Analysis: Five things Corporate America can do besides tweeting to combat racism
AChafukira • June 4, 2020
New York (CNN Business) Major companies have expressed solidarity with the collective plight of African Americans this week following the horrifying murder by police of George Floyd a week ago and the national chaos that has erupted in its wake.
1. Offer relief funds to black-owned businesses
Diplomatic 1750, a Chicago sneaker and streetwear consignment boutique owned by Brian Heath, who is black.
Many black business owners are in dire need of bailouts right now.
Coronavirus shutdowns and social-distancing mandates have devastated
black entrepreneurs across the country. Black businesses that were set on fire and destroyed
during riots in the last few days have made matters even worse for some.
A recent study
commissioned by the social justice advocacy group Color of Change found 39% of black American
entrepreneurs believe their
businesses won’t survive more than six months without some type of relief funding.
Black business owners have struggled
to get approved for Paycheck Protection Program loans administered through larger commercial banks. Business leaders like Magic Johnson
and Sean “Diddy” Combs have pledged financial and administrative support to help ensure a generation of black-owned barbershops, beauty salons, service providers and restaurants doesn’t disappear.
Combs recently partnered with the National Bankers Association, a coalition of 22 minority-owned financial lenders
, to create his Our Fair Share
program to help black business owners navigate the PPP application process.
NBA board chairman Kenneth Kelly says corporations that want to help black businesses should consider adding them to company supply chains or working with minority-owned banking institutions like the ones he supports, which have a better track record of financing minority clients.
“We have a higher affinity for looking at the totality of that customer as opposed to just numbers on a piece of paper,” Kelly told CNN Business.
2. Increase black homeownership
Corporations that want to help narrow the racial wealth gap
between black and white America should consider donating
to the National Association of Real Estate Brokers. The trade group’s realtors specialize in helping African Americans purchase properties, selling 20,000 homes to black purchasers in 2019 alone, a spokesperson said.
NAREB President Donnell Williams said companies that want to end systemic racism should consider contributing to NAREB’s “ House Then The Car
” program targeting black Millennials whose economic struggles and consumer behavior changes have fueled
a record decline
in black homeownership.
The homeownership rate for black young adults plummeted from 23.1% in 2000 to just 13.4% in 2015, according to an Urban Institute study. A 2019 analysis
by the Center for Responsible Lending consumer advocacy group found black Millennials carry more student loan debt on average than their white counterparts and were also disproportionately hurt
by the Great Recession of 2008. Additionally, NAREB says many black Millennials who can afford to buy homes choose not to although it’s an essential part
of generational wealth building for most Americans.
“There are 1.7 million Black Millennials in the US who earn more than $100,000 per year who are not homeowners,” Williams told CNN Business via email.
3. Support unions
Organized labor advocates say companies that want to end institutional racism can start by supporting black workers who want to form unions and increase union rights.
Black Americans make up a disproportionate amount of workers in non-unionized business sectors like the home health aid and fast food industries.
African Americans are 13.4%
of the US population but they also make up 26.5%
of the workforce at Amazon, which does not have a union.
4. Increase pay for essential workers
If essential workers are so … essential, then why aren’t they paid more?
Black Americans make up 17%
of America’s essential workforce, according to a Center for Economic Policy Research report released in April. The national average salary for essential workers is about $32,000
, roughly 18% lower than the average salary for all occupations, according to a recent Business.org study. Roughly 19% of African Americans live near or below the poverty line, according to the latest available US Census data.
Companies like Kroger
, Target and Amazon recently have weighed rescinding their temporary “hero pay” wage increases for frontline employees even though the coronavirus pandemic is still ongoing. Henry says these companies should make their Covid-19 pay raises permanent if they want to help more black Americans.
“Permanent hazard pay is a good first step to achieving policies that will ensure corporations support the communities they operate in, “she said.
5. Hire and promote more black executives
Former American Express CEO Ken Chenault
Top companies need to do a better job of recruiting and retaining black leaders. A recently published Stanford Graduate School of Business report on C-suite diversity
at Fortune 100 companies found black professionals made up just 3% of the CEOs, 1% of the CFOs and 3% of the division leaders
in 2020.
There are just four black Fortune 500 CEOs. In 2018, black professionals made up just 3.3%
of all executive or senior leadership roles within two reporting levels according to the US Equal Employment Opportunity Commission.
Hiring more black executives is crucial for companies that want their leaders to better reflect the communities they serve. Black leaders also serve as aspirational figures for the generations that follow in their footsteps.
Former EEOC chair Cari Dominguez told CNN Business corporate leaders must add more black Americans to their executive talent pipelines.
“I see companies asking for a diverse slate of candidates — but not saying [what percent] should be made up of people of color,” Dominguez said.
Kelly, the National Bankers Association board chairman, said companies sincere about combating systemic racism must make commitments that persist even when the issue is not national news.
“It must be a value system that they embody and not a temporary item that they use to check a box,” he said.
The National Building Black Wealth Day Follows The Resounding Success of Our Mid-Winter Conference In February, Where We Equipped Our Community With the Tools, Strategies, and Insights Needed to Thrive In an Evolving Industry. ST. LOUIS, MO— The National Association of Real Estate Brokers (NAREB) will present its second annual National Building Black Wealth Day on April 12, 2025, with live events in more than 100 cities across the country. Seminars and one-on-one sessions will empower communities with steps towards homeownership, property investment, starting a business, and other wealth-building opportunities. An internet feed will make virtual sessions accessible to a national audience. To register for the in-person events in 100 cities, please go to XXXXX. To register for the virtual sessions on Zoom, click HERE. Act quickly as the virtual sessions have limited spots available. We also encourage you to share this opportunity with your networks to help us reach more Black consumers. Key partners in the tour, include the African American Mayors Association, Inc., Alpha Phi Alpha Fraternity, Inc., Church of God in Christ, Inc., the National Baptist Convention, Delta Sigma Theta Sorority, Inc., National Bar Association, Phi Beta Sigma Fraternity, Inc. and Zeta Phi Beta Sorority, Inc. “Participation by our partners underscores their commitment to empowerment and economic development in our communities,” said Dr. Courtney Johnson Rose. “The Building Black Wealth Tour is expanding for 2025. We are bringing together families, lenders, attorneys, and real estate professionals to discuss and implement strategies for increasing Black homeownership and building wealth within Black communities.” Rose noted that NAREB’s 2024 State of Housing in Black America report found that more than two million mortgage-ready Black Americans have the income and credit to buy a home but have not yet become homeowners. In addition, 1.75 million Black millennials make over $100k annually and are poised to be homeowners. Further, Freddie Mac tracks the number of “mortgage-ready” renters nationwide , meaning they can meet certain income and credit requirements to qualify for a mortgage. Their researchers determined that as of January 2021, two million Blacks ages 45 or younger are near mortgage-ready, while another 3.4 million are potentially mortgage-ready. “Our tour aims to reach these Black consumers,” said Dr. Rose. “We are providing them with data and information on why they should be homeowners. We explain the many benefits of homeownership, such as building wealth, stable communities and building equity for retirements, college educations for their children, starting a business or more.” On National Building Black Wealth Day, hundreds of families and individuals will be armed with the information needed to make wealth-building decisions. Among the opportunities/Workshops are: What to do with Big Momma's House? ABCs of Homebuying Real Estate Investing Down Payment Assistance Explore Careers in Real Estate Free Career Fair Free Health Screenings One On Ones with Real Estate Attorneys One On Ones with Housing Counselors The Black Wealth Day comes after NAREB’s successful Mid-Winter Conference in Ft. Lauderdale, Florida, last month. This year’s conference, themed "Navigating New Horizons," empowered real estate professionals with the tools, strategies, and insights needed to thrive in an evolving industry. Speakers included Dr. Egypt Sherrod , Host and Executive Producer of HGTV’s Married to Real Estate; Catrese Fields Alston, Philanthropist and CEO of Le-Bleu Diamond Corporation; Hill Harper , Award-Winning Actor and Activist and Laura Escobar , President of Lennar Mortgage and 2025 Chair of the Mortgage Bankers Association (MBA). “Our Mid-Winter Conference helped NAREB Realtists® prepare for the shifting landscape of the real estate industry,” said Dr. Rose . “Realtists are on the front lines, working with families to secure homeownership and build generational wealth. In today’s challenging market, our members are more valuable than ever, and this conference ensured they have the knowledge and support to make a lasting impact in Black communities.” ABOUT THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS NAREB was formed in 1947 to secure equal housing opportunities regardless of race, creed, or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. Simultaneously, NAREB advocates for and promotes access to business opportunities for Black real estate professionals in each real estate discipline. From the past to the present, NAREB remains an association that is proud of its history, dedicated to its chosen struggle, and unrelenting in its pursuit of the REALTIST®’s mission/vision embedded goal, “Democracy in Housing.”
About 6 percent of real estate agents and brokers in the United States are Black. Their white peers make almost three times as much, according to data and surveys. Tye Williams feels the heat. It’s 95 degrees out, and the North Carolina sun is beating like a drum. He’s in a full suit and tie Continue Reading
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WHO: U.S. Senator Sherrod Brown (D-OH) Lydia Pope, President NAREB Alanna McCargo, President, Ginnie Mae Lisa Rice, President & CEO National Fair Housing Alliance Sandra Thompson, Director, Federal Housing Finance Agency Teresa Bryce Bazemore, CEO, Federal Home Loan Bank of San Francisco Katrina Jones, VP, Racial Equity Strategy & Impact, Fannie Mae Pamela Perry, VP, Continue Reading
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The California Association of Realtors is the most recent association to express regrets for past practices that marginalized groups based on race or ethnicity. Key points: Real estate associations in Atlanta, Minneapolis, Chicago and St. Louis have also offered formal apologies for past discriminatory practices. Practices and policies included endorsing restrictive covenants and redlining, making Continue Reading
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Lydia Pope, who leads the National Association of Real Estate Brokers, discusses narrowing the racial gap in homeownership and opening doors for Black agents Key points: NAREB, founded in 1947, is the nation’s oldest trade association for Black real estate professionals. ‘Our goal is equal housing,’ said Pope, whose own real estate career spans nearly Continue Reading
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Americans disagree on many social issues, but one we’re strongly united on is appreciation for our fellow countrymen and women who have served in our nation’s military – especially today, Veteran’s Day. It’s likely that the greatest expression of gratitude our nation has ever given to those who have worn the uniform is the Servicemen’s Readjustment Continue Reading
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Our mission at Bankrate is to assist our clients in making smarter monetary decisions. Apart from ensuring every editorial policy is met, we have referenced some of our products from our partners in this post. We have explained how we generate revenue here. The National Association of Real Estate Brokers (NAREB) is a trade network Continue Reading
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Whether you’re looking to buy or sell a home, you’ll see a wide range of terms attached to professionals who can help with the transaction. As you work to understand the difference between a broker and an agent, you may also wonder what a Realtist does. What is a Realtist? A Realtist is a real estate Continue Reading
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The National Association of Real Estate Brokers (NAREB) is a trade organization and network of Black real estate professionals known for promoting “democracy in housing” and advocating for public policies that “protect and expand sustainable homeownership.” The organization’s members, who go by the title of Realtist, are spread throughout chapters across the United States. NAREB’s Continue Reading
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Organization Will Hold Elected Officials Accountable The National Association of Real Estate Brokers (NAREB) called on the White House and Congress to enact legislation aimed at increasing Black homeownership after provisions approved by the House were excluded from the Inflation Reduction Act, which Congress passed and was signed into law by President Biden. Rep. Maxine Continue Reading
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