Corporate philanthropy has long been viewed by companies as a way to give back to causes and communities, often in the form of a one-time, well-publicized donation. These transactional interactions do not tackle systemic inequities, and their impact is always limited. To ensure that communities — regardless of race, geographical location or socioeconomic status — have access to resources and opportunities to get ahead and thrive, organizations need to incorporate equitable practices into their business strategies. Fortunately, many organizations, large and small, have begun to realize that embedding equity across their business units not only promotes fair play and progress, but also helps their profitability and increases their market share.
One example of the transformative power of inclusive community engagement is JPMorgan, which recently announced an initiative to open almost 100 branches in low-income communities, including inner cities and rural towns. The bank will also hire 75 community managers for some of the branches to help customers with their financial needs.
“This is not just ‘do-gooding,’ this is business,” JPMorgan CEO Jamie Dimon said of the initiative. “We measured these branches by number of customers, deposits, investments, and the model works.”
The new branches won't just offer the typical financial services people have come to expect from a bank. Instead, they will serve as hubs for financial inclusion. By equipping customers with financial literacy skills, the bank will provide them with opportunities to grow their wealth. Along the way, these efforts will help JPMorgan foster trust and build meaningful relationships with the communities from which they have been absent.
Another example of inclusive community engagement is the case of Walgreens. Since launching its clinical trials business two years ago, the company says it has reached more than five million patients to potentially recruit for trials.
“We launched the clinical trials business in June of 2022 with the aim to redefine the patient experience and really look at ways to tackle the issues around lack of patient access and lack of representation that has plagued our industry for a very long time,” said Ramita Tandon, the retail pharmacy’s Chief Clinical Trials Officer.
Historically, communities of color have been excluded from clinical trials. A 2022 analysis of diversity and inclusion found that among 32,000 people who participated in new drug trials in 2020, 8% were Black (13.7% of overall U.S. population), 6% of participants were Asian (6.4% of overall U.S. population), and 11% were Latinx (19.5% of overall U.S. population). Underrepresentation in clinical trials can potentially have far-reaching consequences for public health since people of different ages, ethnicities, and races may react differently to drugs or medical products. Walgreens’ initiative offers a valuable opportunity to change the status quo. Its long-term effectiveness will largely depend on how well the company is able to address potential health literacy challenges — a major obstacle in sustaining clinical trial participation.
But what are the practical ways for Walgreens to sustain momentum? It can collaborate with trusted figures who live in the underrepresented communities to work on dispelling misconceptions about clinical trials. The company can concentrate on providing diverse communities educational resources in different languages and at different reading levels to ensure inclusiveness. In short, adopting a community-by-community-based approach is the best way to gain and retain the trust of those the company aims to reach.
JPMorgan and Walgreens' initiatives demonstrate how embedding equity into business practices isn't just a moral imperative, but a growth-oriented business strategy. These companies have embraced the idea of a win-win, in which they make a real positive difference in the communities they operate in, while growing their market share and better positioning themselves for the future.
For a consultation on how your organization can start embedding equity in its business practices, contact Ichor Strategies today.