Should Tesla report on its efforts to prevent harassment and discrimination?
Last year, Tesla shareholders passed a vote asking the company to report on the effectiveness of its diversity and inclusion efforts. When the report came out, it revealed that 62% of the company’s US workforce belong to underrepresented groups.
While the report was received well by shareholders, it is clear concerns about diversity at Tesla are far from resolved. Since the report’s publication, the state of California filed a lawsuit against Tesla alleging “rampant racism” at the company. Allegedly, Tesla was slow to clean up racist graffiti, which included swastikas, KKK references and racial slurs.
So, at this year’s AGM (Annual General Meeting), shareholders are once again raising concerns about diversity and inclusion at Tesla, this time focusing on the alleged harassment and discrimination issues at the company.
Here is our summary of the vote:
Shareholders say:
In its 2020 Diversity Equity and Impact Report, Tesla stated its commitment to fair and inclusive practices, saying that it strives to protect underrepresented communities.
However, the company has faced numerous allegations of harassment as well as gender and race discrimination. Last year, Tesla even lost a $137 million lawsuit when a former employee accused it of a racially hostile work environment.
Twentieth Century Fox, Wynn Resorts, and Alphabet have also been involved in lawsuits for allegedly breaching their duty to protect their employees from discrimination. Such disputes can create material and reputational risks for any company and its shareholders.
Additionally, Tesla employees are bound by mandatory arbitration, a way to resolve disputes that is confidential. This makes it hard to know how Tesla manages its workforce.
We want Tesla to annually report on its efforts to prevent harassment and discrimination against protected classes of employees and include:
- How much money is spent on settling disputes related to abuse;
- Progress toward reducing the time it takes to resolve complaints, and;
- The number of pending harassment or discrimination complaints.
This report would allow shareholders to assess whether Tesla’s workforce management is adequate, or if it needs improvement.
We [shareholders] recommend you vote in favour of this proposal.
Tesla says:
At Tesla, we do not tolerate harassment and discrimination in the workplace. This is outlined both in our Code of Business Ethics and Employee Guidebook.
We already provide in-depth anti-harassment and anti-discrimination training for all employees. In 2021, as part of our “Respectful Recharge” programme, employees were told of the consequences for violating our harassment policies and how to raise concerns about related issues.
Any complaints are investigated and acted upon. Our Employee Relations partners conduct impartial investigations into any raised concerns. We also have the Integrity Line, through which employees may report issues anonymously and without fear of retaliation.
Additionally, as of 2021, our Compensation Committee will oversee management practices relating to our employees.
We [Tesla] recommend you vote against this proposal.
