Equity in the Boardroom: Proxy Voting to Advance Racial Equity, Democracy, Thriving Economy for All

Equity in the Boardroom: Proxy Voting to Advance Racial Equity, Democracy, and a Thriving Economy for All Webinar Recording on February 29, 2024.
In the United States, the legacy and enduring effects of institutional and structural racism create inequities across social, environmental, and financial systems that adversely impact communities of color to this day. The impact of institutional and structural racism extends beyond directly affected communities and workers of color. Racial inequity is antagonistic to democratic principles and is a drag on U.S. economic growth at large. Failure to address racial inequity can result in lowered portfolio returns for diversified investors. Corporate products, policies, and practices can either reduce these inequities - and help unlock new growth - or they can exacerbate stakeholder harms and the accompanying material risks to long-term shareholders.
Proxy voting is one of the most important tools that shareholders have to mitigate systemic racial inequities. Voting for shareholder proposals that ask companies to conduct a racial equity audit (REA), an essential mechanism for management and oversight of risks associated with systemic racism, is key to mitigating systemic racial inequalities and unlocking economic growth.
In 2023, shareholders continued to back proposals advancing racial justice. However, as a new report from Majority Action demonstrates, the four largest asset managers - BlackRock, Vanguard, Fidelity, and State Street - significantly lowered their support for REA proposals during the 2023 proxy season and lagged behind their peers, undermining these and other critical votes on topics related to racial equity and justice.
With the 2024 proxy season rapidly approaching, Equity in the Boardroom lays out the fiduciary case for investor action on racial justice, evaluates the 2023 proxy voting records of the largest asset managers, and provides a roadmap for asset owners, proxy advisors, and managers alike to ensure their stewardship policies and practices are meeting these critical challenges.
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