Arcutis Biotherapeutics - 1792 Exchange

Rating Overview

Arcutis Biotherapeutics is Medium Risk.

Arcutis Biotherapeutics 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. Arcutis Biotherapeutics 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	Medium 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:

Arcutis Biotherapeutics integrates ESG into its business practices. From its 2023 ESG Report: “As we continue to scale our operations as an early commercial-stage company, ESG will remain ingrained in our strategy” (1). However, the company has not canceled customers, suppliers, or vendors based on political views or religious beliefs (2).

Criteria:

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

Risk Level:

Medium

Rationale:

Arcutis Biotherapeutics 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:

Arcutis Biotherapeutics appears to prioritize diversity over merit in its hiring. From its ESG webpage: “Diversity, equity, and inclusion are core belief systems woven into our practices, from how we hire to how we conduct clinical trials” (1). The company does not provide viewpoint protections for its employees (2).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

Arcutis Biotherapeutics supports DEI within its business practices. From its 2023 ESG Report: “Arcutis relies on diverse representation across our operations, among our employee base, in our leadership ranks, and in clinical trials to ensure our culture and our processes are equitable and inclusive” (1). The company supports ESG within its business practices. From its 2023 ESG Report: “We have assembled an executive-level cross-functional ESG team, led by our Head of ESG, with ESG reporting into the Nominating and Governance Committee of the Board of Directors” (2)(3).

Criteria:

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

Risk Level:

Lower

Rationale:

Arcutis Biotherapeutics 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:

Arcutis Biotherapeutics does not operate a PAC or engage in lobbying at this time (1)(2)(3).