New Research on How Companies Can Advance Racial Equity and Create Business Growth
April 11, 2019 /3BL Media/ — As businesses across the nation vie to increase revenue and market share, they are seeking not only to retain customers but also to continually expand into new markets. Much has been written about the demographic change engulfing the American market: by 2045, a majority of people in the U.S. will be of color; indeed, a majority of young people in the country are already of color.
People of color in the United States suffer worse socioeconomic outcomes in most aspects of their lives—health, education, career, access to financial services, or experiences with the criminal justice system—than their White counterparts.
If customers, employees, and suppliers continue to experience racial inequities, then businesses will suffer from a less productive workforce, missed market segments, and fewer suppliers from which to choose.
However, companies that focus on creating racial equity are poised to produce great benefits for all these stakeholders.
New research from FSG and PolicyLink, funded by the Robert Wood Johnson Foundation, identifies actions that can help companies prosper by addressing the distinctive needs of customers of color.
“Corporations have a golden opportunity,” says Michael McAfee, CEO and president of PolicyLink, “to use their business acumen to generate profits by designing and delivering services and products that eliminate the growing racial disparities in wealth and health in the nation.”
“All too often, diversity and inclusion practices at companies can be peripheral to corporate strategy, product development, and operations, and this limits their ability to address many critical aspects of racial inequity. Our research highlights the importance of practices companies can use to advance racial equity through their core business,” says, Mark Kramer, FSG co-founder and managing director.
FSG is a mission-driven consulting firm supporting leaders in creating large-scale, lasting social change. Through customized consulting services, innovative thought leadership, and support for learning communities, we help foundations, businesses, nonprofits, and governments around the world accelerate progress by reimagining social change. Learn more at www.fsg.org.
PolicyLink is a national research and action institute advancing racial and economic equity by Lifting Up What Works®. PolicyLink is guided by the belief that the solutions to the nation’s challenges lie with those closest to these challenges: when the voice, wisdom, and experience of those traditionally absent from policymaking drive the process, profound policy transformations can emerge. Learn more at www.policylink.org.