Disney (NYSE:DIS) shareholders overwhelmingly voted against a proposal to reconsider the company’s participation in the Human Rights Campaign’s (HRC) corporate equality index during the annual shareholder meeting. The measure, introduced by the National Center for Public Policy Research, sought to end Disney’s involvement in the index, which evaluates corporate policies related to LGBTQ+ employees. Despite the initiative, only 1% of shareholders supported the resolution, reinforcing the company’s ongoing commitment to the index.
Disney has consistently participated in the HRC corporate equality index and recently achieved a top rating of 100. The index serves as a benchmark for corporate policies affecting LGBTQ+ employees and included over 1,400 companies this year. Other major corporations, such as Ford, Harley-Davidson, and Lowe’s, have recently stepped away from the initiative, reflecting a growing debate over corporate engagement in social issues.
Why Did Investors Reject the Proposal?
The Disney board had urged shareholders to vote against the proposal, arguing that withdrawing from the index would not add value for investors. According to the company, it already provides transparency on various shareholder concerns through external surveys. The board also emphasized that remaining in the index aligns with its broader corporate policies.
“The proposal would not provide additional value to shareholders,” Disney stated in its SEC filings.
Who Pushed for the Proposal?
The National Center for Public Policy Research, which introduced the measure, claimed that Disney’s engagement in politically charged issues has caused divisions among audiences and negatively affected its stock price. The organization argued that stepping away from the index would help the company return to a neutral stance.
“This provides an opportunity for Disney to move back to neutral,” the group asserted.
Shareholders also voted on several other proposals at the meeting, rejecting measures related to disclosing the environmental impact of retirement plan investments and the political neutrality of advertising policies. Additionally, all members of Disney’s board, including CEO Bob Iger, secured re-election.
The meeting took place shortly after Disney announced its financial results for the first quarter of fiscal 2025. The company reported $24.96 billion in revenue and a net income of $2.55 billion. These figures reflect Disney’s ongoing efforts to maintain profitability amid evolving business strategies.
Corporate engagement in social issues has been a topic of growing discussion in recent years. While Disney remains part of the HRC index, other companies have distanced themselves due to concerns over political and public perception. The broader trend suggests that businesses are reassessing their roles in activism and whether it aligns with shareholder interests. Disney’s decision to remain in the index indicates that it prioritizes inclusivity as part of its corporate identity.
