Increasingly, the “woke” ideology that infests our nation’s university system is making its way into the boardrooms of corporate America. Environmental, Social, and Governance (ESG) standards are growing in popularity, placing the left-wing social justice agenda ahead of companies’ fiduciary responsibility to their shareholders.
The Mind Your Own Business Act would provide shareholders with the tools necessary to ensure that the companies they invest in are making decisions based on what is financially best rather than their politics.
When large publicly traded companies risk severe losses campaigning for left-wing causes or pulling products from the marketplace for daring to be patriotic, they should prove to shareholders that it is in their best financial interest. The Mind Your Own Business Act does just that by giving shareholders the tools necessary to hold woke corporations accountable. When shareholders bring legal action against woke corporations, the burden of proof will be on the company to show that their actions are in the best financial interests of shareholders.
- The Mind Your Own Business Act covers boycotts and other actions made by companies on a primarily non-pecuniary basis.
- Non-pecuniary activities are those that are not directly related to finances. An example would be a company boycotting a state over election-integrity legislation.
- This legislation also bars companies from hiding behind elements such as “public image” when defending how their decisions benefit their bottom line.
Why it Matters
This bill forces woke capital to put their money where their mouth is and prove that their political agenda is good for business. Shareholders have the right to know whether or not the companies they invest in have their interests at heart rather than serving a left-wing political agenda.
Millions of Americans invest in large companies through mutual funds, company-sponsored 401k plans, and purchasing stocks. Placing a political agenda ahead of the company’s financial well-being is an unethical practice and a breach of the fiduciary duty of loyalty that is owed to shareholders. trust for investors.
Sen. Marco Rubio’s Mind Your Own Business Act is an excellent step toward holding woke corporations accountable to their shareholders. We hope to see more lawmakers follow Sen. Rubio’s lead and support this important legislation.