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The $50 Billion Promise
Corporate America cracked open its wallets, promising $50 Billion to fight back against systemic racism. Yet, the black community only benefited from just 10% of that. $4.2 billion in grants isn't even 1% of the net worth of the top 50 companies in America in 2020. Between February and April of that same year, black-owned businesses declined by 41%.
You can find the actual receipts of Corporate America's promise below:
DEI Commitment:
Why is it so important?
Having closed the inequality gap 20 years ago, America would have been $16 trillion richer. DEI practices have reduced employee turnover by 50% in companies with good DEI practices. The cost of recruiting and onboarding replacement employees is high for a company. An inclusive brand attracts a wide range of consumers from diverse backgrounds.
Diversity, equity, and inclusion benefits everybody!
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Corporate America is missing out on the opportunity to drive innovation and growth by creating business value and greater reach into international markets, which advancing racial equity would do.
“For companies, a focus on racial equity is critical in order to innovate, to create products and services that serve a more diverse consumer base, and to cultivate a strong workforce,” according toPolicyLink and FSG, The Competitive Advantage of Racial Equity.
The Rockefeller Foundation
More than a year after these pledges were made, many companies and institutions have not shown demographic data and have not shared disaggregated numbers that reveal advancement and turnover rates for marginalized employees.
One could theorize that corporations are incentivized to donate large sums of money as a band aid to remedy systemic racism. Two incentives that are important to mention:
1. tax write-offs from these investments and donations, and
2. the public admiration that comes from charitable giving.
But throwing money at a problem will not make it go away—particularly a problem that has been festering for hundreds of years.
Forbes
“The answer to these massive problems is not in capitalism doing better or more. It’s not going to come from philanthropy. It’s not going to come from promises. It’s got to be a policy change,”
Mehrsa Baradaran, The Washington Post
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