(Bloomberg) -- Alphabet Inc.’s Google, Twitter Inc., Snap Inc. and about two dozen other major technology companies are banding together to focus on improving workplace diversity and strengthening the pipeline of underrepresented workers in Silicon Valley.
The Catalyze Tech coalition, which was announced Thursday, aims to hold its members accountable for improving the representation and experience of women, people of color, first-generation college graduates and the LGBTQ community in the tech industry. Thirty-one companies and a group of nonprofits and researchers signed on to a 116-page report outlining their commitments to overcoming disparities in the tech sector.
To join the effort, the companies agreed to follow four main recommendations, such as recognizing diversity as a business imperative and working to improve the pipeline of young talent. They also have to consider equity concerns throughout their vast businesses, including suppliers, product design and hiring practices.
“I think there’s been a realization in diversity, equity and inclusion work, that one company and one leader is never going to solve this,” said Oona King, vice president of diversity, equity and inclusion at Snap. Our group “spent one year answering the question: What would it take to transform DEI outcomes in tech?”
The companies are trying to build on the progress made by corporate America last year in the wake of widespread outrage over a police officer’s murder of George Floyd. Since then, dozens of companies have pledged to hire more minorities and promote more of them into management roles. Some firms have reached out to historically Black colleges and universities while others allocated billions in support of programs to improve the lives of Black people.
Read more: A snapshot of diversity at U.S. companies across all industries
Major technology companies are under more scrutiny from employees and investors who are dissatisfied with how they handle race and cultural issues. Earlier this year, Google faced criticism over the acrimonious departure of a prominent Black researcher Timnit Gebru. Frances Haugen, a former Facebook manager turned whistle-blower, accused the company of prioritizing growth over moderating hate speech and other offensive content. And activist shareholders have been pushing tech platforms to take more aggressive actions to address systemic inequality in their workplaces and products.
Historically, the industry has struggled to recruit and retain workers of color. While Hispanics make up 18% of America’s population, they only represent 8% of employees at the 35 largest technology companies, according to a 2020 analysis by job-seeker firm BeamJobs. Black people made up only 5% of the tech workforce though they represent 13% of the U.S. population, the survey found.
“It’s common in tech for people to transfer or for companies to poach talent from another” firm, said Google Chief Diversity Officer Melonie Parker. “So it is incredibly important to work together as collective.”
The coalition was convened by a working group of experts -- including representatives at Snap, PricewaterhouseCoopers, the Aspen Institute and the National Center for Women & Information Technology -- that spent more than a year studying strategies that make companies more equitable places to work. Other participants include Etsy Inc., Microsoft Corp.’s LinkedIn, Apple Inc., Salesforce.com Inc., Spotify Technology SA and Uber Technologies Inc.
Perhaps most notably, the companies committed to share demographic data about their workforces with the Tech Equity Accountability Mechanism, a new program under development with the Aspen Institute. TEAM aims to establish industrywide standards for reporting workforce diversity and share best practices on creating more equitable working environments.
Some of the coalition’s plans aren’t exactly new to the technology sector. Major Silicon Valley giants have been regularly reporting the demographic makeup of their workforce since at least 2014, and many already have long-term goals to become more diverse. But Catalyze Tech’s emphasis on accountability may have more teeth than previous initiatives that yielded few concrete results, said Iris Bohnet, professor at Harvard Kennedy School and a member of the coalition’s working group.
“I’m more excited about this effort than one-off individualized attempts in the past,” Bohnet said. “They are trying to change a sector, not just an organization.”
The report also highlighted specific strategies that companies of all sizes could employ to improve diversity. For instance, firms could eliminate GPA as a filter for job seekers and expand recruitment from elite institutions to campuses with high numbers of first-generation college students. They could conduct an audit of compensation to spot potential disparities. And the report recommends that companies encourage states to invest more in computer science education at the K-12 level.
To that end, the Catalyze Tech coalition plans to give $20 million to colleges to train Black and Hispanic computer science teachers. The goal is to make “systemic interventions to create computer science teachers that work from those underrepresented groups,” King said. “We’ve already started taking action.”
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