Leggett shareholders asked to reconsider nondiscrimination proposal

Walden Asset Management, of Boston, made a similar proposal at Leggett’s 2006 annual meeting, but shareholders defeated it by a 3-to-1 margin.

The issue is scheduled for a nonbinding vote at Leggett’s annual shareholder meeting at 10 a.m. on May 9 at the company’s Cornell Conference Center. Meredith Benton, a Walden research associate, will again present the proposal at the meeting.

Different perspectives

“We are hopeful that the company will be reassessing their policy,” Benton said in a telephone interview. “There are an increasing number of members of the Fortune 500 who have inclusive employment policies. You have an awareness of what peers are doing. You have increasing awareness of the risk of operating on the patchwork of state and local laws. You are at risk if you are at a company if you don’t have a policy of nondiscrimination on sexual orientation.”

According to Walden, 16 states, the District of Columbia, and more than 140 cities, including St. Louis, have laws prohibiting employment discrimination based on sexual orientation. Leggett, Walden says, has operations in, and makes sales to, institutions in states and cities that prohibit discrimination on the basis of sexual orientation. The company, therefore, may risk violating those laws.

The company’s board of directors unanimously rejected Walden’s newest proposal.

“We believe the proposed resolution is unnecessary because Leggett is already an equal opportunity employer with a firm and long-standing commitment to preventing discrimination in the workplace,” the company said in a statement. “Leggett’s existing anti-discrimination policy states, ‘We are committed to equal opportunity in all aspects of employment, including hiring, promotion, training, compensation, termination and disciplinary action.’”

Leggett says it is not aware of any charges of discrimination based on sexual orientation filed anywhere on behalf of its 33,000 employees, and it has not received notice that its policies have jeopardized its relationships with customers or suppliers. The company also notes that it provides a national hotline for anonymous reporting of workplace discrimination or harassment.

Leggett said adding sexual orientation to the policy could result in increased costs by encouraging frivolous lawsuits and could lead to adding domestic partner benefits at a significant cost to the company, according to the statement.

Co-filers

Several firms have joined Walden Asset Management in filing the shareholder proposal. They include Women’s Equity Fund, Universal Health Care Foundation of Connecticut, Amnesty International USA, Manhattan Country School, The First Parish in Cambridge, Izetta Smith, The Community Church of New York and The Needmor Fund.

Walden has owned Leggett & Platt stock for more than 16 years. The firm is a division of Boston Trust and Investment Management and manages funds for individuals and institutions.

Jeff Wells is editor of Joplin Tri-State Business, Springfield Business Journal's sister publication. He can be reached at jwells@joplintsb.com.