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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.
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
The post Selling Houses While Black appeared first on National Association of Real Estate Brokers.
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
The post NAREB RELEASES ANNUAL STATE OF HOUSING IN BLACK AMERICA REPORT AT BLACK WEALTH SUMMIT FEATURING LAWMAKERS, AGENCY HEADS, POLICYMAKERS & EXPERTS appeared first on National Association of Real Estate Brokers.
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
The post Reckoning with the past: Associations apologize for discriminatory practices appeared first on National Association of Real Estate Brokers.
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
The post NAREB: Supporting ‘democracy in housing’ for consumers, agents appeared first on National Association of Real Estate Brokers.
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
The post Clyburn Re-Ups Support For G.I. Bill Restoration Act On This Veteran’s Day appeared first on National Association of Real Estate Brokers.
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
The post When the demography of the members is considered appeared first on National Association of Real Estate Brokers.
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
The post What is a Realtist? appeared first on National Association of Real Estate Brokers.
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
The post What is the National Association of Real Estate Brokers (NAREB)? appeared first on National Association of Real Estate Brokers.
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
The post NAREB Calls on White House and Congress to Boost Black Homeownership and Close Wealth Gap appeared first on National Association of Real Estate Brokers.
Annual Convention Returns to Tampa Where Organization was Founded The National Association of Real Estate Brokers (NAREB) kicks off its national convention in Tampa this week, as the organization celebrates its 75th anniversary. Founded in 1947 with the goal of securing equal housing opportunities for all Americans, NAREB advocates for policies and practices that increase Continue Reading
The post For 75 Years, NAREB Has Advocated for Black Homeownership appeared first on National Association of Real Estate Brokers.