PayPal Holdings, Inc. | Report on respecting wokforce civil liberties at PayPal Holdings, Inc.

Status
2.14% votes in favour
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
PYPL
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request the Board of Directors to 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 the Company’s policies and practices impact employees and prospective employees based on their race, color; religion (including religious views), sex, national origin or political views, and the risks those impacts present to the Company’s business.
Supporting statement
SUPPORTING STATEMENT: PayPal employs more than 29,000 people and should respect its employees’ speech rights and religious freedom. The Company must comply with laws prohibiting discrimination against employees on grounds including religion and sometimes political affiliation and participation.

Respecting diverse views allows companies to attract the most qualified talent, promote a healthy and innovative business culture, and contribute to the market and marketplace of ideas. Despite this, the 2023 Viewpoint Diversity Score Business Index1 found that 91% of scored companies promote divisive training concepts like Critical Race Theory, replacing rich cultural and ideological diversity with a monolithic focus on immutable surface-characteristic group identity.

PayPal, which received an abysmal score of 5% on the Index,2 goes further from training to practice, injecting illegal considerations of race and sex into every supplier-recruitment decision,3 thus discriminating against suppliers arbitrarily deemed “non-diverse.” And as PayPal actively discriminates against disfavored “non-diverse” people such as whites, men, straight people and religious believers, no such groups are represented by any “employee resource group,” while favored “diverse” groups — benefiting from Company discrimination — have a series of surface-characteristic-based lobbying groups.4 This further indicates systemic discrimination at PayPal against the “non-diverse.”

Many companies, including PayPal, also alienate employees by taking divisive stances on political and social issues. The Index found that 78% of scored companies discriminated against religious nonprofits in company programs, and 63% supported legislation undermining fundamental First Amendment freedoms.5 PayPal fully engages in these misdeeds, reliably misusing shareholder assets to further executives’ personal policy preferences.6

Companies’ potential liability for discrimination was sharpened by recent Supreme Court decisions in Students for Fair Admission v. Harvard and Groff v DeJoy. PayPal must act now to assess and correct potential shortcomings.

Corporations have recently lost such actions, paying $10 to $25 million in damages, plus litigation costs. The risk of these suits is rising. With more than 29,000 employees and a score of 5% on the Index, PayPal likely has 20,000+ employees that were potentially discriminated against for being white, Asian, male, straight or religious. If only 10% of them sue, and only 10% of those win, Company losses would run to the billions. And while racial equity audits can cost up to $4 million, this report should cost much less, as it need review only the discriminatory programs — unless PayPal so embraces suspect discrimination that its whole operation need be reviewed.

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