Bertelsmann - 1792 Exchange

Rating Overview

Bertelsmann is Medium Risk.

Bertelsmann often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company elevates merit, excellence, and integrity ahead of race and identity-based policies. Bertelsmann 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	No Data
Employment Protection	Medium Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	High 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:

Lower

Rationale:

Bertelsmann 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:

N/A

Rationale:

Bertelsmann does not publish charitable giving guidelines (1).

Criteria:

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

Risk Level:

Medium

Rationale:

Bertelsmann does not publish a nondiscrimination policy (1).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

Bertelsmann subsidiary, Penguin Random House (PRH), has an extensive history of LGBTQ and DE&I advocacy. PRH has posted lists of books that promote the celebration of Pride and LGBTQ history (1)(2). PHR has a page dedicated to LGBTQ books, featuring categories like “Books for Kids That Explore Queerness” and “Baby’s First Queer Books” (3). The US, Canadian and UK PRHs have made statements sympathizing with the BLM movement (4)(5)(6). PRH held several live events featuring advocacy for the BLM and LGBTQ movements in June of 2020 (7). Bertelsmann embraces ESG principles, including the UN Global Compact (8). In 2021, the Bertelsmann Content Alliance launched a campaign called “Yes to the Truth. Because it has to be true.” media campaign aimed at promoting “fact-oriented, responsible, and transparent” journalism and fighting “alternative” facts (9). The Bertelsmann Content Alliance named September “Climate Month” since climate change is “one of today’s most important issues” (10). RTL Deutschland, owned by Bertelsmann, started the Alliance Against Fake News. The company has “assign[ed] an internal team of experts to verify the authenticity of news content” to disseminate warnings about “fake news content” to all local news divisions (11)(12). Annabelle Yu Long, the Chief Executive Officer of Bertelsmann China Corporate Center and Managing Partner of Bertelsmann Asia Investments, is an active member of the World Economic Forum’s Young Global Leaders Advisory Council and is also a member of its Global Agenda Council on the Future of Media, Entertainment & Information. This Council works with media organizations to drive the adoption of new business models in regard to “content creation, monetization, advertising, distribution and consumption” and works toward “enabling digital safety by removing misinformation and harmful content” and promoting “the role of media in enabling social justice and improving diversity and representation in creative production (13)(14). In 2016, Bertelsmann gave the Reinhard Mohn Prize 2016 for Responsible Entrepreneurship to Klaus Schwab, the “chairperson” of the World Economic Forum (15). The Bertelsmann Foundation frequently publishes content critical of “misinformation” and “disinformation” (16)(17)(18).

Criteria:

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

Risk Level:

High

Rationale:

In 2020, PRH Canada made significant donations to organizations that fight for racial injustices, in light of the BLM movement (1). In 2022 PRH donated up to $30,000, to The Trevor Project, LGBTQ Saves, and the Zebra Coalition” (2). Otherwise, there are no publicly known cases of Bertelsmann using corporate funds to advance ideological causes, organizations, or policies (3).

Criteria:

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

Risk Level:

N/A

Rationale:

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