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Biden's Veto is a Warning Shot in the "War on Woke"
President Biden's first veto keeps the Department of Labor's ESG regulations in place, frustrating "anti-woke" activist's push into corporate boardrooms
Recently, ESG seemed to have gained opposition from America’s mainstage— The Senate floor and Government— and America as a whole took a stance on either side of ESG: Woke or Anti-Woke. Instead of the initial charge to adopt ESG’s workplace practices, there seems to be an anti-ESG revolution that is increasing in popularity. Meaning that this push for these companies to “place the interests of a variety of clients, customers, and communities on equal footing with shareholders” is now not a popular practice. Prior to this so-called revolution, ESG was more popular due to investors understanding the impact and risks imposed by issues of climate change and social inequality within capitalism.
WHY IT MATTERS:
The fight for ESG policy implementation showed up on the radar two weeks ago under President Biden’s first veto as President; this veto will likely be in support of implementing ESG practices in workplaces and companies.
This idea of “woke capitalism” is permitting but not forcing business managers to consider and take ESG practices into account. This shows that the executive (Biden) heading this state is defending sound investment principles and the push for democracy.
ESG has weakened the understanding of shareholder primacy and the priority of shareholders. At one time, the shareholder was King in the business world but today, the employee and layman are now equal to the investor. This calls to the tune of democracy: where the people have the voice, not the few top 1 percent.
ESG has become a catalyst for further political party divide. Understanding the political split with the anti-woke party adopting anti-ESG practices and in a pejorative context, the “woke” party is adopting ESG practices. ESG divides is projected to be a leading factor in the 2024 Presidential primaries and election.
ESG has been a further dividing factor rather than a uniting factor as intended under specific companies. This may be a threat to the democracy of the United States given he great controversy held within political issues in This ESG practice has been turned into a conflictual tool within the world of politics yet in the business world, it continues to be a benefit to the consumer and producer— not just the investor.
Click to understand the multifaced perception seen in the Financial Times' perspective on ESG.
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