THE BOEING COMPANY | Report on Risks Related to Diversity, Equity & Inclusion Efforts at THE BOEING GROUP

Status
Filed
AGM date
Previous AGM date
Proposal number
7
Resolution details
Company ticker
BA
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Company sector
Industrials
Company HQ country
United States
Resolved clause
Shareholders ask that the board commission and publish a report on (1) whether the Company participates in any
practices that affect employees, suppliers, contractors, retained professionals or others that prioritize Company DEI
initiatives in such a way as to create risks of discriminating on the basis of protected categories like race and sex, and
(2) the potential costs of such discrimination to the business
Whereas clause
The US Supreme Court ruled in SFFA v. Harvard on June 29, 2023, that discriminating on the basis of race in college
admissions violates the equal protection clause of the 14th Amendment.1
Attorneys General of 13 States warned Fortune 100 companies on July 13, 2023, that SFFA implicated corporate DEI
programs.2
Prior legal advice regarding the legality of racially discriminatory programs has been called into question post-SFFA.3
Recent analysis of American Fortune 100 hiring in the wake of the 2020 race riots found that whites were excluded
from 94% of the hiring decisions,4 a statistic that itself provides prima facie proof of illegal discrimination on the basis
of race by these companies, given that whites constitute 76% of the American population.5
Boeing is explicitly involved in discriminating on the basis of race and other protected categories, stating that: “To
advance equity and diversity ... we will strive to achieve by 2025”: (1) “Increase the Black representation rate in the U.S.
by 20%”; (2) “Achieve parity in retention rates of all groups”; (3) “Close representation gaps for historically
underrepresented groups.”6 In addition, Boeing is expressly incentivizing employees to engage in this racial and other
discrimination, stating that “we are galvanizing our entire workforce to improve equity through annual incentives to
advance equitable talent selections.”7 Finally, Boeing allocates additional resources via “Business Resource Groups”
that also appear facially discriminatory in light of group names like the “Boeing Black Employees Association.”8
Supporting statement
In just the past year, a corporation was successfully sued for a single case of discrimination against a white employee
resulting in an award of more than $25 million.9 And the risk of being sued for such discrimination appears only to be
rising.10 With roughly 140,000 employees,11 Boeing likely has at least 100,000 employees who are potentially the
victims of this type of illegal discrimination because they are white, Asian, male, or straight.12 Accordingly, even if only
10 percent of such employees were to file suit, and only 10 percent of those prove successful, the cost to the company
could exceed $20 billion. And while racial equity audits can run to $3 or $4 million, this report should cost much less,
as it need review only the potentially discriminatory programs, unless Boeing has established so many such programs
that its liability for this discrimination must be expected to be much higher.

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