Bertelsmann - 1792 Exchange

Rating Overview

Bertelsmann is Medium Risk.

Bertelsmann SE & Co. KGaA 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	Medium Risk
Discriminatory Philanthropy	No Data
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	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:

Bertelsmann integrates ESG into its business practices. From its press release: “Bertelsmann has set itself an ambitious environmental goal: By 2030, the international media, services, and education company intends to be climate neutral. By then, Bertelsmann aims to reduce the greenhouse gas emissions generated at its locations, by its employees’ mobility, and the manufacture of its own products by 50 percent compared with 2018. At that time, these emissions amounted to one million tons of CO2. The remaining emissions will be offset. Bertelsmann will also support its business customers in reducing product-related emissions” (1). Bertelsmann promotes divisive sex and gender policies. Its Supplier Code of Conduct requires international vendors to include sexual orientation and gender identity in their nondiscrimination policy (2). Bertelsmann has not publicly 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:

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:

High

Rationale:

Bertelsmann does not provide viewpoint protections for its employees (1). Bertelsmann appears to prioritize diversity over merit in its recruitment and hiring. From its 2022 Non-Financial Statement: “Diversity and differences in the workforce are prerequisites for creativity, innovation and Bertelsmann’s longterm business success. This conviction is conveyed in the Bertelsmann Essentials and in the Bertelsmann DEI policy. In that policy, the Bertelsmann Executive Board emphasizes its aim of further increasing diversity of staff at all levels and in every respect, and of creating general conditions that foster the appreciation and inclusion of employees and ensure equal opportunities” (2). The company appears to prioritize diversity over merit in its business structure through the establishment of gender targets for its promotions and leadership composition. The company is seeking one third of all top and senior management being women (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:

Bertelsmann is committed to net zero carbon emissions by 2030 (1). Bertelsmann supports ESG within its business practices. From its 2025 Annual Report: “the company works continuously on the strategic further development of its corporate responsibility (CR) and Group-wide reporting on ESG topics (ESG stands for “Environmental,” “Social” and “Governance”). ESG represents also an enabler for the corporate strategy – alongside People, Communication and Tech & Data” (2). The company also supports DEI within its business practices. From its 2020 Non-Financial Statement: “The diversity and differences in the workforce are prerequisites for creativity, innovation and Bertelsmann’s long-term business success” (3). 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 (4)(5)(6). Bertelsmann subsidiary PRH has hosted live events and has made statements sympathizing with the BLM movement (7)(8)(9)(10).

Criteria:

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

Risk Level:

Medium

Rationale:

In 2022 Bertelsmann subsidiary PRH donated up to $30,000, to The Trevor Project, LGBTQ Saves, and the Zebra Coalition” (1). Otherwise, there are no publicly known cases of Bertelsmann 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:

N/A

Rationale:

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