
American Water Works Company
Corporate Bias Rating
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Risk Level:
Summary:
American Water often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.
View Full Corporate Bias Ratings ReportHas canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.
American Water received a score of 75 on the 2026 Corporate Equality Index (CEI) from the Human Rights Campaign (HRC), a political stakeholder group. The company recruits employees based on sexual identity issues. The company discriminates against vendors that do not promote divisive sex and gender policies, indicating it prioritizes sexual issues over merit (1)(2)(3). American Water received a score of 55 on the 2025 Corporate Equality Index (CEI) from the Human Rights Campaign (HRC), a political stakeholder group. The company recruits employees based on sexual identity issues. The company discriminates against vendors that do not promote divisive sex and gender policies, indicating it prioritizes sexual issues over merit (4)(5)(6). However, the company has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (7).
Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.
American Water’s HRC 2026 CEI rating indicates the company will not donate to non-religious charities unless they embrace controversial sexual identity policies (1)(2)(3). American Water’s HRC 2025 CEI rating indicates the company will not donate to non-religious charities unless they embrace controversial sexual identity policies (4)(5). American Water Works will not donate to, “Faith-based or religious organizations, including churches, synagogues, mosques or other houses of worship, U.S. Conference of Catholic Bishops, The Salvation Army, and other organizations that are not required to file for exemption with the IRS as they automatically qualify for 501(c)(3) status as a church. This restriction extends to projects that are supported by a church, for non-church purposes, such as a meal program, where the check would be payable to the church.” Or “K-12 schools that require religious instruction as part of their general education requirements. This restriction extends to colleges and universities that require any type of Theology, Faith or Religious courses to meet core curriculum graduation requirements. Colleges seeking assistance to identify their religious affiliation should visit the NCES website” (6)(7). The company likely uses Benevity as its charitable giving platform. Benevity vets charities according to the Southern Poverty Law Center’s Hate List, which includes mainstream libertarian, conservative, family, and religious advocacy organizations (8)(9)(10).
Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.
Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.
American Water’s HRC 2026 CEI rating indicates the company potentially agrees to allow a controversial stakeholder group focused on sexual identity issues to dictate marketing or advertising strategy. By doing so, the company risks dividing employees, alienating customers and harming shareholders (1)(2)(3). American Water’s CEO, Susan Hardwick signed the CEO Action for Diversity & Inclusion pledge, which includes a commitment to promote DEI through bias education training in the workplace (4)(5).
Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.
American Water’s HRC 2026 CEI rating indicates the company has potentially pledged philanthropic support of at least one organization or event that promotes sex and gender ideology. By allowing a political stakeholder group to dictate operations, the company increases health care costs and risks dividing employees, alienating customers and harming shareholders (1)(2)(3)(4). American Water’s HRC 2025 CEI rating indicates the company covers transgender related costs for its employees and their children, including paid short-term leave, puberty blockers, cross-sex hormones, chest surgeries, genital surgeries, medical visits and lab monitoring, travel and lodging. By allowing a political stakeholder group to dictate operations, the company increases health care costs and risks dividing employees, alienating customers and harming shareholders (5)(6). American Water donated a combined $200,000 to the National Urban League and affiliates and is a corporate partner of the National LGBT Chamber of Commerce (7)(8). The company is a Brass sponsor of Out & Equal (9).
Board Bias
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1792 Exchange has not yet compiled data about the board of directors or political contributions of leadership for this company.
Shareholder Proposals
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| Date | ESG Category | Proponent | Summary of Resolution | Mgmt Rec | Total Vote % in Favor |
|---|---|---|---|---|---|
| 5/10/23 | Social | Trillium Asset Management | Report on Racial Justice Impacts/Plan | Against | 40.00% |
| 5/11/22 | Social | Trillium Asset Management | Third-Party Racial Justice Audit | Against | 48.00% |