Investors of Disney (DIS) affirmed their support for the company's involvement in a controversial rating system that assesses its treatment of LGBTQ employees, consumers, and investors. This decision was made despite Disney scaling back on some diversity programs. This marks Disney as the fourth company this year where investors have pushed back against proposals that are anti-diversity, equity, and inclusion (DEI). Similar proposals were rejected at Apple (APPL), Costco (COST), and John Deere (DE).
A proposal from the conservative group, Free Enterprise Project, urging Disney to reconsider its participation in the Corporate Equality Index (CEI) was turned down by investors. The CEI, published annually by the Human Rights Campaign Foundation, is a widely recognized tool used by companies to gauge their inclusivity towards LGBTQ individuals. It rates companies on a scale of 0% to 100% based on factors like LGBTQ workforce protections, benefits, company culture, social responsibility, and interactions with the LGBTQ community.
Despite Disney earning a perfect score on the CEI since 2007, the recent vote highlights how Disney is retreating from certain diversity efforts amid increased political scrutiny on this matter within the corporate landscape. Disney, along with other companies, has made adjustments to diversity, equity, and inclusion (DEI) initiatives in response to executive orders issued by President Trump aiming to overhaul federal DEI programs.
The ongoing shareholder meeting season has seen discussions on various proposals related to DEI that could impact company operations. While diverse perspectives on DEI policies are being voiced, support for these measures has been lacking among investors at Disney, Apple (APPL), Costco (COST), and John Deere (DE). It is anticipated that the trend of minimal investor backing for such proposals will continue as more companies hold their shareholder meetings. Experts in shareholder engagement expect that few, if any, proposals related to DEI will obtain majority support this year.