Disney shareholders have decisively voted down a proposal to end the company’s participation in the Human Rights Campaign’s Corporate Equality Index (CEI), with less than 1% supporting the measure amid warnings that involvement in the LGBTQ-focused benchmark harms shareholder value.
The vote took place at Disney’s annual shareholder meeting on March 20, following a push by the Free Enterprise Project, part of the conservative National Center for Public Policy Research, to withdraw Disney from the CEI.
Stefan Padfield, executive director of the Free Enterprise Project, argued that participation in the CEI negatively impacts shareholder value by aligning Disney with divisive social issues.
“The Human Rights Campaign acts as a kind of mafia, forcing companies to embrace gender ideology in exchange for a high rating,” Padfield said. He also cited companies like Tractor Supply, Ford, and Target, which recently exited the CEI, claiming their withdrawal was due to similar shareholder concerns and backlash.
“Pushing on children the belief that they can be born in the wrong body, and that such beliefs should be affirmed by minors taking puberty blockers or even undergoing experimental surgeries sometimes behind the back of their parents is bad for business,” said Padfield. “You can help Disney get out of that business by voting in favor of our proposal.”
Disney’s board of directors strongly opposed the proposal, stating the CEI participation aligns with the company’s broader transparency goals on social responsibility and governance.
“Given the company’s existing practices to assess participation in transparency efforts and the board’s oversight of ESG reporting, workforce equity matters, and human rights policies, we do not believe this proposal would provide additional value to shareholders,” the board said.
Criticism of Disney’s stance has centered around its advocacy on LGBTQ issues, including its public opposition to Florida’s Parental Rights in Education Act. Critics argued these actions contributed to a significant drop in Disney’s stock value in 2022.
Despite these arguments, shareholders overwhelmingly sided with the board, rejecting the proposal by a wide margin.
