Almost 87 percent of Coca-Cola shareholder votes opposed a proposal to look into whether anti-abortion laws in some states would negatively affect the business.
During its annual shareholder meeting last week the company voted on several items, including whether to produce a report on the impact of anti-abortion laws.
The proposal was made by As You Sow, a non-profit group that lobbies shareholders in corporations to enact policies it believes will bring about positive social change.
As You Sow suggested anti-abortion laws in some states could cause Coke to lose female employees, and that shareholders should consider the risk.
But in a statement rejecting the proposal, the board said measures ‘already in place are appropriate and sufficient to address potential risks’.
Coca-Cola shareholders voted against producing a report into how anti-abortion laws in certain states would drive female employees away. Pictured is the company’s headquarters in Atlanta, Georgia
Nearly 87 percent of votes cast during the company’s annual shareholder meeting on April 25 were against the report. Each share corresponds to a single vote, so shareholders with more shares in the company have more votes and yield greater voting power
‘In addition, the Company already has in place comprehensive health benefits that provide for our employees’ needs, as opposed to what might be otherwise suggested in this proposal,’ it added.
On April 25, nearly 2.7 billion votes (87 percent) were cast against the proposed report, and just over 400 million (13 percent) were in favor. Around 70 million votes were abstained.
Each share corresponds to a single vote, so shareholders with more shares in the company have more votes and yield greater power.
The proposal put forward made direct reference to Georgia, where the company is headquartered and hires thousands of staff.
In Georgia, abortion is banned when a ‘fetal’ heartbeat can be detected – about six weeks into a pregnancy. Under previous law before the repeal of Roe v. Wade, abortions were legal up to about 22 weeks.
‘Women who cannot access abortion are three times more likely to leave the workforce than women who have access to abortion,’ wrote As You Sow in the proposal, citing a report by the UCSF Bixby Center for Global Reproductive Health.
It also referred to the Institute for Women’s Policy Research, which estimated that state-level abortion restrictions may annually keep more than 500,000 women aged 15 to 44 out of the workforce.
The proposal said this could create ‘add complexity’ for Coke.
‘Shareholders request that Coca-Cola’s Board of Directors issue a public report prior to December 31, 2023,’ read the proposal, first filed in November.
It said the report should detail ‘any known and potential risks or costs to the company caused by enacted or proposed state policies severely restricting reproductive rights,’ it went on.
It said ‘Coke has given more than $1.8million to politicians and political organizations seeking to limit women’s reproductive rights’.
Pictured is the CEO of As You Sow, Andrew Behar
The proposed report would likely have been to apply pressure to Coca-Cola to use its might to oppose, and potentially divest from, states that have strict anti-abortion laws
Non-profits like As You Sow seek to influence corporate decision-making by leaning on shareholders to consider social and environmental impacts.
It can exert influence because shareholders of publicly-traded corporations have a right to put proposals up for a vote.
But ESG strategies have come under criticism in recent years, especially from conservatives, who believe investment decisions should be guided by nothing other than profit.
In response, some advocates of ESG investing have argued the approach is most profitable because it is indicative of good, forward-looking corporate values.
The purpose of the proposed report would likely have been to apply pressure on Coca-Cola to use its might to oppose, and potentially divest from, states that have strict anti-abortion laws.
Similarly, in Florida Disney is standing up against Republican governor Ron DeSantis and his recently passed ‘Don’t Say Gay’ bill, which limits how homosexuality can be spoken about in schools.
Disney and DeSantis are now embroiled in a war in which the governor has tried to revoke the company’s special jurisdiction over the Disney World Resort after the company spoke out against the bill.
DailyMail.com wrote to As You Sow for additional details as to how anti-abortion laws might cost Coke, and how much a report might cost, but did not hear back.
It also wrote to Coca-Cola for details on exactly which states it operates in but did not hear back. The company relies on a network of independent bottling companies in different regions, some of which are independent.
Another item voted on by shareholders on April 25 was a proposal requesting an audit of the company’s ‘impact on non-white stakeholders’.
It was similarly unpopular – 17 percent of votes were in favor and 83 percent against.