Biz Journals: Businesses take stock of diversity efforts

3M, U.S. Bank make progress in diversity efforts, reports Center for Economic Inclusion - Alyxandra Sego - Minneapolis/St. Paul Business Journal, September 13, 2023

“While pressures to abandon racial equity and inclusion efforts are loud and sometimes vicious, the case for accelerating efforts is even more compelling when considering the opportunity that inclusion presents businesses and our broader economy.”

3M Co. (NYSE: MMM) and U.S. Bancorp (NYSE: USB) are among Minnesota companies making progress in diversity, equity and inclusion efforts, according to this year’s racial-equity report from the Center for Economic Inclusion (Center).

The "2023 Racial Equity Dividends Index Report- Private Sector" is the second annual report from the St. Paul-based racial economics organization. Last year, 40 companies with large footprints in Minnesota participated in the racial-equity survey. For this year, 22 companies participated, making the total of unique companies participating for both years at 50, the Center reports.

The index was created as a tool to help businesses identify and monitor their actions for anti-racism, Tawanna Black, the Center’s founder and CEO wrote in the report’s opening statement. It also serves as a barometer for consumers, workers, shareholders and investors, she continued.

The index currently measures 43 racial-equity standards across seven equally-weighted categories (leadership; hiring; culture, retention and advancement; procurement; products and services; philanthropy and investment; and public policy). Some categories, if they were not applicable to a certain company, were excluded from that company’s total score. For example, if a company didn’t participate in lobbying, public policy may not be measured against their score.

According to the report, the average score for this year’s participants was 44 out of 100.

Both 3M and U.S. Bancorp met racial-equity standards within four of the seven categories, the highest in this index. Maplewood-based 3M scored at highly in initiatives related to leadership, hiring, procurement, as well as philanthropy and investment. Minneapolis-based U.S. Bank, meanwhile, scored highly in leadership, hiring, products and services, as well as philanthropy and investment. Both organizations last year met the report’s standards for the category measuring culture, retention and advancement, but did not do so in this year’s report. 

Click to read full article from BizJournals (paywall)

• Read the full 2023 Racial Equity Dividends Index for the private sector to learn more about the organizations that participated.

• Contact Nashan McKelton, director of sales and growth if you want to see how your organization measures up.

• Join us at our Oct. 5 #PoweringInclusion Forum (a virtual event) to understand how recent U.S. policy changes could undermine these efforts!

Making the Unseen Visible: The Racial Equity Dividends Index for the Public Sector

The 2023 Racial Equity Dividends Index registration period is open now through Friday, July 15. Register your organization today.

By Heather Worthington, Managing Consultant

In the last few years, local governments have begun to truly embrace the deeper work of changing policies and practices to address racial disparities in their communities. As they reckon with this, they have found limited tools available to truly measure progress in this area.

As John Dulles said, “The measure of success is not whether you have a tough problem to deal with, but whether it is the same problem you had last year.”

Dozens of organizations in the state are working to solve this dilemma through a unique new racial equity tool.

A Data-Driven Tool to Guide Racial Equity Action

The Racial Equity Dividends Index (Index) for the Public Sector helps public entities better understand their organization’s progress toward meeting their racial equity goals. Diversity, Equity and Inclusion work is important, but in order create and scale systemic change with results that matters to the communities local governments serve, adopting an anti-racist mindset and framework is key. The Racial Equity Dividends Index—Public Sector helps organizations establish a baseline that can be used year-over-year to:

• guide action on racial equity work

• enlist help from staff

• help prioritize resources, and

• experience the meaningful and measurable impact of achieving greater performance in areas like recruitment and retention of employees, procurement from Black, Indigenous, Asian or Latine-owned businesses, and development that addresses historic harms and catalyzes trust-based development in communities of color. 

 The Index also helps organizations understand how policies and practices impact the community in areas like housing, economic development, transportation, public safety, and human services.

Learning to Lead on Racial Equity

Public Sector leaders see the Racial Equity Dividends Index for the Public Sector as an important resource for local governments to use in establishing a baseline measurement of their racial equity work.

“This tool will empower our public organizations to build anti-racist policies,” says District 14 Metropolitan Council Commissioner Toni Carter. “With the help of the Center, and through this Index, our public institutions can truly focus their attention to using their results to uplift Black and Brown people in our communities who have been historically undervalued and underserved.”

Participating organizations receive a report of their results and peer rankings. The report also features peer-reviewed research and profiles of successful approaches to each focus area from the Center and our national partners like Brookings and Policy Link. These features offer supporting documentation for the standards for anti-racism that comprise the Index survey questions. The Report offers organizations a road map for taking action to accelerate areas of strength, and uproot systemic roadblocks to progress on the journey to racial equity and inclusion.

“We know that our communities are looking to us to take the lead on diversity, equity and inclusion,” Center Managing Consultant, Heather Worthington. “We also know that leadership needs data-rich resources like these to show residents, elected officials, and staff that this work is a necessary investment and will benefit everyone. The Racial Equity Dividends Index for the Public Sector is one of the most valuable tools in helping build that business case for investing heads, hearts, and budgets in building a stronger community.” 

Maximizing Action with Limited Resources

For many local governments, data collection is a heavy lift. Human and financial capital and resource restrictions are the source of analysis paralysis – leading to the ever-present question of, “where do we start?” The Racial Equity Index-Public Sector is an ideal tool to get started on measuring racial equity progress—and making sure the strategy aligns with the needs of residents, employers, and government entities.

Once the metrics are more widely understood, the Center can work with staff to address the findings from the Index to assist leaders in better utilizing their unique data with regard to policy and practices. Finally, while all data is anonymized, it is peer-reviewed with similar size local governments in Minnesota and comparable communities across nation. This benchmarking helps organizations establish racial equity goals that also facilitate inclusive economic growth and competitiveness, helping to ensure the community you are building is a community of choice for talent, employers, and investors. 

Getting started is often the hardest part of the work. We’re here to offer a tool that can help leaders take that first step toward becoming a more equitable and inclusive organization. And we’ll be there to guide you and your peers and elected leaders on the journey from increased awareness about what’s working and what’s not, to taking actions that will transform the community into one that is good for all people to live, work and play.

This is an investment that will pay great dividends for staff and ultimately for the community.

• To learn more about the Public Sector Index, email Center for Economic Inclusion Director of Sales & Growth, Nashan McKelton at activate@centerforeconomicinclusion.org.
  
  

What’s New: Introducing the 2023 Racial Equity Dividends Index for the Private Sector

Nathan Arnosti

By Nathan Arnosti, Director of Analytics

A year ago, the Center for Economic Inclusion launched the inaugural Racial Equity Dividends Index (Index). The Index surveys participating companies on their policies and practices related to 43 Center-identified racial equity standards that span seven dimensions of company activity.

Participating companies receive customized score reports that help them assess their strengths and opportunities on racial equity, understand how they compare to peers, and chart a roadmap for further action. Additionally, a public Index report identifying high-scoring businesses, trends, and case studies is published on the Center’s site as a free resource for companies.

Forty companies of all sizes – from Fortune 500s to enterprises with fewer than 100 employees, and collectively employing more than 200,000 Minnesotans – participated in the Index last year. With the results of this index in-hand, these organizations have used their unique results to focus their efforts to drive racial equity forward within their organizations.

The Center offers the Index to companies on an annual basis. We believe that to sustain excellence, the Index must adapt to reflect new research and thinking on standards that best advance racial equity within companies.

These are several of the questions that the upcoming 2023 Racial Equity Dividends Index for the Private Sector seeks to answer:

• How many businesses in Minnesota no longer use a new hire’s salary history to determine their salary?

• Do businesses provide hourly workers with consistent schedules and the ability to work full-time?

• Does your organization measure the racial diversity of its Tier 2 Suppliers (your suppliers’ suppliers)?

What’s new in 2023

After we published the 2022 Index results last June, I led a team of Center colleagues to revisit and re-evaluate our racial equity standards. Integrating feedback we received from participating companies, new research which included the Center’s own research on racially equitable procurement and policymaking practices, and emerging models from racial equity practitioners,  the 2023 Index offers the following additions:

New sections to collect data on racial equity outcomes at your organization. In these sections, participating companies report on critical datapoints related to their workforce and supplier diversity, including: 

• Racial demographics of their workforce at different levels, including senior leadership, supervisors, all full-time staff, and all part-time staff;

• Number of workers by race who earn family-sustaining wages, are hired, receive promotions, and depart; and

• Number of and total investment in Black, Indigenous, Hispanic, or Asian-owned suppliers.

These sections will not count towards an organization’s score, but we believe they will provide invaluable insight into baseline outcomes of participating companies compared with peers, which will be shared with each organization in their confidential Index score report

Seven new racial equity standards. Our team has developed new standards related to the use of salary histories during hiring processes, protocols to ensure that Black, Indigenous, Hispanic, and Asian-owned businesses are considered in requests for proposals, corporate transparency around lobbying efforts, and more. We believe these new standards will shed new light on the opportunities for building – and benefitting from – racially equitable workplaces.

Revisions to several existing Index standards. Based on feedback we received from participants, new research, and an analysis of 2022 results, we’ve revised a handful of standards so that they offer clearer, more compelling insights. The 2023 Index gathers more specific data on the action businesses take to reduce bias within the application process, benefits they offer their employees, and efforts to provide antiracist training to employees. We’re excited to share these revised standards with participating companies in the 2023 Index survey.

We believe the 2023 Racial Equity Dividends Index is the tool that companies need to strengthen and deepen their existing efforts to build racially equitable and inclusive workplaces – and benefit from the innovative ideas, increased productivity, improved retention, and higher satisfaction and engagement that can result.

The updates we’ve made to the Index over the past six months further strengthen its value. Dismantling racially inequitable systems and building organizations and economies that benefit all of us is a daunting undertaking. With tools like the Index to support and accelerate the efforts of dedicated leaders within organizations, we believe that progress is possible.

Registration for the 2023 Racial Equity Dividends Index for the Private Sector is open now through February 24. Don’t miss this opportunity to participate! bit.ly/2023-Index

Please see our FAQ page for additional information about the 2023 Racial Equity Dividends Index for the Private Sector and direct any questions about the Index to index@centerforeconomicinclusion.org.

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Center for Economic Inclusion releases innovative data, tools to measure and track Twin Cities’ economic inclusivity

Center’s Indicators for an Inclusive Regional Economy and first-ever Racial Equity Dividends Index identify areas for improvement in region’s pursuit of workplace and economic inclusion

The Center for Economic Inclusion today unveiled its 2022 Indicators for an Inclusive Regional Economy and the first-ever findings from its new Racial Equity Dividends Index during its Powering Inclusion Summit, the State of Racially Inclusive Economic Growth & Employer Action. Shared with Index participants and the Twin Cities business, government, and community leaders in attendance at the summit, together, the interactive Indicators website and Racial Equity Dividends Index can be used as powerful tools to help identify challenges and implement solutions to build an economy for everyone.

“For more than two years, businesses have made bold declarations to address racism. Those who are ultimately instrumental in Minnesota’s elevation from worst in the nation for African Americans, to best in the nation for African Americans and business growth and economic prosperity, will be those who adopt systemic frameworks rooted in anti-racism and liberation that honor the brilliance in communities of color,” said Center for Economic Inclusion Founder and CEO Tawanna A. Black.

“The Center’s first-ever Racial Equity Dividends Index gives leaders the proven standards to guide their strategies and goals and the 2022 Indicators for an Inclusive Regional Economy guides organizations in establishing goals for both internal performance, and the resulting impact on the regional economy.”

About the Racial Equity Dividends Index

The Racial Equity Dividends Index is a comprehensive tool that businesses opt into to measure their progress toward building inclusive workplaces in Minnesota. A total of 40 businesses participated in the first-ever Index this spring, which measured performance on the leading standards of racial equity, inclusion and belonging. These 40 participating companies employ more than 200,000 workers in Minnesota, and an additional 550,000 employees elsewhere in the world, meaning approximately one in every 12 non-government employees in Minnesota works for a company participating in the Index.

The Index scores participating companies on the leading standards to advance anti-racism, inclusion and belonging in seven categories including: leadership; hiring, culture, retention, and advancement; procurement; products and services; philanthropy and investments; and public policy. Participating organizations were evaluated and received scores ranging from 6 to 76 points out of a possible 100. The average company score was 38, with final totals significantly varying. On average, the larger organizations scored higher overall and in every Index category, likely reflecting their greater access to resources and staff capacity compared to smaller organizations.

Index data found participating companies scored highest in racial equity standards related to leadership, culture, and retention and advancement, with the greatest opportunities across the board for improvement in racial equity standards related to participant’s products and services, procurement, public policy, and philanthropy and investment.

Analysis of participating companies by industry indicates that manufacturing companies scored higher in hiring and leadership; organizations in finance and insurance scored higher in philanthropy and investment; and health care and social assistance organizations scored higher in public policy and products.

About the Indicators for an Inclusive Regional Economy Digital Lab

The Indicators for an Inclusive Regional Economy evaluates key measures of inclusive economic growth and competitiveness while offering profiles of data by race and income. The digital lab on the Center’s website also offers tools and case studies for closing racial wealth gaps and addressing workplace racial equity and inclusion opportunities.

This newly updated data demonstrates that Minnesota’s employers and policymakers must take more deliberate, aggressive, and sustained action and make anti-racist, systemic investments to not only close racial wealth gaps and position the state to compete in the global economy, but to ensure all people experience the racial and economic justice, inclusion and belonging we value and deserve. The data highlight the many existing barriers to quality, well-paying economic and employment opportunities for all Minnesotans, despite historic levels of job openings and the need for additional workforce labor.

Recent employment rates have significantly differed across racial, ethnic, and culture groups, with Black, American ancestry, Somali, and Indigenous residents employed at a rate of 54% compared to more than 80% for Puerto Rican, Korean, and Indian residents; further studies have revealed that workers of color are often the first to be laid off and the last to be hired for full employment. Racial discrimination in the employment process is also still prevalent, with more than three in four Black, Indigenous, Hispanic and Hmong residents having reported experiencing racial discrimination when applying for a job.

Over the past five years, the Center for Economic Inclusion has quickly grown and emerged as a regional leader in building, scaling, and institutionalizing anti-racist workplaces. By working alongside organizations to better understand and implement current research findings, the Center hopes to build a thriving, resilient regional economy where everyone can participate in markets, advance in careers and build wealth, and drive overall economic growth. Quality, consistently updated data through tools like the Indicators for an Inclusive Regional Economy and the Racial Equity Dividends Index are critical for identifying the challenges, taking note of the opportunities, and acting on tangible, research-driven solutions.

To learn more about the Racial Equity Dividends Index and to read the full report, click here.

To explore the Indicators for an Inclusive Regional Economy digital lab, click here.