Organization: Wal-Mart Stores Inc.

Year: 2019

Whereas: WHEREAS: Recently, workplace sexual harassment has generated major attention from the media and policy makers, and spurred significant public debate. The high-profile #MeToo social media hashtag, and sexual harassment claims involving public figures like Bill O'Reilly, Steve Wynn, Les Moonves and Travis Kalanick, have highlighted the prevalence of harassment and its impact. The proportion of Americans who believe that sexual harassment in the workplace is a serious problem increased from 47 percent in 2011 to 64 percent in 2017.1 One hundred twenty-five laws were introduced in 2018 in 32 legislatures on the subject of sexual harassment in the legislature itself.2 Workplace sexual harassment can damage companies in several ways. First, it may harm corporate reputation, which can alienate consumers. A recent study in Harvard Business Review found that a single sexual harassment claim makes a company seem less equitable, and that sexual harassment, more than financial misconduct, is perceived as evidence of a problematic corporate culture.3 Additionally, a company whose culture tolerates sexual harassment tends to have higher turnover and less productive employees. According to sociologist Heather McLaughlin, 80 percent of women who've been harassed leave their jobs within two years.4 The Center for American Progress (CAP) found that the retail industry had the second highest incidence of harassment claims in the private sector, representing 13.4 percent of all claims.5 Furthermore, CAP found that "women���̢��_��'particularly women of color���̢��_��'are more likely to work lower-wage jobs [like retail], where power imbalances are often more pronounced and where fears of reprisals or losing their jobs can deter victims from coming forward."6 Sexual harassment allegations can also lead to declines in share value. For example, the market capitalization of Wynn Resorts dropped by $3 billion over two days after allegations of sexual harassment against CEO Steve Wynn surfaced (MarketWatch, 1/27/2018).7 Robust board oversight is especially important at Walmart following ongoing issues of sexual harassment at the company. A well-publicized article this year documented a female associate's struggle to hold her manager accountable for inappropriately touching her.8 Similar complaints of harassment, from employees taking inappropriate pictures to discrimination against transgender employees, have been lodged.9 As the largest corporate employer of women in the U.S., Walmart can and should be a leader in establishing policies and protocols that enable women and men to reach their full potential at Walmart while holding wrongdoers accountable. We urge shareholders to vote for this proposal.

Resolved: Resolved: Shareholders of Walmart Inc. ("Walmart") urge the Board of Directors to strengthen Walmart's prevention of workplace sexual harassment by formalizing the Board's oversight responsibility, aligning senior executive compensation incentives, reviewing (and if necessary overseeing revision of) company policies, and reporting to shareholders by December 31, 2019 on actions taken (omitting confidential and proprietary information).

Supporting Statement:0