FARO Technologies, Inc. - 1792 Exchange

Rating Overview

FARO Technologies, Inc. is Medium Risk.

FARO Technologies, Inc. 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	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

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

FARO Technologies, Inc. integrates ESG into its business practices. From its 2023 Sustainability Report: “ESG and sustainability governance starts with the Board’s oversight of our ESG and sustainability strategies and policies. This involves integrating ESG considerations into corporate governance frameworks, appointing board committees focused on sustainability, and hiring executives with expertise in ESG matters” (1). The company promotes divisive sex and gender policies. Its Supplier Code of Conduct requires international vendors to include sexual orientation in their nondiscrimination policy (2). However, the company has not 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:

Lower

Rationale:

FARO Technologies Inc. does not appear to discriminate against charitable organizations based on views or beliefs (1). The company’s charitable giving focus areas are “a variety of charitable organizations and activities including UNICEF, the Leukemia & Lymphoma Society and local public safety departments” (2).

Criteria:

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

Risk Level:

High

Rationale:

FARO Technologies, Inc. requires its employees to take DEI training (1). The company appears to prioritize diversity over merit in its supply chain. From its 2023 Sustainability Report: “While many of our key suppliers are represented by large corporations, due to the specialized nature of our tooling and our passion to promote small businesses, we also engage regional, small, or disadvantaged suppliers, making special efforts to provide guidance on program requirements and ensure ethical business practices throughout the value chain” (2). The company protects its employees against viewpoint discrimination (3).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

Medium

Rationale:

FARO Technologies, Inc. supports ESG within its business practices. From its Environment, Social and Governance page: “As a public company, we are deeply committed to practicing good citizenship and global sustainability. We address a variety of Environmental, Social and Corporate Governance (ESG) issues that impact our organization, our customers and the communities we serve through established programs and policies that drive operational excellence and maintain the highest standards possible” (1). Otherwise, the company has not supported ideological causes or policies (2).

Criteria:

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

Risk Level:

Lower

Rationale:

FARO Technologies, Inc. has not used corporate funds to advance ideological causes, organizations, or policies (1).

Criteria:

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

Risk Level:

N/A

Rationale:

FARO Technologies, Inc. does not operate a PAC or engage in lobbying at this time (1)(2)(3).