Letter to the Securities and Exchange Commission outlines financial contributions to anti-diversity organizations despite DEI pledges
Concord, Calif. – May 7, 2024 – Today, the National Institute for Workers’ Rights (NIWR) sent a letter to the Securities and Exchange Commission (SEC) requesting that the agency investigate Goldman Sachs for “possible violations of the securities laws.” The investment bank and financial services company has publicly pledged to “meet targets for a more diverse workforce” while simultaneously funding anti-diversity organizations that are attacking diversity, equity and inclusion efforts at companies and organizations.
According to available Form 990s from 2023, Goldman Sachs has provided financial support to anti-diversity causes and organizations through one of its donor-advised funds (DAFs). Two of the primary groups receiving funds, Students for Fair Admissions (SFFA) and America First Legal (AFL), have it as a central part of their mission to make diversity, equity and inclusion efforts unlawful. Goldman Sachs is clear that it “owns the assets” of its DAFs and has “final authority with respect to all investments and grants to recipient charities.”
“Goldman Sachs told investors they were committed and working aggressively to increase the diversity of their workforce, but they were actually and quietly undermining their own ability to achieve those commitments by funding an anti-diversity, anti-opportunity agenda,” the letter says.
“Funding anti-diversity groups while promoting DEI initiatives at best undercuts Goldman Sachs’ pledges and credibility, and at worst constitutes securities fraud,” said Jason Solomon, director of NIWR. “We know that research on gender diversity and DEI commitments supports the connection between a diverse workforce and an increase in share price. At a time of heightened attention to and concern about opportunities for women and people of color, Goldman Sachs was no doubt trying to appeal not only to investors, but potential clients and employees as well.”
NIWR was motivated to request the SEC investigation as an organization that works towards economic dignity for all workers. Without proactive efforts to break down barriers that have traditionally excluded women and people of color from opportunities at work, discrimination will operate unchecked. Recent research confirms that such discrimination continues to occur at major employers that do not have systematic, proactive approaches to hiring. NIWR is urging companies to not back away from efforts at diversity and inclusion and pointing to the increased litigation risk that will result if proactive efforts at combating discrimination are abandoned.
“There is good reason for investors to consider the ‘human capital’ of a company generally, and DEI efforts specifically, in determining whether to invest,” said Solomon. “We ask the SEC to investigate whether Goldman Sachs was misleading investors about its plans to diversify and strengthen its workforce.”
