Friday, August 29, 2014

Are companies hiring based on race?

KUALA LUMPUR: The Securities Commission should consider a regulation to make public-listed companies publish a diversity analysis in their annual reports.

The Malay Economic Action Council (MTEM) said by doing this, civil society and shareholders would know if a company had utilised racial profiling in it’s hiring practices.
Its chief executive officer Nizam Mahshar said even some Forbes 100 companies declared diversity within their organisational structures.

Nizam also suggested corporations reveal the salary ratio of their chief executive officers to average workers within their companies.
“Investors should take into account the Drucker Institute’s recommendation that the proper ratio between a CEO and an average worker should not exceed 20:1,” he said.
Around 30% of Malaysian workers are earning below RM2,000 a month, according to figures published by the Employees Provident Fund.
MTEM also said Pemandu should monitor how much local corporations were paying employees at the lowest level since the latter was pushing for Malaysia to become a high-income nation with employees taking home RM45,000 annually or RM3,750 per month.
MTEM said they fully backed Prime Minister Najib Razak’s call to the corporate sector to use best practices and declare the diversity within their organisational structures.

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