Activision Blizzard is looking to avoid a shareholder proposal to interview at least one diverse candidate when hiring for a position, according to a report by Vice.
The proposal was made separately for Activision Blizzard and Electronic Arts by the labor federation AFL-CIO, which owns shares in both publishers.
The proposal was based on the NFL Rooney rule, adopted in 2003 to require all teams in the football league to interview at least one diverse candidate for each head coach position. It was later expanded to include vacancies for general managers and similar front office positions.
In its letters to the editors, the AFL-CIO defended the adoption of the rule, saying: “A diverse workforce at all levels of a company can improve the company’s performance in the long run.”
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 variety of backgrounds. To provide epic and engaging entertainment for a diverse and growing 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 exempt it from raising the issue with shareholders at its annual meeting this summer.
Vice reported that an Activision Blizzard lawyer told the SEC in January: “Although the company has implemented a Rooney Rule policy as envisaged [for director and CEO nominees], implementing a policy that would extend such an approach to all hiring decisions is tantamount to an impractical usurpation of the company’s ability to manage its business and compete for talent in a highly competitive and dynamic market. “
Activision Blizzard’s lawyer further said that the proposal was micromanaging in nature, and “leaves no room for company management or the board of directors to exercise discretion over 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, saying it was “committed to maintaining hiring practices that promote inclusion and diversity” at the company.
As Vice notes, the AFL-CIO has already succeeded with similar proposals from Rooney Rule shareholders, convincing five of the largest US banks to adopt such policies and add public accountability to their existing diversity initiatives.