Diversity, equity and inclusion (DEI) has been losing with corporate
America, with one big exception: the people who actually own the companies.
This year, investors at some of America’s biggest companies — Costco, Apple, Levi’s, John Deere, Goldman Sachs and others — have overwhelmingly voted against proposals targeting DEI programs. The proposals include requiring companies to scrap their DEI policies entirely or remove
diversity goals from executive pay packages and audit the legal risks of pursuing DEI. Two conservative think tanks, the National Center for Public Policy Research and the National Legal and Policy Center, have brought most of the proposals.
The near-unanimous shareholder votes show two things — large and small investors alike do not want companies’ boards of directors and management to bend to activist shareholders, and investors believe maintaining DEI programs is good for business.
The rejections of anti-DEI proposals “reveal that the investor community doesn’t think that having a tough stance on DEI makes financial sense,” said Matteo Gatti, a professor of law at Rutgers University who studies corporate governance. “Investors are saying they don’t want ideological shareholders to drive business.”
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