At The Walt Disney Company’s annual shareholders meeting on March 20, a proposal to discontinue participation in the Human Rights Campaign’s (HRC) Corporate Equality Index was overwhelmingly rejected. The proposal, introduced by the National Center for Public Policy Research, received support from only 1% of shareholders, according to preliminary vote counts.
The HRC’s Corporate Equality Index serves as a national benchmarking tool assessing corporate policies, practices, and benefits pertinent to LGBTQ+ employees. Disney has consistently achieved a perfect score on this index since 2007, reflecting its longstanding commitment to inclusive workplace policies.
The proposing think tank argued that corporate involvement in such initiatives could alienate portions of customers and investors, potentially harming shareholder value. They suggested that disengaging from the index would allow Disney to adopt a neutral stance on divisive political issues.
In response, Disney’s board recommended voting against the proposal, stating that participation in external surveys like the Corporate Equality Index provides transparency on matters important to shareholders and does not detract from shareholder value.
This decision aligns with actions taken by shareholders of other major corporations. For instance, in January, Costco shareholders rejected a similar proposal to report on the potential risks of its DEI efforts. In February, Apple shareholders also voted against a proposal to cut its DEI programs. Both proposals were made by the National Center for Public Policy Research, indicating a broader trend of shareholder support for DEI initiatives across various industries.
Despite increasing political and social pressures to reduce DEI initiatives, many corporations, including Disney, continue to uphold their DEI policies.
