Resolved: Exploring the Role of Dialogic Engagement in Shareholder Activism for Diversity, Equity, and Inclusion

ABSTRACT

As the drive for enhanced diversity, equity, and inclusion (DEI) intensifies in the public sphere, shareholders are increasingly leveraging their influence and resources to proactively advance DEI causes that align with broader societal concerns. However, our understanding of “social” shareholder activism remains rudimentary. To address this gap, this research employs the dialogic engagement framework in public relations to examine the interactions between shareholder activists and corporations on DEI issues. Using a mixed methods research design, the study analyzes social issue shareholder proposals voted on from 2010 to 2022 (n = 1773) and conducts a detailed case study of shareholder activist-corporate engagement. Results indicate shareholders’ emphasis on an array of DEI matters, spanning from racial disparities to LGBTQ+ rights, and their push for increased disclosures, data-driven reports, and comprehensive racial equity audits. The case study underscores the pivotal role of relational, collaborative dialogic engagement within internal stakeholder activism. The study concludes by discussing various theoretical and practical ramifications stemming from the confluence of internal activism, dialogic engagement, and issues management were discussed.

KEYWORDS:

• Dialogic engagement
• diversity
• equity
• inclusion
• internal activism
• investor relations
• issues management
• shareholder activism

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. https://www.costco.com/ceo-message.html

2. As You Sow is a nonprofit foundation chartered to promote corporate social responsibility through shareholder advocacy, coalition building, and legal strategies. For more information: https://www.asyousow.org/

3. A proxy statement is a document containing the information the Securities and Exchange Commission (SEC) requires companies to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual shareholder meeting. Shareholders can attend the meeting and vote in person or cast a proxy vote.

4. A proxy statement is a document that publicly traded companies are required to file with the Securities and Exchange Commission in the United States. The purpose of the proxy statement is to inform shareholders about matters that will be voted on at the company’s annual meeting. Shareholders who are unable to attend the meeting in person can use the proxy statement to vote by proxy, either by mail, phone, or online.

5. Participant signed a consent form allowing the audio recording and analysis of their comments. The interview was transcribed and incorporated into the case study findings.

6. The EEO-1 Component 1 report is a mandatory annual data collection that requires all private sector employers with 100 or more employees, and federal contractors with 50 or more employees meeting certain criteria, to submit demographic workforce data, including data by race/ethnicity, sex and job categories (U.S. Equal Employment Opportunity Commission, 2023) https://www.eeoc.gov/data/eeo-data-collections

7. The full content of Nia Capital’s shareholder proposal submitted to Tesla is available in the SEC filings: https://www.sec.gov/Archives/edgar/data/1318605/000121465921009522/j913212px14a6g.htm