THE WALT DISNEY COMPANY | Assess Company Diversity and Inclusion Efforts at The Walt Disney Company

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
DIS
Lead filer
Nathan Cummings Foundation
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
United States
Resolved clause
Shareholders request that The Walt Disney Company ("Disney") publish annually a report assessing Disney's diversity, equity, and inclusion (DEI) efforts, at reasonable expense and excluding proprietary information. The report should include:

the Board's process for assessing the effectiveness of its diversity, equity, and inclusion programs, and
the Board's assessment of program effectiveness, as reflected in any goals, metrics, and trends related to its promotion, recruitment, and retention of protected classes of employees.
Whereas clause
Investors seek quantitative, comparable data to understand the effectiveness of Disney's DEI programs.

Numerous studies have pointed to the corporate benefits of a diverse workforce. These include:

Companies with the strongest racial and ethnic diversity are 35% more likely to have financial returns above their industry medians.
Companies in the top quartile for gender diversity are 21% more likely to outperform on profitability and 27% more likely to have superior value creation.[1]
The 20 most diverse S&P 500 companies had an average annual five-year stock return that was 5.8% higher than the 20 least-diverse companies.[2]
FTSE 350 companies with 33% female representation on their executive committees had a net profit margin more than 10 times greater than companies without women on their executive teams. (15.2% versus 1.5%)[3]
Yet, significant barriers exist for diverse employees advancing within their careers. Women enter the workforce in almost equal numbers as men (48%). However, they only comprise 22% of the executive suite. Similarly, people of color comprise 33% of entry level workers, but only 13% of the c-suite.[4]

Disney's 2019 Corporate Social Responsibility Update states, "At Disney, our talent recruiting, retention, and development efforts prioritize the cultivation of a strong, diverse, and thriving workforce, with 44% of our U.S. employees identifying as people of color. We are committed to providing safe, respectful, and inclusive workplaces . . ."

However, Disney has not released meaningful information that allows investors to determine the effectiveness of its workplace diversity programs. Stakeholders may become concerned that Disney's statements are corporate puffery, language described by the United States Federal Trade Commission as marketing exaggerations intended to "puff up" products and not able to be relied upon by consumers and investors.

Investors have reason to be wary, as Disney has faced allegations of sexual harassment, discrimination, and abuse within its theme parks, entertainment production, and leadership.

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