Disney shareholders voted against a proposal from a conservative think tank to withdraw from the Human Rights Campaign's Corporate Equality Index, with only 1% in favor. The think tank argued that such steps would help restore neutrality and shareholder value. However, Disney's board opposed the initiative, citing a historical commitment to LGBTQ+ rights that has not only contributed to their perfect score on the index since 2007 but also attracted backlash, notably from Florida's governor following opposition to a controversial bill.
When corporations take extreme positions, they destroy shareholder value by alienating large portions of their customers and investors. This proposal provides Disney with an opportunity to move back to neutral.
Disney's board recommended that shareholders vote against the proposal, writing in the proxy statement that they didn't believe the think tank's request would provide additional value to shareholders.
Disney has had a perfect score on the Corporate Equality Index every year since 2007. However, that support for the LGBTQ+ community... has come at a cost.
In 2022, the company publicly opposed Florida Gov. Ron DeSantis's so-called 'Don't Say Gay' bill, which bans discussing gender and sexuality in schools, leading to repercussions.
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