Goldman Sachs, Starbucks among organizations committed to bridging the racial wealth gap in the US
Goldman Sachs, Starbucks, and a number of other organizations in the United States announced a collaboration on Tuesday to narrow the gap between black and white Americans.
The initiative, called NinetyToZero, also includes the American Civil Liberties Union, the University of Pennsylvania’s Wharton School, and the Robin Hood Foundation as supporters.
“A handful of people got together and said, ‘We have a coordinated problem that we need to address and the only way we can deal with it is a coordinated solution,” said Wes Moore, Robin Hood CEO CNBC’s “Squawk Box.”
“The problem we were trying to solve was the fact that there is this 10-to-1 gap between black and white families with the United States,” added Moore, who will be stepping down the New York City-based nonprofit Organization to fight poverty next month.
NinetyToZero’s name comes from this 90% gap. The wealth gap between black and white Americans has widened throughout US history as a result of exploitation, discrimination, and segregation.
As part of the initiative, NinetyToZero partner organizations will set goals and track progress in a number of areas such as: B. recruiting black workers and spending and relationships with black-owned companies. According to a press release, this includes taking into account efforts to get involved in “managerial accountability”.
David Solomon, Chairman and CEO of Goldman Sachs, who appeared alongside Moore in Squawk Box, emphasized the need for organizations to be accountable.
“One of the reasons I joined this initiative with Wes and NinetyToZero is because I looked at the things we did in our various programs and said, ‘We do a lot of it, but that gives us another set of metrics, another set of goals where we can use our capital and resources to make a difference, “said Solomon.
While Robin Hood “incubates” NinetyToZero initially, it eventually becomes independent of the nonprofit, the statement said.
“The ability to solve any challenge has become increasingly difficult – and frankly impossible – unless we address the fact that this racial wealth gap continues to hamper any form, growth, or progress,” said Moore.
NinetyToZero is the latest corporate action over the past year that focuses on tackling racial inequality in the United States. After George Floyd’s death in police custody last May, many companies announced financial investments in black communities and organizations, as well as other internal efforts such as reforming hiring practices.
Solomon said shareholders and capital allocators had placed more emphasis on racial equality. “The reason for this is, I think people believe that organizations are different and inclusive – and also progress on some of the issues that are [Moore] highlights this morning – drives additional economic output that everyone brings. “
Businesses need to understand the role they can play in driving this advancement, Moore added. “Whether you are talking about historical factors like the end of apartheid in South Africa, whether you are talking about the hanging of the name of football teams, the weight of the companies plays a role in those talks,” he said.
Other companies and organizations that have already joined NinetyToZero include Lord Abbett, Harvard University’s TH Chan School of Public Health, and McKinsey & Co.