Demonstrators gather for a Black Lives Matter rally in the summer of 2020. (Image credit: Ying Ge/Unsplash)
In the not-so-distant past, many companies and organizations were rushing to establish diversity, equity, and inclusion (DEI) programs. Fast forward to 2024, and some of these companies are scaling back these efforts publicly. Some attribute this shift to political scrutiny and legal developments, considering DEI a dispensable cost center.
However, the importance of this work remains paramount. As leaders, it’s crucial to persist in investing in DEI and social impact initiatives, emphasizing their legality and necessity in countering misinformation. Employees and customers expect brands to authentically contribute to social justice efforts.
Instead of retracting, companies should set themselves apart by fortifying their dedication to social justice and utilizing their resources effectively. Although challenging, these strategies can drive progress, boost employee and customer engagement, and enhance business practices.
Integrate Social Impact into Core Business Strategies
Social impact work should be seamlessly woven into a company’s core operations. It should not be viewed as an afterthought but rather an integral component of success.
For instance, Google.org introduced the Cybersecurity Clinics Fund in 2023 to support educational institutions in nurturing cybersecurity talent. This initiative not only provides financial backing but also grants access to Google’s cybersecurity courses, products, and mentorship, aligning with Google’s strengths and business objectives.
By closely aligning social impact initiatives with business goals, companies create a compelling business case, as philanthropic backing complements operational priorities by leveraging products and expertise for social impact projects.
Engage Employees and Customers
Social impact programs play a pivotal role in attracting and retaining top talent by reflecting both the company’s and employees’ values. A survey by Benevity revealed that 80% of U.S. employees believe company leaders should address racial justice and equity matters.
Illustrating this commitment, Sephora adopted the 15 Percent Pledge to ensure a significant portion of its products come from Black-owned brands, doubling the accessibility of Black-owned products. Additionally, Sephora has bolstered its diverse workforce, increasing Black and Latinx leadership percentages, and providing training to better cater to diverse customer needs.
Support Community-Led Organizations
Backing organizations led by community members who share similar backgrounds and experiences can drive substantial impact and enhance company-community relationships. Nonprofits led by individuals closely connected to communities are known for their innovative solutions.
While only a small percentage of philanthropic funds support organizations led by individuals affected by systemic inequity, companies have a unique opportunity to shine by supporting grassroots organizations effectively. Tides collaborates with companies to develop philanthropic strategies aligned with communities’ needs, exemplified by Kate Spade New York’s On Purpose Fund.
Embrace Trust-Based Approaches
Trust-based philanthropy empowers organizations on the ground by relinquishing control to those directly involved in driving change. By offering unrestricted funds, reducing reporting demands, and tearing down resource barriers, companies can ease the burden on grantees and community organizations.
For instance, Unity practices trust-based philanthropy by funding projects and organizations that resonate with its mission of empowering creators. Unity’s grant strategy prioritizes collaboration and innovation, supporting initiatives that leverage technology for social impact, exemplified by the Unity for Humanity creator program.
Conclusion: Social Justice Support is Good Business
Corporate giving serves as a potent tool for companies to demonstrate their purpose and commitment to stakeholders – employees, customers, and communities. By persisting in supporting diverse communities, companies can join the movement for social justice, benefiting both society and their business objectives. Ultimately, advancing social justice is not just a moral imperative but also a strategic business decision.
Harriet Gardner is the Senior Director of Corporate & Strategic Initiatives at Tides. For over 15 years, Harriet has collaborated across nonprofit, corporate, and UN sectors to advance equity, children’s rights, global health, and education through strategic partnerships. At Tides, she leads Corporate & Strategic Initiatives, offering grantmaking, philanthropic advisory, and strategy services to 70+ companies. Harriet’s previous roles include VP of corporate partnerships at UNICEF USA, senior corporate specialist at Save the Children, and head of partnerships at Catchafire. She holds a B.A. in English language and literature from The University of Manchester.
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