MCDONALD'S CORPORATION | Mitigation of Risks Related to Restrictive Public Healthcare Policies at MCDONALD'S CORPORATION

Status
AGM passed
AGM date
Previous AGM date
Resolution details
Company ticker
MCD
Lead filer
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Human rights
  • Public health
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that the Board of Directors issue a public report, omitting confidential information and at reasonable expense, on the likely risks or costs to the Company and its employees caused by a broad decline in the quality of accessible employee medical care and the CompanyÕs strategy to ameliorate these harms.
Whereas clause
WHEREAS: McDonaldÕs Corporation (McDonaldÕs) has a strong incentive to invest in the health and wellbeing of both its workforce and the wider talent pool, given the high turnover rate in its industry. Our CompanyÕs workforce is 60% female, and its approach to womenÕs health issues may impact its ability to successfully recruit and retain quality employees. EmployeesÕ productivity and performance are linked to health and wellness.[1]

However, more than 20 states have enacted place significant healthcare restrictions related to reproductive healthcare and gender-affirming care.[2]

Potential identified harms to McDonaldÕs from state-specific healthcare access restrictions include: challenges in recruiting and retaining employees, higher employee mortality and health challenges, higher healthcare costs for employees and for the Company, a reduction in the available workforce, and increased labor costs.

Restrictions on abortion and other reproductive health-related services negatively impact the overall availability of womenÕs healthcare.[3] For example, in 2023, states with abortion bans saw a decline of 10.5% of medical school seniors applying for OB-GYN residency.[4] Consistent with this, a survey published in February 2023 also found that 76% of more than 2,000 current and future physicians, regardless of specialization, would not apply to work or train in states with abortion restrictions.[5]

These harms are borne most heavily by Black women, for whom maternal mortality rates are nearly 3x greater than those of non-Hispanic white women and Hispanic women. Almost 12% of McDonaldÕs staff are Black women.

In a survey of women under age 40 commissioned by LeanIn, more than 75%, regardless of political affiliation, said they would prefer to work for a company that supports abortion access, according to a 2022 survey commissioned by Lean In. [6]

The extent to which McDonaldÕs is properly monitoring, managing, and mitigating these risks has not been disclosed to investors.
Supporting statement
SUPPORTING STATEMENT: Proponent suggests this analysis consider strategies beyond litigation and legal compliance that McDonaldÕs may deploy to minimize or mitigate these risks.

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