As You Sow and Rhia Ventures have a new proposal in 2020; filed at two companies and planned at one more, it expresses concerns about eroding access to abortion and other related reproductive health care services. As described in a Roll Call article in February, the resolution seeks a report by December “detailing any known and any potential risks and costs to the Company caused by enacted or proposed state policies affecting reproductive rights and detailing any strategies beyond litigation and legal compliance that the Company may deploy to minimize or mitigate these risks.” Target companies include Macy’s and Progressive.
THE BUSINESS CASE FOR REPRODUCTIVE HEALTH
SHELLEY ALPERN
Director of Shareholder Advocacy, Rhia Ventures
Reproductive health is a business issue—this is the message that a new campaign wants companies and investors to know and to act upon. The effort is led by Rhia Ventures, a San Francisco-based venture firm specializing in contraceptive and maternal health investments.
The proposal points to the wide array of legal challenges that affect access, noting 58 new state restrictions about reproductive health rights that were enacted in the first six months of 2019, plus competing measures to secure and remove these rights. Eleven states now have laws banning abortion on the books, although they are being challenged in court, while six states require coverage for abortion.
The proposal reasons that because the companies targeted operate in some of the states with restrictions, and because their employees are affected, investors need a report on how the companies are handling the issue. It quotes statements from the companies supporting diversity and inclusion and better financial returns for diverse companies, then argues that reproductive health rights are key benefits for company employees that bolster diversity and inclusion. The resolution calls on the companies to “evaluate any risks and costs including, but not limited to: effects on employee hiring, retention, and productivity, and increases in litigation and brand risks. Strategies evaluated should include any public policy advocacy programs, political contributions policies, and human resources or educational strategies.”
SEC action: Progressive has challenged the proposal at the SEC, arguing it concerns ordinary business, is too vague, and is not a proper subject for a shareholder proposal. The SEC has yet to respond.