Racism is Bad for Business
Business needs to strongly stand against anti-Black racism, white supremacy, and police brutality. Anti-Black racism is not the only form of racism we must fight against, but is of particular concern because of its historical depth, its systemic nature, and its deadly consequences. While this statement is triggered by the recent murder of George Floyd, and the global protest movement it ignited, the underlying issues are transatlantic: the four hundred year history of slavery in the United States is matched by the European history of slave trade and colonialism, and both are united in their atrociousness and bloody legacy, and structural interdependencies. Addressing racism requires action from us as business leaders, and as citizens. We appreciate the stands that many companies have taken worldwide, but we believe that action is required that extend beyond mere words.
United by the transatlantic relationship and convened by the German Marshall Fund to help businesses address social, political, and environmental challenges while achieving commercial objectives, we are a network of corporate executives who have made a commitment to advance shared values that embody the modern transatlantic relationship. This includes the freedom of speech and the freedom of assembly; the freedom of movement of goods and services, ideas and peoples; the rule of law, as expressed by equal and objective application of the law by an independent judiciary; and representative democracy.
As business leaders committed to these shared transatlantic values, action against anti-Black racism, white supremacy, and police brutality matters to us. When law enforcement can play judge, jury, and executioner without fear of repercussion, there can be no peace. When the fundamental right to assembly is threatened by authoritarian rhetoric and a militarized response, there can be no peace. When fundamental freedoms to life, liberty, and the pursuit of happiness cannot be realized by all, there can be no peace. When the rights to education, college acceptance, access to capital, and jobs cannot be realized by all, there can be no peace. When microaggressions and inequality in the corporate sector go unchecked, there can be no peace. Or to state it more simply: No justice. No peace.
We see it as the responsibility of business in society to speak up against anti-Black racism, white supremacy, and police brutality.
We see it as the responsibility of business in society to speak up against anti-Black racism, white supremacy, and police brutality. Racism is politically reactionary and morally obscene. It is economically inefficient and inevitably leads to further oppression. Racism is bad for business, despite the fact that some business strategies are built on it. Justice—political, economic, and social—is not a zero-sum-game. Everybody benefits from living in a just society.
Over the past two weeks, we have witnessed many in the business community speaking out. This is heartening, as it signals a shift from ambivalence to acknowledgment, from denial to discourse. But addressing the issue of anti-Black racism must not be a corporate branding effort, as some evangelists of corporate “purpose” seem to suggest. It must go beyond corporate rhetoric to real corporate action. We have the opportunity to turn this crisis into a catalyst for change. We believe strong words need to be supported by strong action.
As business leaders, we acknowledge, in the words of Ford Foundation CEO, Darren Walker, that business leadership has failed Black America. The same can be said for business leaders across Europe, where anti-Black discrimination in the workplace and society at-large is commonplace. We make the commitment to lead inclusively and equitably.
Such a commitment must be buttressed by putting in place structures that actively elevate Black corporate and community leaders in business; by developing policies and corporate cultures that give preference to the priorities of Black leadership, that give agency to Black voices, and that actively recruit and identify leadership opportunities for Black talent; by real transparency regarding Black employment, Black leadership in the C-suite and boardroom, the Black wage gap, through data that is made publicly available; and by embracing the uncomfortable conversations and actions necessary to realize equitable structures in corporate operations and governance. Finally, we make the commitment that we as corporate leaders take responsibility for demanding the same standards from our supply chain, and responsibility for the use of our products or services, applying the standards to our customers and stakeholders.
While the specific actions that need to be taken vary by geography, we commit to working towards this equity, inclusiveness, and transparency within our companies, and society at-large. We will update on our progress regularly, in three-month intervals.
This action will be difficult, and conflicts may arise. However, we cannot bring about meaningful change without painful conversations, and we can resolve arising conflicts peacefully with the forceless force of the better argument.
This is our commitment to each other. We invite you to join.
The GMF Business and Society Working Group creates a transatlantic platform for U.S. and European corporate leaders, as well as those interested in the role of businesses in society, to help businesses address social, political and environmental challenges while achieving their commercial objectives. We convene, inform, educate, and build leaders and networks that generate positive societal impact while driving profitability. We help create value sustainably.
Authors of this piece are opinions of working group members Rob Bogart (MMF ‘06), Carrie Carpenter (MMF ‘10), Matthew Clayson (MMF ‘16), Kellie Hawkins (MMF ‘13), Aishah Miller (MMF ‘17), Joanna Ridgeway (MMF ‘12), Sebastian Schwark (APSA ’05-‘06), and Marcus Williams.