Will Allegations of Inequality at State Street Cast a Lasting Shadow Over Fearless Girl?

Advocates hope the campaign's message will endure the backlash

State Street Corp., whose subsidiary created Fearless Girl, will pay $5 million over gender inequality.
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This week’s news that State Street Corp. had agreed to a $5 million settlement over allegations that it underpaid hundreds of female and minority employees came as a shock to many within and beyond the marketing world.

The firm’s status as sponsor of the iconic Fearless Girl statue, one of the most-awarded marketing campaigns in Cannes Lions history, a led to a raft of “I told you so” recriminations on social media and accusations of hypocrisy aimed toward a company that positioned itself as a leader in the ongoing push for gender equality in the workplace.

Fearless Girl, a statue of a young girl facing down Wall Street’s famed Charging Bull, was created by State Street Global Advisors and agency McCann New York to encourage more companies to include women in corporate leadership. The statue debuted this past March, the same month that parent company State Street Corp. learned it would need to dole out millions in back pay  to more than 300 women and 15 minority employees who’d been compensated lower than their white, male peers. The finding was the result of a U.S. Department of Labor audit, required because State Street is a federal contractor.

Yet many prominent businesswomen, advocates and researchers do not see the news as a wholesale refutation of State Street’s efforts or the message behind the work. Adweek spoke to a variety of professionals across the marketing industry, and most framed Fearless Girl’s sudden PR nightmare as as a situation more worthy of reflection than lasting criticism.

“I think it’s an absolutely beautiful campaign that has been inspiring to millions of women … so it’s regrettable that the company that brought that to life wasn’t walking the walk,” said Kat Gordon, founder of The 3 Percent Conference, an event that promotes gender balance. “From what I read, the reason they were audited around this is because they are a federal contractor. I get that people are really upset with State Street, but I suspect that most companies [if similarly audited] would be no better.”

"I get that people are really upset with State Street, but I suspect that most companies [if similarly audited] would be no better.”
Kat Gordon, founder, The 3% Conference

Ariane Hegewisch, program director for employment and earnings at the Institute for Women’s Policy Research in Washington, D.C., said it’s relatively common to find that companies advocating change are still in need of improvement internally.

“I think if you look at companies who are doing good things, they’re often the ones who were caught doing something [bad],” she said. “Not in terms of ‘we were so bad and we want to be good now,’ but in knowing that these kinds of factors affect their reputations and who they can recruit.”

State Street’s settlement was based on a federal audit of 2010 and 2011 employee compensation data, and Hegewisch noted that finance is one of many industries with a history of gender-based wage gaps. The key to recruiting the best new talent, she said, is showing that your company is working to resolve these issues for both the future and the present. “As long as they are improving things and making sure discrimination doesn’t continue,” she said, “that’s great.”

Others say they’re optimistic Fearless Girl’s larger message will transcend this controversy.

“I believe that marketers have the power to lead the transformation of the businesses they work for,” said Leslie Campisi, chief marketing officer at venture investment and advisory firm Anthemis Group. “The gap between internal and external realities of businesses is not uncommon, and State Street is certainly not the first company, financial services or otherwise, to face this challenge.”

Campisi is far from a champion of Fearless Girl itself, saying the campaign represents “toothless, infantilized feminism.” But she’s not joining the chorus of critics who feel State Street’s suddenly public history of inequality negates the benefits of the campaign.