HONEST Enterprise Act

To establish the Compassionate Capitalist Award to recognize organizations that substantially benefit the well-being of their employees, stakeholders, and communities, and for other purposes. 1. Short title This Act may be cited as the Honoring Organizations Nationally for Ethics, Sustainability, and Trust Act HONEST Enterprise Act 2. Establishment of the Compassionate Capitalist Award (a) In general There is established the Compassionate Capitalist Award (in this section referred to as the award (1) bear the inscription the Compassionate Capitalist Award (2) incorporate such design and materials, and bear such additional inscriptions, as the Secretary of Commerce (in this section referred to as the Secretary (b) Presentation of award The President or the Secretary shall annually present, with such ceremonies as the President or Secretary determines appropriate, the award to organizations nominated under subsection (d) (1) Environmental stewardship The degree to which an organization has in place practices to manage the environmental impact of its operations, supply chain, and distribution channels, including with respect to air, water, land, biodiversity, and climate effects. (2) Governance The mission, ethics, and transparency of an organization, including, if applicable, the organization’s corporate leadership structure and executive compensation. (3) Social responsibility The degree to which an organization contributes to the communities in which it operates and obtains resources from, including the organization’s practices with respect to diversity, equity, inclusion, civic engagement, charitable giving, and refraining from doing business with exploitative countries. (4) Worker empowerment The degree to which an organization contributes to the financial security, workplace safety, healthcare coverage, wellness, engagement, satisfaction, and career development of employees, and the degree to which an organization provides a fair and living wage. (c) Eligible organizations (1) In general The President or the Secretary shall present the award to at least one organization each year in each of the following categories: (A) Small businesses (at least 10 and fewer than 50 employees). (B) Midsized businesses (at least 50 and fewer than 250 employees). (C) Large businesses (at least 250 employees and fewer than 1,000 employees). (D) Very large businesses (at least 1,000 employees). (2) Total number of awards Not more than 18 awards may be awarded each year. (3) Exception Notwithstanding paragraph (1) (d) Establishment of board of directors (1) In general The Secretary shall establish a board of directors to nominate organizations for the award and assist with administration of the award. (2) Composition The board shall be composed of the following: (A) The Assistant Secretary of Commerce for Economic Development, who shall serve as chairperson of the board. (B) The Administrator of the Wage and Hour Division of the Department of Labor, who shall serve as vice chairperson of the board. (C) At least 6 individuals appointed by the Secretary of Commerce, who shall include— (i) 2 individuals representing independent nonprofit entities that have demonstrated leadership and excellence in the field of standard setting and measurement with respect to stakeholder impact; (ii) 2 individuals representing corporate business entities that have demonstrated a history of service to society; and (iii) 2 individuals representing organized labor entities or worker advocacy organizations. (3) Diversity In making appointments to the board, the Secretary shall take actions to ensure the diversity of the membership with respect to race, ethnicity, and gender. (4) Evaluation tool The board shall seek to enter into agreements with appropriate entities to obtain an online evaluation tool that meets the requirements of subsection (e) paragraph (1) (5) Additional verification The board shall take actions to verify the accuracy of the facts presented by organizations seeking nomination for the award, including by soliciting employee feedback. (6) Annual report The board shall annually submit to the Secretary a report that includes— (A) nominations for the award; and (B) an assessment of the process for presenting awards under this section, including recommendations for improving such process. (e) Evaluation tool requirements and analysis (1) In general The evaluation tool described in subsection (d)(4) (A) with respect to producing the numerical scores described in subparagraph (B) subsection (c)(1) (B) provide for each organization considered for an award a numerical score with respect to each of the areas specified in subsection (b) (C) provide for each organization considered for an award a total numerical score. (2) Analysis of results The board shall seek to enter into an agreement with an office of the Department of Commerce, or a contractor with the appropriate expertise, for such office or contractor to conduct analyses of the numerical scores described in paragraph (1) subsection (d)(1). (f) Award eligibility requirements (1) Application An organization may be considered for an award upon submitting to the Secretary an application in such form, at such time, and containing such information as the Secretary determines appropriate, including information necessary for purposes of the evaluation tool described in subsection (d)(4) (2) Application fees The Secretary may charge a fee to submit an application under paragraph (1) subsection (j) (3) Prior recipient qualification An organization that has previously received the award is eligible to receive an additional award if at least 5 years have elapsed from the date such organization previously received the award. (4) Donor ineligibility An organization that makes a gift described in subsection (i) (g) Modification of areas The Secretary may, on the basis of recommendations made by the board and developed in consultation with the Climate and ESG Task Force in the Division of Enforcement of the Securities and Exchange Commission, make modifications to the areas specified in subsection (b) (h) Information transfer The Secretary shall issue to each organization that applies for the award— (1) the results of the evaluation with respect to such organization; and (2) information with respect to the organizations to whom the award was presented and the practices that the Secretary used as a basis to present such award to such organizations. (i) Solicitation of gifts The Secretary may solicit and accept gifts from public and private entities to carry out this section and shall deposit any such gifts into the account of the revolving fund established under subsection (j) (j) Revolving fund (1) Establishment There is established in the Treasury a revolving fund to be known as the Compassionate Capitalist Award Fund Fund (2) Contents of fund The Fund under this subsection shall consist of the following amounts: (A) Amounts deposited by the Secretary under subsection (f)(2) (B) Amounts deposited by the Secretary under subsection (i) (C) Such other amounts as may be appropriated under law. (3) Use of amounts Amounts in the account of the Fund under this subsection shall be available to the Secretary, without further appropriation, to carry out this section. (k) Report Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the President and Congress a report on the progress made with respect to the award and any recommendations relating to the process of presenting such award. (l) Public availability of award information Not later than 1 year after the date of enactment of this Act, the Secretary shall establish and maintain a publicly available Government website that includes, with respect to the awarding of awards each year, information concerning— (1) the organizations nominated for an award under subsection (d)(1) (2) the process by which organizations nominated for an award are evaluated; and (3) the performance metrics which can be used to determine best practices for each category of business described in subsection (c)(1) subsection (b)

Summary: Honoring Organizations Nationally for Ethics, Sustainability, and Trust Act or the HONEST Enterprise Act This bill establishes the Compassionate Capitalist Award to be presented to organizations that substantially benefit the well-being of their employees, stakeholders, and communities with respect to the areas of environmental stewardship, governance, social responsibility, and worker empowerment. The bill also establishes the Compassionate Capitalist Award Fund in the Department of the Treasury—composed of application fees charged to submit an application for the award and any gifts that the Department of Commerce may solicit for this purpose—to carry out the bill's provisions.