SE Valley Times

Congressman Andy Biggs has introduced the Stop Woke Investing Act, a legislative proposal aimed at encouraging corporate America to focus on financial responsibilities rather than social priorities. The bill addresses the Securities and Exchange Commission's (SEC) authority over shareholder proposals that public companies must consider. According to Congressman Biggs, under the current administration, the SEC has restricted companies' ability to exclude certain environmental, social, and governance (ESG) proposals.

The proposed legislation would allow businesses to reject shareholder proposals that are deemed unrelated to their financial success. It also seeks to limit the number of proposals on which a company can vote, prioritizing those that align with shareholder interests. Congressman Biggs stated, "Woke activism shouldn’t be placed ahead of the profitability of a public company."

He further commented on the influence of ESG priorities: "Businesses should not be enslaved to radical ESG priorities that pull attention away from their fiduciary responsibilities." He emphasized that such policies could harm businesses and investors while affecting the American economy.

Grover Norquist, President of Americans for Tax Reform, expressed support for the bill. He noted that activist investors have increasingly pushed resolutions focusing on ESG-related priorities that may conflict with management's duty to maximize returns for shareholders. Norquist said he supports Rep. Biggs’s initiative because it limits extraneous resolutions and ensures they materially affect financial performance.

The bill is cosponsored by Representatives Andy Ogles, Eli Crane, and Eric Burlison. Senator Eric Schmitt has shown leadership on this issue in the Senate.