In November 2021, Activision Blizzard, Inc., the California-based maker of popular videogames such as Call of Duty and World of Warcraft, faced several challenges. The challenges stemmed from a lawsuit filed by the California Department of Fair Employment and Housing (DFEH) that charged the company with rampant gender discrimination and sexual harassment, which (the suit alleged) had been going on for years. This was followed by an exposé in the Wall Street Journal that blamed company CEO Robert A. Kotick for not keeping the board informed of these issues. Accompanying all this was pushback from Activision’s two major customers, Microsoft and Sony, who demanded that the company address the charges. Activision’s board chairman, Brian Kelly, and lead independent director, Robert J. Morgado, had to respond to these challenges amid the backdrop of mounting employee unrest. One major step they took was to appoint the board’s two female directors, Dawn Ostroff and Reveta Bowers, to examine possible solutions.
Students will put themselves into the shoes of Ostroff and Bowers and formulate recommendations.
Instructors can find learning objectives in the teaching note that accompanies this case.