The Right's Latest Bogeyman: “Woke Capitalism”

For the every more extreme and non-mainstream Republican Party and its Christofascist/white supremacist base, everything falls into the scope of their unceasing culture.   Now, socially conscious and not discriminatory businesses are finding themselves in the crosshairs of faux conservatives, "Christian" religious zealots and climate change deniers for being responsible corporate citizens.  Seemingly, the only kind of capitalism the far right and GOP likes is vulture capitalism at its most cruel where making money is the only goal and the destruction of the environment and humane treatment done to others is something that cannot be considered.  The attacks on Disney in Florida is but one example of the right's assault on businesses that question or counter the far rights knuckle dragging and bigoted beliefs.  Sadly, like everything else on the political right, the attack on responsible corporations is all about ginning up outrage among the party base and fanning hatred.  The moral sickness of the political right is chilling and there are no signs that a semblance of sanity will be regained any time soon.  A piece in the New York Times looks at the manufactured culture war.  Here are highlights:

It’s been a widely accepted trend in financial circles for nearly two decades. But suddenly, Republicans have launched an assault on a philosophy that says that companies should be concerned with not just profits but also how their businesses affect the environment and society.

More than $18 trillion is held in investment funds that follow the investing principle known as E.S.G. — shorthand for prioritizing environmental, social and governance factors — a strategy that has been adopted by major corporations around the globe.

Now, Republicans around the country say Wall Street has taken a sharp left turn, attacking what they term “woke capitalism” and dragging businesses, their onetime allies, into the culture wars.

The rancor escalated this week as Congress entered the fray. Republicans used their new majority in the House on Tuesday to vote, 216 to 204, to overturn a Department of Labor rule that allows retirement funds to consider climate change and other factors when choosing companies in which to invest. The Senate followed on Wednesday, as two Democrats, Senators Joe Manchin III of West Virginia and Jon Tester of Montana, joined Republicans in a 50-to-46 vote to send the resolution to President Biden’s desk.

The White House has said Mr. Biden will block the resolution, in what could be the first veto of his presidency.

E.S.G. investing has been routine on Wall Street for years. Most major companies issue extensive reports about their efforts to combat climate change and commitment to workplace diversity.

But in recent months, conservatives have increasingly attacked the practice, arguing that it promotes liberal priorities ranging from renewable energy to the Black Lives Matter movement.

And while E.S.G. applies to everything from diversity among corporate leaders to corruption controls, it’s the “E” in E.S.G. — the idea that the private sector needs to consider its impact on the environment — that has emerged as the top target of Republicans.

Officials in Republican-led states argue that it would lead to disinvestment in fossil fuel companies that provide tax revenue and jobs in their states, making it a top target of right-wing commentators and politicians. . . . . “It’s become a liberal versus conservative, Democrat versus Republican issue.”

The Labor Department rule is likely to remain on the books, as Republicans do not appear to have the votes to overturn a promised veto.  But the House vote on Tuesday was just the start of what’s expected to be a lengthy campaign against E.S.G.

Already this month, Representative Patrick McHenry, the North Carolina Republican who leads the House Financial Services Committee, announced the formation of a “Republican E.S.G. Working Group.” Republicans plan hearings this year at which conservative lawmakers are likely to grill executives from some of the nation’s biggest banks on their views about climate change, social issues and more.

As the Securities and Exchange Commission considers a new rule that would require corporations to disclose their carbon emissions, industry groups and Republican lawmakers have been pushing to limit its scope.

Around the country, Republican state treasurers have been withdrawing billions of dollars from firms like BlackRock that they deem “woke.” . . . .To the ranks of wonky risk management professionals who have toiled over the minutia of E.S.G. reports for decades now, the political fracas is perplexing.

As more companies began talking about their efforts to combat climate change and improve diversity, the issue was pushed to the forefront of the corporate agenda. Among the loudest proponents of E.S.G. has been Larry Fink, the chief executive of BlackRock, who has called on companies to reach beyond profit statements to consider the role the private sector could play in addressing societal problems.

That advocacy has made him a target of scathing critiques from conservative commentators and politicians, as well as dark conspiracy theories. . . . “They’re trying to demonize the issues.”

The current E.S.G. backlash can be traced to Texas, where in 2020 oil executives began complaining that big banks like JPMorgan had stopped lending them money. . . . Republican legislators in Austin, as well as officials at the Texas Railroad Commission, the state’s energy regulator, took up their cause.

Senator Sheldon Whitehouse, Democrat of Rhode Island, said he believed the Republican position on E.S.G. was more about ginning up outrage than about just how much of a financial risk climate change posed to long term investments.

“They invent culture-war provocations that drive clicks, and woke capitalism is part of that,” he said.

Mr. Whitehouse added that he believed the fossil fuel industry was responsible for funding much of the pushback. Groups like the Texas Public Policy Foundation, which has been opposing climate action around the country, are supported by oil and gas companies.

Financial institutions caught in the middle of the fight say it makes their work difficult. “It is having an impact,” said Ivan Frishberg, chief sustainability officer of Amalgamated Bank. “It’s a chilling one. It’s a complicated one. And none of that is good for business.”