ELI LILLY AND COMPANY | Report on risks of supporting abortion at ELI LILLY AND COMPANY

Status
1.90% votes in favour
AGM date
Previous AGM date
Proposal number
10
Resolution details
Company ticker
LLY
Lead filer
National Center for Public Policy
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Public health
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Health Care
Company HQ country
United States
Resolved clause
Resolved: Shareholders request the Company issue a public report prior to December 31, 2023, omitting confidential and privileged information and at a reasonable expense, detailing the known and reasonably foreseeable risks and costs to the Company caused by opposing or otherwise altering Company policy in response to enacted or proposed state policies regulating abortion, and detailing any strategies beyond litigation and legal compliance that the Company may deploy to minimize or mitigate these risks.
Supporting statement
Supporting Statement: In 2022, Eli Lilly made clear its opposition to an Indiana law that restricts abortion in cases other than rape, incest, or where a woman’s life is in danger.15 The Company claimed that as a result of this law, its ability to attract diverse employees would be hindered, and that it would be “forced to plan for more employment growth outside our home state.” 16 The Company also said it expanded its employee health plan coverage to include travel for abortion.17
Ironically, in spite of making these statements and policy changes that demonstrate a clear pro-abortion stance, the Company criticized state officials for taking a stance on such a controversial issue. Indeed, the Company claimed to recognize abortion as a “divisive and deeply personal issue with no clear consensus among the citizens of Indiana,” but then itself went on to take a position through its condemnation. “Despite this lack of agreement, Indiana has opted to quickly adopt one of the most restrictive anti-abortion laws in the United States,” the Company stated.18 We agree with the Company that abortion is a “divisive and deeply personal issue.” Views on the topic are often rooted in an individual’s religious or other core belief system, making taking a position on it a potential reputational, legal, and financial liability for a company—yet Eli Lilly has insisted on doing just that.
By criticizing laws that restrict abortion and implementing a benefit to pay for abortion access, the Company makes clear its opposition to pro-life legislation that limit abortion. This positioning is particularly troubling considering the emphasis the Company has placed on so-called “Diversity & Inclusion.” The Company claims that embracing differences drives its business success,19 but apparently that embrace of diversity ends at diversity of thought, opinion, and religious convictions.
Taking positions on issues the Company admits are “divisive,” “deeply personal,” and on which there is “no clear consensus,” can only serve to alienate consumers, employees, and investors and impact the Company’s bottom-line. The Company should instead focus on its pharmaceutical mission and its fiduciary duty to shareholders, a fiduciary duty that is likely to be violated by engaging in politically divisive rhetoric and actions.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr Against A vote AGAINST this proposal is warranted as, on balance, the risks stemming from issuing the requested report appear to be greater than the risks to the company associated with its current disclosure and practices.

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