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A subsidy program for black women business owners is discriminatory, an appeals court has ruled

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NEW YORK (AP) – A U.S. federal appeals court panel has suspended a enterprise capital firm’s grant program for Black women business owners, ruling that a conservative group is prone to prevail in its lawsuit arguing that the program is discriminatory.

The ruling against the Atlanta-based Fearless Fund is one other victory for conservative groups waging a large-scale legal battle against corporate diversity programs that focus on dozens of firms and government institutions.

The case against the Fearless Fund was brought last yr by the American Alliance for Equal Rights, a gaggle led by Edward Blum, the conservative activist behind the Supreme Court case that ended affirmative motion in college admissions.

Blum praised the ruling, saying that “programs that exclude certain people based on race, such as those designed and implemented by the Fearless Fund, are unfair and polarizing.”

Fearless Fund CEO and founder Arian Simone said the ruling was “devastating” for the organizations and women through which he invested.

“The message these justices sent today is that diversity should not exist in corporate America, in education, or anywhere else,” she said in an announcement. “These judges bought what a small group of white men were selling.”

Alphonso David, general counsel of Fearless Fund, who serves as president and CEO of The Global Black Economic Forum, said all options are being considered to proceed fighting the lawsuit.

Legal efforts to dismantle workplace diversity programs have also suffered some setbacks, reflecting polarized opinions amongst liberal and conservative justices on the problem. Last week, for example, a federal district judge in Ohio dismissed a lawsuit against insurance company Progressive and fintech platform Hello Alice, difficult a program that offered grants to assist Black-owned small businesses purchase industrial vehicles. Similar lawsuits have been dismissed against Amazon, Pfizer and Starbucks.

The case against Fearless Fund has been closely watched by civil rights groups, philanthropic groups, employment lawyers and the enterprise capital industry as a guide to how courts view programs geared toward equalizing opportunities for racial minorities and other groups which have historically faced discrimination. in enterprises and workplaces.

In a 2-1 ruling, a panel of the U.S. Court of Appeals for the eleventh Circuit in Miami said Blum was prone to prevail in her lawsuit, claiming the scholarship program violated Section 1981 of the Civil Rights Act of 1866, which prohibits sex discrimination. . the premise of race in enforcing contracts. Reconstruction-era laws were originally intended to guard formally enslaved people from economic exclusion, but anti-affirmative motion activists are using them to challenge programs designed to profit minority-owned businesses.

The court ordered the Fearless Fund to suspend its Strivers grant competition, which provides $20,000 to firms majority-owned by Black women, for the rest of the lawsuit pending in federal court in Atlanta. The ruling overturned a federal judge’s ruling last yr that the competition should proceed because Blum’s lawsuit would likely fail. However, the grant competition was suspended in October after a separate panel of a federal appeals court quickly granted Blum’s request for an emergency injunction while he was difficult the federal judge’s original order.

The appeals court panel, consisting of two judges appointed by former President Donald Trump and one appointed by former President Barack Obama, rejected Fearless Fund’s arguments that the grants weren’t contracts but charitable donations protected by First Amendment rights to free speech.

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“The fact remains, however, that Fearless simply — and categorically — refuses to consider applications from business owners who are not ‘black women,’” the court’s majority opinion said, adding that “any act of racial discrimination” could be considered expressive conduct, in response to the argument Fearless Fund.

The appeals board also rejected the Fearless Fund’s claim that Blum lacked standing since the lawsuit was filed on behalf of three anonymous women who had not demonstrated that they were “ready and able” to use for the grant or that that they had been harmed by the inappropriate motion. is to do it.

Judge Robin Rosenbaum, an Obama appointee, disagreed, expressing a fierce dissent, likening the plaintiffs’ claims of harm to football players attempting to win by “flapping on the field, faking injuries.” Rosenbaum found that neither plaintiff had demonstrated that that they had an actual intention to use for the grants in the shape of what she called “cookie-cutter declarations” that were “trivial and devoid of substance.”

The court’s ruling was not surprising given its conservative bias and former skepticism of the Fearless Fund’s arguments, said David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion and Belonging on the New York University School of Law.

“We will see some pro-DEI results in liberal circles and anti-DEI results in conservative circles,” Glasgow said.

Glasgow said he expected one in all the lawsuits to go to the conservative-dominated Supreme Court. Still, he said it is unlikely that a single ruling could resolve the legal debate surrounding corporate DEI due to complexity and wide-ranging programs and policies that fall under this category.

The Strivers Grant Fund is one in all several programs run by the founding division of the Fearless Fund, which was created to handle the wide racial disparities in funding for businesses run by women of color. According to the nonprofit group digitalundivided, lower than 1% of enterprise capital funding goes to firms owned by Black and Latina women.

The National Venture Capital Association, an industry group with a whole lot of member VC firms, has filed an amicus temporary defending the Fearless Fund grant program as a “modest but important” step toward ensuring equal opportunity in an industry that has historically excluded Black women.

In 2022, only 2% of investment professionals at enterprise capital firms were Black women, in response to a biennial study by Deloitte and Venture Forward, the nonprofit National Venture Capital Association and consulting firm Deloitte. The study, which included 315 firms with 5,700 employees and $594.5 billion in assets under management, found that just 1% of investment partners were Black women.

However, in his statement, Blum said that “our nation’s civil rights do not allow for racial disparities because some groups are overrepresented in various endeavors, while others are underrepresented.”

Philanthropic groups are also watching the case due to its possible implications for charitable giving.

“If legal decisions limit people’s ability to give back in ways that are consistent with their values ​​or experiences, it will harm not only philanthropy and nonprofits, but our entire country,” said Kathleen Enright, president and CEO of the Council on Foundations. whose organizations have filed a friendly temporary in support of the Fearless Fund with the Independent Sector nonprofit.

This article was originally published on : thegrio.com
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Workplace well-being declines as workers return to offices

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WORKPLACE, Bullying, return to office


As more workers are forced to return to the office and work remotely, research shows that workplace well-being is on the decline. The numbers are even lower for Black workers.

A brand new report from the Human Capital Development Lab at Johns Hopkins Carey Business School in partnership with Great Place to Work reveals that workplace well-being peaked in 2020. But the annual survey of greater than 1.5 million people at greater than 2,500 corporations measured the “climate of well-being” and found According to reports, this number has been systematically decreasing since 2020.

The decline varied by industry and a few demographics. Healthcare and retail/hospitality corporations had the bottom scores, while black, women and younger workers scored lower on well-being than white, men and older workers. Southern workers scored higher on well-being than their counterparts.

“The COVID pandemic has heightened employers’ awareness of the importance of wellness, and many top organizations have been working to create a positive work climate,” said Michelle Barton, Ph.D., assistant professor at Carey and co-author of the report. “The challenge now will be to integrate these practices into everyday work life, rather than simply as a response to the crisis.”

The researchers used five criteria to measure each company’s “climate of well-being”: financial health, meaningful connections, mental and emotional support, personal support, and a way of purpose. Employers who put money into their employees’ well-being, each financial and emotional, scored higher.

Male workers consistently reported higher workplace well-being scores than female workers, reflecting a gender pay gap that widened in 2023 for the primary time since 2020. Meanwhile, Black workers had the worst well-being between 2021 and 2023 compared with white workers, who ranked first, and Asian workers, who were the one group whose well-being matched or exceeded that of white workers over the five-year period.

Black women had the worst overall well-being compared to Asian men, who had the best well-being scores and the biggest gap compared to women.

“These significant differences underscore the continued need for organizations to address issues of equity, inclusion and belonging for all employees,” the report said.

The report found a transparent positive correlation between flexible working and improved worker well-being. Companies where 75% or more of their employees could work remotely part-time had the best well-being scores, while those where lower than 25% of employees had distant work options had the bottom scores.

“For employees, flexibility provides the means to effectively manage work-life balance while meeting personal and family needs, such as childcare and eldercare,” the report says. “For employers, it can support higher levels of employee engagement and productivity, while also fostering an atmosphere of well-being.”


This article was originally published on : www.blackenterprise.com
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Tupperware Files for Bankruptcy – Is Multi-Level Marketing in Trouble?

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Tupperware is one in every of the few iconic brands that just about every Australian has encountered at the very least once.

Some, like me, grew up watching their mothers throw “Tupperware parties” for their friends on the weekends. Others used those unmistakably colourful containers to hold their lunches to work or make wonderful meals in the microwave.

So what could have gone so incorrect that the corporate is now… filed for bankruptcy in the United States?

Tupperware is one in every of the world’s most famous proponents of the business model referred to as “multi-level marketing.” However, its model has fallen under serious recent pressures in the digital age.

The company’s restructuring director summed it up best: writing in the event of filing an application with the bankruptcy court:

Almost everyone knows what Tupperware is, but even fewer know where to search out it.

So what exactly is multi-level marketing? And what lessons might Tupperware’s collapse hold for the broader sector?

What is multi-level marketing?

As a standard multi-level marketing entrepreneur, you don’t display your goods for sale on the shelves of supermarkets or malls.

You as an alternative recruit salespeople who sell your products to individuals, earning a commission on sales somewhat than a salary.

But that’s normally not the one way they will earn money. There are also financial incentives for recruiting recent salespeople, which may move them up in the corporate. Hence the term multi-level marketing, or MLM.

Tupperware quickly gained fame for its sale events.
Tupperware Corporation, public domain, via Wikimedia Commons

This marketing method had several benefits when it appeared.

People at the underside could see the incentives received by those above them, which helped keep each engagement and brand sentiment high. Many MLM brands still hold massive award shows to rejoice their biggest and best earners.

For customers, it was exciting to be invited to a celebration, to feel like part of somebody’s inner circle of friends. You could hang around, socialize, and possibly even spend somewhat money to assist a friend.

For the brand, this meant a ready-made customer base and product distribution network.

The MLM brand could also avoid a number of the larger overhead costs, like rent and salaries, that may cripple a standard retail model when times get tough. Sounds ideal, right?



Business model under pressure

In recent times, quite a lot of macroeconomic and cultural aspects have progressively been limiting the sales and profitability of a number of the largest players in the MLM sector.

Tupperware’s troubles were brewing for years. The company had I didn’t notice a rise in sales from the third quarter of 2021, and in 2023 it needed to urgently restructure its debt to stay solvent.

Before declaring bankruptcy, the corporate’s shares (listed on the New York Stock Exchange) were already dropped by about 75% only in 2024.

In August, one other major MLM, perfume and cosmetics giant Avon also filed for bankruptcy. While “flood“lawsuits” was a hot topic, Avon’s direct selling model had also been under pressure for years.

Tupperware container lids
Tupperware briefly experimented with retail.
Oleksiichik/Shutterstock

What happened?

Times, people and culture change. Many early MLMs, comparable to Tupperware and Avon settled in and thrived probably the most in an era that has long since passed.

Far fewer women worked full-time, in order that they were at home. Success stories offered hope and connections during what was effectively a difficult and lonely time of raising children in suburban Australia in the mid- to late twentieth century.

Since then, the speed of full-time employment for women has skyrocketed, meaning many brands have had to regulate their strategy.

Avon admitted as much in late 2023 when it announced plans to open its first brick-and-mortar stores in the UK. The company faced constantly falling sales during the last decade.

At that point, CEO Angela Cretu he said:

Women used to remain at home, but now they exit to work, and we have now to follow them wherever they spend their time and make the service as convenient as possible.

Failure to reposition the brand

The culture has modified, too. Asking your mates to make your life higher at their expense may now look like nothing much to anyone however the person receiving the cash.

Tupperware can have been a secure lunch box, nevertheless it was also your mom’s brand. It had a retro feel, nevertheless it wasn’t necessarily cool.

Perhaps he was a victim of his own success. warranty program for substitute covers freed from charge – for a product whose lids are easily lost or damaged – it’s one of the crucial consumer-friendly marketing programs I’ve ever heard of.

However, in the face of declining sales, this marketing strategy ensured that many individuals didn’t have to buy recent packaging and didn’t have to think about the brand’s newer products.

The flood of cheaper competitor products with very similar designs also had a negative impact on the brand.

In 2022, after a long time of direct selling, Tupperware made a radical change and placed its products on shelves at Target in the U.S. It can have been too little, too late.

New “extracurricular activities” for the digital age

Tupperware, like many MLMs, was not adapted to the digital changes we have now seen in the last decade. At the identical time, a brand new generation of “side hustles” has emerged and flourished – but importantly, online.

Unlike the MLM model, platforms like Amazon or Etsy allow someone to have their very own virtual storewhich can potentially provide them with higher earnings at an earlier stage.

They should still have tiers, but they’re more like franchises than a tier-based system. We now hear more words like “partner,” “associate,” and “partner” when describing people in online marketplaces.

Amazon seller page visible on phone screen
Digital platforms like Amazon at the moment are offering an entire range of latest “side hustles.”
Photos Tada/Shutterstock

However, many traditional MLMs still exist. The strong brand connection they’ve with a few of us is the envy of the fashionable marketer. Some will make that leap into the approaching generations. Some is not going to.

Why? Adaptation and market knowledge. Good marketing comes right down to knowing your people well. Who they are surely and what culture influences them.

In any case, Tupperware will likely at all times hold a special place in many individuals’s hearts. Or at the very least in their cupboards.

This article was originally published on : theconversation.com
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DryMerge raises $2.2M in seed funding

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DryMerge is an organization founded by two friends who’ve known one another since elementary school, raised $2.2 million in seed funding. Yale University dropout Edward Frazer and University of Wisconsin graduate Samuel Brashears founded the corporate in 2023 and still run it today.

According to a press release, the corporate’s product streamlines user processes while saving time. “We founded DryMerge about a year ago with the idea that we could use AI to automate API integrations for developers. This year, our vision became much bigger—we realized we wanted to automate repetitive work for everyone, not just API integrations for developers,” Frazer wrote.

Frazer continued, “Work automation makes people’s jobs 10 times more enjoyable. Thousands of DryMerge users save hours every day by automating CRM data entry, support requests, targeted outbound calls, web research, and more. We think what our users do is amazing, and we spend almost all of our time helping them save more time.”

According to a press release, the corporate has received funding from Y Combinator, Garage Capital, Goodwater Capital, Ritual Capital, and Breakpoint Capital. It has also received angel investments from Umur Cubuku of Citus Data, JJ Fiegelman of Way Up, Kulveer Taggar of Zeus, and Nate Matherson of Positional, amongst others.

According to At first, the couple was unsure about their enterprisefuture. It took them a while to work out the best way to construct a product that may be useful to many users.

“…I’m a fairly young founder—I dropped out of Yale to build a company, and my co-founder Sam just graduated from the University of Wisconsin,” Frazer wrote on his LinkedIn page. His early confidence in what they were working on could border on arrogance, until he modified after receiving feedback.

Frazer continued: “I knew very little about how people worked, what problems they had, and how to solve them—and importantly, I didn’t care—I figured it was enough to build some cool technology and watch users come out of nowhere.”

Frazer concluded, “It wasn’t until halfway through that we realized that ‘cool tech’ was a useless value proposition—we had to talk to over 100 people from different segments like customer success, support, other founders, etc. before we had a solid picture of what people’s actual workflows looked like, and only then did we start building something valuable.”

The couple was also recent participants of the thirty eighth Demo Da Y Combinatory. In its blog post concerning the event, Y Combinator guarantees to speculate in each company it selects to participate in the YC Winter 2024 Batch for the corporate’s entire life. Out of greater than 27,000 applications, only 260 corporations were chosen, making its acceptance rate of lower than 1% one in every of the corporate’s most selective metrics. Y Combinator is increasingly specializing in corporations that leverage AI to facilitate practical applications of AI technologies and huge language models, which perfectly describes DryMerge’s mission and purpose.

According to , when their product works, users have a much easier time. While there are occasional mistakes, resembling the platform misunderstanding a user’s command or request, the platform still has potential. However, it’s one in every of the newest entries in an increasingly crowded platform-as-a-service integration market that’s currently expected to achieve $2.7 billion in market share by the tip of 2024.

However, Frazer is confident that he’ll have the option to realize a foothold in the market, regardless that his current user base is around 2,000.

“Our users range from online fashion retailers to school administrators to asset managers—the vast majority of whom have never touched a single line of code,” Frazer said. “They use us to save hours a day on tasks ranging from customer service automation to data entry to customer relationship management.”

Frazer continued, “We believe there is a huge opportunity for enterprise in simplifying automation and delivering easy-to-use tools that empower non-technical people.”


This article was originally published on : www.blackenterprise.com
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