VISA INC. | Inclusion ROI Audit at VISA INC.

Status
Filed
AGM date
Proposal number
8
Resolution details
Company ticker
V
Lead filer
National Center for Public Policy
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
Technology
Company HQ country
United States
Resolved clause
Shareholders request that the Board of Directors of Visa conduct an evaluation and issue a report within the next year, at reasonable cost and excluding confidential information, assessing whether the company’s Inclusion programs provide a positive return on investment (ROI), accounting for cognizable litigation risk.
Supporting statement
Since 2023, federal courts, including the U.S. Supreme Court, have ruled that:
(1) race-conscious college admission selection policies violate the Constitution;(1)
(2) the Civil Rights Act protects against discriminatory job transfers;(2)
(3) grants restricted to minority entrepreneurs likely violate the Civil Rights Act;(3) and
(4) there is no higher burden for “reverse” discrimination claims.(4)
As a result, corporate DEI programs have become more exposed to litigation risk.(5) The White House has also signaled opposition to DEI initiatives.(6) In light of these developments, other companies have revised or ended their DEI programs.(7)
Visa may face similar risks. It received a 100% score on the Human Rights Campaign’s (HRC) Corporate Equality Index, a rubric that potentially includes illegal discrimination to promote transgenderism.(8) Visa also did not respond to the Alliance Defending Freedom’s (ADF) Viewpoint Diversity Index (VDI), suggesting possible anti-religious bias.(9)
Visa is also an HRC Bronze Partner, providing “generous support”(10) for HRC’s work—arguably including discrimination against traditional religious beliefs, women, and girls.(11)
Visa has stated its goal is to “attract, develop, and retain a workforce that is reflective of the global business and communities we support.”(12) This may imply discriminatory hiring as well as a lack of serious consideration of expected ROI. Professor Alex Edmans has stated: “There is no link between demographic diversity and performance, despite many flimsy reports claiming the contrary.... Indeed, the evidence is that quota-driven demographic diversity reduces performance.”(13) A recent meta-analysis also concluded that “the evidentiary base for the claim [that diversity is good for business] is surprisingly weak.”(14)
Visa also lacks faith-based Employee Resource Groups despite promoting groups based on ethnicity, sex, and sexual orientation.(15)
Perhaps unsurprisingly in light of the foregoing, Visa is rated “high risk” by the 1792 Exchange’s Corporate Bias ratings(16) and scored only 10% on ADF’s VDI.(17)

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
Kutxabank Gestion SGIIC SAU.Against

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