Weekly Opinion Editorial
DANCE WITH THE ONE WHO BROUGHT YOU!
by Steve Fair
In May of 2022, House Bill # 2034, authored by
Rep. Mark McBride, (R-Moore) and Sen. Mark Allen, (R-Spiro), was signed into
law. Titled the Energy Discrimination
Elimination Act of 2022, it requires the state to divest from any financial
company that boycotts the energy industry.
McBride said, “This law protects all Oklahomans from the overreach of
companies who think they can govern our population through the use of political
environmentalism.” Legislative Democrats
said the law protects the oil industry in Oklahoma and they believe the oil
industry can take care of itself. McBride
countered that the energy sector was a major employer in the state and
contributed billions to the state’s economy and loyalty mattered.
On Wednesday,
State Treasurer Todd Russ, (R-Cordell) notified thirteen (13) financial
institutions they are not eligible to conduct business with the state of
Oklahoma because they violate HB#2034.
The businesses now have the opportunity to clarify their activities and
then there is a step-down period before the bank/financial institution are
kicked to the curb. Three observations:
First,
companies who have ESG policies must be willing to face the consequences. Environmental, Social, and Governance (ESG)
investing refers to a set of standards for a company’s behavior used by
socially conscious investors to screen potential investments. Bottom line: a bank with an ESG policy doesn’t
invest in oil/gas companies. Most
financial experts agree ESG policies are significantly more risky than non-ESG
policy. Oklahoma taxpayers are better off not having
their money being invested by ‘woke’ bankers.
Second, the
energy sector is king in Oklahoma.
According to the Oklahoma Energy Resources Board, the total economic
impact of 4,000 oil and gas businesses in the state in 2022 was $64.9 billion, a
whopping 27% of the state’s total economic activity. Nearly 200,000 Oklahomans, making $24 billion
dollars are directly or indirectly employed by the energy sector. As the old saying goes: ‘dance with the one
who brought you.” In other words- be
loyal!
Third, Todd
Russ is enforcing the law. That should
be commended. All too often, elected
officials are relucent to do the hard part of the job. Russ
received questionnaires from nearly 160 financial institutions and after identifying
thirteen (13) who have ESG policies that violate HB#2034, he notified state entities/agencies. They are to contact the offending financial
institution and give them a chance to ‘explain themselves,’ before they are
given the boot. It remains to be seen if
the bureaucrats will be as vigilant as the treasurer. The agencies have a year to get it done.
In the
1960s, businesses, big and small, focused exclusively on profit. Businesses were not expected to have a conscience.
They provided jobs. The purpose of a business was to create customers and to offer
value to those customers. Changing the
world and public policy wasn’t a business objective- maximizing profit was
their cornerstone.
Corporate Social Responsibility (CSR), the precursor of ESG came along in the late 1960s. A few businesses began to market and position their company and brands to appeal to social conscious consumers. Sixty years ago, that was a narrow/niche market, e.g.: Ben & Jerry’s Ice Cream. Fast forward to 2023 and CSR/ESG is now mainstream. The list of banks Russ released includes Blackrock, Wells Fargo, J.P Morgan, and Bank of America, some of the largest financial institutions in the country. Blackrock has already announced they are willing to lose the business- they are not willing to change their ESG policy. Standing up for a liberal cause and willing to lose profit is admirable- unless you own stock in Blackrock. Consumers can change a businesses’ policy by boycotting businesses who implement policies Business policy/convictions/conscience change rapidly when profits are impacted by dumb decisions. Alienating half of potential customers isn’t a sound strategic initiative.
No comments:
Post a Comment