," he writes. "But what really has Wall Street salivating is the question of just how big it might get. YouTube’s 2020 revenue was up 31% from 2019, compared with a 12.8% increase for its parent, Alphabet." Fortune
This edition of CEO Daily was edited by David Meyer.
