he widespread acceptance of ESG and DEI by American business giants is as concerning as it is mid boggling. Large corporations routinely play games to attract stock buyers’ interest, but this is something completely different. This is not a game. Many aspects of ESG and DEI eschew business and economic fundamentals. They challenge rational thinking by replacing economic fundamentals with politically dogmatic doctrines.
To make matters even worse, the cult thinkers who monitor ESG and DEI scores crave as much power as current credit-rating agencies such as Standard & Poor’s and Moody’s. These obsessed “change makers” have passed off ESG and DEI as a form of liberal progress; but in reality, they are something far more sinister.
In America at least, ESG and DEI are neither liberal nor centrist, political initiatives. Rather, they are well-capitalized, leftist, socioeconomic experiments.
Exactly What Are ESG & DEI?
ESG and DEI began as separate components; however, since 2020 they have become more and more interrelated. If you are wondering what ESG and DEI are, “E” stands for the environment and environmental welfare. Carbon emissions are the biggest target, but there are far more obvious solutions to combat environmental welfare than picking and choosing specific areas where carbon could be reduced.
Habitat restoration is one and so is protecting the oceans and fisheries. On the contrary, however, Norway is considering opening up its waters to deep-sea mining, all in the name of independence from fossil fuels.
How about wind turbines? The rush for wind turbines has led to shoddy workmanship including instances where 700-foot turbines have literally fallen over. Wind farms have also been placed in the middle of bird migratory flight paths, resulting in the deaths of tens of thousands of birds.
Yet the ESG change makers rarely discuss such anomalies. When they do, it is hidden in discussions about the necessary “rapid innovation” of green technology. It seems green technology innovation is taking place so rapidly that they are unable to avoid destruction and careless, crucial mistakes.
The “S” in ESG stands for social. The social aspect in ESG is literally double dipping when you factor in DEI. More about that soon. The “G” is for governance, and this is one category with which the socioeconomic engineers have the most trouble. When you take a closer look at governance policies, it all comes down to a simple metric of how many boards can a single director sit on.
According to BlackRock, an asset management firm, that number is a maximum of four boards, but BlackRock routinely breaks its own rules. They currently have one Ivy League Dean sitting on 69 boards, while another BlackRock director sits on 71 different boards.
What About Diversity, Equity & Inclusion?
On the surface, it seems fairly innocent & harmless to incentivize corporations and markets, to hire people from diverse backgrounds and to employ people with disabilities. However, much like ESG, the mandates and guidance behind DEI is far different than it suggests.
DEI is really just a corporate extension of CRT (Critical Race Theory) and thanks to DEI, CRT is now being taught in K-12 schools through a program known as Social & Emotional Learning (SEL).
Proponents of SEL will disagree, but SEL is no longer touted as being as “neutral” as it once was. In recent years, SEL has become more and more a tool coopted by the Left. Consider of CRT as the ideology, DEI as the marketing gimmick, and SEL as the vehicle in which all of this is delivered. Teaching SEL at the K-12 level is a dangerous development that must be stopped.
The ‘E” in DEI stands for equity—not equality—which means guaranteeing equal outcomes. In other words, destroying the free market to force a marxist redistribution of wealth. Just one major flaw in this kind of thinking: there’s no such thing as any equality of outcome in a free market. The “I” stands for inclusivity. I question what “social” and “diversity” must really mean if they don’t already check the box of “inclusivity.”
How Can America Stop The ESG–DEI Industrial Complex?
How can America stop this insanity? Citizens can lobby their representatives to pass laws preventing investment money managers from conducting their business utilizing marxists theories that openly contradict & usurp the traditional foundations of our nation’s economic system. They can lobby lawmakers to pass laws that prevent capitalist markets from being detrimentally influenced by radical economic theories. We need to eliminate all types and forms of marxist economic ideology thinking from our business and educational institutions.
Congress and state legislators should propose and enact legislation to break up the gigantic asset management quasi-monopolies that exist. Vanguard and BlackRock now control just shy of $20 trillion in assets. There should be new laws requiring full public disclosure and prohibiting money managers from aligning themselves with an specific political ideologies unless a particular client expressively demands.
State legislators can also continue to push and enact laws which limit ESG and DEI interference in their particular states. We need more intelligent Americans working in the banking and investment industries to speak against these leftist totalitarian agendas.
All Americans must understand that these top-down instructions from unelected theorists will not accomplish anything productive for the environment, society or diversity. They will only succeed in destroying the wealth creation fundamentals of capitalism while creating a larger social and cultural divide. ✪