Disney Shareholders Reject Proposal to Drop LGBTQ+ Equality Index Participation
Walt Disney Company shareholders have overwhelmingly voted against a proposal that would have compelled the entertainment giant to cease its participation in a widely recognized corporate equality index, which evaluates companies based on their LGBTQ+-friendly policies and practices. The proposal, presented at Disney’s annual shareholder meeting by the National Center for Public Policy Research (NCPPR), a self-described non-partisan conservative think tank, received a mere 1% of the shareholder vote, signaling strong support for Disney’s continued commitment to LGBTQ+ inclusion.
The NCPPR’s proposal argued that Disney’s perfect score on the Human Rights Campaign’s (HRC) Corporate Equality Index (CEI) stemmed from a "partisan, divisive, and increasingly radical" agenda. The organization advocated for Disney to adopt a "neutral" stance on political matters, suggesting that the company’s LGBTQ+ advocacy was detrimental to its business interests.
Disney’s board of directors, however, firmly rejected this assertion. In its proxy statement, the company stated that the proposal was unnecessary and would not provide additional value to shareholders. The board emphasized Disney’s belief that its commitment to diversity and inclusion, including LGBTQ+ equality, is essential for attracting and retaining talent, fostering innovation, and building a strong brand reputation.
Stefan Padfield, executive director of the NCPPR’s Free Enterprise Project, expressed disappointment with the outcome, attributing the proposal’s low support to alleged bias and conflicts of interest among institutional shareholders, proxy advisors, and Disney’s management. The NCPPR has been actively involved in introducing anti-DEI (diversity, equity, and inclusion) measures in corporate settings.
The HRC, a leading LGBTQ+ advocacy group, lauded the shareholder vote as a clear affirmation of Disney’s values. Eric Bloem, vice president of corporate citizenship at the Human Rights Campaign Foundation, emphasized the significance of the CEI in signaling support for the LGBTQ+ community to employees, customers, and investors. He noted that a vast majority of LGBTQ+ workers believe that a perfect score on the CEI demonstrates a company’s commitment to inclusivity.
The rejection of the proposal comes at a time when corporations are facing increased pressure to navigate the complex and often contentious landscape of LGBTQ+ rights. Following backlash against brands like Bud Light and Target over Pride-related merchandise, some companies have retreated from their public displays of support for the LGBTQ+ community. Conservative influencers, such as Robby Starbuck, have actively targeted corporate participation in the CEI, leading some companies, including AT&T, Lowe’s, Ford, Target, and Walmart, to discontinue their involvement.
Disney, however, has remained steadfast in its commitment to LGBTQ+ inclusion, despite facing criticism and political pressure. The company famously clashed with Florida Governor Ron DeSantis over the state’s "Don’t Say Gay" law, which restricts classroom discussions of sexual orientation and gender identity.
In recent months, Disney has made some adjustments to its DEI policies, mirroring similar moves by other Hollywood studios. These changes, which come amid a broader push to eradicate DEI initiatives in both the government and private sectors, include ending the "Reimagine Tomorrow" initiative, which aimed to promote storylines from underrepresented communities, and removing a trans athlete storyline from a Pixar animated series.
While these adjustments may be interpreted as a concession to conservative pressure, Padfield suggests that they represent a gradual distancing from "leftist radicalism." However, Disney’s continued participation in the CEI and the overwhelming shareholder support for LGBTQ+ equality suggest that the company remains committed to its core values of diversity and inclusion.
The shareholder vote serves as a reminder that corporate America’s embrace of LGBTQ+ rights is the result of decades of activism, protests, and boycotts that transformed once indifferent or even hostile companies into powerful allies. The HRC’s Corporate Equality Index has played a crucial role in driving this social change, providing a benchmark for corporate LGBTQ+ inclusion and holding companies accountable for their policies and practices.
As the culture wars continue to rage, companies like Disney face the challenge of balancing their commitment to diversity and inclusion with the need to navigate a politically polarized environment. The shareholder vote indicates that Disney’s investors recognize the importance of LGBTQ+ equality and support the company’s efforts to create a more inclusive and welcoming workplace for all. The overwhelming rejection of the proposal underscores the belief that supporting LGBTQ+ rights is not only the right thing to do but also a sound business strategy. It enables companies to attract and retain top talent, build strong relationships with customers, and enhance their brand reputation in an increasingly diverse and inclusive world.
