Activision Blizzard is trying to avoid a shareholder proposal to interview at least one diverse candidate when it hires for a position, according to a Vice report.
The proposal was made separately to both Activision Blizzard and Electronic Arts by the AFL-CIO labor federation, which owns shares in both publishers.
The proposal was based on the NFL’s Rooney Rule, which was passed in 2003 to require all football league teams to interview at least one diverse candidate for each head coaching vacancy. It was later expanded to include vacancies for general managers and similar front office positions.
In letters to publishers, the AFL-CIO argued for the rule to be passed, saying, “A diverse workforce at all levels of a company can improve long-term business performance.”
Activision Blizzard praised its diversity programs to Vice, saying, “We value the diversity of the Activision Blizzard community and understand that our employees and players come from a wide range of backgrounds. To provide epic and engaging entertainment for a diverse, growing global audience,” our workforce must reflect these communities. ”
However, it also responded to the AFL-CIO’s proposal by asking the Securities and Exchange Commission to release it from asking shareholders the question at its annual meeting this summer.
Vice reports that an Activision Blizzard attorney told the SEC in January, “While the company has implemented a Rooney Rule policy as envisioned [for director and CEO nominees]Implementing a policy that would extend such an approach to all hiring decisions amounts to an unworkable impairment of the company’s ability to run its business and compete for talent in a highly competitive, rapidly changing market. “
Activision Blizzard’s attorney went on to say that the proposal was micromanaging in nature, leaving “no room for company management or the Board of Directors to exercise discretion in how new hiring decisions are structured.”
On the other hand, an EA representative told Vice that the publisher would consider the AFL-CIO’s proposal and said it was “committed to maintaining recruitment practices that promote inclusion and diversity” at the company.
As Vice notes, the AFL-CIO has already had success with similar Rooney Rule shareholder proposals, convincing five of the largest U.S. banks to adopt such policies and add public accountability to their existing diversity initiatives.