Callan - 1792 Exchange

Rating Overview

Callan is Medium Risk.

Callan 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. Callan 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:

Callan is a signatory of the Principles for Responsible Investment, incorporating ESG issues into investment analysis, decision-making, and other business practices (1)(2). However, Callan has not canceled customers, suppliers, or vendors based on political views or religious beliefs (3)(4).

Criteria:

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

Risk Level:

Lower

Rationale:

Callan does not appear to discriminate against charitable organizations based on views or beliefs. Callan’s charitable giving focus areas are United Way Bay Area, Feed my Starving Children, and California Fire Foundation (1)(2).

Criteria:

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

Risk Level:

High

Rationale:

Callan appears to prioritize diversity over merit in its recruitment, promotions, and mentorship program. From its Diversity, Equity, and Belonging Policy: The company commits itself to “Continue expanding recruitment opportunities to make our pipeline of diverse candidates more robust” and “Carry on with our Buddy Program to provide new employees a more equitable onboarding program that aligns with ‘belonging’ best practices” and “Measure the effect of established equitable policies for promotion and partnership” (1). Callan offers Inclusion training to its employees (2). Callan does not publish a nondiscrimination policy (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:

Callan advocates for DEI initiatives and is a signatory to the CFA Institute’s Diversity, Equity, and Inclusion Code, indicating its support of DEI in its recruitment, hiring, onboarding, and promotions. Furthermore, the company pledges to integrate DEI into its policies, promote DEI in the investment industry, and provide regular reporting on its DEI metrics to the CFA Institute (1)(2)(3). Callan signed the CEO Action for Diversity & Inclusion pledge, which includes a commitment to promote DEI through bias education training in the workplace, strategize on DEI programs/initiatives with other signatories, and engage boards of directors when developing and evaluating DEI strategies (4)(5). Callan supports DEI within its business practices, hosting a DEI committee (6). Callan advocates for AAAIM, Institutional Investing Diversity Cooperative, IDAC, and Diverse Asset Manager Initiative (7). Callan supports ESG within its business practices. From its ESG page: “Callan has provided investment consulting for environmental, social, and governance (ESG) programs for over two decades and has a dedicated ESG team of professionals with complementary areas of expertise” (8).