Coca-Cola shareholders vote against a proposal to see how anti-abortion laws affect business

Nearly 87 percent of Coca-Cola shareholder votes opposed a proposal to investigate whether anti-abortion laws in some states would adversely affect the company.

At its annual shareholder meeting last week, the company voted on several issues, including whether to issue a report on the impact of anti-abortion laws.

The proposal was made by As You Sow, a non-profit organization that lobbies shareholders in companies to enact policies it believes will drive positive social change.

As You Sow suggested, anti-abortion laws in some states could cause Coke to lose female employees, and it’s in the best interest of shareholders to consider that risk.

But in a statement rejecting the proposal, the board said the measures already taken are appropriate and sufficient to address potential risks.

Nearly 87 percent of votes cast at the company’s annual shareholders’ meeting on April 25 opposed the report. Each share equates to one vote, so shareholders with more shares in the company have more votes and more voting rights

“In addition, the company already has extensive health benefits that address the needs of our employees, contrary to what would otherwise be suggested in this proposal,” it added.

As of April 25, nearly 2.7 billion votes (87 percent) had been cast against the proposed report and just over 400 million (13 percent) were in favour. About 70 million votes were withheld.

Each share equates to a single vote, so shareholders with more shares in the company have more votes and yield more power.

The submitted proposal referred directly to Georgia, where the company is headquartered and employs thousands of employees.

In Georgia, abortion is banned when a ‘fetal’ heartbeat can be detected – about six weeks into a pregnancy. Under the previous law before the repeal of Roe v. Wade, abortions were legal up to about 22 weeks.

“Women who do not have access to abortion are three times more likely to leave the workforce than women who have access to abortion,” As You Sow wrote in the proposal, citing a report by the UCSF Bixby Center for Global Reproductive Health.

It also referenced the Institute for Women’s Policy Research, which estimated that state-level abortion restrictions could keep more than 500,000 women ages 15 to 44 out of the workforce each year.

The proposal said it could lead to “added complexity” for Coke.

“Shareholders request that Coca-Cola’s Board of Directors issue a public report by December 31, 2023,” read the proposal, first submitted in November.

It said the report should “describe any known and potential risks or costs to the company caused by enacted or proposed state policies that severely restrict reproductive rights,” it continued.

It read, “Coke has given more than $1.8 million to politicians and political organizations seeking to limit women’s reproductive rights.”

Pictured is the CEO of As You Sow, Andrew Behar

The proposed report would likely have been to pressure Coca-Cola to use its power to oppose, and possibly divest from, states that have strict anti-abortion laws.

Nonprofits such as As You Sow seek to influence corporate decision making by leaning on shareholders to account for social and environmental impacts.

It can exert influence because shareholders of listed companies have the right to put forward proposals for a vote.

But ESG strategies have come under criticism in recent years, especially from conservatives, who believe investment decisions should be guided by nothing but profit.

Some proponents of ESG investing have argued that this approach is the most profitable because it is an indication of good, forward-looking company values.

The purpose of the proposed report likely would have been to pressure Coca-Cola to use its power to oppose, and possibly divest, states that have strict anti-abortion laws.

Similarly, in Florida, Disney is rebelling against Republican Governor Ron DeSantis and his recently passed “Don’t Say Gay” law, which restricts how homosexuality can be discussed in schools.

Disney and DeSantis are now embroiled in a war in which the governor has attempted to revoke the company’s special jurisdiction over the Disney World Resort after the company spoke out against the bill.

DailyMail.com wrote to As You Sow for additional details on how anti-abortion laws could cost Coke, and how much a report could cost, but heard nothing back.

It also wrote to Coca-Cola for details on exactly which states it operates in, but heard nothing back. The company relies on a network of independent bottling plants in different regions, some of which are independent.

Another item voted on by shareholders on April 25 was a proposal requesting an audit of the company’s “impact on non-white stakeholders.”

It was also unpopular – 17 percent of the vote was in favor and 83 percent against.