Otter Tail Corporation - 1792 Exchange

Rating Overview

Otter Tail Corporation is Medium Risk.

Otter Tail Corporation 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	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:

Medium

Rationale:

Otter Tail integrates ESG and DEI into its business practices, tying executive compensation to ESG and DEI metrics. From its 2024 Proxy Statement: the company “include[s] ESG metrics in our annual incentive plan in support of our safety, DEI and environmental strategies” (1)(2). The company promotes divisive sex and gender policies. Its Code of Business Ethics requires international vendors to include sexual orientation and gender identity in their nondiscrimination policy (3). However, the company 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:

Lower

Rationale:

Otter Tail Power Company Foundation does not discriminate against charitable organizations based on views or beliefs. However, it will only give to religious organizations that provide non-sectarian services (1).

Criteria:

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

Risk Level:

High

Rationale:

Otter Tail requires its employees to take unconscious bias training (1). The company appears to prioritize diversity over merit in its leadership composition. From its 2024 Proxy Statement: “In addition to seeking out director candidates with skills and experiences that are important to our businesses, the Corporate Governance Committee considers factors including… diversity of background and experience (including experience informed by gender, race, ethnicity and sexual orientation)” (2). The company appears to prioritize diversity over merit in its hiring. From its 2023 Annual Report: “We have implemented initiatives to improve upon our demographic profile, including revised hiring processes and a commitment to diverse slates of interview candidates” (3). The company’s subsidiary, Otter Tail Power Corporation, appears to prioritize diversity over merit in its supply chain. From its 2023 ESG Report: “Our goal is to increase our awareness of diverse suppliers in our geographic region and track our spend by supplier diversity business classification” (4). Otter Tail does not provide viewpoint protections for its employees (5).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

Medium

Rationale:

Otter Tail supports DEI within its business practices. From its Sustainability webpage: “We expect and are committed to diversity, equity, and inclusion as part of who we are, what we value, and how we achieve individual, business, and community success” (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:

Otter Tail 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:

Otter Tail has not used its PAC donations for ideological purposes and does not engage in lobbying at this time (1)(2)(3).