Coco-Cola shareholders recently voted against a proposal to conduct a survey into how state laws restricting abortion impact the company's business performance. 

"Shareholders request that Coco-Cola's Board of Directors issue a public report prior to December 31, 2023, omitting confidential information and at a reasonable expense, detailing any known and potential risks or costs to the company caused by enacted or proposed state policies severely restricting reproductive rights, and detailing any strategies beyond litigation and legal compliance that the company may deploy to minimize or mitigate these risks," the proposal stated. 

The proposal was introduced by As You Saw, a nonprofit that promotes ESG policies in corporations. Eighty-seven percent of controlling shares voted against the measure. 

Voting power is allotted per the number of shares an individual or entity owns. Rather than each individual having one vote, as in American elections, an entity that owns a higher percentage of shares will yield great voting power than an entity with less.

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The proposal by As You Saw cited research that showed women who do not have access to abortion are more likely to drop out of the workforce. In a proxy statement, Coco-Cola said its "robust risk management processes" are adequate to address these concerns. The company argued further research into the matter is not needed.

The activist group's statement included a suggestion that the board of directors, at its discretion, may elect to cease operations in states where abortion restrictions are in place.

"In its discretion, the board's analysis may include effects on employee hiring, retention, and productivity, and decisions regarding closure or expansion of operations in states proposing or enacting restrictive laws and strategies, such as public policy advocacy by the company, related political contribution policies, and human resources or educational strategies."

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Many companies have increasingly come under public scrutiny for their political biases in support of left-wing social causes. The most prominent example this past year has been Disney's feud with Florida Governor Ron DeSantis, who signed legislation revoking the conglomerate's special tax privileges after the company criticized him for signing legislation that banned the teaching of LGBTQ theory to elementary school students. 

During the Trump administration, the Department of Labor proposed a new rule that would always require fiduciaries - entities with a legal responsibility to act in the best interest of their clients - to always prioritize financial returns over issues such as climate change. 

"Private employer-sponsored retirement plans aren’t vehicles for furthering social goals or policy objectives that aren’t in the financial interest of the plan," Eugene Scalia, Trump's Labor Secretary, said at the time.

The Biden administration reversed this policy. Furthermore, President Biden vetoed bipartisan legislation that would have ended enforcement of a Biden Labor Department rule that urged private retirement fund managers to consider ESG in their investment decisions.

Anders Hagstrom and Kelly Laco contributed to this reporting.