The top federal financial regulators have issued a rule that aims to promote diversity within organizations. As a result, public companies have to hire at least one female. Additionally, their boards must include a minority or a person who is in the LGBTQ community.
Fall in Line or Be Punished
Members of the left-wing party don’t take kindly to dissidents. Companies have only four years to meet the new diversity quota. If they fail to comply with the new rule within that time frame, they will be delisted from the exchange.
Proponents Versus Critics
Gary Gensler, Allison Herren Lee and Caroline Crenshaw praised the new rule. According to them, compelling companies to change their board members is the only option. Should corporations also be forced to hire executives with a disability? Proponents like this idea.
The good news is that there’s some pushback.
Elad Roisman and Hester Peirce argue that a portion of the rule is illegal. Furthermore, they point out that the new objectives and requirements are discriminatory in nature. It’s wrong to prioritize race, gender and sexual orientation when the goal is to create a winning company culture. Companies can compete at the highest levels if they select board members who have great professionalism, experience and expertise.
The Result of Going Woke
Based on the decision made by the Chairman, it’s obvious that the Securities and Exchange Commission is presently controlled by a progressive activist. Progressive practices will have a terrible impact not only on the financial regulatory agency but also on companies.
Key Senate Republicans oppose Nasdaq’s proposal because it basically forces companies to support social movements that are rooted in political correctness. The liberal-driven cancel culture is divisive and detrimental to freedom.