Even though Nasdaq’s new board diversity rules were approved by the Securities and Exchange Commission (“SEC”) in August 2021, most public companies will not be required to comply with the rules’ standards until 2023, assuming the rules are not overturned based on the legal challenges they are currently facing. (Nasdaq, Rule 5605(f); Bre Bradham and Patrica Hurtado, Bloomberg Law). However, other corporate diversity advocates, including shareholders and institutional investors, are currently pushing for greater diversity on boards of directors and company disclosures stating the racial and gender make-up of the board of directors (“board”). . .
Read MoreNasdaq adopted a new board diversity rule in August 2021 requiring greater diversity in the boardroom for companies listed on its exchange, with the focus of the new rule requiring increased representation and disclosure of board members who self-identify as a female, an underrepresented minority, or LGBTQ+. (Michael Nagle, Bloomberg Law; Securities and Exchange Commission). While these new requirements are a step in the right direction, there is a category of underrepresented individuals excluded from the existing diversity rules – people with disabilities. . .
Read MoreSeventy percent of American consumers in 2021 want their favorite companies to make a positive social and environmental impact. (Business Wire). A willingness to socially and environmentally improve society is therefore more than good ethics—it is good business. Beyond consumer sales, many companies raise capital by attracting investments based on their environmental, social, and governance efforts (“ESG”). (James Chen, Investopedia). ESG investing criteria represent the broad non-financial factors investors increasingly apply to their analysis of potential investments. (CFA Institute). Although traditionally ESG standards are not a formal part of financial reporting requirements, ESG is rapidly becoming a commonly recognized investment metric. . .
Read MoreThe long-time debate between stakeholderism and shareholderism is becoming far more in favor of stakeholderism due to the increasing importance of Environmental, Social and Governance (“ESG”) initiatives. Shareholderism is the traditional school of thought that the responsibility of a corporation is to the shareholders only. Stakeholderism has been challenging this view with the idea that the responsibility of a corporation is to benefit all of its stakeholders – customers, employees, suppliers, communities and shareholders. The Chairman and CEO of Blackrock, one of the largest asset management companies in the world, recently wrote a letter to CEO’s emphasizing the importance of ESG to investors and the public. (Larry Fink, Blackrock).
Read MoreCartica Management LLC (“Cartica”) is a Washington D.C.-based investment firm that is thriving at global investing while utilizing a trending activist approach. Cartica utilizes an environmental, social, and governance (“ESG”) investment approach, which has become increasingly popular in 2020. (Kim, Bloomberg). In addition to seeking socially responsible opportunities, ESG investing has proven to be a lucrative method as 88% of indexes utilizing this sustainable method did better than their non-sustainable counterparts during the first quarter of 2020. Id. Companies, such as Cartica, are demonstrating that social progress and financial gain can coexist.
Read MoreWith the 2020 Presidential Election just around the corner, voting paraphernalia, media campaigns, and the like are hard to avoid. Now, Corporate America is jumping on the voting bandwagon. Some companies, like designer fashion brand Tory Burch, are donating proceeds from limited-edition “VOTE” branded merchandise to get-out-the-vote programs. (Kate Kelly and Sapna Maheshwari, New York Times). Restaurant chain Shake Shack is giving away free French fries to all customers that vote early.
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