Chanel - 1792 Exchange

Rating Overview

Chanel is Medium Risk.

Chanel 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. Chanel 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	High Risk
Political Actions	Lower Risk

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:

Chanel was a member of the Global Alliance for Responsible Media, which demonetized and suppressed content that it deemed to spread “hate speech” or “misinformation”, discuss “debated social issues in a negative or partisan context”, or “vilif[y]” individuals based on sexual orientation and gender identity. These arbitrary guidelines were used to censor mainstream perspectives online (1)(2)(3). However, Chanel has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (4)(5)(6).

Criteria:

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

Risk Level:

Lower

Rationale:

Chanel does not appear to discriminate against charitable organizations based on views or beliefs (1)(2).

Criteria:

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

Risk Level:

High

Rationale:

Chanel appears to prioritize diversity over merit in its leadership composition. From its Corporate Governance Report 2023: “For each new recruitment, the Board actively considers gender and diversity” (1). Chanel does not publish a nondiscrimination policy (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:

Chanel is committed to net zero greenhouse gas emissions by 2040 (1). Chanel is aligned with the Science Based Target Initiatives Net Zero Standard, committing to eliminating carbon emissions by 2050 (2)(3)(4). Chanel is a member of the Businesses for Socially Responsibility, an organization that advocates for sustainability goals and racial equity in the corporate world (5)(6). Chanel is aligned with the Paris Agreement, which entails a commitment to net zero carbon emissions by 2050 (7). Chanel is a member of the World Business Council for Sustainable Investment, committing to integrating sustainable business practices into company policy (8)(9). Chanel is a member of the Watch and Jewellery Initiative which advocates for climate action and inclusivity (10)(11). Otherwise, there are no publicly known cases of Chanel using its reputation to advance ideological causes or policies (12).

Criteria:

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

Risk Level:

High

Rationale:

Chanel was a member of the Global Alliance for Responsible Media (1)(2)(3). Chanel funded $1 million to “grassroots organizations dedicated to advancing racial justice work” and matching employee donations to racial justice organizations (4). The company is a corporate partner of Ashoka, a global network of entrepreneurs focused on widespread, systemic social and environmental change (5). Otherwise, there are no publicly known cases of Chanel using corporate funds to advance ideological causes, organizations, or policies (6).

Criteria:

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

Risk Level:

Lower

Rationale:

Chanel does not operate a PAC at this time and has not used its lobbying for ideological purposes (1)(2)(3).