33016 Federal Register / Vol. 80, No. 111 / Wednesday, June 10, 2015 / Notices
1 Section 342 of the Act is codified at 12 U.S.C.
5452. The Department of Treasury, the Federal
Housing Finance Agency, and the Federal Reserve
Banks also have established an OMWI, but only the
federal financial agencies with regulated entities
have joined in issuing this Policy Statement.
2 78 FR 64052.
3 78 FR 77792.
Issued in Washington, DC on June 3, 2015.
William Chadwick, Jr.,
Director, Office of Airline Information,
Bureau of Transportation Statistics.
[FR Doc. 2015–14182 Filed 6–9–15; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
[Docket ID OCC–2013–0014]
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
[Docket No. OP–1465]
FEDERAL DEPOSIT INSURANCE
CORPORATION
NATIONAL CREDIT UNION
ADMINISTRATION
BUREAU OF CONSUMER FINANCIAL
PROTECTION
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75050; File No. S7–10–15]
Final Interagency Policy Statement
Establishing Joint Standards for
Assessing the Diversity Policies and
Practices of Entities Regulated by the
Agencies
AGENCIES: Office of the Comptroller of
the Currency (OCC); Board of Governors
of the Federal Reserve System (Board);
Federal Deposit Insurance Corporation
(FDIC); National Credit Union
Administration (NCUA); Bureau of
Consumer Financial Protection (CFPB);
and Securities and Exchange
Commission (SEC).
ACTION: Notice of final interagency
policy statement; request for comments
on proposed collection of information.
SUMMARY: The OCC, Board, FDIC,
NCUA, CFPB, and SEC are issuing a
final interagency policy statement
establishing joint standards for assessing
the diversity policies and practices of
the entities they regulate, as required by
the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010.
DATES: The final interagency policy
statement is effective on June 10, 2015.
The agencies are soliciting comments
only on the collection of information.
Comments must be submitted on or
before August 10, 2015. The effective
date of the collection of information will
be announced in the Federal Register
following Office of Management and
Budget (OMB) approval.
FOR FURTHER INFORMATION CONTACT:
OCC: Joyce Cofield, Executive
Director, Office of Minority and Women
Inclusion, at (202) 649–6460 or Karen
McSweeney, Counsel, Law Department,
at (202) 649–6295, TDD/TTY (202) 649–
5597, Office of the Comptroller of the
Currency, 400 7th Street SW.,
Washington, DC 20219.
BOARD: Sheila Clark, Director, Office
of Diversity and Inclusion, at (202) 452–
2883, Katherine Wheatley, Associate
General Counsel, Legal Division, at
(202) 452–3779, or Alye Foster, Senior
Special Counsel, Legal Division, at (202)
452–5289.
FDIC: Segundo Pereira, Director,
Office of Minority and Women
Inclusion, (703) 562–6090; Melodee
Brooks, Senior Deputy Director, Office
of Minority and Women Inclusion, (703)
562–6090; or Robert Lee, Counsel, Legal
Division, (703) 562–2020, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429–
0002.
NCUA: Wendy A. Angus, Acting
Director, Office of Minority and Women
Inclusion at (703) 518–1650, Cynthia
Vaughn, Diversity Outreach Program
Analyst, Office of Minority and Women
Inclusion, at (703) 518–1650, or Regina
Metz, Staff Attorney, Office of General
Counsel, at (703) 518–6540, National
Credit Union Administration, 1775
Duke Street, Alexandria, VA 22314.
CFPB: Stuart Ishimaru, Director,
Office of Minority and Women
Inclusion, at (202) 435–9012, or Stephen
VanMeter, Deputy General Counsel,
Legal Division at (202) 435–7319,
Bureau of Consumer Financial
Protection, 1700 G Street NW.,
Washington, DC 20552.
SEC: Pamela A. Gibbs, Director, Office
of Minority and Women Inclusion, (202)
551–6046, or Audrey B. Little, Senior
Counsel, Office of Minority and Women
Inclusion, (202) 551–6086, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549.
SUPPLEMENTARY INFORMATION:
I. Background
Section 342 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act of 2010 (Dodd-Frank Act or Act)
required the OCC, Board, FDIC, NCUA,
CFPB, and SEC (each, an Agency and
collectively, the Agencies) to each
establish an Office of Minority and
Women Inclusion (OMWI) to be
responsible for all matters of the Agency
relating to diversity in management,
employment, and business activities.1
The Act also instructed each OMWI
Director to develop standards for
assessing the diversity policies and
practices of entities regulated by the
Agency. To facilitate the use of these
standards by regulated entities that are
subject to the regulations of more than
one Agency, the Agencies worked
together to develop joint standards and
issue this Final Interagency Policy
Statement (Policy Statement).
Prior to drafting these standards, the
OMWI Directors held a series of
roundtable discussions and
teleconferences with representatives of a
variety of regulated entities, including
depository institutions, holding
companies, and industry trade groups,
to solicit their views on appropriate
standards and to learn about the
successes and challenges of existing
diversity policies and programs. In
addition, the OMWI Directors met with
financial professionals, consumer
advocates, and community
representatives to gain a greater
understanding of the issues confronting
minorities and women in obtaining
employment and business opportunities
within the financial services industry.
The information and feedback provided
during these outreach sessions guided
the development of these standards.
II. Proposed Policy Statement
On October 25, 2013, the Agencies
published a Notice in the Federal
Register requesting comment on a
‘‘Proposed Interagency Policy Statement
Establishing Joint Standards for
Assessing the Diversity Policies and
Practices of Entities Regulated by the
Agencies’’ (Proposal).2 The comment
period on the Proposal was scheduled to
close on December 24, 2013, but in
response to requests from members of
the public, the Agencies extended it to
February 7, 2014.3
The Proposal set out standards for
assessing an entity’s diversity policies
and practices in the following areas:
Organizational Commitment to Diversity
and Inclusion; Workforce Profile and
Employment Practices; Procurement
and Business Practices—Supplier
Diversity; and Practices to Promote
Transparency of Organizational
Diversity and Inclusion. These proposed
standards reflected the leading policies
and practices for advancing workforce
and supplier diversity.
The Proposal also explained the
Agencies’ approach to assessments,
VerDate Sep<11>2014 16:46 Jun 09, 2015 Jkt 235001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\10JNN1.SGM 10JNN1
asabaliauskas on DSK5VPTVN1PROD with NOTICES
1 Section 342 of the Act is codified at 12 U.S.C.
5452. The Department of Treasury, the Federal
Housing Finance Agency, and the Federal Reserve
Banks also have established an OMWI, but only the
federal financial agencies with regulated entities
have joined in issuing this Policy Statement.
2 78 FR 64052.
3 78 FR 77792.
Issued in Washington, DC on June 3, 2015.
William Chadwick, Jr.,
Director, Office of Airline Information,
Bureau of Transportation Statistics.
[FR Doc. 2015–14182 Filed 6–9–15; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
[Docket ID OCC–2013–0014]
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
[Docket No. OP–1465]
FEDERAL DEPOSIT INSURANCE
CORPORATION
NATIONAL CREDIT UNION
ADMINISTRATION
BUREAU OF CONSUMER FINANCIAL
PROTECTION
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75050; File No. S7–10–15]
Final Interagency Policy Statement
Establishing Joint Standards for
Assessing the Diversity Policies and
Practices of Entities Regulated by the
Agencies
AGENCIES: Office of the Comptroller of
the Currency (OCC); Board of Governors
of the Federal Reserve System (Board);
Federal Deposit Insurance Corporation
(FDIC); National Credit Union
Administration (NCUA); Bureau of
Consumer Financial Protection (CFPB);
and Securities and Exchange
Commission (SEC).
ACTION: Notice of final interagency
policy statement; request for comments
on proposed collection of information.
SUMMARY: The OCC, Board, FDIC,
NCUA, CFPB, and SEC are issuing a
final interagency policy statement
establishing joint standards for assessing
the diversity policies and practices of
the entities they regulate, as required by
the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010.
DATES: The final interagency policy
statement is effective on June 10, 2015.
The agencies are soliciting comments
only on the collection of information.
Comments must be submitted on or
before August 10, 2015. The effective
date of the collection of information will
be announced in the Federal Register
following Office of Management and
Budget (OMB) approval.
FOR FURTHER INFORMATION CONTACT:
OCC: Joyce Cofield, Executive
Director, Office of Minority and Women
Inclusion, at (202) 649–6460 or Karen
McSweeney, Counsel, Law Department,
at (202) 649–6295, TDD/TTY (202) 649–
5597, Office of the Comptroller of the
Currency, 400 7th Street SW.,
Washington, DC 20219.
BOARD: Sheila Clark, Director, Office
of Diversity and Inclusion, at (202) 452–
2883, Katherine Wheatley, Associate
General Counsel, Legal Division, at
(202) 452–3779, or Alye Foster, Senior
Special Counsel, Legal Division, at (202)
452–5289.
FDIC: Segundo Pereira, Director,
Office of Minority and Women
Inclusion, (703) 562–6090; Melodee
Brooks, Senior Deputy Director, Office
of Minority and Women Inclusion, (703)
562–6090; or Robert Lee, Counsel, Legal
Division, (703) 562–2020, Federal
Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429–
0002.
NCUA: Wendy A. Angus, Acting
Director, Office of Minority and Women
Inclusion at (703) 518–1650, Cynthia
Vaughn, Diversity Outreach Program
Analyst, Office of Minority and Women
Inclusion, at (703) 518–1650, or Regina
Metz, Staff Attorney, Office of General
Counsel, at (703) 518–6540, National
Credit Union Administration, 1775
Duke Street, Alexandria, VA 22314.
CFPB: Stuart Ishimaru, Director,
Office of Minority and Women
Inclusion, at (202) 435–9012, or Stephen
VanMeter, Deputy General Counsel,
Legal Division at (202) 435–7319,
Bureau of Consumer Financial
Protection, 1700 G Street NW.,
Washington, DC 20552.
SEC: Pamela A. Gibbs, Director, Office
of Minority and Women Inclusion, (202)
551–6046, or Audrey B. Little, Senior
Counsel, Office of Minority and Women
Inclusion, (202) 551–6086, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549.
SUPPLEMENTARY INFORMATION:
I. Background
Section 342 of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act of 2010 (Dodd-Frank Act or Act)
required the OCC, Board, FDIC, NCUA,
CFPB, and SEC (each, an Agency and
collectively, the Agencies) to each
establish an Office of Minority and
Women Inclusion (OMWI) to be
responsible for all matters of the Agency
relating to diversity in management,
employment, and business activities.1
The Act also instructed each OMWI
Director to develop standards for
assessing the diversity policies and
practices of entities regulated by the
Agency. To facilitate the use of these
standards by regulated entities that are
subject to the regulations of more than
one Agency, the Agencies worked
together to develop joint standards and
issue this Final Interagency Policy
Statement (Policy Statement).
Prior to drafting these standards, the
OMWI Directors held a series of
roundtable discussions and
teleconferences with representatives of a
variety of regulated entities, including
depository institutions, holding
companies, and industry trade groups,
to solicit their views on appropriate
standards and to learn about the
successes and challenges of existing
diversity policies and programs. In
addition, the OMWI Directors met with
financial professionals, consumer
advocates, and community
representatives to gain a greater
understanding of the issues confronting
minorities and women in obtaining
employment and business opportunities
within the financial services industry.
The information and feedback provided
during these outreach sessions guided
the development of these standards.
II. Proposed Policy Statement
On October 25, 2013, the Agencies
published a Notice in the Federal
Register requesting comment on a
‘‘Proposed Interagency Policy Statement
Establishing Joint Standards for
Assessing the Diversity Policies and
Practices of Entities Regulated by the
Agencies’’ (Proposal).2 The comment
period on the Proposal was scheduled to
close on December 24, 2013, but in
response to requests from members of
the public, the Agencies extended it to
February 7, 2014.3
The Proposal set out standards for
assessing an entity’s diversity policies
and practices in the following areas:
Organizational Commitment to Diversity
and Inclusion; Workforce Profile and
Employment Practices; Procurement
and Business Practices—Supplier
Diversity; and Practices to Promote
Transparency of Organizational
Diversity and Inclusion. These proposed
standards reflected the leading policies
and practices for advancing workforce
and supplier diversity.
The Proposal also explained the
Agencies’ approach to assessments,
VerDate Sep<11>2014 16:46 Jun 09, 2015 Jkt 235001 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\10JNN1.SGM 10JNN1
asabaliauskas on DSK5VPTVN1PROD with NOTICES
33017Federal Register / Vol. 80, No. 111 / Wednesday, June 10, 2015 / Notices
4 Private employers with 100 or more employees
and federal contractors and first-tier subcontractors
with 50 or more employees that have a contract or
subcontract of $50,000 or more, or serve as
depository of Government funds in any amount, are
required by Title VII of the Civil Rights Act of 1964
to collect data on employment diversity and file an
EEO–1 Report with the EEOC.
The EEO–1 Report defines race and ethnicity
categories as Hispanic or Latino; White (Not
Hispanic or Latino); Black or African American (Not
Hispanic or Latino); Native Hawaiian or Other
Pacific Islander (Not Hispanic or Latino); Asian
(Not Hispanic or Latino); American Indian or
Alaska Native (Not Hispanic or Latino); and Two or
More Races (Not Hispanic or Latino). http://
www.eeoc.gov/employers/eeo1survey/
2007instructions.cfm.
noting that the assessment envisioned
by the Agencies would not be a part of
the examination or supervisory process.
Instead, the Proposal provided that a
‘‘model assessment’’ would include a
self-assessment by an entity of its
diversity policies and practices using
the proposed standards; voluntary
disclosure of the self-assessment to the
appropriate Agency; and publication by
the entity of its diversity efforts, in order
to increase the public’s awareness and
understanding. The Proposal also stated
that the Agencies may periodically
review this public information to
monitor diversity and inclusion
practices and reach out to regulated
entities to discuss diversity and
inclusion.
In drafting the proposed standards,
the Agencies recognized that each entity
has unique characteristics, such as its
governance structure, workforce size,
total assets, contract volume, geographic
location, and community
characteristics. To reflect this,
throughout the Proposal, the Agencies
stated that the standards may be tailored
and used in a manner reflective of an
individual entity’s size and other
characteristics. In developing the
Proposal, the Agencies were also
mindful of section 342(b)(4) of the Act,
which states that the directive to
develop standards may not be construed
to mandate any requirement on or
otherwise affect the lending policies and
practices of any regulated entity, or to
require any specific action based on the
findings of the assessment.
III. Comment Summary and the
Agencies’ Response
The Agencies collectively received
more than 200 comments on the
Proposal, although some commenters
submitted either multiple comments or
identical or substantially similar
comments to multiple Agencies. The
comments reflected the views of
interested parties, including financial
institutions, public interest
organizations, trade associations and
organizations, government officials, and
other members of the public. In general,
the commenters supported the concept
of diversity and inclusion, particularly
in the workforce. A number of
commenters applauded the Agencies for
jointly developing standards, while
others commended the Proposal’s
flexible approach. Other commenters,
however, expressed concern about the
Proposal. Some urged the Agencies to
withdraw the proposed standards, while
others suggested specific changes to
address certain issues.
The Agencies carefully considered all
of these comments in formulating the
final Policy Statement. The discussion
below addresses significant issues that
commenters raised and explains the
changes to the Policy Statement.
A. General Comments
1. Legal Effect
The Agencies received several
comments that interpreted the Proposal
to impose new legal requirements on
regulated entities or to mandate specific
actions. Some commenters argued that
these requirements and mandates
exceeded the Agencies’ statutory
authority and were unlawful. For
example, several commenters
interpreted references to ‘‘metrics’’ in
the Proposal to require or strongly
encourage quotas in hiring and
contracting. Others expressed concern
that the new requirements would
impose a significant compliance burden,
particularly on small entities. For
example, some commenters interpreted
the standards to require entities to
develop methods for assessing supplier
diversity, and they argued that this was
unduly burdensome for small entities.
Other commenters stated that the
Proposal used ‘‘prescriptive’’ language,
from which they inferred that some
level of compliance with the standards
would be expected from regulated
entities. These commenters urged the
Agencies to draft the final standards as
‘‘recommendations’’ and clarify that the
final Policy Statement is a guidance
document. Another commenter
requested that the Agencies frame the
final Policy Statement as a ‘‘best
practices’’ guide with which regulated
entities were not required to comply.
In contrast, some commenters stated
that the inclusion of new requirements
or mandates in the standards was
consistent with the plain language of
section 342(b)(2)(C). For example, some
commenters argued that the Agencies
should require the regulated entities to
provide them with information about
their diversity policies and practices,
including assessment information.
Others stated that the congressional
intent of section 342 was to promote
diversity and inclusion to the maximum
extent possible and noted that the
Proposal sets only minimum standards.
In light of these comments, it is clear
that Agencies need to provide
additional guidance about the intended
legal effect of the final Policy Statement.
To this end, the Agencies have added
the following language: ‘‘This document
is a general statement of policy under
the Administrative Procedure Act, 5
U.S.C. 553. It does not create new legal
obligations. Use of the Standards by a
regulated entity is voluntary.’’ The
Agencies believe that this will clarify
the confusion noted above.
2. Meaning of ‘‘Diversity’’
Several commenters raised questions
about the meaning of ‘‘diversity,’’ which
the Proposal did not define. A few
commenters requested the Agencies
define the term to avoid differing
interpretations, with one commenter
stating that the standards would not be
useful in the absence of a definition.
Several commenters suggested
definitions, ranging from a definition
limited to minorities and women to an
expanded definition that would include
individuals with disabilities, veterans,
and lesbian/gay/bisexual/transgender
(LGBT) individuals. Another commenter
recommended also defining
‘‘inclusion,’’ to make clear that the goal
of diversity is not met by simply hiring
a diverse group.
The Agencies agree that the term
‘‘diversity’’ should be defined. They
also believe it should both reflect the
general focus in section 342 on
minorities and women and provide
flexibility to regulated entities that
define the term more broadly.
Accordingly, the final Policy Statement
provides that ‘‘diversity’’ refers to
‘‘minorities . . . and women.’’ For
purposes of this definition, ‘‘minority’’
is defined as Black Americans, Native
Americans, Hispanic Americans, and
Asian Americans, which is consistent
with the definition of ‘‘minority’’ in
section 342(g)(3) of the Act.
The final Policy Statement also states
that this definition of diversity ‘‘does
not preclude an entity from using a
broader definition with regard to these
standards.’’ This language is intended to
be sufficiently flexible to encompass
other groups if an entity wants to define
the term more broadly. For example, a
broader definition may include the
categories referenced by the Equal
Employment Opportunity Commission
(EEOC) in its Employer Information
Report EEO–1 (EEO–1 Report),4 as well
VerDate Sep<11>2014 16:46 Jun 09, 2015 Jkt 235001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 E:\FR\FM\10JNN1.SGM 10JNN1
asabaliauskas on DSK5VPTVN1PROD with NOTICES
4 Private employers with 100 or more employees
and federal contractors and first-tier subcontractors
with 50 or more employees that have a contract or
subcontract of $50,000 or more, or serve as
depository of Government funds in any amount, are
required by Title VII of the Civil Rights Act of 1964
to collect data on employment diversity and file an
EEO–1 Report with the EEOC.
The EEO–1 Report defines race and ethnicity
categories as Hispanic or Latino; White (Not
Hispanic or Latino); Black or African American (Not
Hispanic or Latino); Native Hawaiian or Other
Pacific Islander (Not Hispanic or Latino); Asian
(Not Hispanic or Latino); American Indian or
Alaska Native (Not Hispanic or Latino); and Two or
More Races (Not Hispanic or Latino). http://
www.eeoc.gov/employers/eeo1survey/
2007instructions.cfm.
noting that the assessment envisioned
by the Agencies would not be a part of
the examination or supervisory process.
Instead, the Proposal provided that a
‘‘model assessment’’ would include a
self-assessment by an entity of its
diversity policies and practices using
the proposed standards; voluntary
disclosure of the self-assessment to the
appropriate Agency; and publication by
the entity of its diversity efforts, in order
to increase the public’s awareness and
understanding. The Proposal also stated
that the Agencies may periodically
review this public information to
monitor diversity and inclusion
practices and reach out to regulated
entities to discuss diversity and
inclusion.
In drafting the proposed standards,
the Agencies recognized that each entity
has unique characteristics, such as its
governance structure, workforce size,
total assets, contract volume, geographic
location, and community
characteristics. To reflect this,
throughout the Proposal, the Agencies
stated that the standards may be tailored
and used in a manner reflective of an
individual entity’s size and other
characteristics. In developing the
Proposal, the Agencies were also
mindful of section 342(b)(4) of the Act,
which states that the directive to
develop standards may not be construed
to mandate any requirement on or
otherwise affect the lending policies and
practices of any regulated entity, or to
require any specific action based on the
findings of the assessment.
III. Comment Summary and the
Agencies’ Response
The Agencies collectively received
more than 200 comments on the
Proposal, although some commenters
submitted either multiple comments or
identical or substantially similar
comments to multiple Agencies. The
comments reflected the views of
interested parties, including financial
institutions, public interest
organizations, trade associations and
organizations, government officials, and
other members of the public. In general,
the commenters supported the concept
of diversity and inclusion, particularly
in the workforce. A number of
commenters applauded the Agencies for
jointly developing standards, while
others commended the Proposal’s
flexible approach. Other commenters,
however, expressed concern about the
Proposal. Some urged the Agencies to
withdraw the proposed standards, while
others suggested specific changes to
address certain issues.
The Agencies carefully considered all
of these comments in formulating the
final Policy Statement. The discussion
below addresses significant issues that
commenters raised and explains the
changes to the Policy Statement.
A. General Comments
1. Legal Effect
The Agencies received several
comments that interpreted the Proposal
to impose new legal requirements on
regulated entities or to mandate specific
actions. Some commenters argued that
these requirements and mandates
exceeded the Agencies’ statutory
authority and were unlawful. For
example, several commenters
interpreted references to ‘‘metrics’’ in
the Proposal to require or strongly
encourage quotas in hiring and
contracting. Others expressed concern
that the new requirements would
impose a significant compliance burden,
particularly on small entities. For
example, some commenters interpreted
the standards to require entities to
develop methods for assessing supplier
diversity, and they argued that this was
unduly burdensome for small entities.
Other commenters stated that the
Proposal used ‘‘prescriptive’’ language,
from which they inferred that some
level of compliance with the standards
would be expected from regulated
entities. These commenters urged the
Agencies to draft the final standards as
‘‘recommendations’’ and clarify that the
final Policy Statement is a guidance
document. Another commenter
requested that the Agencies frame the
final Policy Statement as a ‘‘best
practices’’ guide with which regulated
entities were not required to comply.
In contrast, some commenters stated
that the inclusion of new requirements
or mandates in the standards was
consistent with the plain language of
section 342(b)(2)(C). For example, some
commenters argued that the Agencies
should require the regulated entities to
provide them with information about
their diversity policies and practices,
including assessment information.
Others stated that the congressional
intent of section 342 was to promote
diversity and inclusion to the maximum
extent possible and noted that the
Proposal sets only minimum standards.
In light of these comments, it is clear
that Agencies need to provide
additional guidance about the intended
legal effect of the final Policy Statement.
To this end, the Agencies have added
the following language: ‘‘This document
is a general statement of policy under
the Administrative Procedure Act, 5
U.S.C. 553. It does not create new legal
obligations. Use of the Standards by a
regulated entity is voluntary.’’ The
Agencies believe that this will clarify
the confusion noted above.
2. Meaning of ‘‘Diversity’’
Several commenters raised questions
about the meaning of ‘‘diversity,’’ which
the Proposal did not define. A few
commenters requested the Agencies
define the term to avoid differing
interpretations, with one commenter
stating that the standards would not be
useful in the absence of a definition.
Several commenters suggested
definitions, ranging from a definition
limited to minorities and women to an
expanded definition that would include
individuals with disabilities, veterans,
and lesbian/gay/bisexual/transgender
(LGBT) individuals. Another commenter
recommended also defining
‘‘inclusion,’’ to make clear that the goal
of diversity is not met by simply hiring
a diverse group.
The Agencies agree that the term
‘‘diversity’’ should be defined. They
also believe it should both reflect the
general focus in section 342 on
minorities and women and provide
flexibility to regulated entities that
define the term more broadly.
Accordingly, the final Policy Statement
provides that ‘‘diversity’’ refers to
‘‘minorities . . . and women.’’ For
purposes of this definition, ‘‘minority’’
is defined as Black Americans, Native
Americans, Hispanic Americans, and
Asian Americans, which is consistent
with the definition of ‘‘minority’’ in
section 342(g)(3) of the Act.
The final Policy Statement also states
that this definition of diversity ‘‘does
not preclude an entity from using a
broader definition with regard to these
standards.’’ This language is intended to
be sufficiently flexible to encompass
other groups if an entity wants to define
the term more broadly. For example, a
broader definition may include the
categories referenced by the Equal
Employment Opportunity Commission
(EEOC) in its Employer Information
Report EEO–1 (EEO–1 Report),4 as well
VerDate Sep<11>2014 16:46 Jun 09, 2015 Jkt 235001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 E:\FR\FM\10JNN1.SGM 10JNN1
asabaliauskas on DSK5VPTVN1PROD with NOTICES