MERCK & CO., INC. | Report on respecting workforce civil liberties at MERCK & CO., INC.

Status
2.03% votes in favour
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
MRK
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Decent work
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Health Care
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request the Board of Directors conduct an evaluation and issue a civil rights and non-discrimination report within the next year, at reasonable cost and excluding proprietary information and disclosure of anything that would constitute an admission of pending litigation, evaluating how Merck’s policies and practices impact employees and prospective employees based on their religion (including religious views) or political views, and the risks those impacts present to Merck’s business.
Supporting statement
SUPPORTNG STATEMENT: Merck and Co. is one of the largest companies in the United States and employs over 69,000 people. As a major employer, Merck should respect the free speech and religious freedom of its employees. Merck is legally required to comply with many laws prohibiting discrimination against employees on a variety of factors, including religion and sometimes political affiliation.

Respecting diverse views also allows Merck to attract the most qualified talent, promote a healthy and innovative business culture, serve its diverse customer base, and contribute to a healthy economic market and marketplace of ideas.

Despite this, the 1792 Exchange’s 2023 report1 notes that Merck does not provide its employees with protection against viewpoint discrimination. While the Company expressly condemns2 and prohibits discrimination based on a variety of characteristics, including “skin colour, race, nationality, disabilities, religion, sexual orientation” and others, it maintains no such protection against employees of diverse political beliefs.

Many companies also alienate their own employees by taking divisive stances on political issues. For example, many companies have adopted radical stances and policies on abortion and sex reassignment surgery, termed ‘gender-affirming care.’ Merck is one such example. The Company indirectly funds abortion provider Planned Parenthood3 and has pledged4 coverage for “medically necessary transition-related care” for its employees and their children. The 2023 Viewpoint Diversity Index5 also found that 78% of scored companies discriminate against religious nonprofits in their charitable giving and 63% give money to legislation that undermines fundamental First Amendment freedoms. According to the Freedom at Work survey, 60% of employees were concerned that their company would punish them for expressing their religious or political views at work, and 54% said they feared the same for sharing these views even on their private social media accounts.6 Such concerns become relevant in the case of Merck. As per the 1792 Exchange’s 2023 report,7 the Company’s gift matching policy8 expressly excludes religious groups.

Companies may also face additional legal liability for DE&I programs that make distinctions based on race or that discriminate based on religious practices, per the recent Supreme Court decisions in Students for Fair Admission v. Harvard and Groff v DeJoy. In light of these risks, the Company must take immediate steps to assess potential shortcomings and act to remedy these concerns.

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