Transparency contributes to gender equity as it provides concrete examples of ways to improve and work towards a more equitable, healthy, and safe workplace as well as ensuring integrity in procedures and policies. Research shows that higher corporate transparency increases an organization’s value and trustworthiness (Lang et al. 2012; Schnackenberg et al. 2020). Conversely, low corporate transparency leads to poorer business outcomes (Anderson et al. 2009). In regards to pay, research indicates that providing senior managers with data on how their pay decisions compared to others helped managers hold themselves accountable and reduce pay disparities by gender, race, and birth nationality (University of Massachusetts, Center for Employment Equity). Additionally, new salary transparency laws across the United States have helped workers demystify pay and make informed decisions when applying for new jobs (Bloomberg). In some cases, individuals have also used pay information as leverage to negotiate salary raises in their current roles (Bloomberg).
By offering companies the opportunity to highlight their good practices, we can elevate best practices industry wide. The DDP Gender Equity Index breaks down how companies are ranked and highlights future changes for companies to make to become more equitable institutions.