Previously, Governor Ron DeSantis made a very strong issue out of companies hiring based “Diversity Equity and Inclusion. ” While I don’t necessarily agree with Governor DeSantis stand on that matter, I get it. In theory, it makes sense to aspire for the United States to be “race neutral,” though the way DeSantis couches the issue and rhetorically uses it smacks of a clear attempt to play the race card and subtly drum up racist or anti-LGBTQ+ thoughts among the electorate.

But when the right, led by DeSantis transitioned from attacking DEI exclusively to to ESG (Environmental Social Governance) a few sinister things became obvious: 

1- They don’t understand how free market capitalism & innovation has worked over generations in this country. They spit in the face of American capitalism and its long history. Companies that don’t have a responsible governance philosophy have always faced a backlash from the public. Short-term profits often turn to long-term misery for companies in the free market if some social consciousness is not applied. There are countless examples of this happening in US History.

2- They are captive of the donor class including the likes of Peter Thiel and Elon Musk.  

3- If they get their way American capitalism will fail and the planet will suffer.

The reality is this. Companies need to respond to current market demands and place long-term bets so they don’t go out of business down the road for failure to anticipate changes that impact their bottom line. This means understanding how social movements and attitudes are changing throughout the country and grappling with the impact of Climate Change and environmental concerns. Companies and industries that don’t pivot will likely go out of business or be gobbled up by competitors that do pivot. And for those companies shareholders will be left holding the bag. This is something that has characterized free enterprise in the US since its beginnings.

E.S.G is as old as American capitalism itself, and is precisely how we’ve had the most robust market with the most innovation of any nation-state on the planet.

Those who attack E.S.G. led by Governor DeSantis make it clear that all they care about is social issues and they’re performative play acting. They feign like they understand economics, but in reality all they care about is rewarding donors who don’t want to compete in a marketplace where others are innovating and responding to market demands. 

They then use a need to reward certain donors like the Musk’s and Thiel’s as some sort of great social cause, to throw red meat to a base already fired up by inflamed MAGA-rhetoric in the last few years (though something we’ll explore further in the near future is how Trump himself has avoided LGBTQ+ issues and some racial code when compared to DeSantis). As we’ve repeatedly discussed on this site, DeSantis m/o is rewarding donors while masking that naked tansactionalism with some sort of trumped-up social agenda. This is yet another example of that.

Don’t be fooled by DeSantis. ESG is not only good for the United States, it’s what we’ve long practiced in this country. Additionally, it’s NOT an extension of DEI, but merely a continuation of 200+ years of innovation and adjustment to changing market conditions and social attitudes in society.