South Carolina State Treasurer Removes Disney from Approved Investment List, Citing “Structural Rot” and “Far-Left Activism”
State Treasurer Curtis Loftis claims Disney’s focus on liberal activism has compromised its fiduciary responsibilities and led to a decline in market performance.
South Carolina State Treasurer Curtis Loftis has made the controversial decision to remove The Walt Disney Company from the state’s approved investment list. Loftis, a Republican, cited a “structural rot” within Disney, accusing the company of prioritizing “far-left activism” over its fiduciary responsibilities to investors. With approximately $70 billion under his management annually, Loftis’s move carries significant weight. In this article, we explore Loftis’s concerns, Disney’s response, and the implications of this decision on the company’s financial future.
Loftis’s Critique of Disney’s ESG Focus
Loftis argues that Disney’s adoption of environmental, social, and governance (ESG) principles has veered into liberal activism rather than genuine corporate responsibility. He claims that ESG, which he sees as a speech and behavior code created by the left, has led to a loss of talent and a decline in market performance. Loftis contends that the company’s focus on ESG has compromised its fiduciary duties and alienated its audience, resulting in underperforming movies and a significant decrease in market capitalization.
Disney’s Admission of Political and Social Agenda’s Impact
Disney recently acknowledged in a Securities and Exchange Commission report that its political and social agenda has had a negative impact on the company and its shareholders. This admission came after Disney halted advertising on Elon Musk’s social media platform, X, due to concerns over the placement of ads next to certain content. Loftis sees this move as evidence of Disney’s abandonment of its fiduciary responsibilities and its alignment with other billionaires in an attempt to stifle free speech.
Loftis’s Concern for Free Speech
Loftis believes that Disney’s actions, including the advertising boycott on X, are an attempt to silence free speech. He argues that the company’s actions are not only detrimental to the platforms they target but also to the working-class and middle-class individuals who rely on these platforms for their voices to be heard. Loftis condemns the involvement of billionaires in what he perceives as an unfair fight against those who cannot afford to defend themselves.
Removal of Disney from South Carolina’s Approved Investment List
As a result of his concerns, Loftis has removed Disney from South Carolina’s approved investment list. While the state will allow existing Disney debt instruments to mature as scheduled, they will not be replaced. Loftis emphasizes that this decision was made to avoid any financial cost to the state. He also criticizes other companies participating in the advertising boycott on X, accusing them of acting like “hooligans in a gang fight” and disregarding the interests of investors.
Conclusion:
South Carolina State Treasurer Curtis Loftis’s decision to remove Disney from the state’s approved investment list highlights his concerns about the company’s prioritization of liberal activism over fiduciary responsibilities. Loftis’s critique of Disney’s adoption of ESG principles and its impact on market performance raises questions about the balance between corporate responsibility and financial success. As Disney faces scrutiny from a prominent state treasurer, the company must address these concerns and navigate the delicate balance between its social agenda and its obligations to shareholders.