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--:-- Georgia Howe: Welcome to Morning Wire, I'm Georgia Howe.
--:-- John Bickley: And I'm John Bickley, Daily Wire's Editor-in-Chief.
--:-- Georgia Howe: It's Sunday, April 10th, and this is your special edition of Morning Wire.
--:-- John Bickley: Today, we're going to explore why big corporations are taking divisive stances on polarizing issues.
--:-- Georgia Howe: That's right, John. We'll be unpacking how the financial system is being leveraged to push big business to the left on issues ranging from climate change to transgender rights.
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--:-- Georgia Howe: Major corporations, including Disney, Apple, and Coca-Cola, are increasingly risking their reputations with consumers to wade into political fights.
--:-- John Bickley: But what's driving these Fortune 500 companies to take these stances?
--:-- Georgia Howe: That's what we're going to find out. I'm joined today by Daily Wire culture reporter Megan Basham.
--:-- Megan Basham: Thanks for having me, Georgia.
--:-- Georgia Howe: So, Megan, let's start with ESG. What is it, and how does it work?
--:-- Megan Basham: So, ESG stands for Environmental, Social, and Governance. It's essentially like a social credit score for businesses.
--:-- Georgia Howe: And what are the implications of this score?
--:-- Megan Basham: Well, the score has financial implications. Companies can improve their ESG score by committing to lower carbon emissions or hiring a diversity manager, for example.
--:-- John Bickley: And who issues these scores?
--:-- Megan Basham: Well, it's not totally centralized at this point. There are some very large fund managers like BlackRock, the world's largest asset manager, who have their own in-house scoring departments.
--:-- Georgia Howe: And what's the issue with this system?
--:-- Megan Basham: The issue is that these third-party scorekeepers generally have left-wing priorities, and they're deciding what priorities are important.
--:-- John Bickley: And then they're voting on behalf of shareholders at these shareholder meetings.
--:-- Megan Basham: That's right. And because they're voting in the place of investors, it puts companies in a position where they have to do what these firms say.
--:-- Georgia Howe: This movement is profoundly affecting the direction of society, but it's all happening outside of the legislative process.
--:-- Megan Basham: That's right. And it's all happening outside of the democratic process.
--:-- John Bickley: So, let's talk about the financial motivation behind this. Why are these investment firms pushing this agenda?
--:-- Megan Basham: Well, they claim that while this approach to investing may not yield the highest returns in the short run, they'll be more profitable in the long run.
--:-- Georgia Howe: And what about the legality of this? Is it legal to use investors' money to push political agendas without them even being aware of it?
--:-- Megan Basham: That's a really good question. And it's a question that a lot of Republican lawmakers are starting to ask.
--:-- John Bickley: We're also starting to see some red states pull state pension plans out of firms like BlackRock and Vanguard because they push ESG.
--:-- Megan Basham: That's right. And other states are rewriting their state laws so that asset managers are required to put financial returns ahead of partisan social goals.
--:-- Georgia Howe: So, what are the options for investors who want to opt out of this system?
--:-- Megan Basham: Well, if you own even one share in a company, you're entitled to attend virtual shareholder meetings and voice your opinion.
--:-- John Bickley: And if you have a 401k or IRA or pension, you can call your financial advisor and let them know that you're not interested in supporting the ESG model.
--:-- Georgia Howe: That's right. And some financial managers are starting to offer services that make this pushback process a little easier for investors.
--:-- Megan Basham: That's right. And some financial managers are starting to offer services that make this pushback process a little easier for investors.
--:-- John Bickley: Well, Megan, thanks so much for coming on and breaking this down for us.
--:-- Megan Basham: Thanks for having me, Georgia.
--:-- Georgia Howe: That was Daily Wire culture reporter Megan Basham. And this has been a special edition of Morning Wire.
--:-- John Bickley: Thanks for listening to Morning Wire. We created this show to bring more balance to the natural conversation.
--:-- Georgia Howe: If you love our show and you stand with our mission, consider subscribing, leaving us a five-star rating, and most importantly, sharing our podcast with a friend.
--:-- John Bickley: That's all the time we've got this morning. Thanks for waking up with us.
--:-- Georgia Howe: We'll be back tomorrow with the news you need to know.
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