Berkshire shareholders reject all DEI and AI oversight proposals

The shareholders of Berkshire Hathaway recently rejected seven proposals related to diversity, artificial intelligence, and other topics, including one that required the company to report on the risks that its subsidiaries’ race-based initiatives posed.

They also turned down a resolution that demanded that Berkshire provide information on how its business practices affect workers based on their political beliefs , race, color, religion, sex, and national origin.

Berkshire justified turning down seven proposals related to AI and DEI

In addition to proposals turned down were requests for a report on voluntary environmental activities that go above and beyond state and federal regulations.

The shareholders also rejected proposals for independent directors to be required to keep an eye on AI-related risks and for Berkshire’s board of directors to form a committee to monitor diversity and inclusion.

These votes were made public following Buffett’s surprise announcement that he would leave his position as Berkshire CEO at the end of the year. Vice Chairman Greg Abel, who oversaw the reading of the shareholder proposals, is expected to take his place. Buffet noted that the time had arrived for Greg to become the company’s chief executive officer at year-end, and he wanted to spring that on the directors effectively and give that as his recommendation.

He added that he would stay at the company in an advisory role, “but the final word would be what Greg decided. Buffett’s decision to step down as CEO comes at a time when Berkshire Hathaway is sitting on cash reserves of roughly $348 billion.

According to the board, Berkshire’s overall approach was simple: follow the law and do the right thing. Besides that, they claimed that the operating businesses of Berkshire also established their own rules about race and other matters pertaining to employment.

In general, Berkshire had covered the hiring procedures of its operational businesses in its annual reports. Based on its annual report, diversity and inclusion in the workforce were no longer mentioned as a hiring objective in its most recent report, which was released in February.

At a recent meeting, Berkshire shareholders also reelected Buffett and Abel, among other eligible directors.

Interestingly, as conservatives, including U.S. President Donald Trump, work to limit DEI in the private sector, society, and federal government, businesses throughout corporate America have reduced public support or initiatives for DEI in the workplace.

Trump’s DEI crackdown sparks corporate retreat as boycotts and federal pressure mount

Corporate America’s shift from diversity, equity, and inclusion initiatives accelerated during the first 100 days of President Donald Trump’s second term in office.

The opposition to DEI-focused programs had been growing over the previous 12 months. However, it reached a climax after Trump was elected and issued a number of executive orders that he claimed they intended to eradicate “ illegal DEI ” from the US.

Additionally, when conservative activist Robby Starbuck launched his anti-DEI campaign last summer, he gave a sneak peek at what was to come. Furthermore, after criticizing the companies’ policies on social media and urging his followers to boycott them, he persuaded Supply Co., Deere & Co., and Harley-Davidson Inc. to withdraw from diversity programs. Concerning this, about eleven companies took action before the November election; therefore, that was merely a warm-up.

As soon as Trump and the federal government got involved, companies were throwing in the towel faster. Beginning with his inauguration on January 20, Trump issued several executive orders that prohibited the government from implementing DEI programs. He directed federal agencies to target businesses and non-governmental organizations, including DEI, to end illegal discrimination and preferences.

In addition, he urged federal contractors to follow suit, ordering the government to recognize only two sexes: male and female. His appointees had targeted law firms, retailers, and broadcasters for possible action in support of DEI initiatives.

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