Merit, Unmasked

The ESG-DEI discussion continues to elicit shareholder interest, at least according to a recent report from The Conference Board about the upcoming proxy season. The report focuses on the political bent underpinning some ESG-related shareholder proposals, some of which are characterized as DEI "backlash". One recent proposal by the National Center for Public Policy Research to Deere & Co. suggests that Deere undertake a review of its DEI programs to discern whether Deere's DEI policies have moved the needle to a legally suspect employment decision-making focus on race and gender rather than on merit. Framing the question as the Policy Center suggests both begs the question and pre-loads the answer, but it also highlights how people could be led astray by this discussion.