Disney has lately been stepping into political activism and Environment, Social, and Governance principles which have been met with both support and backlash from the public as well as its own investors. Disney investor Vivek Ramaswamy has made a personal plea to the company to refrain from such actions as it would lead for them to take up political sides in the end; which would only pose as a step against the company’s advancement.
Ramaswamy has been against ESG very openly and has written a formal letter to the company regarding the same. He states that America’s newfound enthusiasm towards ESG is a title against the companies ranking their commitments to promoting diversity, performing social outreach, and more.
Strive Asset Management Takes Action
Vivek Ramaswamy, on September 19th, 2022, on behalf of the stakeholders of his co-founded Strive Asset Management wrote a formal letter to Disney CEO Bob Chapek. He addressed the company taking stances toward controversial political opinions which are leading to declining public approval ratings. He has asked Disney to take corrective actions towards the same.
Disney has recently been open about its stand in terms of Florida governor Ron DeSantis over the state’s newly-passed Parental Rights in Education Law, their firing of Gina Carano, and their various attempts to weigh in on anti-abortion legislation and Ramaswamy has shown his concerns towards the same.
He then stated that none of it is benefiting the investors who have heavy stakes within the company.
“remind Disney’s board it owes a fiduciary duty solely to Disney’s actual owners, not to a minority of its employees, activist organizations, or to large financial institutions who promote one-sided political agendas.”
He showed his worries and proceeded to address them to the company.
Disney’s Stakeholders Express Their Concerns
Disney’s owners are its client however the investors such as BlackRock, Vanguard, and State Street being its three biggest investors, also play a part in its success.
“You owe a fiduciary duty to the actual owners of Disney, not to the institutions who claim to represent them,” Vivek Ramaswamy remarked. “There is strong reason to believe that these large asset managers are not acting with their clients’ best interests in mind.”
He then proceeds to state that even if some investors and clients may agree with Disney’s political stances, others might not and could be against these positions completely. He asks the company to instead focus on providing the best customer experience that they can. Along with it, he asks Disney not to repeat the mistakes it has already made.
Ramaswamy’s Plea Requests For Disney
Seeing Strive’s concerns, Vivek Ramaswamy has put forward three different requests for Disney to take into regard.
Firstly, he has asked Disney to not take public stands on political controversies if it does not hold importance to the company’s core business operations.
Secondly, he wants Disney to make a public commitment by stating that there shall not be any discrimination against employees and customers concerning their political opinions and stands along with them not getting punished for how they express political views.
Finally, He has requested the company to make decisions not based on social, political, or cultural pressure on employees, but purely based on the long-term profitability of Disney.
Source: Bounding Into Comics