Employer Engagement on Racial Equity
During the aftermath of George Floyd’s murder in 2020, many business leaders reflected on their role in advancing diversity, equity, and inclusion. At the time, some leaders chose to enhance efforts already underway while some were just getting started on their DEI journey. Employers also quickly realized the emphasis must extend beyond DEI to incorporate a greater recognition for racial equity, anti-racism, and breaking down barriers of systemic racism that has perpetrated racial inequities in the workplace as well across the country for centuries.
By the fall of 2020, CEO Action for Racial Equity was created, bringing together over 100 employers and building on the successful coalition of CEO Action for Diversity & Inclusion. At the time, CEO Action for Racial Equity forged a fellowship initiative to host employees from participating companies to work full-time in addressing racial equity across key areas including healthcare, education, economic empowerment, and public safety; closing the digital divide and expanding access to telehealth were later added to the agenda. Overseen and governed by a group of 20 CEOs representing multiple industries and regions, CEO Action for Racial Equity unites the talent and resources of corporate America to drive societal change alongside community stakeholders and policymakers.
When CEO Action for Racial Equity was launched, a survey indicated 71% of employees place more trust in companies to respond to racial injustice than they do in government (only 36%). For nearly two years, fellows from CEO Action for Racial Equity have focused on identifying, developing, and promoting scalable and sustainable public policies and corporate engagement strategies to address societal systemic racism and social injustice. Roundtable members continue to reflect on their leadership in advancing racial equity within their workplaces and the Massachusetts business community. In addition to the Roundtable, signatory companies of CEO Action for Racial Equity also represented by Roundtable employers include American Tower, Cigna, Deloitte, EY, P&G, PwC, RSM, State Street, and Vertex.
Given this close connection between participating companies and the Roundtable’s public policy agenda, the Roundtable hosted an Open Forum in April 2022 featuring Pia Flanagan, Chief Operating Officer for CEO Action for Racial Equity and fellow representing MassMutual. The forum provided an update on the organization’s work including alignment to policies relevant within Massachusetts. All roads seem to consistently lead to talent when we convene Roundtable members – thanks to Pia’s presentation, members conversed during the forum on strategies to address systemic racism with a focus on reducing barriers to employment, promoting diverse talent, and measuring success and impact of racial equity strategies in the workplace. Addressing systemic racism in the workplace is a top priority of the Roundtable and at the heart of the Diversity, Equity, and Inclusion Task Force. Equity is also woven throughout the Roundtable’s priority agenda from education and workforce development to healthcare, infrastructure, and more.
Systemic racism poses a moral and economic threat. According to a 2021 study by Deloitte, “not addressing key racial gaps is estimated to have cost the American economy $16 trillion over the past two decades. If the gaps are closed today, it is estimated that $5 trillion can be added to the US GDP over the next five years alone.” Employers also see tackling racial equity as not only a moral imperative, but also a business imperative. In fact, 81% of the general population want CEOs to be visible on public policy with external stakeholders or work relevant to their company. This is why, CEO Action for Racial Equity has moved forward on an agenda with several bi-partisan wins nationally including work on extending access to telehealth and early childhood education, public policy will direct impacts for the 47 million Black Americans as well as under-sourced communities nationwide.
As part of CEO Action for Racial Equity’s placed-based work, Massachusetts is among top states for focusing on public policy including on work related to improving early childhood education, closing the digital divide, and addressing the public health crisis. These are policy areas the Roundtable has been and continues to lead and address. As policy is pursued both nationally and locally, the policy opportunities may be racially neutral, but the changes and improvements in public policy will yield significant impact among communities of color that have been overlooked, underserved, and underrepresented for far too long.
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