Corporations' Impact on Racial Equity

NEW YORK (AP) — Forward Through Ferguson, a nonprofit established in 2015 to address systemic issues highlighted by the Ferguson Commission report, is grappling with changing priorities and funding challenges. Executive Director Annissa McCaskill noted that while the organization has made significant contributions to justice, education, and racial equity in the St. Louis region, it has struggled to secure sustainable funding. The largest donation received from a business was $210,000, and from a foundation, $150,000, with many donations peaking after high-profile incidents like the police killing of George Floyd in 2020. Research indicates a notable increase in corporate giving towards racial equity, rising from 24% to 35% of corporate social responsibility budgets between 2021 and 2023. However, many companies that pledged support have not provided detailed reports on their commitments. Lewis, a researcher formerly with the Mellon Foundation, emphasized the need for transparency and accountability in corporate donations, noting that six companies failed to report on their pledges, including AT&T, which has not clarified its $10 million commitment to historically Black colleges and universities. Consumer giant Johnson & Johnson reported spending $80 million of its pledged $100 million to improve racial health inequities but did not specify the organizations supported. Community Development Financial Institutions (CDFIs) are beginning to gain recognition as vital channels for corporate donations, reflecting a shift in corporate understanding of their role in fostering economic impact. The Ferguson Commission's report outlined 189 calls to action aimed at reforming the systems that contributed to the unrest following Michael Brown Jr.'s death, highlighting the ongoing need for systemic change and community engagement.