Allegion - 1792 Exchange

Rating Overview

Allegion is Medium Risk.

Allegion is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. Allegion 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	Medium 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	Lower Risk
Political Actions	No Data

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:

Medium

Rationale:

Allegion integrates ESG into its business practices. From its Sustainability Update Report: “ESG scorecard influences annual executive
incentive compensation starting in 2023” (1). The company promotes divisive sex and gender policies. Its Business Partner Code of Conduct requires international vendors to include sexual orientation and gender identity in their nondiscrimination policy (2). However, Allegion has not canceled customers, suppliers, or vendors based on political views or religious beliefs (3).

Criteria:

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

Risk Level:

Lower

Rationale:

Allegion 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:

Allegion offers unconscious bias training to its employees (1). The company appears to prioritize diversity over merit in its business structure through the establishment of gender and racial targets for its hiring and leadership composition. The company is seeking that “By 2030, reach 30% global gender diversity and 20% U.S. racial and ethnic diversity in our people manager roles” (2). Allegion operates a supplier diversity program. “In 2021, Allegion launched its supplier diversity program. We are making progress toward our long-term goal of a best-in-class supply base” (3). The company is an affirmative action employer. “Allegion is an Equal Opportunity and Affirmative Action Employer” (4). Allegion does not provide viewpoint protections for its employees (5).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

Allegion is aspiring to carbon neutrality by 2050 (1). The company supports DEI within its business practices, employing a DEI Committee (2). Allegion supports DEI within its business practices. From its Sustainability Update Report: “Senior executives sponsor the DEI Steering Committee, which is responsible for developing the DEI strategy and working with cross-functional subject matter experts and employee-led resource groups to progress goals and monitor progress” (3). The company supports ESG within its business practices. From its Sustainability Update Report: “Allegion’s Board of Directors, either directly or through its committees, has
oversight of corporate sustainability / ESG, including strategies, goals, performance and reporting” (4).

Criteria:

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

Risk Level:

Lower

Rationale:

Allegion 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:

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