The Securities & Exchange Commission this past July has proposed amending Item 407(c)(2)(v) of Regulation S-K to require disclosure of racial and ethnic diversity on corporate and related nonprofit fund boards. We have submitted a comment of opposition because we believe this rule change to be a highly misguided intrusion into corporate governance.
Even assuming benign intent – and that is a stretch of an assumption – the outcome would be anything but benign. Anyone with sound instincts knows that any submitted information would be fair game for organizations seeking to tie executive compensation to the creation of a rigorously-monitored affirmative action spoils system.
The SEC was established 75 years ago for the purpose of protecting investors in publicly-traded securities against fraud and incompetence. Now more than ever this mission must be paramount. Whether the proportion of blacks, Hispanic, Asians and other minority groups in a given company adds up to …
Published in July 2007, the report compares “diversity training” to thought control. Click here or on the cover to the right to download the 16-page pdf version.
“Diversity training” is a term that describes a brief, but intensive program of lectures, presentation of written and audio-visual materials, and perhaps most ominously, participation in role-playing exercises, all of which are intended to heighten employee awareness of potential sources of racial and ethnic conflict. The report argues that diversity training is counterproductive and instead results in weakened company morale and increased racial resentment.
Carl F. Horowitz, director of NLPC’s Organized Labor Accountability Project and the study’s author, observes:
Even in mild form, diversity training is manipulative and abusive, creating a double standard in which blacks and other nonwhite employees can criticize or complain about whites, but whites can never answer in their own defense.
That CEOs and other corporate officials not