News
May 2, 2023 | 2:31 a.m
Coca-Cola shareholders recently voted against a proposal to conduct a survey on how state laws restricting abortion are affecting the company’s business performance.
“Shareholders are requesting that before December 31, 2023, Coca-Cola’s board of directors issue a public report that omits confidential information and identifies, at a reasonable cost, all known and potential risks or costs to the company resulting from enacted or proposed government policies that severely limit reproductive rights and describes any strategies, beyond litigation and regulatory compliance, that the company can employ to minimize or mitigate those risks,” the proposal reads.
The proposal was brought forward by As You Saw, a non-profit organization that promotes ESG policies in companies.
87 percent of the controlling shares voted against the measure.
Voting rights are allocated according to the number of shares owned by a natural or legal person.
Rather than each individual having one vote, as in American elections, a company that owns a higher percentage of shares will garner more voting power than a company with fewer.
As You Saw’s proposal cited research showing that women who don’t have access to abortions are more likely to drop out of the workforce.
The proposal, rejected by Coca-Cola, was brought forward by As You Saw, a non-profit organization that promotes ESG policies in companies. Getty Images
In a proxy statement, Coca-Cola said its “robust risk management processes” were adequate to address these concerns.
The company argued that further investigation into the matter was not necessary.
The activist group’s statement included a suggestion that the board would have discretion to decide to suspend operations in states that have abortion restrictions.
Coca-Cola said its “robust risk management processes” are adequate to address those concerns. Getty Images
“In its sole discretion, the board’s analysis may include implications for hiring, retention and productivity, as well as decisions to close or expand operations in states that are proposing or enacting restrictive laws and strategies, such as policies and human resources or education strategies.”
Many companies have increasingly come under public criticism for their political bias in support of left-wing social causes.
The most prominent example over the past year was Disney’s feud with Florida Gov. Ron DeSantis, who signed legislation revoking the conglomerate’s special tax privileges after the company criticized him for signing legislation barring the teaching of the Banned LGBTQ theory for elementary school students.
During the Trump administration, the Labor Department proposed a new rule that would require trustees — companies with a legal responsibility to act in the best interests of their clients — to always prioritize financial returns over issues like climate change.
“Private employer-sponsored pension plans are not vehicles for furthering social or political goals that are not in the financial interest of the plan,” Trump Labor Secretary Eugene Scalia said at the time.
The Biden administration reversed this policy.
Additionally, President Biden vetoed bipartisan legislation that would have ended enforcement of a Biden Department of Labor rule that required private pension fund managers to consider ESG in their investment decisions.
Load More…
{{#isDisplay}} {{/isDisplay}}{{#isAniviewVideo}} {{/isAniviewVideo}}{{#isSRVideo}} {{/isSRVideo}}
https://nypost.com/2023/05/02/coca-cola-shareholders-vote-down-proposal-that-targets-per-life-states/?utm_source=url_sitebuttons&utm_medium=site%20buttons&utm_campaign=site%20buttons
Copy the URL to share