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Activision Blizzard Reaches Agreement with the EEOC

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Activision Blizzard confirmed in a press release that the company reached an agreement with the U.S. Equal Employment Opportunity Commission (EEOC). 

Highlights

  • Activision Blizzard will establish a $18 million dollar victim compensation fund.
  • The company will upgrade policies, practices, and training to prevent and eliminate harassment and discrimination in the workplace, including implementing an expanded performance review system with a new equal opportunity focus.
  • The company will engage a neutral, third-party equal employment opportunity consultant that must be approved by the EEOC. The consultant's findings will be reported directly to the EEOC and Activision Blizzard's Board of Directors.
  • The Company will hire an internal EEO Coordinator with relevant experience in gender discrimination, harassment, and related retaliation to assist the Company and the neutral, third-party EEO consultant with implementation of the agreement’s requirements.

Blizzard Logo(Source)

SANTA MONICA, Calif.--(BUSINESS WIRE)--Sep. 27, 2021-- Activision Blizzard (Nasdaq: ATVI) today confirmed that, as part of its effort to have the most welcoming, inclusive workplace, it has reached an agreement with the U.S. Equal Employment Opportunity Commission (EEOC) to settle claims and to further strengthen policies and programs to prevent harassment and discrimination in the company’s workplace. Under the agreement, the principal terms of which are summarized in Attachment A to this press release, Activision Blizzard has committed to create an $18 million fund to compensate and make amends to eligible claimants. Any amounts not used for claimants will be divided between charities that advance women in the video game industry or promote awareness around harassment and gender equality issues as well as company diversity, equity, and inclusion initiatives, as approved by the EEOC. The agreement is subject to court approval.

The company also announced an initiative to develop software tools and training programs to improve workplace policies and practices for employers across the technology industry.

Commenting on the agreement, Activision Blizzard CEO Bobby Kotick said: “There is no place anywhere at our company for discrimination, harassment, or unequal treatment of any kind, and I am grateful to the employees who bravely shared their experiences. I am sorry that anyone had to experience inappropriate conduct, and I remain unwavering in my commitment to make Activision Blizzard one of the world’s most inclusive, respected, and respectful workplaces.”

Kotick added: “We will continue to be vigilant in our commitment to the elimination of harassment and discrimination in the workplace. We thank the EEOC for its constructive engagement as we work to fulfill our commitments to eradicate inappropriate conduct in the workplace.”

In addition to the agreed funds, the company is taking additional steps, including:

  • Upgrading policies, practices, and training to further prevent and eliminate harassment and discrimination in its workplaces, including implementing an expanded performance review system with a new equal opportunity focus;
  • Providing ongoing oversight and review of the Company’s training programs, investigation policies, disciplinary framework and compliance by appointing a third-party equal opportunity consultant whose findings will be regularly reported to our Board of Directors as well as the Commission.

About Activision Blizzard

Our mission, to connect and engage the world through epic entertainment has never been more important. Through communities rooted in our video game franchises we enable hundreds of millions of people to experience joy, thrill and achievement. We enable social connections through the lens of fun, and we foster purpose and a sense of accomplishment through healthy competition. Like sport, but with broader accessibility, our players can find purpose and meaning through competitive gaming. Video games, unlike any other social or entertainment media, have the ability to break down the barriers that can inhibit tolerance and understanding. Celebrating differences is at the core of our culture and ensures we can create games for players of diverse backgrounds in the 190 countries our games are played.

As a member of the Fortune 500 and as a component company of the S&P 500, we have an extraordinary track record of delivering superior shareholder returns for over 30 years.

Our enduring franchises are some of the world’s most popular, including Call of Duty®, Crash Bandicoot™, World of Warcraft®, Overwatch®, Hearthstone®, Diablo®, StarCraft®, Candy Crush™, Bubble Witch™, Pet Rescue™ and Farm Heroes™. Our sustained success has enabled the company to support corporate social responsibility initiatives that are directly tied to our franchises. As an example, our Call of Duty Endowment has helped find employment for over 85,000 veterans.

Learn more information about Activision Blizzard and how we connect and engage the world through epic entertainment on the company's website, www.activisionblizzard.com.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. We may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from the Company’s current expectations. Such factors include, but are not limited to: court approval of the agreement with the EEOC and successful implementation of the requirements of the agreement with the EEOC as described in this press release, in Attachment A to this press release, and in the agreement with the EEOC. Any forward-looking statements that the Company makes in this press release speak only as of the date of this press release. The Company assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

Attachment A

Summary of Agreement

Below is a summary of the principal terms of the agreement with the EEOC, which is subject to approval by the United States District Court for the Central District of California.

  • Creation of an $18 million fund, with any amounts not used for claimants divided between contributions to non-profit organizations whose mission involves advancing women in the video game and tech sectors or who promote awareness around sexual harassment and gender equality and further investments in diversity and inclusion efforts at the Company that go beyond what we agreed to with the EEOC, all as approved by the EEOC.
  • The Company will upgrade policies, practices, and training to prevent and eliminate harassment and discrimination in the workplace, including implementing an expanded performance review system with a new equal opportunity focus;
  • The Company will engage a neutral, third-party equal employment opportunity consultant – a non-employee who must be approved by the EEOC – who will provide ongoing oversight of the Company’s compliance with the agreement. This independent consultant’s findings will be reported directly to the EEOC and Activision Blizzard’s Board of Directors; and
  • The Company will hire an internal EEO Coordinator with relevant experience in gender discrimination, harassment, and related retaliation to assist the Company and the neutral, third-party EEO consultant with implementation of the agreement’s requirements.

Except as otherwise noted in the agreement, its terms will remain in effect for three years from its effective date. The full text of the agreement, which sets out the commitments in detail, is available in the Investor Relations section of the Company’s website at investor.activision.com/consent-decree-with-EEOC.

CT?id=bwnews&sty=20210927005844r1&sid=ac

Investors and Analysts:
[email protected]
or
Press:
[email protected]

Source: Activision Blizzard, Inc.

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41 minutes ago, Logarithm said:

Now can they get back to making the games were paying for?

we are paying for stuff like this settlement, not games

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3 hours ago, Prophet001 said:

I don't understand how giving people large sums of money is an appropriate reaction to things like this.

It's not even a large sum of money in the grand scheme! That's what's so insulting.

In August they reported approximately 3.3 million active players, so they made 45+M just that month. Obviously not all that is money they can use for this, but that's one of a few major games and just a single month.

Activision has Call of Duty Warzone, and that clears 5.2 million daily according to their last reports. So if they stepped in to soften the financial blow (likely did) they had PLENTY to cover the 18 million.

Also remember Kotick got a 200 MILLION bonus in the spring...

18 Million is pennies for this kind of cultural problem. Even if that is really about 25 million after all those other programs (I doubt it's that much, but it's a nice round number) that's nothing.

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  • Quote

    Activision Blizzard will establish a $18 million dollar victim compensation fund.

Oh Dear.     They'll have to fire about 5-10% more staff to keep the management pay stable.    Good thing they can always just hire more contract workers.

/sigh

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7 minutes ago, Laragon said:

It's not even a large sum of money in the grand scheme! That's what's so insulting.

In August they reported approximately 3.3 million active players, so they made 45+M just that month. Obviously not all that is money they can use for this, but that's one of a few major games and just a single month.

Activision has Call of Duty Warzone, and that clears 5.2 million daily according to their last reports. So if they stepped in to soften the financial blow (likely did) they had PLENTY to cover the 18 million.

Also remember Kotick got a 200 MILLION bonus in the spring...

18 Million is pennies for this kind of cultural problem. Even if that is really about 25 million after all those other programs (I doubt it's that much, but it's a nice round number) that's nothing.

There is no relationship between these events and currency.

That is what makes no sense.

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1 hour ago, Prophet001 said:

There is no relationship between these events and currency.

That is what makes no sense.

Tell that to the women  who had significant pay disparities with men at nearly idenitical positions and deserve restitution by the law.

 

I mean what exactly would justice for those people look like to you? For them to go back to work with their abusers? Because let's face it, the company is not going to change significantly enough. The only real justice is back pay.

Edited by Nym85

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Not sure you guys know but it is actually more a matter of legal restriction in this case. The EEOC has limits as to how much is set in the agreement. It's also "just" the EEOC not the main California lawsuit if I got it right!

 

 

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23 hours ago, Logarithm said:

Now can they get back to making the games were paying for?

But they never stopped. Only some delays, which were mostly unrelated to that lawsuit, and we are paying for all that stuff anyway, as customers.

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On 9/29/2021 at 12:22 PM, Arcling said:

But they never stopped. Only some delays, which were mostly unrelated to that lawsuit, and we are paying for all that stuff anyway, as customers.

Except the news that nothing was being worked on for WoW except removing emotes and portraits, it seems, had us continuing to pay subscription, but getting nothing new for it.

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1 hour ago, Logarithm said:

Except the news that nothing was being worked on for WoW except removing emotes and portraits, it seems, had us continuing to pay subscription, but getting nothing new for it.

Yes, that was temporary around the time of a walkout. Right now they are doing something about next patches, but work has been going slowly even before that lawsuit, we are still likely many months away from next major patch.

Edited by Arcling

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