Doing the Work | v1.026

Justice is good for business, and here's why doing the work matters

This week has been a game changer for justice. Not since the O.J. Simpson trial have I felt like the entire nation — if not the world — was on the edge of its seat waiting for the verdict to bring justice for George Floyd’s murder by police. The overwhelming evidence led the jury to decide on a guilty verdict in less than 24 hours. Without that evidence, we might not be breathing more easily today.

In response to the verdict, public sentiment seems to have ranged from joy to relief. It is still an emotional time, and like never before the voice of the oppressed rings loudly. More than a year into the pandemic, we see the sustained momentum of the Black Lives Matter movement, and we must give credit to the Black-led grassroots movement, and all of the frontline organizations at the intersections, who have kept pressure and focus on the continued disregard for Black and Brown lives.

Meanwhile, legislators and companies battle about civil and human rights issues including policing and voting rights. Because of public outcry and visible leadership, we are experiencing a shift in the dialogue. More and more big businesses are being called on to speak up and take a stand up for civil rights issues, perhaps like never before. In response, we see how entrenched business leaders are in the conversation, both for and against basic civil rights, including the U.S. Chamber of Commerce weighing in a (somewhat) surprising position.

So the question in my mind now is: Is justice good for business?

To help answer this question, I want to highlight something else that happened this week. This open letter to asset managers published in The Financial Times on April 20 (the same day as the George Floyd verdict) by more than 140 racial justice leaders — this is a game changer too.

This coalition, led by Majority Action, demands that institutional investors exercise their shareholder proxy voting power to move the needle on racial equity. The letter puts a new kind of pressure on those companies that, just last year, benefited from issuing statements in solidarity with the Black Lives Matter movement. I’ve said it before, and now we are seeing it: this year is the year we “do the work”. Now business leaders, especially financial institutions, have a litmus test that will separate the co-opted from the courageous. Companies that have appropriated the moment, instead of committing to the movement, will have some explaining to do.

The case for business leaders should be a moral one. I want to think that most will advocate for what’s right — to stand on the side of respecting lives and believing in one’s right to a full life, filled with dignity. But this push to agitate the investment community is purposeful because unless business leaders see the impact on their business, real change may never happen. Why? Because we now see more clearly how business and politics are intertwined.

That’s why political donations are under attack. In the same way that corporate money should not be used to support undemocratic lawmakers — those who want to strip away the right to vote, or who mount an insurrection on our nation’s Capitol — racial justice leaders are calling on the investor community to account for how their votes perpetuate systemic racism. Many are calling for the end of political contributions, but until that happens, we must continue to follow the money.

There’s growing evidence to support why business should advocate for civil and human rights, beginning with worker rights. The nonprofit, JUST Capital, regularly reports on how companies that treat their workers better, including paying a living wage, also see stronger earnings, higher return on assets and outperform the market. This same independent, third-party research company launched its first Corporate Racial Equity Tracker that might serve as a blueprint to CEOs for what policy areas to evaluate in their own companies. Savvy leaders are taking action.

Doing the work is what needs to happen next. Not only is it the right thing to do, it is good for shareholders, workers and employees. We have a lot to learn about how good corporate action leads to positive social outcomes. When companies pay their workers a living wage, they reap the benefits. I am optimistic that the opposite is also true.

Justice must also be good for business. Companies, large and small, need a well-functioning democracy to operate free markets, attract talent and invest in technology and innovation. When business advocates to protect citizen’s rights, it is acting with self-interest. Protecting the right to vote and favoring community policing help ensure that employees feel safe in their own communities, while customers get rewarded by the innovation that comes from a highly productive workforce.

Doing the work of justice requires a mindset shift. We need the flow of money and wealth to follow, so that everyone may thrive. The only threat to corporate interest, it seems to me, is a failure of imagination to envision a future of abundance. That’s part of the work too.

Onward, my People.