Racial Justice

Systemic racism creates material portfolio-wide and company-specific risks for investors. As the largest shareholders in many of the world’s largest companies, and in their role managing the retirement savings of millions of Black and brown workers, the world’s largest asset managers like BlackRock and Vanguard have a responsibility to assist in rooting out systemic racism from our economic system. The proxy voting decisions of asset managers can no longer be assumed to be neutral in the face of systemic racism.

Equity in the Boardoom

The investment community increasingly recognizes inequality as a systemic risk that harms the economy and capital markets. In North America, systemic racism is a foundational driver of inequality. The fifth edition of Equity in the Boardroom analyzes the 2024 proxy voting performance of the world’s largest asset managers on issues related to inequality and systemic racism. Equity in the Boardroom 2024 examines how the “Big Four”  – BlackRock, State Street, Vanguard, and Fidelity (as well as Geode, Fidelity’s index fund manager) – voted on 70 shareholder proposals across five categories – corporate political transparency, freedom of association, racial and gender equity in the workplace, worker safety, and the future of work – that are key to mitigating inequality-related risks and creating a fair and resilient economy rooted in broad-based, inclusive growth. The report also explores the divergence in proxy voting between the largest managers of U.S. defined benefit assets – BlackRock and State Street – and the largest U.S. public pensions, which are among their largest and most important clients. 

RJ Capital Strategies Table

In 2023, Majority Action drove the establishment of a National Racial Justice Capital Strategies Table with SEIU, Color of Change, Hip Hop Caucus, and United for Respect- to recognize the importance of having organizations steeped in racial justice be able to inform bright-line standards in regards to corporate governance and racial equity. As organizations tied to the communities and stakeholders most impacted and harmed by “business as usual” corporate practices rooted in systemic racism, the RJCST exists to ensure the leadership and lived experiences of impacted stakeholders have the access they need in order to shape the conversation. The RJCST organizes accountability efforts, engages with systemically significant companies to advocate for community needs, and educates our community and labor bases on capital strategies to drive meaningful change.

RJ Priorities

Review Proxy Voting Guide & Sample Language

This guide provides examples of shareholder proposals to help investors integrate racial equity into their proxy voting policies

Vote For Worker-Backed Proposals at Walmart

Learn how Majority Action is advocating for Walmart to take bold actions on racial equity and environmental sustainability by visiting our detailed campaign page.

Webinar: MAY DAY WORKERS, ADVOCATES AND INVESTORS ROUNDTABLE: RACIAL EQUITY AND WORKPLACE SAFETY AT WALMART

The May Day Roundtable discusses the critical issues that directly impact Walmart workers health, safety, and belonging, the investment risks posed by these issues, and the shareholder proposals seeking to address them. Hear directly from workers, electeds, advocates, and investors about what investors can do to encourage Walmart’s leaders to foster a more equitable business model.

Equity in the Boardroom: 2023 Proxy Season

This report highlights how racial inequity not only represents a moral issue but also poses systemic risks that can negatively impact long-term investment returns. It analyzes the voting patterns of the 18 largest asset managers and two leading proxy advisors on racial equity issues during the 2023 proxy season, revealing a significant decline in support amid political attacks on civil rights and ESG strategies. Read the full report for an in-depth look at the need for asset managers to integrate racial equity into their proxy voting practices to mitigate risks and safeguard investments.

Racial Equity & Stewardship: How the Largest Asset Managers Stack Up

A report from Majority Action shows that BlackRock, Vanguard, State Street, and Fidelity have serious gaps in their proxy voting policies that hold them back from mitigating the systemic risk of racial inequity.