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Shareholder influences toward advances in DEI reporting
Journal article   Open access   Peer reviewed

Shareholder influences toward advances in DEI reporting

Dustin M Grant and Gregory S. Kordecki
Global journal of accounting and finance, Vol.8(1), pp.97-111
06/22/2024

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Abstract

Corporate policy can be influenced by the board of directors, executives, politics, and even shareholders. The research described in this paper is based upon the premise that the best way to improve upon diversity, equity, and inclusion (DEI) matters is to use a holistic approach and consider all possible suggestions. Corporate strategy and implementation on DEI starts at the top, but shareholder proposals can also help shape corporate policy. The specifics of shareholder proposals are provided to other shareholders in proxy materials, while the board of directors offers a statement of support or opposition before a vote takes place. This article investigates the impression that shareholder proposals can have on corporate reporting of DEI and the current model of assurance. This article explores the evidential trends in increased stockholder ideologue and proposals for diversity, equity, and inclusion issues, and reviews the number of proposals from the Fortune 250 companies encompassing DEI topics and the voting results of such proposals from 2006 to 2022, using the data analytics of Proxy Monitor.org. The findings show that shareholder proxies are asking for more disclosure and reporting of DEI issues, but the companies' directors are typically in opposition. The topics of the shareholder proposals, the boards of directors' stances, and the voting results are revealed. The authors propose a revised model with inclusion of DEI and ESG disclosures in financial reporting and assurance.
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https://www.igbr.org/wp-content/Journals/2024/GJAF_Vol_8_No_1_2024.pdfView
Published (Version of record)link to articleCC BY-NC V4.0,  Open

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