The virtual Conference on Racial Equity in Corporate Governance held earlier this month. It brought together industry leaders to discuss the current state of racial equality in corporate America.
Panelists encouraged participants to “stay on the right track” and embed DEI initiatives in their company’s structures throughout the discussion. They argued that this strategy will help them weather the legal and political storms they face today in today’s highly polarized environment. The Stanford Center for Racial Justice co-sponsored this year’s third annual conference, as well as the Ira M. Millstein Center for Global Markets and Corporate Ownership (Columbia Law School); The Howard University School of Law; The Institute for Law and Economics at The University of Pennsylvania; and The Arthur and Toni Remberock Center for Corporate Governance.
Lisa Fairfax, the Presidential Professor and co-director of The Institute of Law and Economics at The University of Pennsylvania opened the discussion by acknowledging the achievements of corporate America in recent years. She noted that 46 percent of the new boards in Fortune 500 index are made up of members from underrepresented racial and ethnic groups, a significant increase from 12 percent a decade earlier.
Eileen Schloss, panelist, highlighted the fact that more than 90% of S&P 500 company publish an Environmental, Social, and Governance report each year. This is used to inform shareholders and other stakeholders about the company’s values, policies, and actions regarding key topics of importance to investors, stakeholders, and decision-makers. Eileen Schloss, a Human Capital Operations Advisor for Advent International Private Equity, and Melonie Park, Vice President and Chief Diversity Officer of Google, both pointed out that the entire ESG movement contributes to making DEI a sustainable initiative.
Parker gave an example of her role in fostering DEI for Google. She explained that George Floyd’s murder in 2020 was a “clarion calling to deepen the work” on racial equity and, therefore, a way for many companies to begin to build sustainable equity. Her company was able, through partnership with the Black employee group of Google, to set eight racial equity promises that could make a real difference.
Parker explained that Parker did not place the responsibility of solving racial equality on these committees. Instead, he sought the advice and consultative support that would give him the insight, expertise and counsel he needed to work with the subject matter specialist.
Panelists also discussed how Supreme Court cases relate to the private sector. Professor Olatunde Johnson advised participants to “not read the decision and do their work” in affirmative action cases against Harvard. Johnson, Columbia’s Ruth Bader Ginsburg Professor in Law, stated that although the Title VI law (the issue at hand) shouldn’t have an immediate or direct impact on private workplaces it might. These precedents could be used to influence Title VII workplaces.
Johnson stated that the case is an ongoing political contest over inclusion, affirmative action and inclusion. Johnson rebutted the notion that “workplaces” are a zero-sum system where certain people are at the top and others are at bottom. She said that there is a need for a “different discourse, rhetoric and vision” in order to achieve racial justice.
Schloss said that private equity firms asking portfolio companies to keep track of incremental progress and report their findings to the individual company boards has led to significant improvements in the direction she believes it is.
Schloss stated that it was important to implement activities that increase engagement in virtual environments.
Fairfax stressed the importance leadership later. Fairfax later stressed the importance of leadership.
Johnson encouraged participants to share a lasting pearl or two of wisdom with them when they were asked. He emphasized the importance of personal stories and mentorship for advancing racial justice. Parker and Schloss stressed the importance of self-identification and comprehensive data collection. “Data powers Progress,” Parker stated.
Panelists all recommended that everyone take a personal approach towards racial equity, and encourage empathy. The panelists ended by pleading with the audience: “Please keep the course.”