The Nasdaq stock exchange has been at the forefront of the ESG (shorthand for environmental issues, social issues, and corporate governance) movement, pushing companies to prioritize diversity, equity, and inclusion in their boardrooms. However, a closer look reveals that this commitment to social justice only applies to certain companies. Chinese firms, which are some of the biggest polluters and human rights abusers in the world, are exempt from these standards.
The Nasdaq’s listing rules, which require companies to disclose their boardroom diversity, do not apply to Chinese companies. This means that companies like Alibaba, which has a history of human rights abuses and is controlled by the Chinese Communist Party, are not held to the same standards as American companies.
This double standard is not limited to the Nasdaq. Companies like Disney, BlackRock, and Apple, which preach about the importance of ESG and social justice, are willing to turn a blind eye to China’s human rights abuses in order to do business with the country. Even the NBA, which has been vocal about its commitment to social justice, has been criticized for its partnership with the Chinese government.
The hypocrisy of the ESG movement is not limited to its treatment of Chinese companies. The movement’s emphasis on diversity and inclusion has led to the appointment of board members who owe their jobs to the preservation of the woke circus at some of the nation’s largest companies. This has created a culture of groupthink, where companies are more concerned with appearing woke than with actually making a positive impact.
The SEC chair, Gary Gensler, is behind the Nasdaq’s effort to push corporate America to the left, and the results are already being seen. Since the Nasdaq rules took effect, 70% of all directors appointed to corporate boards are no longer straight and white and male. However, this shift towards diversity has not necessarily led to a more inclusive or equitable corporate culture.
In fact, the emphasis on ESG and diversity has created a culture of moral relativism, where companies are willing to overlook serious human rights abuses in order to do business with countries like China. This is a far cry from the original intention of the ESG movement, which was to promote sustainability and social responsibility in corporate America.
