It’s June, a month that typically signals the changing of the seasons as spring transitions into summer. However, with this year being unlike any other year, this June is bringing more than just changes in the weather. In a time of unrest in which social injustices and racial equalities have come to the forefront, even managing to push a global pandemic to the back burner, people are demanding that these issues be addressed, not just with placating words but with actions. And not only are companies taking notice, but some are making moves to finally start addressing these issues.
PepsiCo, the multinational food, snack and beverage corporation, has announced that it will be investing more than $400 million into a set of initiatives over five years to lift up black communities and increase black representation within the company. In a detailed message from chairman and CEO Ramon Laguarta entitled “PepsiCo’s Journey to Racial Equality,” he explains why and how the Harrison, NY-based conglomerate is making such a large pledge to counter systemic racism.
“The journey for racial equality has long been part of our company’s DNA, going back to our first Black sales team in 1947 and the legacy of Harvey Russell. We’ve also been long-time contributors to the NAACP Legal Defense Fund and will continue to support their work for social justice. But the recent protests in all 50 states and around the world have called on us to honestly assess our efforts. Whilst there are areas we have made progress in the fight against systemic racism and inequality—including pay equity and the diversity of our frontline workforce—we know we cannot keep pointing to what we did decades ago. The promise of our journey remains unfulfilled. We have much work to do going forward, and to echo Dr. Martin Luther King Jr., ‘The time is always right to do what is right.’”
The roadmap, which will focus on three pillars: people, business, and communities, includes plans to expand its black managerial population by 30 percent by 2025 through internal development and recruitments, more than doubling the company spend with black-owned suppliers with an incremental spend of $350 million, and investing $50 million to strengthen black-owned businesses over the next five years. PepsiCo has also committed to donating $6.5 million for community impact grants to address systemic issues and will be putting forth $5 million dollars to launch a Community Leader Fellowship program for black non-profit CEOs.
I am beyond impressed at what Laguarta has outlined in his missive and I think it sets a great example for the industry. There are too many details for me to list here, but there is a complete breakdown of the global CPG manufacturer’s commitment to addressing racial inequality within the company and its community included in his message – be sure to check it out at www.pepsico.com/racial-equality-journey.
Speaking of PepsiCo, Quaker Oats, one of its subsidiaries, will be retiring its iconic Aunt Jemima. The Chicago-based company has acknowledged that the origins of the 130-year-old brand, which at one time featured a black woman dressed as a minstrel character, “are based on a racial stereotype” and that getting rid of name and logo is one of the steps that it is taking “to make progress toward racial equality.” Following suit is Uncle Ben’s, which features the portrait of a Chicago chef and waiter named Frank Brown, whose likeness was used to represent an African-American farmer who was known for growing quality rice, although the image has long been viewed as racist. With the spotlight being shined on traditional company mascots that perpetuate overt racial stereotypes, the parboiled rice company will also be taking this opportunity to change its brand identity.
In a recently released statement, the Mars, Inc.-owned brand said, “As a global brand, we know we have a responsibility to take a stand in helping to put an end to racial bias and injustices. As we listen to the voices of consumers, especially in the Black community, and to the voices of our associates worldwide, we recognize that now is the right time to evolve the Uncle Ben’s brand, including its visual brand identity, which we will do. We don’t yet know what the exact changes or timing will be, but we are evaluating all possibilities. Racism has no place in society. We stand in solidarity with the Black community, our associates and our partners in the fight for social justice. We know to make the systemic change needed, it’s going to take a collective effort from all of us – individuals, communities and organizations of all sizes around the world.”
Reportedly, Conagra is also reviewing its Mrs. Butterworth brand for similar reasons, as is Cream of Wheat parent company, B&G, whose original chef mascot was named Rastus, which is now considered a pejorative term that to describe African Americans and is offensive. “We understand there are concerns regarding the Chef image, and we are committed to evaluating our packaging and will proactively take steps to ensure that we and our brands do not inadvertently contribute to systemic racism,” the company said in a statement. “B & G Foods unequivocally stands against prejudice and injustice of any kind.”
These brands aren’t the first ones this year to make moves towards renovating their stereotype-driven mascots. Land O’ Lakes decided to remove an image of a kneeling Native American maiden, which had been the face of their products for nearly 100 years, in April. While the mascot has in recent years been protested for what some perceive as an offensive and inaccurate representation of Native Americans, the dairy company gave no specific reason for its removal.
Also making moves to respond to the call for racial systemic change in this country is Albertsons Companies, which has made a commitment to donate $5 million to social justice organizations as well as those on the front line of the fight for equality. The first step the company took was a conversation where executive leaders listened to African American associates and several of its Associate Resource Groups. The company’s leadership heard that they should hold similar conversations with their own teams throughout the organization – which it has already initiated – and decided to take concrete action to foster lasting change. Steps being taken include a $2 million donation toward the social justice efforts of the NAACP Legal Defense and Education Fund and the National Urban League Inc and a $1 million donation toward the company’s African American Associate Resource Group’s efforts to partner with local organizations who are working to support communities and neighborhood actions throughout their market areas. Additionally, $1 million will go into a reserve fund for social justice and diversity initiatives in the future, including community outreach, supplier diversity and ongoing education.
“Racial justice and equality cannot be achieved by people returning to the status quo. We must intentionally open a door to lasting change across our country,” said president and CEO Vivek Sankaran. “We’ve seen unity in the seas of people throughout the country demanding justice for those whose lives were senselessly taken and calling for an end to hatred, intolerance and systemic racism. We will be part of the solution by helping our communities lay the foundation for racial equality and social justice.”
June 19, referred to as Juneteenth, is a very important day in African American history as it is the oldest nationally celebrated commemoration of the ending of slavery in the United States. Although not yet recognized as a national holiday, Target has decided to make it an official annual company one. “We recognize that the racial trauma the country is experiencing now is not new, but throughout recent weeks there has been a sense that this time is, and has to be, different,” says Brian Cornell, chairman and CEO, Target. “Juneteenth takes on additional significance in this moment. Moving now to recognize it on an annual basis—as a day to celebrate, further educate ourselves or connect with our communities—is one more important action Target can take as a company to help the country live up to the ideal of moving forward in a new way.” While all stores and distribution centers will remain open, hourly team members who work on June 19 will be paid time and a half and all eligible Target team members have the option to take the day off with full pay. Additionally, headquarters offices will be closed in observance. “This is just one step. In the coming weeks and months, we’ll continue to listen and learn from our team members, our guests and our community partners—all to further Target’s role in creating tangible and lasting change.”
Because many companies are afraid of creating conflict, often times they remain silent and immobile in times like these. Therefore, I must applaud these industry organizations and others that are taking action – it certainly takes a lot of courage and strength to do so. In leading the charge, hopefully others will follow their example to make drastic alterations in addressing systemic inequalities not just by making statements but by taking steps and measures to create a positive and enduring impact.
Until next month…
Karen can be contacted via email at: [email protected]