The Expansive Footprint of Proxy Voting Companies
As we journey down this metaphorical Yellow Brick Road, it’s time to pull back the curtain on the real wizards behind the scenes: Institutional Shareholder Services (ISS) and Glass Lewis & Co. These two firms, with their vast influence over more than $100 trillion in assets through proxy voting, wield megalithic power in corporate governance. They act as proxy voting machines, displaying a touch of megalomania as they provide policy advice and shape the decisions of countless companies. Their influence raises crucial questions about accountability and transparency in our financial system.
We must acknowledge that controlling trillions of dollars in assets globally is immense by any standard. While names like BlackRock are well-known in the massive equity markets, two companies—Institutional Shareholder Services (ISS) and Glass Lewis & Co.—remain largely unfamiliar to the public. This needs to change. These firms, often operating under the radar, wield significant influence by promoting policies that some argue lead to lackluster responses from corporate directors and large investment houses. As Barack Obama famously noted with his “phone and a pen” remark, and echoing playwright William Shakespeare’s assertion that “the pen is mightier than the sword,” the power of these proxy vote companies to shape corporate governance is profound—even without a phone in Shakespeare’s time.
The term “woke” generally refers to being aware of and actively attentive to social injustices and inequalities, particularly those related to race, gender, and environmental issues. While this awareness can drive positive social change, basing business decisions on these principles rather than on serving the client’s needs can create several problems, such as reduced focus on profitability and customer satisfaction.
These two proxy advisors, ISS and Glass Lewis & Co., assert their power and influence over more than $100 trillion in assets and stock value through what some describe as woke corporatism and ESG (Environmental, Social, and Governance) principles. ESG includes specific areas like climate change mitigation, renewable energy investments, social equity, workforce diversity, and transparent governance practices. These firms create governance rules and establish policies for institutional investors, prioritizing a socialist ESG agenda that promotes climate change action agendas, hiring practices that emphasize box-checking, equity politics, and inclusion of all genders and diversity.
These policies often require corporate boards to focus less on traditional business goals like customer satisfaction, operational efficiency, product development, and service quality. Instead, these proxy companies drive votes to enforce an ESG agenda that some argue undermines American free enterprise and erodes unique aspects of Western and American culture. This approach, labeled DIE (Diversity, Inclusion, and Equity), is seen by critics as effectively killing American free enterprise and diminishing the distinctiveness of American culture.
In so doing, this shift creates great and potentially irreversible damage to our safety and security unless we stand up and do something about it! As discussed in the article on Columbia Law School’s Blue Sky Blog, the new civil code of ISS and Glass Lewis highlights the profound influence these firms have on corporate governance. The agenda set by these proxy advisors aligns closely with the vision promised by Klaus Schwab, the singular leader of the World Economic Forum (WEF), advocating for a one-world order or government. The acceleration of this agenda amidst the global COVID-19 pandemic underscores the urgency of the situation.
The S&P Global Report of 2021 also emphasizes how the pandemic has hastened the implementation of ESG principles, aligning with Schwab’s vision. This accelerated agenda includes a focus on climate change action, diversity and inclusion, and equity politics, which, while intended to address social injustices, may also lead to unintended consequences. If left unchallenged, these policies could undermine American free enterprise and erode the unique aspects of Western and American culture.
We must be vigilant and proactive in addressing these changes to safeguard our economic and cultural security. As conservatives, we advocate for limiting federal intervention in trivial matters. However, the colossal control exerted by proxy voting firms over entire societies, with significant social and economic consequences, demands urgent attention. We must recognize that these issues pose massive challenges that conservatives, especially those aligned with the RESTORE AMERICA’s MISSION (RAM), must address.
This task will require thoughtful leaders who can creatively draft legislation to counteract the influence of woke boards of directors across our corporate landscape and restore power to the people. It is crucial to reaffirm American traditional values within our corporate culture and for our American people. My father often said that Woke ESG represents a communist model designed to undermine and replace our free-market capitalist economy—the backbone of our liberty.
To understand these issues better, you can explore further resources:
- Harvard Law School on Climate, Diversity, and Control in ISS Proxy Voting Guidelines
- ISS Proxy Voting Services
- ISS Proxy Exchange
- Klaus Schwab’s Books on Amazon
As the adage goes, “Keep your friends close, and your enemies closer.” Understanding Schwab’s perspective and the practices of these proxy firms is essential for addressing these pressing issues.
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