CONNE CT ING DOT S BE T WE E N NARRAT IVE AND RACIAL E QUIT Y ho mas Ho usto n| April 2 nd , 2019 T
Racial income and wealth gaps exist High-quality resumes 8.5% Low-quality resumes 6.7% Closing the racial earnings gap would represent an additional $2.6 trillion in spending: • $330 billion annually on food • $860 billion on housing • $90 billion on apparel • $440 billion on transportation • $130 billion on entertainment
Race is a root cause across all social systems Black % c hanc e o f having a bad o utc o me 100% re lative to a Blac k pe rso n 1 75% WHI T E ADVANT AGE 50% White 25% 0% He alth E duc atio n Criminal Justic e CPS E c o no mic 1 T he data is base d o n statistic s fro m the state o f NC; ho we ve r the y mirro r natio nal c irc umstanc e s.
Our Mission Living Cities is committed to closing the racial income and wealth gaps so that all people in US cities are economically secure and building wealth
Living Cities Approach Collective action with the Discipline around results Race-centric solutions that public sector at the table that prioritizes outcomes over target root causes outputs
Our Approach to S ystems Change Applied Research Spread and adoption Institution Building Partnering with cross-sector leaders and local S haring lessons from our work so that other Building the organizational and individual governments in a limited number of cities to cities and leaders can adopt solutions. competencies to center racial equity in our build the competencies and strategies to roles and hold ourselves accountable for change systems. achieving results.
Racial equity is a core business issue
What’s that saying about the definition of insanity?
We’ve made small changes to how we work… and expected different results
Racial disparities ultimately constrain business growth • Businesses rely on talent in leadership, workforce and supply chain to drive innovation and productivity. Analysis of 1,000 companies in 12 countries finds statistically significant correlations o between leadership racial/ ethnic and gender diversity and financial outperformance on EBIT and profit margin . (McKinsey &Company) • Disparities in high quality education and biased hiring practices hurt candidates of color and limit business growth o By 2020, 43.1% of all j obs will require an associates degree, but only 26.7% of US -born Latinos, 25.9% of African Americans and 14.1% of Latino immigrants have that level of education, compared to 45% of US -born whites. (Racial Equity Atlas) o By 2019, a maj ority of youths under 18 will be of color, and by 2030 a maj ority of young workers will be people of color (FS G, PolicyLink)
Evidence links racial equity to business growth so why aren’ t business leaders adopting this profit model? A Big Story, rooted A Big Story, rooted in shared in shared values and common themes, that values and common themes, that influences how audiences process influences how audiences process information a formation and m d make ke d decisions cisions Bonus fa c t: Narrative s influe nc e whic h data is ac c e pte d o r re je c te d. Co ntrary to Bonus fa c t: Narrative s influe nc e whic h data is ac c e pte d o r re je c te d. Co ntrary to be lie f data isn’ t typic ally use d to c re ate a narrative . be lie f data isn’ t typic ally use d to c re ate a narrative .
What are the current narratives? Rugged Individualism: to get ahead individuals must pull themselves up by their bootstraps A Rising Tide Lifts All Boats: when we create growth, it will help everyone succeed Inequality is Natural: and may even be necessary for economic growth Don’t Rock the Boat: change is risky, so unless the Board/ shareholders are demanding it, better to stay the course Zero Sum Game: someone else’s gain is my loss No Availability: business is committed to diversity, but can’ t find qualified people of color I Haven’t Benefitted So Why Should I Pay?: everyone is playing by the same rules so those who get ahead have no responsibility to promote more equitable outcomes We’re Already Doing It: We already have a diversity and inclusion program
What is success in moving towards new narratives? 1. New Beliefs: Business leaders understand that efforts to promote racial equity and inclusion benefit their business and recognize the risk in not addressing it. Equity and inclusion efforts shift from being cost line items to value drivers. 2. New Corporate Business Models: Businesses provide transparent data on how they are operationalizing racial equity and inclusion, which demonstrate more equitable outcomes in hiring, promotions, leadership, pay, product development, contracting, community relations, and investing. 3. New Leadership: Business leaders serve as influencers and allies in a cross-sector movement for racial equity and inclusion, adopting new approaches to sharing power.
Who has the immediate power to change narratives? CEOs and other C-suite leaders across business units: Procurement Innovation & Product Design Talent/ HR Governance Budget/ Operations S ustainability Community Relations Marketing/ Communications
What tools do these leaders need to change narratives? Scale: A new narrative needs to show up consistently across multiple platforms – from peers and consultants to media and business schools – to reach a tipping point. This requires field-level alignment rather than a single program or messaging campaign. Time: In the past, narrative shifts typically take 20+ years. We need to accelerate change that is already underway, while laying the groundwork for sustained alignment. Stories: S tories – with a protagonist, antagonist and challenge – connect to emotions and deeply held values. They are more powerful than facts, shaping how people interpret data. Language – particularly metaphors – can reinforce storylines. Evidence : Although narratives shape the interpretation of data, when business leaders open up to a new narrative, they need evidence that is easily grasped that affirms that the new narrative is believable. Momentum: S uccessful narrative change converts minor shifts in thinking to maj or shifts in action. As these shifts in action are shared as stories – or lead to new evidence – they reinforce the underlying narrative and lead to greater adoption.
If successful with narrative change we’d see… instead of this… this “We do not have an “Racial inequity in an issue of racism that is organization will noticeable. We work ultimately be its with so many different demise in our quickly cultures and religions, changing world. The so racism isn't really amount of lost an option.” goodwill, talent, and revenue isn’t worth not making the shift.”
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