Howdy Rowdy
In the last year, as I have mentioned several times, ESG (Environmental, Social, Governance) as a corporate issue has become very mainstream and much debated. Some of this debate is based on philosophical differences between groups that believe it is critical for companies to help society get to the “right” place on important issues in those realms versus others that are simply not used to this sort of extension of the corporate mission or mandate and don’t believe it is appropriately considered as part of the strategic policy issues of boards of directors (be they public companies or private ones). But increasingly, due mostly to the highly divisive political landscape, ESG has become a bellweather tactical issue for politicians and is being used not just in theory, but in practice, to force corporate hands to adhere to their political agendas. The issues that seem to get the most airtime are abortion, LGBTQ+ rights, anti-discrimination policies, and immigration. The right has latched on to a term of art, the word “woke”, which is defined by Merriam-Webster as “aware of and actively attentive to important facts and issues (especially issues of racial and social justice)”. Being “woke” is considered a funny and derogatory state that is likened to political correctness in the most negative of contexts. To many of that inclination, ESG is just the latest acronym for woke and they believe it has no place in the business world.
What seems to have particularly riled up the right is that large investment management firms like Blackrock ($10 Trillion under management) are taking ESG very seriously and their leaders like Larry Fink have been quite vocal about the importance of companies both establishing credible ESG policies, but also implementing them. He has gone so far as to suggest that Blackrock will not invest in companies that cannot show their compliance and success in that regard. I have said that such an edict is the most encouraging tangible sign that our country might yet right itself since even and perhaps especially Republicans care a great deal about such things as whether large institutional investors like Blackrock will choose to look favorably on their portfolio companies. Clearly those that favor fossil fuel companies need only look as far as their old tobacco stock holdings of the past to realize that this sort of investor boycott spells the end of prosperity for the fossil fuel companies as the investment world votes on climate change with their feet rather than with the political allegiances that Republican politicians have been hoping for. The result has been a tumult of political action steps including introducing state laws that “forbid” the state pension funds to work with companies like Blackrock that don’t restrict their considerations on investments to pecuniary issues alone.
As I was working on my syllabus for my ethics course this semester, I felt I was in need of an environmental speaker or case to emphasize the E of ESG to my class. Last semester I had the benefit of a Longhorn Sheep case, but I was looking for something more connected directly to business decision-making. That’s when Rowdy appeared in my inbox. Rowdy works the educational landscape as an advocate for a group called the Factory Farming Awareness Coalition. I’m not sure I really understood what that was all about, but I had the presence of mind to email Rowdy back and ask. He explained enough to me for me to see that his offer to speak to my class on the topic of factory farming was genuine and could possibly be a meaningful environmental and social issue to use with the class as a case study. I find that guest lecturers are extremely valuable for giving students different perspectives and to bring topics in that might go beyond the natural scope of my awareness. I am quite sensitive in my ethics course not to spend too much time focused on financial services industry topics since most of my students in that class are not finance majors. I decided to give Rowdy a whirl and to use him to effectively kick-off the ESG conversation with the class.
I met Rowdy before class and bought him dinner at a noodle restaurant near campus. As I waited for him I decided that it was only polite of me to order something vegan off the Asian menu since I knew enough about his topic to know that he was decrying the meat/fish manufacturing complex and the ills that it foists apron our society. When he arrived, I told him of my plan to respect his views for my dinner and he was decidedly open to the idea that I should eat whatever I wanted and that he would not take offense. Nonetheless, I ordered vegetable gyoza rather than pork gyoza and a tofu noodle curry dish rather than something with meat or chicken in it. Rowdy seemed, at best, mildly pleased, but I was very pleased with myself. Eating vegan is something I had never done nor even considered doing and here’s the thing. I actually liked the food. Make anything well and spice it up and it can be quite good with or without your favorite animal protein.
We then went to class and I sat and listened as Rowdy launched into his subject matter. From the very start I was impressed that Rowdy, who has been doing this work for seven years now, really knew his subject matter and did a fine job of making his arguments and statements compelling without making them preachy. He was all about laying out the facts and realities for the class and he complied with my biggest request of him, which was to make sure to tie everything back to business decisions that my students might logically be called on to make in the coming years. The more I listened the more I became intrigued about the topic of Factory Farming. I actually think the subject suffers from the wonky name and could really benefit from some branding assistance from a professional. What I liked the most was that while there were a few pictures of little piglets behind bars and chickens jammed beak to jowl with one another in high-density pens where their lives are a function of what they cannot see or do rather than the opposite, the real power of the advocacy was in the impact that this factory farming practice has on our environmental and societal lives. I would go so far as to say that it is as harmful to us collectively as anything that goes on in the fossil fuel industry and that is saying a mouthful (pun intended).
The issue is equally fraught with the added problem that this is not about the optionality of driving solo to work, but about what we put in our mouths every day. Few things are as culturally aligned and sensitive as the food we eat since it is both about nutrition AND about socialization both at the family level and the professional level. Rowdy was supposed to go for an hour and I finally kicked him out to go feed his dogs at 90 minutes. The students wished that we had more time to discuss it because it struck them as a highly controversial and extremely important topic just like it did to me.
I am not sure I will be going vegan any time soon, but I assure you, awareness is an important first step in the process of addressing an important issue like this. Just like ESG is now a big part of my thought process every day, I suspect Factory Farming (or whatever better name it can adopt) will soon be in the same place for me. I expected much less of Rowdy and can only say Howdy Rowdy, you really got through to me.