'Waste of resources': Activision wants direct resolution instead of a public report to combat gender-based issues

Activision Blizzard's approval of the potential deal with Xbox has been greenlit by 98% positive votes from its shareholders. However, some critical decisions are still to be made, one of which deals with numerous incidences of reports of gender-based discrimination.

The company has been accused of severely mishandling serious issues, and many fingers have been raised at CEO Bobby Kotick. If a recent report is anything to go by, things will not look suitable for the company soon.

Over the last couple of years, Activision Blizzard has faced several lawsuits related to office behavior. Several former and current female employees have accused Kotick and the upper management of handling such serious issues in a very poor manner. It now appears that the company doesn't want shareholders to green signal a report that will assess its efforts in the public forum.

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Activision Blizzard wants to deal with office affairs directly rather than spend on a public report

On June 21, the shareholders of Activision Blizzard will be meeting to make some important decisions. The company has sent a document that includes recommendations over the five topics on which the vote will be done.

Out of the five, shareholders have been advised to vote negatively over two issues. One of them includes "the preparation of a report about the company's efforts to prevent abuse, harassment and discrimination."

In simpler terms, any such report would have assessed the company and its efforts to curb sex-based discrimination and other charges. The report will evaluate the efforts given by the company to settle the charges against it.

If the proposal is approved, Activision Blizzard will have to declare things like how much it has spent so far to settle the issues. They will also need to show the possible efficacy of their steps and things like consolidated work hours and pay.

In justification, Activision Blizzard feels it will be a major 'waste of resources rather than an effective solution.' Handling these cases directly will be more beneficial for the company than preparing a public report.

"First, the Board believes that, rather than diverting energy and resources toward creating yet another report, we should continue to directly respond to employee concerns. Focusing all our attention on these concerns is the best way quickly and effectively to create genuine change in our workplace."

It has further added that the metrics that will be created will be improper.

"Second, the proposed report itself, even if completed after significant time and expense, would create a set of metrics that are simply not the best measures of how the Company is responding to employee concerns."

Activision Blizzard declared to shareholders that the metrics should be curtailed and not built in a general sense. The company feels that it's direct handling of the issues will be more effective.

"As such, the Company is of the view that continuing to focus its efforts on responding directly to employee concerns and continuing to implement workplace improvements is the best path forward."

Interestingly, the proposal might be turned down even if the vote passes it. It will be interesting to see how the voting turns out what decisions the Board makes. Bobby Kotick and his team have been criticized frequently for handling the entire affair.

This latest news might not be very soothing for those who want the current Activision CEO to be gone. In addition to this proposal, decisions about the directors will also be made on June 21, which could indicate what's waiting in the future for Bobby Kotick.