LSB Industries - 1792 Exchange

Rating Overview

LSB Industries is Medium Risk.

LSB Industries, Inc. is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. LSB Industries 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:

LSB Industries integrates ESG into its business practices. From its Supplier Code of Conduct: “We expect Third Parties to… eliminate, reduce, and/or control waste and emissions to air, water, and soil” (1). However, the company has not canceled customers, suppliers, or vendors based on political views or religious beliefs (2).

Criteria:

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

Risk Level:

Lower

Rationale:

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

Criteria:

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

Risk Level:

High

Rationale:

LSB Industries appears to prioritize diversity over merit in its leadership composition. From its Corporate Governance Guidelines: “The Board values diversity, in its broadest sense and, in the director identification and nomination process, the Board seeks a breadth of experience from a variety of industries and from professional disciplines, such as finance, professional services and technology, along with a diversity of gender, ethnicity, and geographic location… the Nominating and Governance Committee will seek to include, and will require any search firm that it engages to seek to include, women and minority candidates in the initial list of candidates from which the Committee selects director candidates” (1). The company is an affirmative action employer. “The Company has also developed written affirmative action programs for individuals with disabilities and protected veterans” (2). LSB Industries 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:

LSB Industries supports DEI within its business practices. From its Diversity, Equity, and Inclusion webpage: “We are committed to attracting, retaining, and developing a more inclusive and talented workforce” (1). Otherwise, it 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:

LSB Industries 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:

LSB Industries does not operate a PAC or report on its lobbying at this time (1)(2)(3).