In a surprising move, South Carolina has decided to sever its investment ties with The Walt Disney Company. State Treasurer Curtis Loftis announced the decision in a press release, stating that Disney has “abandoned its fiduciary responsibilities to its customers and investors ” due to its passion for far-left activism.
The state’s Treasurer’s Office currently holds $105 million of Disney debt instruments in its portfolio, which will be allowed to mature as scheduled and will not be replaced. Loftis emphasized that this decision directly responds to Disney’s involvement in boycotting legal, taxpaying corporations for political reasons.
Though Loftis refrained from citing specific companies, the recent involvement of Disney in the advertising boycott against Elon Musk’s X (formerly Twitter) has sparked apprehension. Loftis contends that significant corporations should refrain from participating in boycotts to stifle valid discourse. He underscores the significance of freedom of speech as a fundamental American principle, asserting that Disney should not endorse actions that undermine the voices of those who wield less influence and financial resources.
Another point of contention for South Carolina is Disney’s opposition to Florida’s Parental Rights in Education Law. Disney has been actively fighting to repeal this law, which prohibits the indoctrination of public school students into radical gender and LGBTQ ideology. This effort to nullify the will of Florida voters has further fueled the state’s decision to cut ties with Disney.
Interestingly, this move by South Carolina came when Disney planned to expand its presence in North Carolina. The company recently announced its intention to build a residential community named “Asteria” near Raleigh, Durham, and Chapel Hill under its “Storyliving by Disney” brand. While South Carolina takes a step back, its left-wing neighbor may become the new home for Disney’s ventures.
The decision made by South Carolina to divest from Disney reflects a growing concern among investors about the role corporations play in politics and social issues. As the boundaries between business and activism continue to blur, how this will impact the relationship between companies and their stakeholders remains to be seen.