It’s been nearly three years since the protests and racial unrest following the murder of George Floyd. As of Oct. 2022, the amount companies have pledged to support racial justice has grown to nearly $340 billion, according to McKinsey & Company senior partner Shelley Stewart.
But where is all that money going?
There were two sides to the pledges that came during this period of time, Stewart said. First, companies set diversity goals within their institutions. They looked internally and promised to “do better,” to diversify their teams from entry-level employees to senior-level executives.
Second, they pledged the use of both capital and assets to help address “broader systemic inequality” outside their organizations. They have committed money to supporting causes like affordable housing, diversity efforts and education, Stewart told CNBC.
“You see dollars flowing across the list of what I’d [call] human-development needs that are very acute in the Black community,” Stewart said. “In many ways, the pledges are targeted in the right areas.”
Still, it has been a challenge to meet such ambitious goals when it comes to deploying capital, Stewart acknowledged.
Watch the video to learn more about how companies have begun to invest in anti-bias structures both internally and in their communities.