Los Angeles Capital Management

Rating Overview

Los Angeles Capital Management is Medium Risk.

Los Angeles Capital Management is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. Los Angeles Capital Management 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	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:

Los Angeles Capital Management is a signatory of the Principles for Responsible Investment, incorporating ESG issues into investment analysis, decision-making, and other business practices (1)(2). The company integrates ESG into its business practices. From its Responsible Investing page: “In addition to integrating ESG criteria into client portfolios through factors within its proprietary investment model, the Firm also collaborates with clients to provide customized ESG solutions for a more targeted responsible investment approach” (3). However, Los Angeles Capital Management has not canceled customers, suppliers, or vendors based on political views or religious beliefs (4).

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:

Los Angeles Capital Management 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:

Los Angeles Capital Management appears to prioritize diversity over merit in its hiring and mentorship program. From its Culture page: “This commitment extends to ensuring that dimensions of diversity are embedded in various aspects of work life, including hiring, operations, community outreach initiatives, philanthropic causes, and investments” (1). From its Diversity, Equity, and Inclusion Policy Statement: “We strive to create an environment where our managers and employees learn to be conscious of and acknowledge their biases and focus on building a community of inclusive thinking and decision-making- the cornerstones of creating an atmosphere of cultural competency” (2). Los Angeles Capital Management is an affirmative action employer: “LACM is an Affirmative Action/Equal Opportunity Employer” (3). The company 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:

Los Angeles Capital Management is a member of Climate Action 100+, committed to carbon neutrality by 2050 (1)(2). The company supports DEI within its business practices. From its Diversity, Equity, and Inclusion Policy Statement: “We believe diversity, equity and inclusion are integral factors which drive the Firm’s mission of Achieving Client Success through Research and Technology” (3). From Los Angeles Capital Management’s LinkedIn page: “Los Angeles Capital continues to focus on its Diversity, Equity, and Inclusion and Corporate Social Responsibility efforts” (4).

Criteria:

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

Risk Level:

Lower

Rationale:

Los Angeles Capital Management 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:

Los Angeles Capital Management does not operate a PAC or engage in lobbying at this time (1)(2)(3).