Context:

Diversity, equity, and inclusion (DEI) initiatives remain robust among major corporate shareholders despite political and activist pressures to dismantle them. Shareholders at companies like Costco, Apple, and Levi's have largely rejected proposals to eliminate DEI policies, showing a strong belief in their business value. Large institutional investors, such as BlackRock and Vanguard, continue to support DEI, opposing resolutions they view as misaligned with corporate governance. Anti-DEI proposals, driven by conservative think tanks, have gained media attention but lack substantial investor backing, averaging less than 2% support. This persistence of DEI reflects shareholders' resistance to political agendas and a focus on maintaining diverse and inclusive workforces as beneficial to business performance.

Dive Deeper:

• Investors at significant companies like Costco and Apple overwhelmingly voted against proposals to scrap DEI programs, indicating strong support for such initiatives as beneficial for business operations.

• Large institutional investors, including BlackRock and Vanguard, generally oppose shareholder resolutions that threaten DEI policies, aligning with company management in the majority of votes.

• Shareholder proposals against DEI are often initiated by conservative think tanks to draw attention and exert pressure, but these efforts have seen minimal success with limited investor support.

• Despite political pressures and a rise in anti-DEI resolutions, these proposals received less than 2% shareholder support, indicating a disconnect between activist agendas and investor priorities.

• The continued support for DEI by shareholders highlights a belief in the value of diverse workforces and customer bases, which are seen as enhancing business creativity and performance.

• Conservative groups use anti-DEI proposals to gain leverage in negotiations with companies, but these actions have not swayed the predominant investor sentiment favoring DEI.

• The persistence of DEI support among shareholders suggests a resistance to ideological influences on corporate governance that do not align with business interests and priorities.