Last Updated on March 21, 2025 by Bertrand Clarke
At its annual shareholder meeting on Thursday, Disney investors overwhelmingly voted against a proposal that sought to end the company’s participation in the Human Rights Campaign’s (HRC) Corporate Equality Index. The measure, which called for Disney to reevaluate its involvement in the LGBTQ+ workplace benchmarking tool, was widely dismissed by shareholders, with only 1% voting in favor.
The HRC’s Corporate Equality Index serves as a national benchmarking system for corporate policies, benefits, and practices related to LGBTQ+ employees. Disney has consistently scored a perfect 100 in the index, reaffirming its commitment to fostering an inclusive workplace environment. The company’s leadership had recommended that investors vote against the proposal, arguing that continued participation aligns with Disney’s corporate values and commitment to transparency.
Disney’s Stance on the Proposal
Disney’s board of directors advised against the proposal in its filings with the Securities and Exchange Commission (SEC), contending that withdrawing from the index would not provide any additional value to shareholders. The company also highlighted its commitment to transparency through participation in external assessments and surveys.
The proposal was introduced by the National Center for Public Policy Research, which argued that Disney’s engagement with socially and politically charged initiatives has alienated certain customer segments and negatively impacted the company’s stock performance. The group urged Disney to adopt a more neutral stance on social issues to avoid further controversy.
Despite these concerns, the overwhelming rejection of the proposal signaled strong shareholder support for Disney’s current approach to corporate social responsibility and diversity, equity, and inclusion (DEI) initiatives.
Broader Shareholder Decisions
The rejection of the proposal to disengage from the Corporate Equality Index was one of several key decisions made at the shareholder meeting. Investors also voted against other measures, including one that sought to require Disney to publish a report on how its retirement plan investments align with climate-conscious strategies. Another defeated proposal called for an analysis of risks associated with political and religious bias in advertising.
Additionally, shareholders declined to adopt a policy mandating political neutrality in Disney’s advertising decisions. The company’s leadership has argued that maintaining flexibility in its advertising policies allows it to make business decisions that best serve its interests and the interests of its stakeholders.
Board of Directors and Company Performance
All of Disney’s nominated board members were successfully re-elected during the meeting. The board includes high-profile business leaders such as Disney CEO Bob Iger, General Motors CEO Mary Barra, and Morgan Stanley’s Executive Chairman James Gorman. The continued confidence in Disney’s leadership suggests that investors are satisfied with the company’s strategic direction despite recent challenges.
The annual meeting followed Disney’s financial results for the first quarter of fiscal 2025. The entertainment giant reported revenues of $24.96 billion and a net income of $2.55 billion, indicating financial stability even as it navigates a rapidly evolving media landscape.
Industry Trends and Corporate Equality
While Disney remains committed to participating in the HRC’s Corporate Equality Index, other major companies have recently stepped back from it. Companies such as Ford, Harley-Davidson, and Lowe’s have opted out of the index in recent months. However, Disney’s continued top rating signals that it remains a leader in corporate diversity and inclusion efforts.
Despite ongoing debates over the role of corporations in social and political issues, Disney’s investors have made it clear that they support the company’s existing policies. The resounding defeat of the proposal underscores that, at least for now, the company’s approach to workplace equality and social responsibility aligns with shareholder priorities.
