Company leaders commit to change
Firms announce big-dollar incentives to promote racial justice,
Businesses ranging from tech titans Apple Inc. and Google to toy maker Hasbro Inc. announced new measures and bigdollar initiatives to promote racial justice, as company leaders race to show their commitment to change amid the national outcry stemming from George Floyd’s killing.
Apple said Thursday it would devote $100 million (U.S.) to a racial-justice initiative that aims to invest in education, economic equality and criminal-justice reform with a goal of increasing opportunities for people of color.
Acouple of hours later, Susan Wojcicki, chief executive of the YouTube arm of Alphabet Inc.’s Google, said the video platform would create a $100 million fund aimed at amplifying content from black creators, in addition to highlighting racial justice issues through its official channel.
Microsoft Corp. said it won’t sell facialrecognition technology to U.S. police until there is a national law regulating its use, echoing similar commitments from Amazon.com Inc. and International Business Machines Corp. made this week. The trio of technology companies have called for clearer federal rules around the surveillance technology amid widespread concern about its potential for racial bias.
Meanwhile, the popular fantasy card game, “Magic: The Gathering,” removed several cards it deemed racist or culturally offensive from its database, including one depicting figures in pointed hoods. The Hasbro-subsidiary behind the game also pledged to review all cards for material deemed inappropriate.
The moves are the latest public actions by businesses lining up to show their commitment to racial equality. The product decisions and financial pledges—totaling hundreds of millions of dollars in commitments so far—show how companies are responding to the second massive reordering of their world in 2020 and jumping into a national conversation about race.
Spurred to action by the response to Mr. Floyd’s killing May 25 while in police custody, executives and employees say that they are being called to show customers they are taking action to address racism.
It isn’t yet clear whether any of the decisions will lead to lasting change in corporate operations—nor, in many cases, what specific steps businesses plan to take. Some executives have acknowledged that their companies can do better on hiring and promoting black employees, and on fostering a workplace culture where all employees feel welcome.
Yet retaining and advancing black talent remains a persistent issue in big business. Companies in the tech industry and elsewhere have for years pledged to do more for employees of color and made limited headway. Of Apple’s top 12 executives listed on its website, 10 are white.
“Things must change and Apple is committed to being a force for that change,” Chief Executive Tim Cook said in a video posted Thursday on Twitter. Apple’s new racial justice initiative will be led by Lisa Jackson, head of environment, policy and social initiatives. Ms. Jackson, who ran the U.S. Environmental Protection Agency during the Obama administration and joined Apple in 2013, is the sole black member of the company’s broader senior leadership.
Last week, Walmart Inc. CEO Doug McMillon, said the Business Roundtable, an industry group he leads, would establish a special committee to advance racial equity and justice solutions. A spokeswoman for the Business Roundtable said its CEO members, who lead many of America’s biggest companies, are committed to taking thoughtful action on issues of racial injustice. Last year, the group changed its statement of the purpose of a corporation to move beyond enhancing shareholder value.
The weeks since Mr. Floyd’s killing have spurred corporate leaders to host listening sessions with employees and identify ways to change their practices to promote inclusion. The moves echo those taken in the fall of 2018 when the #MeToo movement exploded into the national conversation. Then, women and allies broke yearslong silences to share their experiences of sexual harassment in the workplace and called upon companies to rethink representation in corporate leadership.
Brian Roberts, CEO of cable and internet giant and NBCUniversal owner Comcast Corp., said this week the company would spend $100 million over several years to “fight injustice and inequality against any race, ethnicity, gender identity, sexual orientation or ability.” Comcast’s initiative will include accelerating corporate diversity and inclusion efforts.
While companies have pledged millions to groups including the NAACP and Equal Justice Initiative, the amounts are only a fraction of the companies’ wealth and don’t do enough to address the systemic issues within those businesses, said Kemi Role, director of work equity at the National Employment Law Project, a New York-based worker advocacy and research group. The organization said it is not among those receiving pledges from Apple, Adidas AG or Microsoft.
Apple became the first U.S. company this week to cross the $1.5 trillion stockmarket capitalization threshold and within the last few years the company has committed $300 million to create a clean-energy fund in China, $1billion for an advanced manufacturing fund and $2.5 billion to improve housing availability and affordability in California.
“If these big corporations are really serious about addressing racial injustice, it requires them asking the questions that black and minority-led organizations have been asking for years,” Ms. Role said. “How are their cafeteria workers being treated? How are their people in factories being treated?” She also said companies need to study their supply chains and how health and safety are being prioritized for black people. Apple didn’t immediately provide comment on Ms. Role’s statements.
When it made a statement on social media regarding its position against racism, employees of sportswear giant Adidas pushed back to say that their experience inside the company hasn’t been equitable. They pressured the company, which has profited from black stars and selling products to black communities, to improve on the low numbers of people of color and women who hold leadership roles in the organization.
Adidas on Tuesday said black and Latino people would fill at least 30% of all new U.S. jobs at Adidas and Reebok brands and that it would finance 50 university scholarships for black students each year over five years. Adidas has said its total outlay to support black communities now totals $120 million.
Estée Lauder Cos. earlier this week laid out a plan to improve inclusion and support the black community in response to demands from employees at the cosmetics giant. Executive Chairman William Lauder and CEO Fabrizio Freda told employees that among other initiatives, it would ensure black candidates are on the succession list for all seniorlevel positions and that, by 2025, its share of black employees will mirror the U.S. population, which is more than 13% black.
Corporate decision makers are also grappling with guidelines for how employees can show support for efforts or display political activism.
Executives have lost their jobs over perceptions that they have mishandled the moment or shown insensitivity toward issues of race and minority employees’ concerns about past treatment. CrossFit Inc. founder Greg Glassman retired from the company this week after facing pressure from sponsors, gym owners and patrons over inflammatory remarks about Floyd’s killing. Mr. Glassman later apologized for his comments.
On Thursday, Audrey Gelman, CEO and co-founder of the women-focused club network known as the Wing, stepped down amid ongoing complaints from employees and members over the company’s handling of racial issues and other sensitive social matters.
Companies are concluding that they face heightened expectations from their customers and employees to respond to racial concerns in the moment, said Joseph West, a Washington, D.C.-based partner and chief diversity and inclusion officer at law firm Duane Morris LLP.
“Your employees expect you to have some understanding of diversity and inclusion related issues,” Mr. West said. “Your customer base is far more likely to think with their feet and dollars and act accordingly if you don’t have some fluency around these issues.
“A lot of times the judgment can be swift. This may be a me-too moment for race relations.”