Chipotle Encourages Executives To Be Eco-Friendly With Financial Compensation03/04/2021
As the global consciousness continues to shift, companies like Chipotle are taking executive actions to do better by their employees as well as their environment. In a recent statement, the higher ups of the Mexican chain- which racks up $39 billion in market value – revealed its new plans of rallying executive compensation funds in efforts to mending socioeconomic and environmental problems.
As investors peruse which stocks to purchase, they’ve keened their eyes to companies that exhibits initiative for the prosperity of America’s infrastructure. Aspects like enforcing minority inclusion and environmentally conscious business practices are the most appealing to buyers.
According to CNBC, “10% of Chipotle executives’ annual incentives will be tied to their progress toward achieving company goals.”
The impact of these actions will be seen the restaurants expanding of home-grown ingredients. In regards to the company’s carbon footprint, Chipotle looks into put even more efforts into reducing its emission into the atmosphere.
In 2020, their revolutionary tool, Real Footprint showcases the interests in preserving our world’s well-being. The company’s website reads, “Real Foodprint takes Chipotle’s award-winning sourcing standards across each of its 53 ingredients into account to help show the average impact that each Chipotle order helps make on the planet.”
Chipotle’s chief of affairs, Laurie Schalow disclosed the prospects of new sustainability goals following the results of the company’s carbon footprint are released at the end of the year.
While the trend of investors like BlackRock marking sustainability as their “new standard for investing” is certainly a plus for already eco-friendly companies, Chipotle’s many implementations will ultimately contribute to the fostering of a healthier world.
Coupled with these changes are improvements to supporting minority employees. While the restaurant was shown on Bloomberg’s 2020 Gender Equality Index, Chipotle has found itself in hot water in the past for mistreating female workers. Instances like the 2016 discriminatory termination of three Cincinnati general managers on the sole basis of their sex put the company’s past morals into questions.
Because of this, executive compensation will also be relegated to closing the wage gap by evaluating women and POC to higher positions of employment.“Compared to the earnings of white, non-Hispanic men, the lifetime wage gap would,” According to the National Women’s Law Center, “amount to more than $1 million for Asian women in three states, for Black women in 12 states, for Native women in 16 states, for Latinas in 27 states, and for Native Hawaiian or Other Pacific Islander women in 8 states.”As the company grows, bringing in around 88,000 new hire since the end of the year, skill training courses have been implemented to prepare a new, diverse generation for the potential of corporate position.
“We can say a lot of words,” Schalow told CNBC, “We want to make sure that we have the actions to back it up.”
Read Next: Chipotle’s New Menu of ‘Lifestyle Bowls’ Are Keto, Whole30, & Paleo Friendly
Sources: CNBC, Wall Street Journal, National Women’s Law Center, Bloomberg
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