To celebrate Black History Month, CNBC invests in you are weekly stories from CNBC contributors and members of the Financial Health Council, including the lessons they learned growing up, their advice for black youth, their inspiration and how they are working to close the gap between rich and poor between races.
As protests swept the nation last year, companies began announcing initiatives to promote diversity, equity and greater inclusion (DEI) in their ranks. Corporations have committed more $50 billion for these progressive programs.
There’s still a lot of work to do. Data from the consulting firm Mercer shows that 64% of workers in low-level positions are white, while white workers hold 85% of executive-level positions, highlighting a advancement distance.
The Marriott Foundation recently made a $20 million grant to Howard University to develop its student executive leadership pool. Anthony Wilbon, dean of the Howard University School of Business, told CNBC on Wednesday, “Companies with more diverse executive leadership are more likely or more likely to do better than their competitors.”
To help younger generations succeed, several other Black leaders from academia, business, and finance recently shared their lessons and visions for the future with CNBC.
A lack of diversity can stifle innovation and promote group thought. DEI also helps attract top talent. In a recent CNBC | Momentive Workforce SurveyNearly 80% of respondents said they would like to work for companies that value and promote diversity, equity and inclusion.
Americus ReedCNBC contributor and professor of marketing at the University of Pennsylvania’s Wharton School, wants future leaders to seek out and promote diverse perspectives in their organization, but warn that these efforts need to be done properly. “My advice to future leaders is to be extremely cautious about diversity, inclusion and equity,” says Reed.
Just creating programs will not be enough.
“It has to be created, but it also has to be managed. We have to understand how to bring different points of view into our decision-making process – into our company, our brand, our organization. And those Those different perspectives, we have to cultivate and manage them appropriately so that we can create the kind of organization that can be successful.”
Starting a business is difficult, to say the least. There are about 30 million small businesses in the US, and many do not survive. Twenty percent fail in the first year, 30% in the second year, and by the tenth year, 70% of businesses fail.
For the minority, the numbers are even more disturbing. Eight out of 10 black-owned businesses fail within the first 18 months.
For Kourtney Gibson, president and partner of Loop Capital Markets, the single most important thing anyone can do to change the financial future of black Americans is own it. “We can all have a tool that makes the American dream come true for everyone. Set a goal, measure it, monitor it. We have KPIs for everything we do in the business. business, from measuring sales, to profits, to operating margins. Why not set goals for the inclusion of the Black economy? What is measured and driven will be done.”
Gibson is currently a board member of Canada-based sportswear brand Lululemon. Lululemon is one of the founding sponsors of the Black Journalism Fellowship of the Canadian Press Foundation.
More words Invest in you:
These ‘money disorders’ could be ruining your budget
9 year old Khloe Joiner’s mission is to give away 1 million books
More Covid relief for small businesses? Struggling industries hope that’s the case
Isaiah McKinnon began a 50-year career in public service as a patrol officer with the Detroit Police Department in 1965. When he joined, he was one of less than 100 Black officers out of a total of nearly 5,500 officers. authority of the force. An Air Force and Vietnam veteran, McKinnon became the “poster officer” for the campaign to recruit more minorities into the force.
Nearly three decades after joining the force, McKinnon was appointed Detroit Sheriff. At the time of his appointment, McKinnon was openly critical of the departmental politics he experienced. He quickly shifted the department’s focus to community-based policymaking, which aims to bridge the gap between law enforcement and the community by introducing officers directly into the community. “I used to experience hatred for the color of my skin, but I use it to make a difference,” says McKinnon.
A graduate of the FBI National Academy and the US Secret Service School, McKinnon has met many characters, but in particular, there was one that stood out to him. “I’ve met six presidents of the United States and countless other leaders. But the one who really taught me what it means to build wealth was Nelson Mandela. He inspired me to believe in wealth. really built on education, commitment, courage and love. , and hard work and sacrifice. That’s why I stand where I am today.”
McKinnon has authored three books, “Stand Tall,” “In the Line of Duty,” and “North Between the Houses.”
Despite the increase in income and wealth of black families in the US, the average white family has a net worth of up to seven times higher.
By 2021, however, black spending will reach $1.6 trillion, with the ability to shop, save and invest, almost doubled since 2000.
Lanzetta Braxton is co-CEO of financial planning firm 2050 Wealth Partners.
Similar to what commodity market experts Helima Croft recently told CNBC, Braxton said Black History Month is an opportunity to honor and reflect on the contributions of the black community. “What Black History Month means to me is an opportunity to highlight and celebrate the contributions of Black talent in the United States and around the globe. As a Black financial planner, I see Black History being made every day through the advancement of Black households and doing their financial planning and living the life and legacy they deserve.”
Achieving a middle-class lifestyle has long been a symbol of the American dream, representing financial security and the foundation for children to prosper. However, the dream of the middle class is no longer like before.
Historically, institutional barriers such as the red line have barred many black Americans from accessing the wealth-creating means provided to white Americans.
Before the pandemic, the percentage of Black homeowners had hit a record low of 40.6%, compared with a white homeowner rate of 76%. According to the Urban Institute, wide distance White and black homeownership rates are larger today than they were in the 1960s, when housing discrimination was legal in the United States.
Bonawyn Eison, principal and managing director of equity derivatives at XP Investments, would like to see the same barriers that have prevented black people from creating wealth, removed. Access to capital and anti-discriminatory lending practices are critical to wealth creation.
“How can our country help empower the Black community financially? That’s really the trillion dollar question. I think legislative and institutional power are equal. The principles that were introduced to create barriers to entry will now need to be used as tools to break down those very barriers. Black VC funding, lending practices and gerrymandering on leading to reform and real impact.”
REGISTRATION: Money 101 is an 8 week course to financial freedom, delivered weekly to your inbox. For the spanish version Dinero 101, click here.
PAYMENT PROCEDURES: My online side hustle can bring in $12,000/month: Here are my top tips for scaling and making more money with Acorns + CNBC
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.
