Blendoor: Track Company Diversity Pledges

Evaluating Corporate Diversity: Blendoor's Data-Driven Approach

Numerous organizations profess a commitment to diversity; however, determining whether a company genuinely prioritizes the recruitment of qualified individuals from underrepresented demographics, or merely engages in superficial pronouncements, can be difficult. Blendoor, a startup established six years ago, aims to leverage data to address this issue by assigning companies a score based on publicly accessible information, thereby revealing their true level of diversity.

From Candidate Bias Mitigation to Public Accountability

Stephanie Lampkin, Blendoor’s founder and CEO, explains that the company initially concentrated on identifying qualified diverse candidates by reducing unconscious bias during the hiring process. This involved removing identifying details such as name, age, and gender, allowing a candidate’s professional record to be evaluated independently. The startup initially focused on firms that had publicly announced DEI (Diversity, Equity, and Inclusion) commitments.

However, as the company’s efforts progressed, Lampkin observed a frequent disconnect between a company’s public statements and its actual allocation of hiring resources. This realization prompted a shift in focus.

The BlendScore Index: A Diversity "Credit Score"

“We resolved to develop an index, essentially a credit score, and compiled extensive data from diversity reports, EEO-1 forms when published, and information surrounding various pledges, investments, and partnerships,” Lampkin stated.

This data was then structured, standardized, and used to create an algorithm capable of dynamically scoring companies, mirroring the functionality of credit ratings or security scorecards, and making this information publicly available.

A Turning Point: The Aftermath of George Floyd’s Death

The killing of George Floyd proved to be a pivotal moment for Lampkin and Blendoor. “Following the resurgence of diversity pledges after George Floyd’s death, I decided to move beyond participating in what felt like performative diversity and offering merely a ‘check-the-box’ solution for companies seeking to demonstrate their concern,” she explained.

Consequently, the company intensified its focus on the BlendScore and began holding organizations accountable for the substantial financial commitments they were making, tracking both the deployment of these funds and the resulting impact on hiring, retention, promotion rates, and compensation equity.

Discrepancies Between Pledges and Performance

This effort culminated in a recent report revealing that a company’s public image often diverges from its actual practices, particularly in the wake of pledges made following Floyd’s death. “Our initial objective was to determine if a negative correlation existed between pledges and performance—and we found this to be true only in the case of Black employees versus pledges related to Black Lives Matter,” Lampkin noted.

In other areas, such as gender diversity and pay equality, a consistent positive correlation was observed between stated goals and actual progress.

Focusing on Governance and Fiduciary Responsibility

Lampkin intends to concentrate on assisting companies with governance related to diversity pledges, particularly public companies facing scrutiny from investors and consumers. She also believes that a transparent measurement of diversity will significantly influence a company’s ability to attract top talent.

She is positioning diversity not as a purely social issue, but as a fiduciary responsibility. “I’m doubling down on ESG (Environmental, Social, and Governance) and fiduciary responsibility. The question of what is ‘good for society’ is irrelevant. This is now about risk management and ESG,” she asserted.

Challenges in Funding and the Future of Blendoor

Currently, Blendoor has a team of 13 employees and has secured approximately $1.7 million in funding. Lampkin acknowledges the difficulties in raising capital, especially as a Black woman founder, noting that fewer than 100 Black women have raised over $1 million as of last year.

“Securing funding has been exceptionally challenging. We’ve largely relied on revenue, and this is partly due to operating at the intersection of social activism and for-profit venture, where some investors, like Marc Andreessen, question the viability of Stakeholder Capitalism. However, I believe this is evolving, and the investor community claims to be embracing impact investing, so we will see.”

She believes the increasing emphasis on impact investing will create opportunities for Blendoor to thrive.