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Organizational rigor, strategic initiatives can accelerate DEI efforts

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Anti-DEI, Black Employment, DEI


A brand new report from Ariel Investments on DEI practices in firms reveals that board members have very different views on the topic than the typical U.S. worker.

The discovery was included in the most recent Black Corporate Executives Study by Ariel, a world asset management firm. The evaluation reveals findings on how and why the momentum around DEI has modified on public company boards.

Chicago-based Ariel paid for a second study of 165 Black, Latino and Latino corporate executives from the Fortune 500 from August to October 2023. They attended the corporate’s Black Corporate Directors Conference last 12 months.

In addition, a national sample of two,909 biracial U.S. employees was taken to acquire their responses for comparison with the group of executives. Ariel conducted the study for the primary time in 2021.

Taken together, the info revealed some shocking findings that show there remains to be much work to be done to enhance DEI and make it more progressive in corporate America going forward.

The study offers a “call to action” for U.S. firms on DEI. It includes holding CEOs accountable for lack of progress, offering incentives to extend DEI and recurrently reporting results to shareholders. Ariel Investments, No. 1 on BE Asset Managers list, has roughly $15 billion in assets under management.

Overall, the results of DEI have been negative on many fronts recently. Major firms have laid off DEI teams or stopped funding programs; lawsuits have been filed against DEI initiatives; colleges have banned DEI programs; and a few states have banned affirmative motion.

Operational Rigor: The DEI Challenge for Businesses

“Many board members surveyed still feel their companies are struggling to effectively implement DEI goals—stagnating or improving only slightly compared to two years ago,” the report says.

A survey of Fortune 500 board members found that almost all of the nation’s most influential firms proceed to prioritize DEI, despite some news headlines on the contrary. But amid headwinds just like the Supreme Court’s ruling on affirmative motion in higher education, the info reveal declines in several areas, including:

  • When asked whether, in consequence of recent board diversity policies, equivalent to the Nasdaq Board Diversity Policy, boards of directors have hired directors with diverse backgrounds prior to now 12 months, 41% of respondents said they’ve not hired directors with diverse backgrounds on their boards.
  • Directors say Board conversations around DEI are less thoughtful, balanced, and purposeful than they were two years ago, at 84% in 2021, in comparison with 78% in 2023.
  • The report stated: “Fewer firms are investing capital to support their races equality and diversity goals; when they are achieved, capital is less sufficient.”
  • Corporate boards have develop into more racially and ethnically diverse overall over the past five years. But the proportion of black and Latino directors has stagnated amongst S&P 500 firms, at 12% and 5%, respectively.

DEI stays a boardroom priority, however the infrastructure for these initiatives is weakening

The report found that DEI was added as a top agenda item several years ago for 59% of boards where respondents serve, while 28% made it a priority prior to now two years. Still, 54% of directors imagine that, amongst a big selection of diversity issues, race/ethnicity receives too little attention and is lower on their board’s priority list.

For example, race is linked to gender, sexual orientation, and political affiliation.

On the opposite hand, about 45% of average employees imagine there is simply too much emphasis on race and ethnicity — particularly white male employees (54%). This sentiment has increased since 2021.

Arielle Patrick, Ariel’s chief communications officer, said in an email that probably the most troubling finding was the stark disconnect between leaders and the typical worker on why DEI matters. “This dissonance signals how much harder leaders need to work to ensure that rank-and-file employees truly understand diversity as a business imperative,” Patrick said.

A Potential Framework for Taking DEI to the Next Level

So what is required now? THow to make DEI more progressive in the long run of American firms?

Patrick said it’s no secret that DEI is under attack in our country’s volatile political landscape. Diverse directors face more obstacles of their fight to maintain civil rights on the company boardroom agenda—with the operational rigor they deserve.

She said the outcomes send a message that U.S. corporations must adopt consistent oversight, transparent reporting and accountability measures to be sure that progress made in recent times doesn’t stagnate.

She added that firms must be sure that their DEI efforts are comprehensive and that your entire management team treats it as a strategic imperative in the next areas:

  • People representing and involving employees from entry-level to management.
  • Purchasing efforts should include diversifying vendor and supplier relationships with women and minority-owned businesses.
  • Philanthropy should include long-term engagement with organizations that work for equality and civil rights, where employees have representation on nonprofit boards.
  • The product offered by the corporate should bear in mind and incorporate within the research, development and marketing process all of the stakeholders the corporate serves.


This article was originally published on : www.blackenterprise.com
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Business and Finance

Home Depot to pay $2 million to settle false advertising case

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Home Depot


Home Depot has settled a civil case alleging false advertising and other deceptive business practices. The home goods store will pay nearly $2 million despite admitting no wrongdoing.

District attorneys in California initially filed the grievance in San Diego Superior Court. According to the Los Angeles County District Attorney’s Office, Home Depot allegedly cheated customers to pay the next price than the advertised price of the product. This was considered a “scanner violation”, the product label on the shelf won’t ring the identical on the checkout due to the costlier UPC code.

Case lawyer George Gascón called the settlement a “clear message” that these illegal practices by large corporations won’t be tolerated.

“False advertising and unfair competition are serious crimes that undermine consumer trust and distort the marketplace,” District Attorney Gascón explained in a press release. “When companies engage in deceptive practices, they not only deceive consumers, but they also gain an unfair advantage over companies that operate ethically and transparently. This settlement sends a clear message that such behavior will not be tolerated and underscores our commitment to protecting the rights of consumers in our community.”

The company began negotiations with district attorneys on August 26. As a result, the ruling ordered Home Depot to pay $1.7 million plus an extra $277,251 in investigation costs and damages. The additional fee may also support enforcement of consumer protection laws.

In addition, Home Depot is prohibited from promoting false advertising and charging more for an item than is visible. The ruling also ordered it to implement a price accuracy program. It includes more audits and training, in addition to eliminating weekday price increases.

However, an act of contrition was not certainly one of the necessities, as Home Depot didn’t admit to committing against the law. LADA noted that the corporate, which Identifies as the world’s largest home improvement retailer, cooperated throughout the investigation.


This article was originally published on : www.blackenterprise.com
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Business and Finance

Orlando Magic Brings Big Dave’s Cheese Steaks to Florida

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Orlando Magic,, Dave


The Orlando Magic are entering a brand new multi-year agreement with Big Dave’s cheesesteaks. The partnership will bring the growing franchise to Florida on the Kia Center in Orlando.

The location shall be the primary Big Dave’s in Central Florida. In a continued partnership with the Orlando Magic, its exclusive location will feature additional brand integrations throughout the sector, including a concession stand and food cart.

The Orlando Magic also spoke concerning the “power of teamwork” on this latest partnership.

“Magic is excited to partner with Big Dave’s Cheesesteaks and be the first to welcome this franchise to Central Florida,” Magic Senior Vice President of Global Partnerships JT McWalters said in a press release obtained by BLACK ENTREPRENEURSHIP“As two companies that believe in teamwork, we are excited to partner with the first Florida franchise and its new owner, Derek Lewis. We can’t wait to connect Big Dave’s Cheesesteaks with our local community and give our fans a taste of what it’s all about.”

Derrick Hayes founded Big Dave’s Cheesesteaks in 2016, starting out in a gas station in Georgia. The franchise has since expanded prolonged to five locations statewide, with one other recently opened in North Carolina. Now its first franchise owner, Lewis, is spearheading the trouble at Sunshine state.

“I am excited to bring Big Dave’s Cheesesteaks to the heart of the Orlando sports and entertainment scene,” said Lewis. “This partnership with the Orlando Magic and Kia Center is the perfect combination of exceptional food and exciting basketball. Opening our doors on October 11th during the preseason is just the beginning of what I believe will be a groundbreaking presence at the arena. As the first owner of a Big Dave’s franchise, I am committed to delivering the same quality and taste that Derrick Hayes made famous while creating an exceptional experience for Magic fans and guests.”

In addition, Lewis intends to grow Big Dave’s diverse community of cheesesteak lovers and sports fans. The chain also expects to open 10 locations within the Central Florida region.

“This venture is about more than just great cheesesteaks; it’s about supporting the community, celebrating diversity and being part of the electric atmosphere that the Orlando Magic brings to the city,” he added. “Get ready, Orlando – we’re going to elevate your game day experience!”


This article was originally published on : www.blackenterprise.com
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Junior Bridgeman reportedly buying 15% stake in Milwaukee Bucks

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At some point, the circle is closing, with former Milwaukee Bucks point guard Junior Bridgeman reportedly close to buying a 15% stake in the team he played for for many of his NBA profession.

According to , the 70-year-old Bridgeman, whose number two jersey has been retired by the Bucks, I’ll receive a privileged discount for the limited partner, which entitles him to a 15% share in the organization.

According to , Bridgeman currently owns Jet and Ebony magazines. The agreement states that the Milwaukee Bucks, a small NBA franchise, are value $4 billion. According to their sources, the NBA was alleged to notify the owners of the sale in a memo on September 12.

Bridgeman has built a net value of over $600 million largely through success in various businesses, including fast-food restaurants and running a Coca-Cola bottling distributor. Neither the Milwaukee Bucks nor Bridgeman himself have commented on the sale.

Although the team finished third in the Eastern Conference last season, they suffered a loss because that they had to make use of the luxurious tax and pay $52 million. According to , that quantity is NBA’s fourth-highest luxury tax.

The Bucks are expected to face similar luxury tax challenges in the 2024-2025 NBA season, with Giannis Antetokounmpo, Damian Lillard, and Khris Middleton set to make $48 million, $45 million, and $31 million, respectively. The team’s last ownership change got here in April 2023, when Cleveland Browns owners Jimmy and Dee Haslam bought a 25% stake from former co-owner Marc Lasry. At the time, before the NBA’s recent television deal, the Bucks were valued at $3.2 billion.


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