AAR Corp. - 1792 Exchange

Rating Overview

AAR Corp. is Medium Risk.

AAR Corporation 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.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Lower Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	Medium Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

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:

Lower

Rationale:

AAR Corp. it has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (1).

Criteria:

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

Risk Level:

Lower

Rationale:

AAR Corp. does not appear to discriminate against charitable organizations based on views or beliefs (1).

Criteria:

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

Risk Level:

High

Rationale:

AAR Corp. requires its employees to take unconscious bias and DEI training (1). The company has a history of divisive corporate policies and practices. However, in 2024, the company removed DEI training polcies from its 2024 and 2025 Sustainability Reports. To date, the company has not publicly addressed these changes, leaving shareholders without clarity regarding the company’s reasoning or future direction (2). AAR Corp. 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:

High

Rationale:

AAR Corp supports DEI within its business practices. From its 2024 Sustainability Report: “As reflected in our values, we have a long-standing commitment to embracing diversity and fostering a culture of inclusion. Below is our diversity statement: Just as unique parts are essential to an aircraft’s ability to fly, unique talent is essential to AAR’s ability to succeed. Our strength is rooted in our
commitment to diversity, equity and inclusion. We create opportunity through new thoughts and ideas to embrace an ever-changing world. These values empower our people to be a team of producers, innovators and world class leaders, who are “Doing It Right®” to better connect the world” (1). The company supports ESG within its business practices. From its 2022 ESG Report: “Our purpose of Doing It Right® is about setting a direction, believing in what we are doing, and doing it well. We constantly search for the right
thing to do for our customers, our employees, our partners, and society. This guides our approach to further integrating ESG principles into our
business and culture” (2). AAR Corp. has a history of divisive corporate policies and practices. However, in 2024, the company removed DEI and ESG language from its 2024 and 2025 Sustainability reports. To date, the company has not publicly addressed these changes, 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:

Medium

Rationale:

AAR Corp. sponsored the Proud to Run race which celebrates the LGBTQ community (1). Otherwise, there are no publicly known cases of AAR Corp. using corporate funds to advance ideological causes, organizations, or policies (2).

Criteria:

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

Risk Level:

Lower

Rationale:

AAR Corp. has not used its PAC donations for ideological purposes and does not report on its lobbying at this time(1)(2)(3).