Robinhood - 1792 Exchange

Rating Overview

Robinhood is Medium Risk.

Robinhood 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. Robinhood 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	Medium Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	Medium Risk
Funding	High Risk
Political Actions	High 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:

Robinhood integrates ESG into its business practices. Robinhood expects its vendors to publish corporate social and environmental responsibility policy statements affirming its “commitment to compliance and continual improvement, endorsed by executive management, and posted in the Third-Party’s facilities in the local language” (1).

Criteria:

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

Risk Level:

Medium

Rationale:

Robinhood’s charitable giving guidelines require that organizations abide by its nondiscrimination policy, including on the basis of sexual orientation and gender identity, thereby excluding some religious charities (1).

Criteria:

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

Risk Level:

High

Rationale:

Robinhood requires its hiring managers, interviewers, recruiters and leadership to take inclusivity training. Robinhood offers unconscious bias and inclusion training to its employees. Robinhood appears to prioritize diversity over merit in its hiring and leadership composition. Robinhood launched a “Diverse Slate Approach”, which requires that at

least one qualified candidate at the onsite interview stage is from an

underrepresented background”. Its Board Diversity Policy mandates candidates from “historically underrepresented

communities”. Robinhood appears to prioritize diversity over merit in its promotions. From its 2023 ESG report: ” We integrated IEB education into the workflow for our leaders and people managers, incorporating mitigating bias and equity and equity content into feedback loops, performance reviews, and promotions” (1). Robinhood does not publish a nondiscrimination policy (2).

Corporate Governance and Public Policy

Criteria:

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

Risk Level:

Medium

Rationale:

Robinhood supports DEI within its business practices, hosting an inclusion, equity and belonging (IEB) team and employing a vice president of IEB (1)(2). The company announced that it will match the government’s $1,000 contributions to Trump Accounts for the children of its employees (3)(4).

Criteria:

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

Risk Level:

High

Rationale:

Robinhood provides a benefits package for employees that covers up to $5,000 in travel costs for an abortion (1). The company is a partner of the Black Empowerment Council, a social justice group (2)(3)(4).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

High

Rationale:

In 2024 and 2022, Robinhood donated to $5,000 to the Equality PAC (1)(2). In 2022, Robinhood donated $5,000 to the Equality Project PAC (3)(4). Robinhood has not used its lobbying for ideological purposes (5).