America’s movement toward fairness has forced a reckoning with racism that pervades every aspect of our culture. The private sector followed with statements against police brutality, financial capital to combat injustice, and vocal support of the Black Lives Matter movement. These efforts are commendable, but to ensure this movement is not a moment, companies must move from statement to implementation. Transformation begins with introspection: to sustain progress in the fight for racial equity, companies must dismantle systemic racism within their structures. Responses from PepsiCo, PayPal and Reddit are transformational efforts.
PepsiCo CEO Ramon Laguarta took a stand against “systemic racial barriers that for generations have blocked social and economic progress for Black people in this country,” then offered a multi-pronged approach to drive positive change. His plan addresses people, business, and community. Notable reforms include a 30% expansion of the company’s Black managerial population by 2025 and investing $50 million to support local Black-owned businesses. Both inwardly and outwardly focused, PepsiCo acknowledges room for improvement in all areas.
PayPal CEO Dan Schulman condemned “discrimination, racism, hatred, and violence,” and supported the NAACP Legal Defense Fund. He then created a $530 million fund to support Black and minority-owned businesses, and made a $15 million investment to improve the company’s internal diversity and inclusion programs.
Reddit co-founder Alexis Ohanian resigned from his position on the board and requested it be filled by the first Black director in the company’s history, a request fulfilled in naming Michael Seibel as Ohanian’s replacement. Ohanian, husband of the legendary Serena Williams and father to Olympia, cited his family as the driving factor in his resignation. He also pledged $1 million to Colin Kaepernick’s Know Your Rights Camp and his future gains on Reddit stock to benefit the Black community. The social networking site, long a forum for racist content, is making structural changes to curb racial hatred and engage underserved communities.
These corporate responses enact meaningful substantive change within organizations and communities. The multi-faceted plans outlined by each demonstrate that strengthening the economic power of Black-owned businesses, tackling inequity within their workforce, or advocating policy to dismantle systemic racism, corporations can play a significant role in achieving social justice. These reforms are long overdue, and this moment offers a vital opportunity to embrace transformational movement.