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Disney (DIS+0.58%) shareholders overwhelmingly rejected a proposal urging the company to withdraw from the Human Rights Campaign’s (HRC) Corporate Equality Index, a ranking that evaluates companies based on their LGBTQ policies and workplace protections.
Just 1% of shareholders supported the proposal, which was introduced by the National Center for Public Policy Research, at Disney’s annual shareholder meeting on Thursday. The conservative think tank called on Disney to drop its participation in the index, which ranks firms based on criteria like inclusive benefits, workplace culture, and workers protections. Disney currently holds a perfect score of 100.
“The Human Rights Campaign acts as a kind of mafia, forcing companies to embrace gender ideology in exchange for a high rating in the Corporate Equality Index,” said Stefan Padfield, an executive director at the center, while presenting the proposal at the meeting.
In its proxy statement, Disney told shareholders to vote against the measure, arguing that external surveys like the HRC index provide transparency and accountability. The company also added that the proposal would not provide additional value to shareholders.
Several major companies — including Ford (F+0.40%), Lowe’s (LOW-0.24%), and Harley-Davidson (HOG-1.82%) — have already pulled out of the index. Padfield said that 19 firms have dropped out so far, many after facing pressure from conservative activists like social media influencer Robby Starbuck.
The vote comes as President Donald Trump has lashed out against DEI programs with several executive orders, which has prompted some companies to rethink their DEI efforts.
While Disney’s approach to DEI has been less dramatic than that of some peers, the company is making changes. Axios reported that Disney is phasing out its Reimagine Tomorrow initiative, which promoted stories and talent from underrepresented communities. The company is also eliminating executive performance evaluations that focused on diversity metrics.