Washington Free Beacon Race-conscious credit agreements are incentivizing illegal hiring practices across corporate America
Amid an uptick in race-conscious hiring programs throughout corporate America, many prominent businesses are now writing racial and gender quotas into their credit agreements with banks, tying the cost of borrowing to the companiesâ workforce diversity, a Washington Free Beacon analysis found.
The businesses that have struck such agreements include the pharmaceutical giant Pfizer, the consulting groups Ernst & Young and AECOM, insurers Prudential and Definity Financial, private equity firms BlackRock and the Carlyle Group, the technology company Trimble, and the telecommunications giant Telefónica.
Over the past two years, each of those companies has secured a lending agreement, known as a credit facility, that links the interest rate charged by banks to the companyâs internal diversity targets, creating a financial incentive to meet them. If the business achieves its targets, it wonât have to pay as much interest on the loans it takes out; if it falls short, it is required to pay more…
