We can advance real social equality in Washington
2020 was the most challenging year we’ve faced as business leaders, family members and friends. The fallout from recent events will ripple through personal lives and society for generations to come. At an unprecedented velocity, it’s forced us to rethink almost everything – from how we work and learn to what we prioritize, and perhaps most importantly, our individual ability to impact change.
In the Spring of 2020, the long-overdue national conversation about systemic racism and social inequality translated into real action to increase diversity, equality and inclusion in America’s corporate boardrooms. Our collective ability to be change agents, perhaps best illustrated by the historic turnout for the Presidential election, must be harnessed to generate even more change.
In 2003, the NFL adopted “The “Rooney Rule” to increase diversity in coaching positions It offers guidance on how business leaders can begin to create more diverse and equitable workplaces. Named for the late Dan Rooney, who was Chairman of the Pittsburgh Steelers, the regulation states, “at least one woman and one underrepresented minority must be considered in the slate of candidates for either every open position or every open senior position.” Just three years after the NFL’s’ adoption of the Rooney Rule, minority head coaching hires increased from six to 22 percent. This huge step forward in diversity was achieved using a simple, straightforward approach to hiring and recruitment.
Late last year, along with more than 50 other business leaders, I joined the Washington Employers for Racial Equality (WERE, employers4equity.org) to advance racial equality in our state. Born out of a report commissioned by Challenge Seattle and the Washington Roundtable, WERE’s focus is to help close the equality gap close to home. For example, while African-Americans make up 4% of Washington’s population, just 1% of the state’s businesses are owned by people who identify as African-American -- and since the start of the COVID-19 pandemic, those businesses have closed at twice the rate of white-owned companies. We must do better.
Washington Employers for Racial Equity will work collectively to achieve parity in hiring, pay, and promotion for Black Washingtonians, support Black-owned businesses and invest a combined $2 billion over the next five years to support racial equity. The commitment sets measurable targets, will measure progress and will hold itself accountable publicly and transparently.
If you haven’t yet read the WERE report on an Equitable Future in Washington, I not only encourage you to give it the attention it deserves, but also share it within your own networks so more can understand the great opportunity in front of us. Furthermore, consider joining me and other business leaders by signing WERE’s commitment to progress..
WERE won’t stop until all Washingtonians have the same opportunities. Embracing the virtues of diversity, equity and inclusion will do more than create a healthier, more equitable society. Doing so will also improve our competitiveness.
Research from McKinsey & Company demonstrates that diversity in the workplace creates more resilient and profitable organizations. In a 2020 study, the management consulting firm found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile – up from 21 percent in 2018 and 15 percent in 2014. Additionally, companies with more than 30 percent women on their executive team were more likely to outperform companies with fewer or no women in executive roles.
Our opportunity and ability to impact change is clear. Whether it’s the Rooney Rule or another program to increase diversity in the workplace, each of us harnesses the power to be the overdue change agents and improve our collective trajectory. From shareholders to C-suite executives to employees, all of us in the Washington business community must come together to be the change we want and need to see.