Under the leadership of Gary Gensler, the Securities and Exchange Commission (SEC) is empowering activist investors to pursue their preferred politics and social causes at the expense of investors’ interests. According to a November 3, 2021 SEC staff memo
Staff will no longer focus on determining the nexus between a policy issue and the company, but will instead focus on the social policy significance of the issue that is the subject of the shareholder proposal. In making this determination, the staff will consider whether the proposal raises issues with a broad societal impact, such that they transcend the ordinary business of the company. (Emphasis added)
This admission is stunning. No longer hiding behind a false claim that ESG shareholder proposals improve profits, the SEC is greenlighting actions that could harm investors but achieve a politically correct social goal.