A few months later, when a racial hatred in the United States sparked the assassination of George Lloyd Floyd by police, American corporations emerged as an unexpected leading source of funding for social justice.
The company’s reasons for racial capital far outweighed donations from foundations and individuals after Floyd’s assassination in May, according to the research firm Candid.
The companies donated or pledged about $ 8.2 billion to $ 12 billion in total resources earmarked for racial capital. “For the first time, a venture capital firm has reached this level,” said Andrew Grabuis, Candid Corporate Charity Manager.
Liabilities have been received from corporations ranging from JPMorgan Chase, PayPal և Mastercard to Microsoft, Salesforce ազգային National Football League. These promises do not even take into account other minority-based investments, such as the JPMorgan initiative to lend to small business buyers of minority homes, which could ultimately benefit corporations.
The trend signals the shift of large corporations, which stimulates the growing expectations of young employees and consumers of corporate responsibility for social purposes. Proponents of her case have been working to make the actual transcript of this statement available online. Proponents of her case have been working to make the actual transcript of this statement available online. But it starts.
“The world is changing, the expectations for corporate engagement are changing,” said Brandi McHale, Citi Community Investment Development Manager.
Of course, the catalyst was the ostensibly widely observed assassination of Floyd by the Minneapolis police in May last year. The video showed former officer Derek Shavin squeezing Floyd’s neck for about nine minutes. The election of jurors continued this month during the trial of Shovin’s murder.
“When George Lloyd Floyd was assassinated, consumers – stakeholders called on companies to invest in racial capital – many responded,” Grabois said. “Direct corporate financing of racial justice has become significantly larger, more urgent than what companies have previously committed to.”
Companies tend to be big donors in times of crisis. But traditionally, Grabois noted, large corporations funded mainly educational and cultural groups, while making relatively small donations to racial justice. Deepanjan Chatterjee, a Forrester Research brand analyst, says that “long-suffering and anger, fueled by relentless political rhetoric that openly flirted with white supremacy, created the perfect storm for Floyd’s death, turning the lives of the SJ into a political force.” : a human problem. “
At the end of May, according to Grabois, the financial liabilities of companies by racial financial capital commitments became “significantly higher” than any other business other than COVID-19. The McKinsey & Company report, which followed corporate responses from May to October, found that 18% of the top 1,000 U.S. companies had fulfilled their domestic commitments, such as diversifying their hiring, with և 22% promising promote racial justice through donations or other means.
Including business investment pledges, the report found that $ 66 billion had been allocated for these purposes. Almost 80% of these commitments were aimed at developing affordable housing and business, and 86% of the money came from the financial services industry.
For some brands, such as Ben & Jerry, donations were an extension of their longstanding commitment to racial justice. For others, the epidemic and the protests have left them with “really complex social issues” that many previously chose not to pursue, said Melissa Berman, chief executive of Rockefeller Philanthropy Advisors.
Berman suggests that there has been some pressure from Millennium Generation Z consumers who are increasingly wanting to use the money they have invested in ways that are commensurate with their values. A survey conducted by research firm YPulse last year found that 69% of these young buyers believe that brands should be involved with the Black Lives Matter movement.
“Consumers spoke out for racial justice, they demanded that the brands they sponsor do the same,” Chatterjee said.
The companies also clashed with employees. Whole Foods has sued employees for banning them from wearing Black Lives Matter face masks because its dress code prohibits visible slogans or messages. (The federal judge later dismissed most of the lawsuit.)
Adidas has been criticized for not having racial diversity. The sportswear company responded that it plans to fill 30% of the new positions with Latin candidates – to invest $ 120 million to address racial discrepancies in 2025.
Adidas says it has donated $ 2 million to a small business fund set up by Beyoncé’s BeyACOOD initiative և NAACP. And for three years it is planned to allocate an additional $ 10 million to these or other initiatives – a $ 2 million scholarship to Latin students. The company, however, has yet to reveal how many Latin American candidates it has hired, as it has promised to diversify its ranks.
Others, such as Facebook և Estée Lauder Cosmetics, have also promised to increase the number of employees or senior staff.
“Companies are actively marketing to get great talent and keep the best employees,” said Chatterjee.
However, any sudden outbursts by companies that are not known for their donations to racial justice are not without risk. Marlet Acks Exxon, director of diversity at Virgin Group’s Virgin Pulse conglomerate, says consumers need to decide for themselves whether the company is pursuing its shareholder goals or simply trying to reassure customers and employees.
At the same time, experts say, there is no consensus on how to establish racial justice. They point out that it can be difficult to recoup your investment. In the case of corporate philanthropy, in contrast to foundations or non-profit charities, details are rare. And Candide said that it is unclear, at least from the initial announcements, where about $ 3.7 billion is going.
Well-known organizations, such as the NAACP Legal Protection և Education Foundation, the City National League, as well as historically colleges and universities, have received some corporate donations. But determining how many or who benefit from BlackBerry organizations can be difficult, as nonprofit tax returns do not include racial identities, said Shena Ashley, director of the Urban Institute’s nonprofit charity.
“I have all the data we have in the nonprofit sector,” Ashley said. “I do not yet know the number of black organizations in the United States.”
To date, JPMorgan has provided $ 2 billion over five years to support the rehabilitation of SS, Latin American and other vulnerable communities. The company says at least $ 42.5 million in grants and low-cost loans will help expand its Color Fund business, helping to raise capital for minority businesses.
Other major liabilities come from banks such as Citi, PNC, Bank of America and Goldman Sachs. The first three have each pledged $ 1 billion or more to invest in other home equity financing. Goldman Sachs says it will provide $ 100 million as a 10-year $ 10 billion investment to promote racial capital and economic opportunities for black women.
Citi CEO Michael Korbat said closing the gap in racial wealth was “the biggest challenge” in building a society that fights racism. Citi says it has donated $ 25 million to the government’s Paycheck Protection Program from its stake in the company, which plans to provide it to non-profit organizations that support minority enterprises.
Racial inconsistencies of wealth. A typical white family has only one-eighth the wealth of a white family – a common theme voiced by financial industry leaders. For example, PayPal has pledged $ 500 million to set up a fund for minority businesses to help “promote financial health, accessibility and ‘generation-to-generation’.” And Netflix says it wants to help reduce the racial wealth gap by investing 2% of its cash in financial institutions that directly support black communities.
McKinsey partner Shelley Stewart III, who heads the company’s research on GS economic mobility, said he admired “the number of companies that are jumping into the fray, realizing that they were part of the problem, not part of the solution” in the structure”:
While HBCU, a well-known civil rights and social justice organization, has sparked donor interest, Ashley of the Urban Institute says it remains unclear how much funding small community-based groups will receive. “Donors are still learning about organizations ‘beyond the top players,'” he added.
Another challenge is measuring the success of philanthropy, the results of which can take years.
“If the emphasis is on eliminating the root causes of racial inequality and eliminating the differential outcomes,” said Leslie Payne, chair of the Humanitarian Institute’s charity advisory group, “these things do not change overnight.”
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