Strive’s Post

Target must face shareholder lawsuit over Pride backlash, US judge rules Target (TGT.N) has failed to convince a Florida judge to dismiss a lawsuit claiming the retailer misled shareholders following backlash over its LGBTQ-themed merchandise during Pride Month. U.S. District Judge John Badalamenti ruled that plaintiffs provided enough evidence to pursue claims that Target misrepresented its efforts to manage social and political risks. Investor Brian Craig's lawsuit asserts that Target’s board prioritized diversity, equity, and inclusion (DEI) initiatives while overlooking potential negative reactions to its Pride campaign in May 2023. America First Legal, the conservative group behind the lawsuit, called the ruling a "warning" to publicly traded corporations, stressing that the risks of DEI and ESG initiatives "cannot be ignored." https://lnkd.in/gh5q6QXj

🌈 Nasdaq's Board Diversity Rule is being challenged - why it is essential 🌈 The recent scrutiny by Republican attorneys general regarding Nasdaq's diversity rule raises concerns about inclusivity in corporate boardrooms. They are instrumentalizing the rule, calling it "quotas" purely for political gains and to ride "anti-woke" sentiments. At the Association of LGBTQ+ Corporate Directors, we firmly believe that the Nasdaq rule is necessary and a game-changer for creating more diverse, innovative, and resilient leadership teams. 🏳️🌈 Our 2024 Board Monitor Report, released two weeks ago, demonstrates that companies with #LGBTQ+ and other diverse board members perform better, driving enhanced decision-making and shareholder value. Yet, LGBTQ+ individuals hold only 1.3% of board seats on Nasdaq-listed companies—a stark underrepresentation considering our community's significant contributions. 📊 Now a new report from E.L.F. BEAUTY, in partnership with North Carolina A&T State University, reveals that S&P 500 companies with diverse boards outperform their less diverse counterparts. Released on October 7, the "Not-So-White Paper" draws on five years of data, showing that companies with greater gender and racial diversity in boardrooms have a 15% higher return on equity and a 50% reduction in earnings risk. This rule provides transparency and accountability—two factors critical to fostering a more inclusive corporate culture. Without it, we risk losing momentum on crucial gains made in LGBTQ+ visibility and leadership. 🏳️⚧️ Read the full story here on how this fight could reshape board diversity across the U.S.: https://lnkd.in/e_i3b6mx #BoardDiversity #Disclosures #Governance

Is there a shifting in DEI sentiment in corporate boardrooms or was this a stretch too far by Nasdaq? ‘In another blow to the DEI (diversity, equity and inclusion) movement, an appeals court struck down Nasdaq’s rules for setting racial and gender targets for the boardrooms of companies that list on the exchange. The Securities and Exchange Commission, which approved the rules, had “intruded into territory far outside” its domain, the court said.’ From the Economist this week…

“A US appeals court has thrown out rules requiring Nasdaq-listed companies to have board members meeting certain racial or gender diversity criteria or explain why they did not. The 9-8 decision from the Fifth Circuit Court of Appeals on Tuesday deals another blow to the diversity, equity and inclusion movement in corporate America. The appeals court’s majority found that Nasdaq’s diversity rules, which were approved by the Securities and Exchange Commission, could not be squared with the legal framework under which the securities regulator operates. The case stemmed from comply-or-explain rules proposed by Nasdaq in 2020. The biggest companies listed on the world’s second-largest stock exchange were told they should have two diverse directors: one who self-identifies as female and one who identifies as an under-represented racial or ethnic minority, sexual orientation or gender identity. If they did not have enough diverse board members, companies would have to explain why.”

Interesting article here discussing how one of the major supports for DEI in business, that it improved profitability of a company, was wrong; or rather that there never was any evidence that this was true. Which begs the question, will corporate managers, who have a fiduciary responsibility to shareholders (and that means ALL shareholder, not just large activist investment firms like BlackRock & Vanguard) continue to push the DEI agenda? Can corporate managers still use company resources to further a personal/political agenda that does not improve profitability of the company, without risking litigation from investors? https://lnkd.in/g5BccnXp

🗣️ #UPS, #Coke and #HomeDepot shareholders try to force #DEI changes #Investors put forward proposals both for and against #corporatediversity initiatives this year + Atlanta Journal-Constitution Mirtha Donastorg + #goodread #corporateamerica #shareholders #publiclytradedcompanies "Risks around DEI? Shareholder proposals are one of the ways investors in a publicly traded company can push for change. One of Coca-Cola’s shareholders, the National Center for Public Policy Research (NCPPR) — a D.C.-based conservative think tank — asked the board to commission and publish a report detailing whether the #company engaged in any diversity, equity and inclusion (DEI) practices “that may create risks of discriminating against individuals who might sue the Company … for illegal #discrimination on the basis of protected categories like #race and #sex” and potential costs to the business of such discrimination." + "The Coca-Cola board also opposed the resolution. In a filing with the Securities and Exchange Commission, the company wrote: “We believe that a #diverse, #equitable and #inclusive #workplace that is well-prepared to understand, assess and engage with the #markets and #consumers we serve is a #strategic #business priority and critical to the Company’s success, and that our efforts to achieve this are consistent with applicable law.”" - ... #georgefloyd #deib #raceinamerica #racism #workplaceculture #businessnews #boardmembers #shareholders #dobetter #economics #economicequity #socialcare

As we celebrate #InternationalWomensDay with a theme of inspiring inclusion, we're delving into the nuanced dynamics of board diversity in M&A. Explore the intricate relationship between board diversity and deal leaks and gain insights into the evolving landscape of inclusivity. https://okt.to/pB3ERV

Feeling proud to work for a progressive company like Nasdaq who is trying to drive change. Sadly the court did not approved Nasdaq board diversity rules. #governance #boarddiversity #rewritetomorrow #Nasdaq #Nasdaqfam US appeals court tosses Nasdaq's board diversity rules US. appeals court on Wednesday ruled that Nasdaq could not impose rules designed to increase diversity in corporate America by requiring companies listed on the exchange to have women and minority directors on their boards or explain why they do not. The 9-8 ruling by the conservative-majority New Orleans-based 5th U.S. Circuit Court of Appeals found that the rules approved by the U.S. Securities and Exchange Commission ran afoul of federal securities law. The decision is a significant legal victory for opponents of policies meant to boost racial and gender diversity in corporations. Read the full article:

Conservative politicians make it seem like DEI is a bad thing but companies know that it isn't. a diverse workforce supported by equitable policies creates an inclusive environment with more engaged employees that increases profits. "Research shows that when a business is more diverse, it has better financial outcomes. A 2023 global analysis conducted by McKinsey found that companies with high gender or ethnic diversity have a 39% greater likelihood of financially outperforming companies who weren’t diverse." "But some investors also see legal risks in not having well-run DEI programs. In the case of UPS, a shareholder resolution asked the company to produce a report detailing the effectiveness of its equity initiatives and to provide metrics on “workforce diversity, hiring, promotion, and retention of employees, including data by gender, race, and ethnicity.” UPS does do a good job teaching and reporting this data. If your organization needs help assessing your organizational culture and setting priorities, tracking data, or determining what DEI strategies would work best for your employees, contact Grantibly to help! #dei #evaluation #organizationculture #grantibly https://lnkd.in/g6nJypwv

Curious about the latest shareholder engagement trends? Dive into our Q1 2024 report on shareholder activism, voting, governance and activism. Here’s a glimpse of what’s inside: Discover what kinds of demands were made of the 399 global companies targeted by activists in the first quarter Learn about promising trends in shareholder support and executive compensation votes that hint at a dynamic year ahead Dive into the breakdown of director appointments and its insights into diversity and inclusion efforts Take a look back so you can pave the way forward. Download the full Q1 2024 report below. 👇 https://bit.ly/4bCnXFR #DiligentMarketIntelligence #ShareholderTrends #ShareholderActivism