Kellogg’s Shareholders Reject Proposal for Audit of ‘Equity’ Policies Despite Discrimination Complaints

Kellogg’s shareholders rejected a proposal to commission an audit of its equity policies to determine whether they discriminate against certain employees at its annual shareholder meeting Friday.

Kellogg’s Board of Directors recommended opposing the proposal by the National Center for Public Policy Research (NCPPR), saying it disagrees that there is concern that diversity, equity and inclusion “programs and practices themselves are deeply racist, sexist, [and] otherwise discriminatory.” The cereal giant has pledged to meet demographic hiring goals that may discriminate against “non-diverse” employees, and NCPPR proposed an audit analyzing the impacts for such policies.

“Shareholders deserve an investigation into whether Kellogg’s DEI policies are conflicting with the company’s fiduciary duty to maximize value,” said Brad Anderson, chairman of the Boardroom Initiative. {snip}

{snip}

Anderson also noted the company’s pledge to hire 25% “racially underrepresented” employees at the management level by the end of 2025, asking if this violates federal antidiscrimination laws that could make Kellogg’s vulnerable to costly legal action.

“If these practices are so great and so vital, there should be nothing for the Company to hide, right?” asked Ethan Peck, associate for the Free Enterprise Project asked in NCPPR’s supporting statement to the proposal obtained by the DCNF. {snip}

{snip}