A former McDonald’s CEO credited with inventing the McNugget is now leading the charge against companies that implement wake-up call policies.
Ed Rensi, who served as CEO of McDonalds from 1991 to 1997, is joining forces with conservative advocacy groups to form The Boardroom Initiative, FOX News reported.
Its aim is to protect shareholders and employees of publicly traded companies from “woke” policies, which the group says jeopardize profits and thereby betray the very shareholders who pay the salaries of the companies’ staff.
The Boardroom initiative also aims to counter the decision of left-wing groups to buy shares in companies until they have enough clout to pressure the board to adopt woke policies. on issues such as gender and race.
The Free Enterprise Project, an existing organization that has partnered with The Boardroom Initiative, has come up with a plan to combat overrunning alarm clocks.
Its members bought 2,000 shares of Bank of America – enough to formally propose a motion at the next shareholder meeting. They will now demand that the company undertake a civil rights audit to try to stop staff from offering critical equity training inspired by race theory at its next meeting.
Companies have been urged in recent years to adopt more liberal policies in order to be able to raise more funds from groups such as fund management companies like BlackRock, which examine the “environmental, social and governance” factors of a business.
Many now regularly issue statements on issues such as police brutality and transgender treatment for children. Blue-chip companies that have pushed staff to undergo critical race-theory training include American Express and Disney
Former McDonalds CEO Ed Rensi, pictured here in 1991 showing off a lower-fat burger, will lead the charge to fight companies that implement wake-up calls.
But Rensi says waking obsessions affect companies’ bottom lines, which means they’re failing in their duty to shareholders.
“Companies don’t care whether they are right or left because they represent everyone out there and their only job is to build equity for their investors,” said Rensi, 78.
He noted that he does not consider himself politically active, but wants to act in the best interests of shareholders – who he says are negatively affected as companies implement wiser policies.
“It is not the providence of board members or executives who take shareholder money and spend it on social issues,” said Rensi, who has also served on the boards of Famous. Dave’s Bar-B-Que, Great Wolf Resorts and Snap-on. Inc.
He is joined in his efforts by Home Depot co-founder Bernie Marcus, who founded the Job Creators Network, as well as conservative groups The Free Enterprise Group and Second Vote.
He teamed up with Home Depot co-founder Bernard Marcus, right, who previously founded the Job Creators Network
Group member Free Enterprise Project has already repurchased nearly 2,000 shares of Bank of America
CRITICAL RACE THEORY: WHAT DOES IT MEAN?
The fight against critical race theory in schools has intensified in the United States over the past year.
The theory has sparked fierce nationwide debate following Black Lives Matter protests across the country over the past year and the introduction of the 1619 Project.
The 1619 Project, which was published by The New York Times in 2019 to mark 400 years since the first enslaved Africans arrived on American shores, reframes American history by “placing the consequences of slavery and the contributions of black Americans to the center of the United States”. narrative’.
The debate surrounding critical race theory concerns concerns that some children are indoctrinated into thinking white people are inherently racist or sexist.
Those who oppose critical race theory have argued that it reduces people to the categories of “privileged” or “oppressed” based on their skin color.
Proponents, however, say the theory is key to eliminating racism because it examines how race influences American politics, culture and law.
The Boardroom Initiative has already set its sights on Bank of America, with its member The Free Enterprise Group already buying back nearly 2,000 shares of the banking giant.
They plan to use that leverage at the company’s annual meeting next week to call for a civil rights audit of the company’s racial equity policies to ensure that no racial or gender groups is excluded in the name of fairness or anti-racism, according to FOX.
The bank has already found itself under fire for allegedly training its employees in critical race theory – which states that racism is a social construct that has been integrated into American legal systems and policies.
Christopher Rufo, senior fellow and director of the critical race theory initiative at the conservative Manhattan Institute, claimed last year that the chairman of the Bank of America market in Charlotte, North Carolina, promoted the theory , which critics say promotes racism by categorizing people as ‘oppressors’ and the ‘oppressed’.
He said the market president has created a new initiative called United in Action, in partnership with United Way of Central Carolinas, which he says encourages “marginalized” staff at the expense of “privileged” staff and teaches them to “ decolonize their minds.
Bank officials have since said the program was run independently of the company and was not part of their employee training.
In addition, the Boardroom Initiative is reportedly investigating claims that insurance company Allstate refuses to cover companies with low environmental social governance scores, which are assigned by investors based on a company’s advancement of policies designed to fighting climate change, increasing board diversity and supporting social justice measures.
“I hope the Boardroom Initiative is the start of a new era in American business in which the extremes of ideological politics are set aside so that everyone can work to create value for customers and investors,” said Richard Morrison, senior fellow at the libertarian Competitive Enterprise Institute, of the group’s efforts.
The banking giant has come under fire in recent years for allegedly training its employees in critical race theory
The move to set up such an organization comes amid a growing backlash to rising ESG scores, for which companies could receive more money from groups such as BlackRock – the world’s largest asset manager.
ESG investment indices have grown in recent years, and now pension systems and local governments across the country have adopted them to influence corporate behavior.
In New York, Bloomberg reports, public pension plans have filed shareholder resolutions at some of America’s biggest companies asking them to tackle issues like climate change, workers’ rights and racial injustice. .
And the California State Teachers’ Retirement System, the nation’s second-largest pension fund, announced last month that it would vote against directors and corporate proposals at companies deemed to have low ESG scores. .
Now the American Legislative Exchange Council – a Wall Street-aligned group that pushes for conservative legislation – is pushing lawmakers to introduce a bill that would prevent ppublic pensions to make investments focused solely on ESG scores.
“Every government employee should have complete faith and confidence that their retirement funds are invested for maximum growth and not used to promote a political agenda,” said Lee Schalk, vice president of ALEC policy, in a statement.
WHAT ARE “ENVIRONMENTAL, SOCIAL AND GOVERNANCE” (ESG) CRITERIA?
Companies can obtain an “ESG” label when they invest in causes considered beneficial for the environment or for a social good.
Often, corporate investors like BlackRock – the world’s largest asset manager – donate money specifically to ESG causes, which often results in more funding as they are seen as fulfilling a social good.
But these companies often decide for themselves what is considered socially beneficial – A Bloomberg survey in 2021 found that many companies simply said anything that inflated their bottom line was “ESG” in their view.
As investors struggle to agree on the definition, political entities such as the EU try to decide for them – providing a list of sectors they consider socially beneficial. This is called the “EU taxonomy”.
In 2020, a record amount of cash flowed into “ESG funds”.
But a company’s climate change record often has little impact on how it performs in an ESG index – a list that supposedly rates companies on the social good they provide.
On April 23, the MSCI – the largest ESG index of company stocks – upgraded McDonald’s rating, citing the company’s environmental practices.
But McDonald’s only got there after the index removed all carbon emissions from its rating criteria.
McDonalds then scored even higher for installing recycling bins in the UK and France – countries where it is fined if it fails to install recycling bins.
The MSCI Index uses terms such as “water stress” as a positive environmental factor – but this is actually measured by whether the local community has enough water for the business, not whether the business puts focus on community water supply.
The size of these ESG investment indices has reached billions of US dollars in recent years.
Italian aerospace and defense group Leonardo last year called on the EU to label the defense sector as sustainable rather than socially harmful.