NEC Corporation - 1792 Exchange

Rating Overview

NEC Corporation is Lower Risk.

NEC Corporation is Lower Risk. The company does not yield to political activism in shaping corporate governance, preventing initiatives that potentially alienate consumers, divide employees, and harm shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. Overall, NEC Corporation does not embrace corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues. This approach protects free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Lower 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	Lower 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:

Lower

Rationale:

NEC has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (1).

Criteria:

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

Risk Level:

Lower

Rationale:

NEC does not 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:

NEC appears to prioritize diversity over merit in its business structure through the establishment of gender and racial targets for its leadership composition. From its 2022 Sustainability Report: the company is seeking a 20% ratio of “female or non-Japanese” to corporate officers by 2025 (1). The company requires its employees to take unconscious bias training through mandatory online training (2). The company does not provide viewpoint protections for its employees (3).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

NEC Corporation supports DEI in its business practices. From its Sustainability Report: “We will bolster diversity as a source of innovation and implement workstyle reforms supporting diverse talent” (1). The company supports ESG within its business practices. From its Sustainability Report: “we have positioned reinforcement of non-financial measurement methodologies to underpin sustainable growth as part of our financial strategy and have made a commitment to promote ESG and sustainability-based initiatives that are more closely linked to finance” (2).

Criteria:

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

Risk Level:

Lower

Rationale:

NEC Corporation 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:

Lower

Rationale:

NEC Corp does not operate a PAC at this time and has not lobbied for ideological purposes (1)(2)(3).