Activision Blizzard has rejected a proposal from shareholders that it would increase diversity in the candidate groups, as it would hinder and redundant their ability to hire talented individuals.
Vice reported earlier on January 27 that the video game company had been rejected by the American Federation of Labor and Congress of Industrial Organizations (AFL – CIO) in January 2021. This proposal was intended for both Activision Blizzard and Electronic Arts (EA); both companies of which the AFL-CIO are shareholders.
The reported policy proposal has been sent to the Securities and Exchange Commission (SEC), proposing that they adopt policies that oblige qualified women and coloreds in the initial pool of candidates for positions. This is compared to the NFL’s Rooney Rule, which was added in 2003.
The AFL-CIO claims that the policy will improve diversity among the companies, which in turn will improve the company’s long-term performance.
‘[The policy will improve] labor force diversity by requiring that the initial pool include candidates from whom new employees are hired by the company, but need not be limited to qualified women and minority candidates. ”
“The purpose of the requested policy for diverse candidate searches is to ensure that the recruitment pools of the company for external hire are sufficiently diverse. A diverse workforce at all levels of a business can improve a company’s long-term performance. ‘
The proposal letters were obtained through Vice’s motherboard, along with a response from Activision Blizzard’s attorneys. They have stated that they have already had such a proposal to be nominated for CEO and CEO candidates, and the implementation of this company widely will hamper their ability to hire talented people competitively.
They further argued that the proposal would violate the guidance of the SEC as it was significantly aimed at “Micro-management” Activision Blizzard.
‘While the company implemented a Rooney Rule policy as intended [for director and CEO nominees]the implementation of a policy that would extend such an approach to all leasing decisions amounts to an unworkable breach of the company’s ability to run its business and to compete for talent in a highly competitive, fast-moving market. ”
[…] “The proposal leaves no room for the management or board of the company to exercise discretion over how new lease decisions are structured.”
A spokesman for Activision Blizzard told Vice that despite this response, they value the diversity of the company. In addition, they have already had a range of initiatives and scholarship programs for exactly that purpose.
‘Our talent is the lifeblood of Activision Blizzard. We appreciate the diversity of the Activision Blizzard community and understand that our employees and players come from a wide variety of backgrounds. To deliver epic and engaging entertainment for a diverse, growing global audience, our staff members must reflect these communities. ”
“We have introduced a range of new programs, such as our scholarship programs at the United Negro College Fund and the Equal Justice Initiative,” the spokesman continued. “These high school scholarship funds help develop the best and brightest future talent and put them together with mentors and internships designed to ensure earlier success in their careers.”
An EA spokesman told Vice “In regular discussions with our shareholders and we appreciate the feedback we receive. In accordance with our standard procedures, EA’s Board of Directors will consider the shareholders’ proposal. The Board is committed to maintaining the rental practices that promote inclusion and diversity at EA. ”
Brandon Rees, the director of investments at the AFL-CIO, explained to Vice that shareholders would usually submit a proposal and discuss the matter with the company. The proposal can be withdrawn if the company agrees to take measures to resolve the proposal that is to be implemented by the proposal. If it is rejected, the shareholders will vote to implement the proposal.
Activision Blizzard President Daniel Alegre posted a public statement on the Activision Blizzard website on January 28, titled “Building a fair, inclusive and diverse Activison Blizzard community.”
In it, Alegre explained that he did not just join the company “Help connect people around the world with epic games;” but was inspired by CEO Bobby Kotick “Commitment to diversity in our global teams, and the opportunity to continue to build a culture of inclusivity.”
Alegre addressed media coverage of the AFL-CIO’s proposal and wanted to provide clarity and context, explaining how Activision Blizzard already intends to lease with diversity in mind.
“In our current work practices throughout the enterprise and for each role, we emphasize and create diverse candidates; our practices, of course, enable us to appoint managers to ensure diversity in each country in which we operate. We do not have to confirm the AFL-CIO proposal we are already doing – encourage each hiring manager to consider different candidates for each position. We believe in our existing hiring practices, which encourage each hiring manager to look for diverse candidates for each role. We also ensure that every candidate – regardless of background, ethnicity, gender, race and sexual orientation – is considered for each open role. We have and will continue to focus on clear goals and measurable criteria for diversity in our staff, and are proud of our success. We are unequivocally committed to increasing diversity at all levels throughout Activision Blizzard worldwide.
I want to reiterate that diversity, equity and inclusion will continue to be at the heart of our business, our culture and our work experience. Our commitment begins in the acquisition and recruitment process and is repeated during on-board and through alumni status. Our code of conduct is recognized by all employees every year – at every level. New hires are needed to follow our Way2Play training and our equality and diversity training to ensure employees understand their responsibility.
Today, for the third consecutive year, we have been recognized by the Human Rights Campaign with a perfect score on the Corporate Equality Index for LGBTQ Inclusive Workplace Policies and Practices, an achievement worth celebrating.
Our games change stereotypes and bring people together, regardless of race, religion or cultural values. However, we can only achieve this if our own talent represents the diversity of our nearly 400 million players around the world. We know that all businesses can do more to encourage diversity, inclusion and equity, but I am proud of our commitment to continuous improvement and I am proud of the wide enterprise we all have to promote a diverse and equitable workplace. I am here because of this commitment, which is steadfast. ”