DECIEM - 1792 Exchange

Rating Overview

DECIEM is Medium Risk.

DECIEM 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. DECIEM 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	High 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	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:

High

Rationale:

In 2022, Estée Lauder Companies, DECIEM’s parent company, told John Demsey, the Executive Group President, that he must leave the company due to “Instagram posts, which do not reflect the values of The Estée Lauder Companies”. The post contained a Sesame Street meme that used the N-word (1)(2). Estée Lauder Companies integrates ESG into its business practices. In 2023, it “considered the relevance of ESG topics to our business strategy and objectives” (3). Estée Lauder Companies also promotes divisive sex and gender policies. Its Supplier Sustainability Guidelines requires international vendors to include sexual orientation and gender identity or expression in their nondiscrimination policy (4).

Criteria:

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

Risk Level:

Medium

Rationale:

Estée Lauder Companies’ Good Works Giving guidelines require that organizations and employee matching donations abide by its nondiscrimination policy, including on the basis of sexual orientation and gender identity or expression, thereby excluding some religious charities. It will only give to religious organizations that provide non-sectarian services (1). Estée Lauder Companies Charitable Foundation requires that organizations abide by its nondiscrimination policy, including on the basis of sexual orientation and gender identity or expression, thereby excluding some religious charities. It’s focus giving areas are health, education, and environment (2)(3).

Criteria:

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

Risk Level:

High

Rationale:

DECIEM requires its employees to take diversity training. It also requires its leadership to take deeper bias and inclusion training. DECIEM appears to prioritize diversity over merit in its performance evaluations. From its Diversity page: “we are implementing diversity scorecards for all managers, as part of their performance evaluations” (1). DECIEM appears to prioritize diversity over merit in its business structure through the establishment of racial targets for its promotions and leadership composition. DECIEM is seeking maintain a workforce that is at least 50% BIPOC and increase leadership representation of BIPOC to 50% (2). DECIEM appears to prioritize diversity over merit in its hiring process making diversity a “critical hiring” criteria (3). DECIEM does not provide viewpoint protections for its employees (4).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

DECIEM supports DEI within its business practices, employing a Director of DEI. DECIEM hosts a “learning session on inclusive beauty” (1). From DECIEM’s Change is the Journey letter: “We’ve launched an Indigenous Relations Commitment Statement to foster inclusion and support Indigenous Peoples and communities across Canada and beyond” (2). DECIEM advocates for LGBTQ agendas (3). DECIEM supports sustainability and net-zero by 2050 within its business practices. From its Climate Change page: “We’re working on a range of emission reduction activities focused on energy efficiency and switching to less carbon intensive activities” (4).

Criteria:

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

Risk Level:

High

Rationale:

Estée Lauder Companies provides a benefits package for employees that covers travel/lodging costs for an abortion (1). Estée Lauder Companies funds the Equal Justice Initiative (2). In 2020, DECIEM pledged $120,000 across 12 organizations, such as BTFA, BLAC, and the Transgender District, which focus on racial and gender ideologies (3)(4)(5)(6)(7). In 2023, Estée Lauder Companies donated $50,000 to Planned Parenthood (8). In 2022, Estée Lauder Companies donated $35,000 to the Los Angeles LGBT Center, $25,000 to the San Diego Lesbian Gay Bisexual and Transgender Community Center, and $35,000 to The Lesbian Gay Bisexual and Transgender Community Center Services (9). In 2022, Estée Lauder Companies committed to investing $10 million in racial and social justice organizations (10)(11). Estée Lauder Companies donated money to various other groups focused on LGBTQ and DEI causes (12). Otherwise, there are no publicly known cases of DECIEM using corporate funds to advance ideological causes, organizations, or policies (13).