A Christian investment firm has announced it will be filing shareholder proposals this year targeting 38 large companies in a campaign intended to get them to “stay out of contentious social issues” and “focus on shareholder value.” Corporate board members at the targeted companies (and others) will now need to determine whether their company is engaged in any controversial social issues and develop strategies to defend against having their business policies labeled as “woke,” or worse, illegal.
According to a report from Fox Business, Inspire Investing, which manages more than $4 billion in assets, will file separate shareholder proposals at the 38 companies, which include Costco, McDonald’s, Nike, Nvidia, Oracle, Mastercard, Alphabet, Meta and Microsoft. The proposals target company policies related to access to abortion pills, artificial intelligence use, de-banking, diversity, equity and inclusion (DEI) and more.
Inspire Investing CEO Robert Netzly told Fox Business, “What we’re asking companies to do is to return to neutrality. And the purpose of these proposals is that we want companies to treat all our customers and employees fairly, and to focus on their core business and to stay out of divisive political issues that could expose the company to customer backlash, legal and financial risk.”
Inspire Investing plans to file the shareholder proposals whether the targeted companies have been profitable or not.
Corporate board members can bet that Inspire Investing will not be the only investor filing anti-ESG proposals in 2026. Last year, the Trump administration signaled that it would be filing anti-DEI lawsuits against corporations, which could contribute to an increase in the number of anti-ESG shareholder proposals this year. Nike was recently hit with a federal probe over its DEI policies by the administration.
Corporate boards of companies currently targeted by Inspire Investing and others that may be targeted in the future might want to consider the following:
• Conduct a careful legal review of the language used in all business policies. Shielding the company from legal risk must be a priority. How policies and strategies involved in business operations are described can be used against your company. Corporate boards must be sure the company is not violating any federal, state or local laws regarding DEI, environmental issues, employee rights, etc. Keep in mind that groups like Inspire Investing are focused on ending anything that could be considered a “progressive” or “woke” agenda. Even after a company’s policies pass a thorough review by the legal team, a strategic defense of its policies should be crafted with the help of investor relations.
• Seek support of business policies from other shareholders. If your company has received a shareholder proposal against your business practices, it may help if you have other shareholders that are publicly in support of those business practices. If directors can prove that most shareholders believe what the board is doing is good for business, and the company is profitable, it will likely lead to any shareholder proposal against you being voted down.
• Confirm that the company’s current D&O insurance is adequate for the evolving nature of ESG risks. As what constitutes political and social risk has expanded, the decision-making of corporate boards has come under more intense scrutiny. D&O insurance must provide protection that reflects the expanded interpretation of those risks. In the current politically charged environment, shareholders and others may attempt to hold directors personally liable for certain business decisions of the board. Corporate board members must be sure to guard against that eventuality. Increase D&O insurance accordingly.
