Lululemon Athletica inc. | Report on discrimination risks related to charitable partnerships at Lululemon Athletica inc.

Status
0.35% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
NASDAQ: LULU
Lead filer
Bowyer Research
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
Consumer Discretionary
Company HQ country
Canada
Resolved clause
Shareholders request that the Board of Directors of Lululemon Athletica report to shareholders annually, at reasonable expense and excluding confidential information, an analysis of how Lululemon’s charitable partnerships impact its risks related to discrimination against individuals based on their speech or religious exercise.
Supporting statement
Corporations routinely use their platforms to voice support for humanitarian causes and human rights. Some of the most fundamental are the rights to free speech and religion, which are recognized by the First Amendment to the United States Constitution and the UN Declaration of Human Rights1. Unfortunately, many companies are supporting organizations that are undermining these freedoms.
The 2024 edition of the Viewpoint Diversity Score Business Index found that 62% of some of the largest companies in America support non-profits that are influencing public policy by actively attacking free speech and religious freedom, as well as pressuring companies into public stances on divisive political issues.
That list includes Lululemon. The company is currently listed2 as a member of the Don’t Ban Equality coalition, which describes its purpose as “making the case that abortion access is a workforce and economic issue.” By taking a public stance on politically charged issues, the company exposes itself to reputational risk. The choice to politicize the Lululemon brand carries the increasing possibility of alienating employees and customers alike of diverse political and religious views, as well as negatively impacting shareholder return.
This record of divisive stances is not limited to the issue of abortion, with the company having taken flack previously3 for hosting events urging attendees to ‘resist capitalism’ and discussing ways of ‘decolonizing gender.’ Additionally, Lululemon donated4 $300,000 to organizations such as Black Lives Matter and Reclaim the Block (the latter being a group formed to encouraging defunding5 of the Minneapolis Police Department), although it later admitted6 that it was no longer donating to either organization.
Lululemon needs to assure its shareholders that it is committed to a business-first model of political neutrality, avoiding taking divisive stances on social/political issues, and putting shareholder value first in keeping with its fiduciary duty. Eschewing charitable partnerships with organizations designed to politicize the Lululemon brand is an essential facet of doing so.

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