Activision Blizzard seeks to avoid a shareholder proposal that interviews at least one diverse candidate when hiring a position, according to a Vice report.
The proposal was made separately to both Activision Blizzard and Electronic Arts by the AFL-CIO labor federation, which owns stakes in both publishers.
The proposal was based on the NFL Rooney Rule rule, adopted in 2003 to require all football league teams to interview at least one diverse candidate for each head coach vacancy. It was later expanded to include vacancies for general managers and similar front office positions.
In its letters to publishers, the AFL-CIO advocated the adoption of the standard, saying, “A diverse workforce at all levels of a company can improve the company’s long-term performance.”
Activision Blizzard presented its diversity programs to Vice, saying, “We value the diversity of the Activision Blizzard community and understand that our employees and players come from a wide range of backgrounds. In order to deliver epic and engaging entertainment for in a diverse and growing public world, our staff must reflect these communities. “
However, he also responded to the AFL-CIO proposal by asking the Securities and Exchange Commission to exempt it from asking shareholders a question at this summer’s annual meeting.
Vice reports an Activision Blizzard lawyer told the SEC in January: “Although the company has implemented a Rooney Rule policy as expected [for director and CEO nominees], implementing a policy that extends this approach to all hiring decisions amounts to an unfeasible invasion of the company’s ability to run its business and compete for talent in a highly competitive and fast-paced market. “
Activision Blizzard’s lawyer further stated that the proposal was of a micromanagement nature and “leaves no room for company management or the board of directors to exercise discretion over how the new management decisions are structured.” recruitment “.
On the other hand, an EA representative told Vice that the publisher would consider the AFL-CIO proposal, saying it was “committed to maintaining hiring practices that promote inclusion and diversity” in the company.
As Vice points out, AFL-CIO has already been successful with similar proposals from Rooney Rule shareholders, convincing five of the largest banks in the United States to adopt these policies and add public responsibilities to their existing diversity initiatives.