COMCAST CORPORATION | Conduct Independent Investigation and report on risks posed by failing to prevent sexual harassment

Status
22.00% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
CMCSA
Lead filer
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
Shareholders urge the Board of Directors to conduct an independent investigation into and prepare a report (at reasonable expense, omitting confidential and proprietary information) on risks posed by the Company’s failures to prevent workplace sexual harassment.
Whereas clause
Comcast and its subsidiaries are under intense public scrutiny for an alleged failure to protect employees from sexual harassment in the workplace, failing to hold those culpable accountable, and for lacking transparency. NBC attracted global attention when it fired “Today” host Matt Lauer for ongoing sexual harassment of employees. In 2019, Ronan Farrow alleged that NBC covered up accusations against Lauer.



Controversy has focused on NBC’s insistence on conducting an internal investigation led by management, rather than independent advisors. Six presidential candidates called on the Democratic National Committee to demand Comcast conduct an independent investigation into its toxic culture.



In 2019, NBC News’ digital editorial staff formed a union, the NBC News Guild, noting “serious questions” about NBC News’ treatment of women and people of color and how it handled workplace sexual misconduct and its “opaque” procedures for “exposing powerful predators.”



Failure to provide a safe workplace extends to Comcast call centers, where employees have described a hostile culture of sexual harassment. In 2018, Comcast fired three call center employees who filed complaints. One filed a complaint at the U.S. Equal Employment Opportunity Commission (EEOC).



Fear of retaliation in reporting harassment is of concern. An EEOC study of harassment in the workplace found that 75 percent of employees reporting harassment experienced retaliation and that 87 to 94 percent of harassment victims did not file a formal complaint.



Workplace harassment can harm shareholder value. Google committed 310 million dollars to settle a shareholder lawsuit alleging the board mishandled sexual misconduct by executives, notably paying Andy Rubin 90 million dollars after sexual misconduct claims led management to ask for his resignation. The market capitalization of Wynn Resorts dropped 3 billion dollars the two days following harassment allegations against CEO Steve Wynn. 21st Century Fox agreed to a 90 million dollar settlement with shareholders alleging that directors failed to hold accountable senior executives who perpetuated sexual harassment.



Comcast and its subsidiaries rely on consumers to trust their brands. A Harvard Business Review study found a single sexual harassment claim can make a company seem less equitable and more problematic than financial misconduct or fraud and would “be enough to dramatically shape public perception of a company and elicit perceptions of structural unfairness.”



To avoid legal and reputational risk, as the employer of 184,000 workers, Comcast must create a culture of accountability and transparency, and protect employees from harassment and discrimination.

Supporting statement
Proponents suggest that the report assess steps Comcast could take to do a better job of holding employees who cause harm accountable, such as integrating metrics on creating a sexual harassment-free workplace into the performance measures of the CEO and senior leadership.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
KBI Global Investors For
Dana Investment Advisors (Delisted) For
Boston Trust Walden For
Anima Sgr For
Kutxabank Gestion SGIIC SAU. For
VidaCaixa For
Universities Superannuation Scheme - USS For USS would support additional information on the Company's sexual harassment policies.

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