INTEL CORPORATION | Report on Whether Company Policies Reinforce Racism in Company Culture at Intel Corporation

Status
11.13% votes in favour
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
INTC
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 urge the Board of Directors to prepare a report to shareholders on whether
written policies or unwritten norms at the Company reinforce racism in company culture.
Whereas clause
According to the National Museum of African American History and Culture, "structural racism is the overarching system of racial bias across institutions and society. These systems give privileges to white people resulting in disadvantages to people of color," thereby imposing a cultural hierarchy among racial groups;

The Harvard Business Review explains that "[c]ompanies must confront racism at a systemic level - addressing everything from the structural and social mechanics of their own organizations to the role they place in the economy at large";

A 2020 Citigroup study found that since 2000 the U.S. gross domestic product (GDP) has lost USD16 trillion as a result of discrimination against African Americans, including USD2.7 trillion lost due to pay disparities. The study also found that reversing discriminatory practices could boost U.S. GDP by USD5 trillion in the next five years;

Tema Okun, a veteran racial justice facilitator, illustrates the insidious nature of white supremacist culture by explaining that "[c]ulture is powerful precisely because it is so present and at the same time so very difficult to name or identify." Cultural racism can manifest as people of color being ignored, overly criticized, undermined, or assumed as inferior. Other manifestations can be strict cultural norms or criticisms of certain hairstyles, manners of speech, or other physical appearances;

Cultural racism can do long-term emotional and psychological damage, and research shows that employees who bring their authentic selves to work perform better and report greater job satisfaction.

Recently, a Fortune 500 company announced that it will allow natural black hairstyles and facial hair because the company wants all "employees feel comfortable, genuine and authentic";

Proponents believe that our company can advance long-term value creation through an analysis of whether and how systemic racism is embedded in company culture, policies and procedures.
Supporting statement
The report should be prepared within one year, at reasonable cost and
excluding proprietary and privileged information. The Board is encouraged to assess whether Company
policies or unwritten norms:

1. Yield inequitable outcomes for employees based on race and ethnicity in patterns of hiring and
retention, promotion and upward mobility, disciplinary action, or employee usage of benefits;
2. Establish a cultural hierarchy through perceived pressure to use "whitened" names rather than
birth names, to adopt "white-centric" physical appearance standards in hair style, body art or
modifications, and facial hair styles, or to avoid traditional attire and religious head coverings.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Dana Investment Advisors (Delisted) For
KBI Global Investors For
Boston Partners Global Investors, Inc. Against
Boston Trust Walden Against Intel has strong diversity and inclusion reporting and we believe it would be difficult, if not impossible, to produce meaningful disclosure to investors on unwritten norms in the company.
Universities Superannuation Scheme - USS Against After careful consideration, we do not believe the proponent's resolution is in the best interests of shareholders.

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