DEI initiatives are falling short; how will Black businesses be impacted

Five years ago, our country was rocked by two major events that catalyzed seismic shifts in the public consciousness. Only a couple of months into the abrupt shock of the global Covid-19 pandemic, in which the whole world was locked down tightly and we were losing neighbors and loved ones, we were collectively captivated and traumatized by the very highly-publicized murder of George Floyd by Minneapolis police officers. That act of violence sparked a reckoning of the history of racist policy, institutional violence, and police brutality against Black Americans, and triggered the ensuing racial justice fight. 

Early on, as the nation searched for pathways to healing, organizations at every scale from corporations to foundations vowed to do their part to address and dismantle systemic racism. They pledged their commitments to supporting DEI initiatives and organizations, and publicly announced intentions to create such programs where they didn’t already exist. According to a Washington Post article, corporate America committed a total of $50 billion toward healing racial inequalities. 

At the same time, philanthropic organizations nationwide were likewise assessing how they could help. Between 2020 and 2023, philanthropic support for racial equity saw the same spike, with funders ultimately committing to $16.8 billion worth of racial equity grants, as well as pledges valued at a total of $11.8 billion.

While some major corporations, like Comcast, did fulfill their pledges, a 2022 analysis of that same funding data by the Philanthropic Initiative for Racial Equity found that of all the funding promised in 2020, the amount of actual dollars contributed was somewhere around $3.4 billion, a figure far short of what was publicly promised. In the ensuing years, big business contributions to DEI have continued to fall. Now, with the current presidential administration systematically dismantling these initiatives at the federal level, corporate America, as well as funders, are throwing out those pledges altogether.

Through the local lens, as highlighted in Generocity’s 2021 article, Commitments to Social Justice and Inclusion, organizations such as Harris Blitzer Sports & Entertainment (HBSE), which owns the Philadelphia 76ers, also made multi-million dollar commitments; in the case of HBSE, their pledge was to the tune of “$20 million over five years to combat equality and systemic racism.” Five years later, HBSE is worked towards meeting those commitments with actions such as hiring a Chief Diversity and Impact Officer and contributing marketing assets to Black-owned businesses via their Buy Black Partnership Program. 

Most recently, when the 76ers arena was on the table for Center City, HBSE was instrumental in collaborating with many local Black business, clergy, and community leaders to get the arena approved. Those who praised the plan touted the arena as a boon to job creation and economic development for all of Philadelphia – Mayor Parker named a figure of $700 million in new tax revenue for the city and the school district, as well as the $50 million generated from the community benefits agreement (CBA) with the Sixers.

The DEI commitment was front and center in that conversation. Ultimately, Black civic and business leaders across Philadelphia supported the project, which ultimately led to its approval because of the potential for direct benefit to Black businesses. The African American Chamber of Commerce (AACC), for example, had a direct stake in the 76 Place at Market East project with diversity initiatives that guaranteed a place for Black vendors. Any businesses providing food and beverage at the arena were to be represented by at least 40% of Black vendors. In addition, the Chamber secured a $2 million commitment to helping Black businesses owners to become vendors, suppliers, and concessionaires at the arena, as well as a partnership with Everybody Builds, a nonprofit organization that aims to connect construction workers, contractors, and sub-contractors of color with market opportunities, in order to grow a pipeline of Black talent and contractors.

Now that the 76Place at Market East project has been pulled, and the new arena will stay in South Philadelphia, what does that mean for the promises made? 

Will those community benefit agreements be rolled back like DEI commitments made by other corporations?

Some Black leaders aren’t worried; the opportunities and commitments that presented themselves with this project don’t necessarily have to die, regardless of the change in location. While it could represent a win for Black businesses, as the project in South Philly will go forward alongside a promised plan by Sixers ownership to revitalize the Market East corridor – potentially doubling the opportunity for impact and growth, this remains to be seen.

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