Nicole Cardoza Nicole Cardoza Nicole Cardoza Nicole Cardoza

Analyze corporate commitments to racial equity.

But race is a social construct, and social constructs have social histories. Our The first place generating criticism is in financial commitments. Companies in the U.S. pledged a collective $50 billion to various racial initiatives (Financial Times), an unprecedented response to social issues (Washington Post). But, research indicates that only $250 million has actually been spent or committed to a specific initiative (Financial Times). William Cunningham, the chief executive of Creative Investment Research, who published the study, notes that until those funds are actually spent, there’s no reason they couldn’t be retracted or allocated to another initiative. Another survey found that tech companies that made commitments have 20% fewer Black employees on average than those that didn’t (Bloomberg), adding more skepticism to some organizations’ intentions.

Happy Monday, and welcome back to the daily newsletter! Today is a quick check-in on how corporate accountability has progressed since pledges made last year. I see this as an opportunity to both recognize pitfalls and explore the possibilities of where we can grow from here.

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​Thank you to everyone that supports our independent publishing! If you can, consider giving $7/month on Patreon. Or you can give one-time on our website or PayPal. You can also support us by joining our curated digital community. I'm grateful for your support!
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Nicole

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By Nicole Cardoza (she/her)

After the racial reckoning last summer, many companies quickly made broad public statements on how they can do better. But, one year later, research and testimony indicate that many haven’t lived up to their promises.
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The first place generating criticism is in financial commitments. Companies in the U.S. pledged a collective $50 billion to various racial initiatives (Financial Times), an unprecedented response to social issues (Washington Post). But, research indicates that only $250 million has actually been spent or committed to a specific initiative (Financial Times). William Cunningham, the chief executive of Creative Investment Research, who published the study, notes that until those funds are actually spent, there’s no reason they couldn’t be retracted or allocated to another initiative. Another survey found that tech companies that made commitments have 20% fewer Black employees on average than those that didn’t (Bloomberg), adding more skepticism to some organizations’ intentions.

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In addition, Jay Peters at The Verge adds context to the true amount of the commitments made by big tech companies. Although Apple’s commitment of $100 million, for example, sounds quite large, it’s relatively minuscule when considering that they made $6.3 million in profit every single hour last year (The Verge). This isn’t to discredit the clear impact that $100 million can make, but to emphasize how much more companies could do with lasting, consistent investment.

This graph, from the same The Verge article, adjusts corporate contributions to racial equity against the median U.S. salary of $63,179 to demonstrate how little, relatively, tech companies pledged.​
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Many also pledged to improve conditions internally by diversifying their talent pipeline, addressing barriers to employment eligibility, and increasing representation in the executive suite (Financial Times). But, a year later, many of those same large companies have yet to release their diversity metrics, making it challenging to quantify comprehensive change.

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Ada*, a Black woman, watched this unfold at the financial services company she works for. The company publicly announced significant investments into companies owned by marginalized communities and plans to diversify its hiring practices. But the company has yet to share its metrics on hiring. “I’ve asked human resources for the data,” she explains, “but they say it’s tricky because they don’t have the accurate data. This makes no sense to me, considering they asked me my race/ethnicity on my job application.”

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Khalia*, who worked in development at a national nonprofit organization, noted that her company made commitments to change internal culture last June. But, efforts that were implemented faded after a few months. “We had an ERG that met monthly to discuss areas where we could improve company culture. This space brought up a lot of things the executive leadership wasn’t aware of. But now, most of the people that initially joined don’t come to the meetings anymore, including those same leaders. It feels like an afterthought. And I don’t think we’ve actually changed anything for the better”. She ultimately left the organization because she desired a stronger commitment to the cause.

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This scrutiny is compounded when considering how companies invested in equity initiatives before last summer. Because of COVID-19, jobs with titles like “chief diversity officer,” “diversity and inclusion recruiter,” or “D&I program manager” fell nearly 60 percent between early March and early June, according to the careers site Glassdoor (Washington Post). In comparison, jobs overall fell by 28%, and human resources roles fell by 49%, demonstrating that many companies felt like this was the best place to reduce costs. Since the murder of George Floyd and the subsequent protests, diversity job postings are surging. But filling the position isn’t enough; experts warn that these can be performative hires if leaders aren’t empowered and supported to guide corporate change (Axios).

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Individuals, often employees of color, have taken on the task of carrying this work forward, regardless of their company’s investment. Ada has been intentional about incorporating initiatives to address systemic oppression and racism with her team, which she believes increases feelings of belonging and solidarity. “We have ongoing conversations, book clubs, watch movies, etc. My team has said that they look forward to it because they don’t have that outlet anywhere else.”
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But individual employees aren’t the only ones taking note. Shareholders at major companies are pressuring executive leadership to perform racial audits for transparency and accountability (Forbes). Of seven big Wall Street banks, six urged shareholders to reject the proposals, despite the deep history of racial inequity in the financial sector (Inequality). Shareholders at Amazon, which is facing a slew of new allegations of racism and discrimination through its product offering and working conditions, are expected to vote on a racial audit on May 26 (Forbes).
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Nevertheless, it’s important to recognize that all progress made so far – and how far we have to go has happened because each of us raise our voices and rally for change. “The only reason companies cared is because their employees did,” said Ada. “If people continue the momentum, there will be more accountability.” As the summer unfolds, continue to hold the organization you may work for, buy from, and engage with accountable to shift culture, both for employees and broader society.
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We’d love to hear from our Black, Indigenous, and other readers of color: how has the company you work for respond to the events last year? How has it changed your experience working at your company? Reply to this email with your thoughts. ​
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*Names have been changed.


Key Takeaways

  • As we approach one year since the racial reckoning of last summer, individuals and shareholders are scrutinizing the pledges made by major corporations to addressing racial equity

  • Over $50B was pledged by major corporations to racial equity initiatives, but so far, an estimated $250M has been committed

  • A growing number of shareholders are voting for their corporations to perform racial audits for accountability

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Natalie Baddour Nicole Cardoza Natalie Baddour Nicole Cardoza

Address the jobs lost by women of color.

Earlier this year, the Bureau of Labor Statistics released a solemn report: between November and December of 2020, the U.S. lost over 140,000 jobs (U.S Department of Labor). Many of these jobs had been held by women, who have been pushed out of the workforce in startling numbers. Since February 2020, women have lost 5.4 million jobs (Fortune). They are leaving the workforce at four times the rate of men (NPR). “Even in more stable times, jobs typically held by women were among the lowest-status and worst-paid work,” explains Diane Coyle, a professor of public policy (NY Times). For example, women account for about three-quarters of workers in education and a majority of those in food services (sectors that have been hit hard by the pandemic).

Happy Thursday and welcome back to the Anti-Racism Daily. Thank you for all the well-wishes as I navigate the storm, and your donations to those in need. The most damaging part of this nasty weather is its compounded impact on a nation already struggling to survive. Natalie's reflection on the jobs lost by women of color over the past few months is an example of this.

Thank you all for your contributions! This newsletter is made possible by our subscribers. Consider giving $7/month on Patreon. Or you can give one-time on our website or PayPal. You can also support us by joining our curated digital community.

Nicole

TAKE ACTION

GET EDUCATED

By Natalie Baddour (she/her)

Earlier this year, the Bureau of Labor Statistics released a solemn report: between November and December of 2020, the U.S. lost over 140,000 jobs (U.S Department of Labor). Many of these jobs had been held by women, who have been pushed out of the workforce in startling numbers. Since February 2020, women have lost 5.4 million jobs (Fortune). They are leaving the workforce at four times the rate of men (NPR). “Even in more stable times, jobs typically held by women were among the lowest-status and worst-paid work,” explains Diane Coyle, a professor of public policy (NY Times). For example, women account for about three-quarters of workers in education and a majority of those in food services (sectors that have been hit hard by the pandemic). 

Additionally, between schools shutting down and a lack of childcare, many working mothers have no choice but to stay home for their kids. Sometimes the decision comes down to finances: because women still earn 82 cents for every dollar a man makes and typically earn less, it might seem to make more sense for a male partner to keep his job (NPR). But even when that’s not the case, our society often perpetuates the harmful notion that women are best suited for caregiving duties and should sacrifice their careers for their kids.

While it is important to note that women in general have disproportionately left the workforce during the pandemic, the news reports that overlook the intersections between race and gender are missing a pivotal point: that women of color have been significantly affected (NY Times). 

Over the last year, employment has been down nearly 7% for Hispanic women, 5.6% for Black women, and 3% for white women (Reuters). By August, only 34% of Black women who’d lost their jobs due to the pandemic regained employment, compared to 61% of white women (Catalyst). 

There is a multitude of factors that contribute to these job losses. Systematic racism often prevents women of color from securing the same opportunities as their white counterparts; thus, white women are more likely to hold jobs that offer the flexibility to work from home (Eater). Overall, only 19.7% of Black workers and 16.4% of Hispanic workers can telework, compared to 29.9% of white workers (Economic Policy Institute). 

Women of color also disproportionately hold jobs considered essential and most vulnerable to the pandemic, accounting for 53% of workers in the food service industry and 80% of workers in the health and social assistance field (Center for American Progress). When it comes to firing, women of color are often the ones at the top of companies’ layoff lists; they tend to hold the most marginal, low-authority roles, therefore losing their jobs at excessively high rates (Harvard Business Review).

Women of color also were disproportionately excluded from the benefits of last year’s federal Families First Coronavirus Response Act (FFCRA), which exempted many essential workers in grocery and retail environments (Washington Post). Employers were also allowed to exclude health care providers, and emergency responders from the act’s mandated paid sick days and child care leave. The U.S. Department of Labor defines “health care workers” so vaguely that it can include anyone employed in a healthcare facility, from cafeteria workers to maintenance staff and janitors. (Center for American Progress). Workers of color are overrepresented in these industries that offered little government support; Black employees comprise one-sixth of frontline workers (Axios). Given the lack of support, many women of color were forced to quit their jobs. In December 2020, the FFCRA ended, severing a crucial lifeline to those few able to receive benefits (U.S. Department of Labor). 

However, Biden proposed a new coronavirus bill that includes a $1,400 stimulus check, one that he hopes can now go to eligible adult dependents and families with mixed-status citizenship (CNET). Biden also plans to extend the child tax credit to families with lower incomes. If approved, families will be able to claim up to $3,600 per young child and $3,000 per older child every year (USA Today). The bill will also add a temporary expansion of the childcare tax credit and expand access to childcare (Vox).  

But while measures may temporarily ease some of the burdens on BIPOC women and mothers, they do not fully address the structural inequities that are the foundation of such job loss disparities. Even before coronavirus, people of color were far more likely to receive poverty-level wages than white workers; in 2017, 19.2% of Hispanic workers and 14.3% of Black workers were paid poverty-level wages, compared to 8.6% of white employees (Economic Policy Institute). 

Based on all these statistics, it’s easy to see why women of color have suffered the most job loss during this time. The pandemic has erased years of gradual economic progress, and the effects are still going to be felt even after it is over. While Biden’s new coronavirus bill provides a brief glimmer of hope, America needs more direct, long-term policies to give these women ongoing support. Paid sick and family leave are crucial, and new measures should be taken to provide low-income workers with full-wage replacement no matter how big or small the business is. Our country is in a crisis, and women of color need to be at the forefront of our most important conversations. To see change for those most in need, we must demand it now.

KEY TAKEAWAYS

  • The U.S. has failed at providing adequate paid family leave for distressed Americans, leaving millions of essential BIPOC workers without support.

  • Women of color disproportionately hold low-paying essential jobs (accounting for 53% of workers in the food service industry and 80% of workers in the health and social assistance field), therefore being ineligible for benefits and more susceptible to layoffs. (Center for American Progress)

  • During the pandemic, employment has decreased nearly 7% for Hispanic women, 5.6% for Black women, and 3% for white women. (Reuters)

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PLEDGE YOUR SUPPORT

Thank you for all your financial contributions! If you haven't already, consider making a monthly donation to this work. These funds will help me operationalize this work for greatest impact.

Subscribe on Patreon | Give one-time on PayPal | Venmo @nicoleacardoza

Read More