Activision Blizzard Taking More Flak; Shareholder Calls Out Company's Inadequate Actions
Activision Blizzard received a letter from one of its shareholders, who stood up for the company's employees. It contains criticism of the developer's actions to date and presents a proposal to rectify the situation.
IN A NUTSHELL:
- SOC Investment Group, one of Activision Blizzard's shareholders, has pointed out that proper steps have not been taken so far to rectify the situation at the company;
- The shareholder suggested actions that the developer should take to make real changes - increasing diversity on the board, revoking bonuses of those involved in the scandal, and a comprehensive audit of the company;
- Criticism of Activision Blizzard's conduct to date has largely focused on casting doubt on the decision to hire law firm WilmerHale.
Allegations of sexual harassment and mobbing at Activision Blizzard have reverberated throughout the gaming world, and the company is now in big trouble. Despite the fact that the management backpaddled on its initial policy of denying everything, the emotions surrounding the case are still alive. Employees and shareholders are not happy with the company's actions so far. Particularly controversial was the giant's hiring of the law firm WilmerHale, which specializes in defending the interests of the corporation. Axios reported that the SOC Investment Group - one of the shareholders of Activision Blizzard - decided to speak on the matter, criticizing some of the developer's actions so far and proposing new solutions.
In a letter addressed to the main independent director of Activision Blizzard Robert J. Morgado, the shareholder accuses the company of opacity in the communication of new guidelines for filling senior positions. In addition, it notes that the company has yet to announce what financial consequences those involved in the abuses will face. SOC Investment Group has also expressed concern that law firm WilmerHale has taken it upon itself to investigate the situation at Activision Blizzard, as it is known for its anti-employee and pro-corporate practices.
However, SOC Investment Group did not limit itself to pointing out mistakes. The shareholder also proposed solutions. In the letter, we can read that it is necessary to increase the diversity on the board by nominating one more woman director and let the employees elect their own representative. In addition, recently paid bonuses should be revoked for those involved in the scandal. Activision Blizzard should undergo a comprehensive audit to address the various abuses.
Let's point out that SOC Investment Group is funded by a union association (Strategic Organizing Center) that represents over 4 million members. So we can assume that the welfare of employees is important to this company.
