Financial commitments to black America have failed
A Washington post Analysis of the financial pledges 50 of America’s biggest corporations made to black America last summer shows that these once-bold pledges have so far had a questionable impact.
First, the amount that companies actually spent compared to what they promised turned out to be paltry, according to the To post‘s crunching numbers. To date, only 3.5% of the roughly $ 50 billion in financial commitments have been verified.
This research found that while CEO after CEO proclaimed last summer that they were on the side of black Americans, only a fraction of those funds were given to organizations dedicated to the pursuit of justice reform. criminal – which was what Black Lives Matter gathered and protested last summer across the United States was largely on point in the first place.
The To postJournalists also found that 90% of those big business pledges – over $ 45 billion – were loans or other investments that those companies would benefit from.
That’s not “necessarily a bad thing,” observes Ellen McGirt, editor-in-chief of Fortune and lead author of the publication’s acclaimed RaceAhead newsletter. “But it is one thing that deserves to be understood.”
Programs designed to boost home ownership for black families, which would help generate financial returns for any business, are not a bad idea at first glance. But such a grant program for homebuyers in the Minneapolis area would allow anyone to buy a home in a predominantly Black or Latino neighborhood, regardless of race – which would allow white families who hold more wealth to buy a home. ‘benefit, and ultimately risk further gentrification and displacement of black families.
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Less than 10 percent of that multi-billion dollar pledge for black America went to grants for community groups. “The $ 4.2 billion in subsidies, to be disbursed over a decade in some cases, represent less than 1% of the $ 525.6 billion in net income earned by the 50 companies in the most recent year.” , concluded on To post.
The only beneficiary of corporate generosity? Historically, black colleges and universities (HBCUs) have raised $ 345 million in donations – although the Post’s review indicates the end result could be a larger gap between smaller schools and more elite HBCUs.
At a higher level, while companies may have seemed bold and courageous last summer, in the end they, their CEOs and boards of directors are still averse to risk. Donations for causes such as health, equity and, of course, education are considered safe – far less triggers than any reform targeting the police and criminal justice system.
“Education is a fairly uncontroversial conservative boost in terms of corporate giving,” said Robert E. Weems Jr., professor of business history at Wichita State University. To post, adding, “when in fact George Floyd as a catalyst specifically had to do with criminal justice and law enforcement.”
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