The reasons for the lagging rate of real-world contributions have become increasingly clear. On the one hand, companies have struggled to decide where to funnel their investments given the breadth of the problem and the sheer number of organizations. Companies have also faced difficulties in measuring the success of their commitments in the short term, as results can sometimes take years to come to fruition.
To reduce friction, bolster trust and maximize the impact of commitments, corporations should lead the way by developing new models for partnering with groups — and other likeminded companies — that support and promote racial equity.
Take a holistic, long-term approach
Rather than attempting to pinpoint one or two individual causes or groups to support through a one-time investment, companies should take a holistic approach and spread their investments over a range of pressing issues that they plan to champion over several years.
Making long-term commitments to a variety of causes, instead of one-and-done contributions to a select few, provides companies the opportunity to develop meaningful relationships with many different advocacy organizations. It also enables companies to gain a deeper and more complete understanding of how seemingly discrete social justice issues intersect, and, in turn, makes them smarter and more informed sponsors.
Together, we’re tackling a host of urgent challenges — from a dearth of education and workforce development opportunities, substandard housing, health inequities, the vast gap in access to digital tools, limited access to capital and major physical infrastructure failures.
On the issue of wealth creation, we’re partnering with CDFIs to help them secure federal and other funding to better support minority businesses; working with historically Black colleges and universities (HBCUs) to address vast racial disparities in education; and we’re launching new partnerships with leading organizations across target communities — such as Prosper Birmingham, the Greater Houston Partnership and the Urban League of Louisiana — to facilitate coordination across the southeast region.
Break down silos
It’s clear that no one company can solve the most consequential racial justice issues of our time on its own, but too many companies have gotten into the habit of going it alone when it comes to corporate social responsibility (CSR).
Companies should aim to break down these silos and establish partnerships with other companies that share similar CSR goals and principles. This collaborative approach creates opportunities for CSR teams from different companies to collectively bring far more expertise and experience to a joint project. It also makes it possible to tap into each other’s networks in the worlds of CSR. For example, one company’s CSR team might have worked in a certain geographic region or advocacy area that another company is less familiar with, and vice versa. Bringing those worlds together can go a long way.
At SCI, we’re hoping our partnership can provide a blueprint that others can follow. Our three founding companies — PayPal, Vista Equity Partners and Boston Consulting Group — collaborate and seek perspective and guidance from each other on every decision we make. And we’re creating opportunities for our nonprofit partners to work together.
Track data metrics
Corporations should establish clearly defined metrics for every project that measure the impact of their racial equity efforts. In the case of expanding access to digital tools, for instance, metrics might include the number of laptops provided or the number of internet subscriptions donated. Corporations should also implement consistent reporting standards, whether that’s in the form of a real-time dashboard or quarterly progress report.
At SCI, we are using the data we collect to prepare a racial equity metrics report that tracks the progress we’re making on a quarterly basis. We are also implementing an opensource database to monitor and track key stats and metrics so we can see where our efforts are succeeding and where we need to double-down.
This will help in tailoring approaches by region, too. Companies will learn which programs are worthy of investment based on their previous record in delivering change to other communities.
Combatting systemic racism and solving these entrenched problems in our society will not happen overnight, but these issues need to be addressed to bring about a more equitable society. This is a pivotal time to make a lasting difference. Everyone can play a role in turning billions of dollars in commitments into real and lasting improvements.