Church & Dwight: Corporate Alignment of Stated Values with Public Policy Involvement; includes Reproductive Health
WHEREAS: Reproductive rights and access to family planning services are being challenged at the state and federal level in the U.S.
In the first six months of 2019, states enacted 58 abortion restrictions, 26 of which would ban all or some abortions. At the same time, other states enacted legislation that protects these rights, and advanced measures to increase access to contraception. A similar patchwork of state laws regulate the coverage of family planning services by private insurance plans. Eleven states ban abortion coverage in all state-regulated private insurance plans, whereas six states require private insurance plans to cover abortion.
Church & Dwight Co., Inc. (the “Company” or “Church & Dwight”) has operations in some of the states that ban or limit access to family planning services and contraception coverage in state regulated private insurance plans.
A 2016 study estimated that denying female employees full coverage of contraceptives increases unexpected pregnancies and terminations and increases employer costs associated with employee absenteeism, decreased productivity, and employee replacement.
According to a survey from Anthem Life Insurance Company, nearly one in three millennial workers has turned down a job offer due to insufficient health insurance. Church & Dwight may find it difficult to recruit the highest quality employees within states viewed as inhospitable to women’s reproductive rights; this may harm its ability to meet diversity and inclusion goals, with negative consequences to brand and reputation. A number of Church & Dwight brands rely on the trust and confidence of its female consumers for their success. In addition, in its 2019 Sustainability Report, the company states plainly “The Company believes in diversity to advance the best interests of the Company.”
A 2019 study by the Wall Street Journal found that the twenty most diverse companies in the S&P500 had an average annual five-year stock return that was 5.8 percent higher than the twenty least-diverse companies. McKinsey consultants have found that companies in the top quartile for gender diversity in corporate leadership have a 21 percent likelihood of outperforming bottom-quartile industry peers on profitability.
The proponents believe Church & Dwight should establish policies that minimize risk to the firm's reputation and brand through perceived failure to meet employees’ needs and expectations with respect to health coverage.
BE IT RESOLVED: Shareholders request that Church & Dwight issue a public report prior to December 31, 2021, omitting confidential information and at a reasonable expense, 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.
SUPPORTING STATEMENT: Shareholders recommend that the report 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.
Resolution Details
Company: Church & Dwight
Lead Filers:
As You Sow
Year: 2021
Filing Date:
December 2020
Initiative(s): Reproductive Health
Status: Resolution withdrawn, Agreement reached