Black History Month, which traces its origins to a week-long observance 100 years ago, has always been dedicated to honoring the lives, struggles and achievements of African-Americans. However, this year’s commemoration is overshadowed by recent political attacks on diversity and inclusion that threaten to undermine or eradicate hard-won advances in civil rights and racial equity.
For example, many public companies, criticized and targeted by federal agencies and social media activists over their policies around diversity, equity and inclusion (DEI), have scaled back or eliminated their DEI commitments and removed all references to DEI in corporate filings and communications — even while their shareholders have overwhelmingly (98% or more) rejected anti-DEI proposals filed at shareholder meetings.
While developments like these appear discouraging and regressive, many of these companies claim to be taking a “pragmatic” approach to current politics while still making the business case for DEI. Driving the arguments for DEI is a growing body of research and case studies demonstrating that diverse leadership and perspective support stronger governance, more robust decision-making and improved organizational resilience.
As a responsible investor, United Church Funds (UCF) has long been committed to the belief that full economic inclusion is a key to sustainable investment and long-term growth of individual companies and the economy as a whole. Among the ways that UCF acts on this belief is by being an active investor and engaging the companies in our investment portfolio.
For example, UCF, both independently and in collaboration with investor coalitions and advocacy groups, regularly engages companies — including, most recently, Dollar General — and files shareholder resolutions around labor practices, workforce equity and community impact.
UCF also practices what it preaches by maintaining a diverse team of staff and board members and by intentionally identifying and engaging diverse-owned firms and diverse-led investment teams.
For over six decades, UCF has been committed to advancing social and racial justice through the responsible management of assets for churches and faith-based institutions. As we honor Black History Month, we recognize that the pursuit of racial justice and equity is a long journey. While that journey may include setbacks, we are sustained by the meaningful progress achieved through efforts that advance opportunity, promote fairness and support long-term, sustainable values.