Illinois state representatives have shed some light on what is probably going to come across the country in the near future: a requirement to have a woman and an African American on a corporate board. This policy is completely racist and against the freedoms instilled by core values of many businesses and organizations across the nation.
The debate was very heated including lots of shouting and multiple calls of racism; however, the vote passed.
What’s important here is that they haven’t mentioned the size of the companies, so anything that is registered as a corporation and is publicly-held in any way (including those with penny stocks or minimal to no value), are required by Illinois law now to have at least one woman and at least one African American on its corporate board.
The bill explicitly states: “No later than the close of the 2020 calendar year, a publicly held domestic or foreign corporation whose principal executive offices, according to the corporation’s SEC 10-K form, are located in Illinois shall have a minimum of one female director and one African American director on its board of directors.”
Not only is this policy completely racist, it is dictating and a form of government interference in businesses. This will likely lead to a large outcropping of businesses from Illinois to other states, especially large entities whose shareholders are likely to find negative value in forced racial competitions.
It also doesn’t address the factor on if a company is registered in Illinois or just operating in Illinois, which will likely lead to corporations restructuring in other states to avoid dictating and racist laws.
Diversity requirements measuring gender and race are racist and sexist in themselves. These two categories are the easiest to measure diversity, so weak organizations and government entities try to impose these categories on others; however, real diversity is measured in terms of thousands of categories that are a bit more difficult to measure. Using race as a requirement is racist and limiting to other races, and this is working backwards, not forwards, and returning to a new age of racism that imposes against the opposite races.
The fine for failing to abide by this law is $300,000 according to the state, which is a massive amount of money for most publicly-held corporations, in which 86% of them earn under $10 million per year in profits. This goes to show how out of touch with reality this government truly is, as they think every “corporation” is some massive earning center.
California previously passed a similar law, but only in regards to women.