In the summer of 2020, demonstrators gathered at a Black Lives Matter rally.Image credit: Ying Ge/Unsplash
Just a few years ago, companies and organizations were rushing to build diversity, equity, and inclusion (DEI) programs, hire new staff, and implement programs. Now in 2024, many of these companies are publicly backing away from their efforts. Some are doing so because of increased attacks from politicians and affirmative action rulings from the U.S. Supreme Court, while others see it as a cost center that can be cut.
But this work is as important as ever. As leaders, we must continue to invest in DEI and social impact efforts, and we must reaffirm that doing so is not only legally correct, but also essential to fighting misinformation. Indeed, employees and customers expect brands to make meaningful investments in advancing social justice.
Simply put, now is not the time for companies to back down, but rather to step up their social justice efforts and leverage their time, finances, and influence to stand out. While this may not be easy, these strategies can move us forward, increasing employee and customer engagement and strengthening business practices.
Linking social contribution activities to core business
Philanthropy shouldn't be done in isolation – it needs to be integrated into every aspect of a company's core business so that it's seen as a key component of success, not an “add-on.”
For example, Google.org is launching a Cybersecurity Clinics Fund in 2023 to support universities by increasing access to and opportunities for practical, real-world training for students pursuing careers in cybersecurity. Through this opportunity, Google is providing grant support as well as free access codes to Google cybersecurity certification courses, in-kind products, and mentorship from Google employees. This initiative addresses the need to invest in the cybersecurity workforce of the future and provide affordable cybersecurity services to under-resourced community organizations, while aligning with Google's business and technology strengths.
In addition to funding, for-profit companies may have the products or expertise to directly support social impact projects, so by tying their social impact strategy closely to their business, they can create the business case where sustained philanthropic support makes operational sense.
Increase employee and customer engagement
Community giving programs are a key component of attracting and retaining top talent. These programs reflect the values of a company and many of its employees. A recent poll by Benevity found that 80% of U.S. employees believe “it is the responsibility of corporate leaders to take action to address issues of racial justice and equality.”
In this space, Sephora has become a model for what a consistent, cross-organizational effort to advance racial equity looks like: The beauty retailer made the 15 Percent Pledge to ensure that at least 15 percent of products on its shelves are from Black-owned brands, an initiative that has doubled the number of Black-owned brands sold in Sephora stores.
Meanwhile, the company has been building a diverse workforce that more accurately reflects its diverse consumers: Its most recent DEI report found that it has seen a 7% increase in Black leaders and a 10% increase in Latino leaders across Sephora since 2021. The company also said it is training store associates to better serve diverse customers and their beauty needs.
Invest in community-led organizations
Investing in organizations with accessible leaders — leaders who share the identity, lived experiences, and geography of the communities they serve — is a highly effective way for companies to strengthen relationships and increase their impact with the communities they seek to support. Communities and their leaders know what they need to thrive, and there is growing evidence that nonprofits led by and working for the people closest to their communities and issues are more innovative and better problem solvers.
Yet only 4 percent of philanthropic funds in the United States go to organizations led by people of color, who are most impacted by systemic inequality. For companies, this means they have an opportunity and an obligation to stand out by supporting under-resourced yet highly effective grassroots organizations. Tides' approach to supporting companies with their philanthropy strategy is based on the belief that this work must be connected to the lived experiences of the communities it benefits, as exemplified by our partner Kate Spade New York with their On Purpose Fund.
Implementing a trust-based approach
Trust-based philanthropy addresses inequality by shifting power from donors to those working on the ground. By reducing reporting requirements, providing unlimited funding, and reducing barriers to resources, companies can ease the burden on grantees and community organizations. Simply put, trusting grantees to make an impact benefits both your organization and the shared impact you're trying to create.
For example, software development company Unity practices trust-based philanthropy by providing grants to projects and organizations that align with the company's mission to empower creators. Unity's grantmaking approach values collaboration and innovation, supporting efforts that leverage technology and creativity to make a social impact. For example, the Unity for Humanity Creators Program provides mentorship and community to creators who use their skills for good. Unity partners closely with Tides by fostering a community-centric model that values mutual trust and flexibility through its general operating support grants, aiming to build long-term relationships with grantees.
Conclusion: Supporting social justice is good for business
Corporate giving is a powerful way for companies to demonstrate their purpose and commitment to those who have invested in them: their employees, customers and the communities they serve.
By standing strong during these challenging times and supporting diverse communities, companies can join the movement to advance social justice and have a real impact on their own business goals. And that's good business.