As an outgrowth of the recent Supreme Court ruling striking down race-based admissions at two top universities, Corporate DEI (Diversity, Equity, and Inclusion) programs are under legal attack for violating non-discrimination and equal opportunity laws. DEI programs extend into company supply chains as well, thanks to supplier diversity programs which have favored specific demographic ownership over others in terms of contract award decisions and even specific set-asides. In the Supreme Court ruling, Chief Justice Roberts observed that the Constitution’s Equal Protection Clause may never be used in the negative or operate as a stereotype. In other words, you can’t harm specific classes of individuals by favoring another. The Supreme Court found that The University of North Carolina violated the Equal Protection clause by … [Read more...] about The Costly, Illegal Secrets of Corporate DEI
Industry News
Whatever Happened to ESG?
ESG (Environmental, Social, and Governance) investments were the "hot" new thing in recent years. Investopedia defines ESG investing as referring to "a set of standards for a company's behavior used by socially conscious investors to screen potential investments." Supporters of ESG investing claim it improves customer satisfaction and loyalty, reduces the chance of supply disruptions, enhances hiring and retention, and helps increase the stock price by adding ESG investment funds to the list of potential investors. These claims may or may not be true. As the saying goes, "it's complicated." But even those skeptical of ESG who focus their own efforts on operational efficiency and working capital, will find common ground with another claimed benefit for manufacturers investing in it — reduced waste. This can include implementing … [Read more...] about Whatever Happened to ESG?
Manufacturing Unemployment & Tactics for Employers
It’s a good time for industrial job seekers. Not only is overall employment strong, but a scarcity of skilled talent has put many job seekers at an advantage, relative to the past. The health of the manufacturing economy and jobs growth is best told by the numbers. According to the U.S. Bureau of Labor Statistics, the total nonfarm payroll employment rose by over 200,000 jobs in August and the unemployment rate stood “unchanged” at 3.9%. And manufacturing employment for the year is “up by 254,000, with more than three-fourths of the gain in the durable goods component.” The macroeconomic climate for manufacturers (which will drive jobs trends in the months and quarters to come) looks as healthy as the jobs market. According to the Institute for Supply Management, the August PMI (manufacturing index) rose to its highest level since … [Read more...] about Manufacturing Unemployment & Tactics for Employers
The Coming Presidential Election: More Economic and Trade Debate Needed
The 2020 Presidential Election promises to be one of the most contested elections in US history. According to The New York Times, 25 candidates (23 Democrats and 2 Republicans) are already running for the highest elected office in the United States. If you’re curious about the other Republican candidate in addition to Donald Trump that is running, it’s none other than libertarian Bill Weld – about as opposite to Trump a candidate can get in terms of trade policy. This may prove more harmful to the Democrat cause within the historic blue-collar base which has been the largest beneficiary of low unemployment and Trump’s approach to trade. From a quantitative perspective, the actual numbers speak to Trump’s comparative success in recent quarters and the impact of his controversial trade policies on the overall economy. From October … [Read more...] about The Coming Presidential Election: More Economic and Trade Debate Needed
The Final Burial of Democracy in Hong Kong?
Over two decades ago, I hired an old friend from prep school to lead the Hong Kong office of a fast-growing sourcing tech company I worked for. A Westerner with strong Chinese language skills and a graduate student in Asian history, he took a somewhat eccentric British pride in riding his old Triumph motorcycle around the streets of Hong Kong, the loud bike harkening back to the old days of British rule every time it backfired, perhaps. There is no rumble of that old motorbike anymore. While the latest tariff waves and currency devaluation rumbles have captured the U.S. and China headlines of late – as the overall situation appears to continue to deteriorate, perhaps for the better, perhaps for the worse – what we find just as fascinating and as important to understand China’s ambitions is its continued crackdown on the last … [Read more...] about The Final Burial of Democracy in Hong Kong?
