Analysis – ESG | Social Justice | CRT Hiring Practices | A CPA’s Perspective

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ESG, Social Justice & Critical Race Theory hiring practices aka Affirmative Action hiring practices, have been in full force for many years now inside Fortune 500 companies.

I wanted to summarize my notes and analysis on the impact of this thus far from my vantage point here at the street level.

ESG, Social Justice & CRT Hiring Practices are three sides of the same coin. So they can be used interchangeably for the most part, when it comes to corporate hiring practices. So for purposes of this memo, if you’re reading, or podcast if you’re listening, I will be using the term ESG throughout this piece for brevity but please substitute ESG-Social Justice-CRT when you hear ESG.

First some definitions:

ESG

ESG stands for Environmental, Social, and Corporate Governance (ESG). These are non-financial priorities companies incorporate in their operations. As you can imagine, this elicits strong opinions.

ESG practices substitute profit motive as a company’s main goal and replace it with activism in areas such as (hiring, climate, and equity of outcomes)

1. Some investors will not invest in companies with ESG standards as they do not maximize profits, and therefore can reduce stock values and investment returns.
2. Whereas other investors will only invest in companies with ESG standards, regardless of the reduction in profits.

ESG investing is a term that is often used interchangeably with sustainable investing, socially responsible investing, mission-related investing, or screening.

ESG Hiring Practices

These consider personal attributes instead of merit in the hiring process

For example, gender, race, disability, sexual orientation and political leanings.

This is traditional discrimination in clear violation of Title VII of The Civil Rights Act of 1964. Employers are openly discriminating and are proud of it.

We can clearly see the influence of CRT (Critical Race Theory) in today’s corporate hiring practices.

Critical Race Theory ideologies have been influencing our public education curriculums for many decades, and are being taught to our youngest children, in both direct and indirect ways. Our children are being indoctrinated that certain people are intrinsically and naturally evil, and all other people are their victims.

ESG hiring practices is the perfect execution of CRT which attempts to bring about Social Justice and equity.

ESG and its related corporate practices are socialist and go against the basic tenets of entrepreneurship, capitalism and democracy.

Seeing how successful socialism has been the past 150 years, I can see why companies are moving in that direction.

ESG Monitors, What Are They?

The media, social justice groups and globalists monitor your ESG performance.

ESG Score, What Is It?

This is the number of ESG employees compared to total employees.

This can be a % or simply a minimum # of ESG employees. It varies by company.

The ESG Monitors decide how to rate a company. Companies want to satisfy 100% of this minimum, whether that is an overall % of ESG employees or total number.

The ESG Monitors make it very clear what is expected of your company.

ESG Hierarchy, What Is It?

Global Power Brokers Formulate Agendas

Then Each Layer Dictating Global Power Brokers’ Agendas Downward

↓
Corporate Board Members & Corporate Officers
↓
HR ESG Directives
↓
HR Employees (Enforcers)

Companies are doing all they can to maintain their ESG score at all costs

What are some of those costs to maintain the ESG score?

1. Profits
   1. Not hiring the most qualified people reduces profits.
2. Non-ESG employee satisfaction plummets.
3. Employers lose leverage as maintaining ESG score supersedes performance.
   1. Firing an ESG employee is frowned upon as the ESG score is top priority.
4. Future employability of ESG hire is degraded.
   1. Recruiters and HR professionals outside the large corporate bubble may ignore candidates with ESG attributes with experience from a large company with ESG hiring practices in place.
      1. There is no way to truly know if they achieved their current position on merit or if they were simply a placeholder quota type hire.
5. Non-ESG employees gain the most upon leaving.
   1. The broader employment marketplace knows they achieved their positions through merit and in spite of the discrimination they faced.
6. HR personnel emotional stress is growing over having to openly discriminate everyday.
   1. They must lie to Non-ESG applicants and lead them on and waste their time.
   2. They must hire people they know are not qualified for the positions applied for.
   3. I have had HR personnel clients call me crying over this.
7. Infantilization of ESG employees.
   1. They are used as a de-humanized marketing tool where their retention to maintain the ESG score is paramount, and personal achievement of the worker is a distant second.
8. Stockholder sell offs, causing loss of stock value.

Small to medium sized companies cannot institute such practices as they do not have the cash resources to allow a decrease in profit for any reason. Also, allowing the best candidates to work for their competition is ludicrous and suicidal.

They must hire the most qualified candidates or their competition will.

Today, every company, even smaller ones, are given, what I call, an ESG or social justice score.

In my model, the maximum score is 100% and that is only achieved when a company has altered its employee mix in the vision of the ESG Monitors. Any company that falls below 100% will be attacked until it reaches 100% again. This “score” can be calculated in different ways.

Real Life Example #1:

This a true story from inside a Fortune 100 company. I have heard so many I have lost count.

Let’s imagine for a moment that you are the manager of a marketing team of 8 people in a major brokerage firm.

It took years to build your team.
They are cohesive and working as one hive mind.
Traditionally, as marketing manager, you had final say in who was hired into your team.

NO MORE

You are suddenly told to fire two Non-ESG members of your team. Without any input from you or your team members, you are given two new ESG employees.

We can all see the problems here. The main one being that team cohesion, team member job satisfaction and profit are no longer relevant.

The problems, when ESG employees were placed into this team, were obvious:

1. Disillusionment of team members over the unjustified firing of their colleagues.
2. Instant loss of team cohesion and group “ownership”.
3. The team family bonds are shattered.
4. Increase in job insecurity of the remaining team as this may only be the start of ESG replacements.
   1. And now, unlike yesterday, the team leader has no ability to protect them and promise job security.
   2. This leads to team members quitting to find Non-ESG employment.
5. Corporate profits reduced now and in the future
   1. As brain drain of best employees begins
6. Terminated Non-ESG employees are victims of racism and sexism furthering racial divide.
   1. Company may face wrongful termination lawsuits.
7. Normal individual performance expectations will most likely be ignored, thus increasing the workload of the other members of the department. In my example, 6 must do the work of 8 people.
   1. With two less fully functioning and capable team members, everyone else’s advancement and raises are in jeopardy as it will be harder to meet management expectations and goals.
   2. Resentment grows that 6 now have to do the work of 8.
8. The prior comfort level and feeling of security of the team members will now be washed away, as there is a ten foot pile of eggshells underneath everyone.
   1. Speaking openly within the group is a thing of the past.

The Employer / Employee Power Dynamic Is Reversed

Imagine the power an ESG employee has over the company owners and management. It is very difficult for an ESG employee to get fired.

Imagine the fear in the hearts of the Human Resources department when an ESG employee is threatening to quit! They know that the media and social justice warrior groups are closely monitoring their score! So I hope you now see why I say the employer/employee dynamic is completely reversed.

The HR staff’s traditional role as job gatekeeper has been given to the Board of Directors. No wonder why my HR personnel clients call me crying.
If the ESG employee goes to human resources and says they are not comfortable working with another team member, you can be sure that other team member’s days may be numbered, unless they are also an ESG hire.

1. Once someone is labeled an ESG employee, and is part of that 100% score, the company has an urgent incentive to retain that employee, regardless of their performance.
   1. Retaining ESG employees is much more important than retaining merit based employees.
2. Now, I will discuss the scoring within the ESG employee group. If you have more ESG attributes than someone else, you rise closer to the top of the ESG hierarchy as you can add more than 1 point to the corporate ESG score. So an employee providing only 1 point for 1 ESG attribute, will be fired sooner than an employee who provides more than one.

Listen closely how odd this next sentence sounds.

If an ESG employee is fired, there is a possibility the company will be sued for wrongful termination based on discrimination for the same reasons they were actually hired in the first place.

That is one of the greatest disasters that can happen! The ESG_SJ Monitor mob is waiting for just such an event to use against you. They want to broadcast whenever you fall below a 100% score.

Large companies are budgeting for ESG employees and are writing off the payroll as just a part of doing business now. My HR and Controller sources in fortune 500 companies confirm this.

The companies will do anything to keep an ESG hire employed, even if it means losing money. Imagine an ESG employee approaching the media upon getting fired and what that can do to your brand.

Again, profit motive no longer only drives corporate decisions.

ESG Employees Are Hurt The Most In The Long Run
#1
ESG Employees Seeking Work Outside Of Big Corporations

What happens when they attempt to leave an employer with open ESG employment practices?

This is a true story.

1. A client (under 50 employees) needed a national sales manager so they hired a recruiter to find one.
2. All candidates came from ESG conforming Fortune 500 companies.
3. The recruiters could not verify that the candidates with ESG attributes did actually attain their Fortune 500 positions based on merit.
4. They only passed along the non ESG candidates as they knew they attained their current position on merit and also by battling the blatant bias against them.
5. Even my business owner clients who have ESG attributes themselves are specifically hiring those without them to assure they are hiring qualified employees.

ESG Employees Are Hurt The Most In The Long Run
#2
EGQ-SJ Employees Continuing To Work At Big Corporations

1. They are trapped in jobs within companies where the motive for keeping them has nothing to do with productivity.
2. The companies will allow them to stay employed, even when they cannot do the work, wasting years of their lives.
3. Co-workers resent and ostracize them privately, while smiling and pretending to be on board.
4. They are always perceived as increasing co-workers’ workload.
5. Anyone perceived as getting special treatment at the expense of others grows to be hated.
6. Affirmative action hires are never liked.

Advice For ESG Employees and Non-ESG

You should never work for any company that openly discriminates in hiring whether you personally have the ESG attributes or not.

Racism and discrimination in hiring is always finds its way in day to day operations. This pits humans against humans and breeds suspicion and distrust. At work we need mutual support, respect and goodwill.

Request ESG Hiring Practices in writing before applying.

In the long run these policies hurt everyone, especially the ones they purport to help, just like other quota-based systems in the past.

Even if you have more merit than every other candidate, in the future, anyone evaluating your resume will see an asterisk next to that job if you take it and see you as an ESG or quota hire.

There can never be confidence that you were given that job for the right reasons, and so it is human nature to discount that work completely and suggest other people for the jobs you want in the future.

So how can a recruiter pass along a resume they cannot feel confident in? The answer is, they can’t.

Just like recruiters automatically discard candidates that check yes on the “Do you have a felony?” box, they are doing the same to resumes from candidates who have worked at ESG companies.

ESG company experience is the new felony. Let’s avoid those jobs.

Questions? Concerns? Call me on (732) 673-0510.