Goldman Sachs, Starbucks and a number of other organizations in the United States announced on Tuesday a collaborative effort aimed at narrowing the racial wealth gap between black and white Americans.
The initiative, called NinetyToZero, also includes the American Civil Liberties Union, the University of Pennsylvania’s Wharton School and the Robin Hood foundation as sponsors.
“A handful of people got together and said, ‘We have a coordinated problem that we have to deal with, and the only way to deal with it is a coordinated solution,'” said Robin Hood CEO Wes Moore at CNBC’s ” Squawk Box. “
“The problem we are trying to solve is the fact that there is a 10 to 1 difference in racial wealth that we have with the United States between black families and white families,” added Moore, who is about to step down from the non-profit organization. lucrative New York-based anti-poverty efforts next month.
This 90% gap is where the name of NinetyToZero is taken from. The wealth gap between black and white Americans has grown over the history of the United States as a result of exploitation, discrimination and segregation.
Through the initiative, NinetyToZero’s partner organizations will set goals and monitor progress in a number of areas, such as hiring black employees, as well as spending and relationships with black owned companies. It also includes factoring efforts around inclusion in “executive responsibility”, according to a press release.
Goldman Sachs President and CEO David Solomon, who appeared alongside Moore in the “Squawk Box”, emphasized the need for organizations to be responsible.
“One of the reasons why I signed this initiative with Wes and NinetyToZero is that I looked at the things we were doing in our various programs and said, ‘We are doing this a lot, but it gives us another set of metrics, another set of goals where we can use our capital and our resources to try to make a difference ‘, ”said Solomon.
Although Robin Hood is initially “incubating” NinetyToZero, he will eventually become independent from the non-profit organization, the statement said.
“The ability to solve any challenge becomes increasingly difficult – and frankly, impossible – if we don’t deal with the fact that this difference in racial wealth continues to hinder any form of growth or progress,” said Moore.
NinetyToZero is the most recent corporate action last year focused on addressing racial inequality in the United States. After George Floyd’s death in police custody last May, many companies announced financial investments in black communities and organizations, as well as other internal efforts, such as reforming hiring practices.
Solomon said that shareholders and capital allocators placed greater emphasis on racial equality. “The reason for that is that I think people believe that diverse and inclusive organizations – and also progress on some of the issues that [Moore] is the highlight this morning – it boosts additional economic production, which attracts everyone. “
Companies need to understand the role they can play in driving this progress, added Moore. “Whether you’re talking about historical factors like the end of apartheid in South Africa, or whether you’re talking about hanging the name of football teams, corporate weight is important in these conversations,” he said.
Other companies and organizations that have already joined NinetyToZero include Lord Abbett, Harvard University’s TH Chan School of Public Health and McKinsey & Co.