Prosperity Bank - 1792 Exchange

Rating Overview

Prosperity Bank is Medium Risk.

Prosperity Bancshares, Inc. is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. Prosperity Bank elevates merit, excellence, and integrity ahead of race and identity-based policies. 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	Medium 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:

Prosperity Bank integrates ESG into its business practices. From its Environmental Sustainability Policy Statement: “the Company will endeavor to continue: Incorporating environmental, social, and governance (“ESG”) considerations
throughout the Company’s operations, including within lending practices and
decision-making” (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:

Prosperity Bank does not appear to discriminate against charitable organizations based on views or beliefs (1)(2). The company’s charitable giving focus areas are: Stability, Education, Hunger and Health (3).

Criteria:

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

Risk Level:

Medium

Rationale:

Prosperity Bank is an affirmative action employer. “As an affirmative action employer, we offer equal employment opportunities to veterans and workers with disabilities” (1). The company protects its employees against viewpoint discrimination (2).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

High

Rationale:

Prosperity Bank supports DEI within its business practices. From its Sustainability Social Responsibility Report: “Our company is committed to fostering, cultivating, and preserving a culture of diversity and inclusion” (1). The company supports ESG within its business practices. From its Environmental, Social and Governance Committee Charter: “The ESG Committee will assist the Executive Committee of the Bank in (a) setting general
strategy relating to ESG Matters, (b) developing, implementing, and monitoring initiatives and
policies based on that strategy, (c) overseeing communications with stakeholders with respect to
ESG Matters, including financial reporting and related disclosures” (2).

Criteria:

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

Risk Level:

Lower

Rationale:

Prosperity Bank 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:

Prosperity Bank does not operate a PAC or engage in lobbying at this time (1)(2)(3).