Vital Farms

Vital Farms Missouri LLC, Backyard Eggs LLC, Barn Door Farms LLC, Sagebrush Foodservice
Austin, Texas
Agriculture

Corporate Bias Rating

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Risk Level:

Rating - Caution
Medium Risk

Summary:

Vital Farms is Medium Risk. The company 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.

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Criteria
Risk Level
Rationale
Corporate Weaponization
Criteria

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level
Rationale

Vital Farms integrates ESG into its business practices. From its 2023 Impact report: “Our ESG work is embedded into our business. This holistic approach enables us to avoid siloed or bolt-on programming that, we believe, compromises the real impact this work should have across our stakeholders” (1). The Company integrates DEI into its supply chain. From its Supplier Code of Conduct: “Suppliers shall provide opportunities to diverse suppliers and businesses
when supplying goods to Vital Farms” (2). The Company promotes divisive sex and gender policies. Its Supplier Code of Conduct require international vendors to include sexual orientation in their nondiscrimination policy (3). However, the Company has not canceled customers, suppliers, or vendors based on political views or religious beliefs (4).

Criteria

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level
Rationale

Vital Farms does not appear to discriminate against charitable organizations based on views or beliefs (1)(2).

Criteria

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level
Rationale

Vital Farms appears to prioritize diversity over merit in its leadership composition. From its Corporate Governance Guidelines: “The Board reviews candidates for director nomination in the context of the current composition of the Board, the Company’s operating requirements, and the long-term interests of the Company’s stakeholders. In conducting this assessment, the Board considers diversity (including diversity of gender, ethnic background and country of origin), age, skills and other factors that it deems appropriate to maintain a balance of knowledge, experience, and capability on the Board” (1). The company appears to prioritize diversity over merit in its supply chain. From its 2023 Impact report: “We are also focused on taking meaningful action in diversifying our supply chain. Through partnerships with National Young Farmers Coalition (NYFC), Farmer Veteran Coalition, and the National Black Farmers Association (NBFA), we are connecting with and supporting farmers from historically underrepresented groups” (2). The Company does not provide viewpoint protections for its employees (3).

Corporate Governance and Public Policy
Criteria

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level
Rationale

Vital Farms supports DEI within its business practices, hosting a DEI Council (1). The Company supports ESG within its business practices. From its 2023 Impact report: “At Vital Farms, we define Impact as a holistic ambition and active strategy that includes our ESG approach, our B Corp certification, DEI, risk mitigation, and purpose-driven program development” (2). However, in 2024 the Company removed the language surrounding DEI and ESG from their Impact report. To date, the company has not publicly addressed this change, leaving shareholders without clarity regarding the company’s reasoning or future direction (3).

Criteria

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level
Rationale

Vital Farms has not used corporate funds to advance ideological causes, organizations, or policies (1).

Criteria

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level
N/A
Rationale

Vital Farms does not operate a PAC or report on its lobbying at this time (1)(2)(3).

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.

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