Letter notes challenges of Fortune 500 leaders to keep diversity initiatives
(WISH) — A letter sent to leaders of Fortune 500 companies from national minority business groups has noted “a vocal minority of ideologically motivated voices who ignore both facts and the law” are politicizing business decisions.
Those business decisions were “intended to capture the value from diversity initiatives,” the letter dated Feb. 7 said.
In short, the letter noted that many leaders of Fortune 500 companies are facing challenges to end diversity initiatives, which enhanced their businesses and the economy.
The minority business group’s letter said, in part, “We remain steadfast in our efforts to advance economic growth, free market competition, and opportunities for individuals, including diverse entrepreneurs, to pursue the American Dream.
“This opposition is out of step with most business leaders, most customers, and the public at
large, who overwhelmingly are in favor of these efforts.”
The nation’s 10 largest Fortune 500 companies by revenue in 2023 were Walmart, Amazon, Exxon Mobil, Apple and UnitedHealth Group, CVS Health, Berkshire Hathaway, Alphabet, McKesson and Chevron Corp.
Tony Mason, president and chief executive officer of the Indianapolis Urban League, has shared the letter locally in an attempt to amplify its message.
Letter from national minority business groups
“Dear Fortune 500 CEO,
“As the leader of a Fortune 500 company in the United States, you know that investments in
diversity initiatives, including supplier diversity programs, contribute to the performance an
growth of companies, advance economic growth, and improve productivity.“Unfortunately, business decisions intended to capture the value from diversity initiatives have
been politicized by a vocal minority of ideologically motivated voices who ignore both facts and
the law. Opponents are relying on litigation to advance an unpopular, anti-growth, and
anti-competitive agenda to undermine your leadership, the will of the vast majority of the
population, and the growth and competitiveness of the U.S. economy.“We believe it is imperative that CEOs and other company leaders are able to make
strategic decisions for their companies without threats of frivolous lawsuits and political
pressure, and we will be here with support, every step of the way.“Our organizations are committed to standing with you as you continue this critical work.
“We know continued investments in diversity initiatives are essential to the success of your
business and our country’s economy. We also understand that companies are recalculating their
risk tolerance in light of these unprecedented challenges that seek to dismantle your programs.
We remain steadfast in our efforts to advance economic growth, free market competition, and
opportunities for individuals, including diverse entrepreneurs, to pursue the American Dream.“This opposition is out of step with most business leaders, most customers, and the public at
large, who overwhelmingly are in favor of these efforts. In addition, empirical analyses reveal
how companies that champion diversity and inclusion outperform their peers who do not:“● A national survey conducted in December 2023 by Morning Consult for the Public
Private Strategies Institute found that the majority of senior executives across political
affiliations said diversity initiatives play a critical role in the success of their companies,
with 75% of self-described conservative executives, 77% of moderates, and 89% of
liberals, all recognizing the positive contributions of diversity initiatives to their business
performance. Moreover, 63% of senior executives reported that their commitment to
diversity as a corporate objective has increased in the wake of the Supreme Court
decision on affirmative action in higher education and an open letter from Republican
Attorneys General threatening litigation.“● Consumers who perceive a brand as committed to diversity are 3.5 times more likely to
purchase the brand’s products or services compared to those who do not, according to
the Corporate Diversity Index.“● A national survey conducted by The Harris Poll for the Black Economic Alliance
Foundation in August 2023 found that 81% of American adults agree that corporate
America should reflect the diversity of the American population and 78% of Americans
support businesses taking active steps to make sure that companies reflect the diversity
of the U.S. population.”● Global consulting firm McKinsey & Company found that companies that are ethnically
and culturally diverse outperform their competitors by 36% in terms of profitability.“● And a Gallup study shows that diverse and inclusive teams have a 22% lower turnover
rate.“● Diverse suppliers create value for corporations: According to analysis by McKinsey &
Company, diverse suppliers offer their corporate partners year-over-year cost savings of
8.5%, considerably more than the 3% to 7% annual procurement savings that most
organizations realize.“As leaders of business advocacy organizations that represent a broad spectrum of viewpoints
and communities, we acknowledge the commitments and leadership that you and your peers
have shown in these efforts. And you can attest to the benefits that have resulted in your
respective companies. It is vital that we do not allow the voices of an extreme few to outweigh
the voices of the many. We cannot and will not sit idly by and allow that to happen. To do so
would have dire consequences for not only your business and those you serve, but the entire
U.S. and global economies.“Our request is that you act on the overwhelming evidence and positive outcomes by expanding
your company’s commitments to and investments in diversity initiatives, including supplier
diversity programs. Together, we can overcome these baseless attacks and build a more
resilient and inclusive economy that ensures continued prosperity for all.“With appreciation for your leadership,”
Ron Busby Sr., president and chief executive officer, US Black Chambers Inc.
Alphonso David, president and chief executive officer, Global Black Economic Forum
Angela Dingle, president and chief executive officer, Women Impacting Public Policy
Ying McGuire, chief executive officer and president, National Minority Supplier Development Council
Retired Brigadier Gen. Richard Miller, president, National Veteran Business Development Council
Marc Morial, president and chief executive officer, National Urban League
Justin Nelson, co-founder and president, The National LGBT Chamber of Commerce
Matthew Pavelek, president and chief executive officer, National Veteran-Owned Business Association
Pam Prince-Eason, president and chief executive officer, Women’s Business Enterprise National Council
Chiling Tong, president and chief executive officer, National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship
Samantha Tweedy, chief executive officer, Black Economic Alliance
Eboni Wimbush, president and chief executive officer, Airport Minority Advisory Council