{"id":3315,"date":"2022-02-23T21:38:51","date_gmt":"2022-02-23T21:38:51","guid":{"rendered":"https:\/\/live-cornell-law-review.pantheonsite.io\/?p=3315"},"modified":"2022-02-23T21:38:51","modified_gmt":"2022-02-23T21:38:51","slug":"racial-reckoning-with-economic-inequities","status":"publish","type":"post","link":"https:\/\/publications.lawschool.cornell.edu\/lawreview\/2022\/02\/23\/racial-reckoning-with-economic-inequities\/","title":{"rendered":"Racial Reckoning With Economic Inequities"},"content":{"rendered":"\n<p>In response to the racial reckoning sparked by the police killings of George Floyd, Breonna Taylor and other unarmed Black men and women during the summer of 2020, many corporations publicly expressed their commitment to not only grapple with racial inequities in the economic sphere, but also increase racial diversity on their board, with particular emphasis on Black directors.<sup class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_1');\" onkeypress=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_1');\" ><sup id=\"footnote_plugin_tooltip_3315_1_1\" class=\"footnote_plugin_tooltip_text\">1<\/sup><\/a><cite class=\"footnote_tooltip\"><span class=\"footnote-inner\">1. See Kevin LaCroix, Growing Number of Companies Pledge to Address Board Diversity Issues, THE D&amp;O DIARY, Sept. 10, 2020,&nbsp;&#x2026; <span class=\"footnote_tooltip_continue\"  onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_1');\">Continue reading<\/span><\/span><\/cite><\/sup><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_3315_1_1').tooltip({ tip: '#footnote_plugin_tooltip_text_3315_1_1', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script> Most notably, on September 9, 2020, The Board Challenge (founded by business leaders with at least one Black director) launched an initiative encouraging every U.S. company to sign a pledge agreeing to appoint at least one Black director to their board within the next twelve months.<sup class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_2');\" onkeypress=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_2');\" ><sup id=\"footnote_plugin_tooltip_3315_1_2\" class=\"footnote_plugin_tooltip_text\">2<\/sup><\/a><cite class=\"footnote_tooltip\"><span class=\"footnote-inner\">2. See The Board Challenge Launches Pledge For Companies to Add a Black Director to their Boards, BLACK ENTERPRISE, Sept. 9, 2020,&nbsp;&#x2026; <span class=\"footnote_tooltip_continue\"  onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_2');\">Continue reading<\/span><\/span><\/cite><\/sup><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_3315_1_2').tooltip({ tip: '#footnote_plugin_tooltip_text_3315_1_2', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script> As a result, several companies have committed to adding a Black director within the year.<sup class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_3');\" onkeypress=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_3');\" ><sup id=\"footnote_plugin_tooltip_3315_1_3\" class=\"footnote_plugin_tooltip_text\">3<\/sup><\/a><cite class=\"footnote_tooltip\"><span class=\"footnote-inner\">3. LaCroix, supra note 1; Anne Steele, Zillow, Nextdoor and Other Companies Pledge to Add Black Directors, WALL ST. J., Sept. 9, 2020,&nbsp;&#x2026; <span class=\"footnote_tooltip_continue\"  onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_3');\">Continue reading<\/span><\/span><\/cite><\/sup><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_3315_1_3').tooltip({ tip: '#footnote_plugin_tooltip_text_3315_1_3', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script> <\/p>\n\n\n\n<p>Embedded in these commitments and regulations is an implicit presumption that board diversity advances the call to promote racial equity in the economic sphere, particularly with respect to Black people. Confirming this presumption, one supporter of Nasdaq\u2019s proposal proclaimed that Nasdaq was \u201cheeding the call of the moment.\u201d<sup class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_4');\" onkeypress=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_4');\" ><sup id=\"footnote_plugin_tooltip_3315_1_4\" class=\"footnote_plugin_tooltip_text\">4<\/sup><\/a><cite class=\"footnote_tooltip\"><span class=\"footnote-inner\">4. See Alexander Osipovich, Nasdaq Board-Diversity Proposal Wins SEC Approval, WALL ST. J. (Aug. 6, 2021), https:\/\/www.wsj.com\/articles\/nasdaqs-board-diversity-proposal-faces-sec-decision-11628242202&nbsp;&#x2026; <span class=\"footnote_tooltip_continue\"  onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_4');\">Continue reading<\/span><\/span><\/cite><\/sup><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_3315_1_4').tooltip({ tip: '#footnote_plugin_tooltip_text_3315_1_4', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script> This essay examines this presumption and argues that board diversity is a necessary though far from sufficient component of the movement to achieve racial equity in the economic sphere.<sup class=\"footnote_referrer\"><a role=\"button\" tabindex=\"0\" onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_5');\" onkeypress=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_5');\" ><sup id=\"footnote_plugin_tooltip_3315_1_5\" class=\"footnote_plugin_tooltip_text\">5<\/sup><\/a><cite class=\"footnote_tooltip\"><span class=\"footnote-inner\">5. See HEIDRICK &amp; STRUGGLES, BOARD MONITOR US 2020 5 (2020), https:\/\/www.heidrick.com\/Knowledge-Center\/Publication\/Board_Monitor_US_2020 [https:\/\/perma.cc\/HC9Y-QT2H] [hereinafter Board Monitor 2020]&nbsp;&#x2026; <span class=\"footnote_tooltip_continue\"  onclick=\"footnote_moveToReference_3315_1('footnote_plugin_reference_3315_1_5');\">Continue reading<\/span><\/span><\/cite><\/sup><script type=\"text\/javascript\"> jQuery('#footnote_plugin_tooltip_3315_1_5').tooltip({ tip: '#footnote_plugin_tooltip_text_3315_1_5', tipClass: 'footnote_tooltip', effect: 'fade', predelay: 0, fadeInSpeed: 200, delay: 400, fadeOutSpeed: 200, position: 'top center', relative: true, offset: [-7, 0], });<\/script>) This essay then argues that, notwithstanding promising momentum, there remain several significant roadblocks to achieving meaningful progress related to board diversity. Importantly, this essay argues that many of these roadblocks involve racial bias that is implicit but too often unchallenged, and hence insists that these roadblocks will remain unless there is intentional reckoning with this bias.<\/p>\n\n\n\n<p>Part I maintains that board diversity is a critical aspect of racial equity for Black people in the economic arena. After highlighting the ways in which current reforms may advance the board diversity effort, Part II pinpoints the limits of reforms alongside the very real racial biases that continue to impede realistic progress in this area.<\/p>\n\n\n\n<p>Because the 2020 summer\u2019s racial reckoning related specifically to the mattering of Black lives, this essay focuses primarily on Black people\u2014though its insights can be applied to other people of color.<\/p>\n\n\n\n<p>To read this Essay, please click here: <em><a href=\"https:\/\/live-cornell-law-review.pantheonsite.io\/wp-content\/uploads\/2022\/02\/Fairfax-online-essay-final.pdf\">Racial Reckoning With Economic Inequities<\/a><\/em>.<\/p>\n<div class=\"speaker-mute footnotes_reference_container\"> <div class=\"footnote_container_prepare\"><p><span role=\"button\" tabindex=\"0\" class=\"footnote_reference_container_label pointer\" onclick=\"footnote_expand_collapse_reference_container_3315_1();\">References<\/span><span role=\"button\" tabindex=\"0\" class=\"footnote_reference_container_collapse_button\" style=\"display: none;\" onclick=\"footnote_expand_collapse_reference_container_3315_1();\">[<a id=\"footnote_reference_container_collapse_button_3315_1\">+<\/a>]<\/span><\/p><\/div> <div id=\"footnote_references_container_3315_1\" style=\"\"><table class=\"footnotes_table footnote-reference-container\"><caption class=\"accessibility\">References<\/caption> <tbody> \r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_3315_1('footnote_plugin_tooltip_3315_1_1');\"><a id=\"footnote_plugin_reference_3315_1_1\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>1<\/a><\/th> <td class=\"footnote_plugin_text\">See Kevin LaCroix, Growing Number of Companies Pledge to Address Board Diversity Issues, THE D&amp;O DIARY, Sept. 10, 2020, <span class=\"footnote_url_wrap\">https:\/\/www.dandodiary.com\/2020\/09\/essays\/corporate-governance\/growing-number-of-companies-pledge-to-address-board-diversity-issues\/<\/span> [<span class=\"footnote_url_wrap\">https:\/\/perma.cc\/2VZJ-GNUG]<\/span> (\u201c[A] number of public and private companies have committed to adding a Black director to their boards within the next year.\u201d).<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_3315_1('footnote_plugin_tooltip_3315_1_2');\"><a id=\"footnote_plugin_reference_3315_1_2\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>2<\/a><\/th> <td class=\"footnote_plugin_text\">See The Board Challenge Launches Pledge For Companies to Add a Black Director to their Boards, BLACK ENTERPRISE, Sept. 9, 2020, <span class=\"footnote_url_wrap\">https:\/\/www.blackenterprise.com\/the-board-challenge-launches-pledge-for-companies-to-add-a-black-director-to-their-boards\/<\/span> [<span class=\"footnote_url_wrap\">https:\/\/perma.cc\/S235-EWJK]<\/span> (\u201cFounding Pledge Partners commit to adding at least one Black director to their respective boards in the next 12 months); see also THE BOARD CHALLENGE, <span class=\"footnote_url_wrap\">https:\/\/theboardchallenge.org\/<\/span> [<span class=\"footnote_url_wrap\">https:\/\/perma.cc\/9H8C-C88N]<\/span> (last visited on Sept. 6, 2021) (\u201cThe Board Challenge is a movement to improve the representation of Black directors in corporate U.S. boardrooms by challenging companies to take the pledge to appoint a Black director within the next year.\u201d).<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_3315_1('footnote_plugin_tooltip_3315_1_3');\"><a id=\"footnote_plugin_reference_3315_1_3\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>3<\/a><\/th> <td class=\"footnote_plugin_text\">LaCroix, supra note 1; Anne Steele, Zillow, Nextdoor and Other Companies Pledge to Add Black Directors, WALL ST. J., Sept. 9, 2020, <span class=\"footnote_url_wrap\">https:\/\/www.wsj.com\/essays\/zillow-nextdoor-and-other-companies-pledge-to-add-black-directors-11599649200?mod=itp_wsj&amp;ru=yahoo<\/span> [<span class=\"footnote_url_wrap\">https:\/\/perma.cc\/2WJB-DWTD]<\/span> (listing companies that pledge to add a Black director in the next year); Catherine Thorbecke, More than a Dozen Companies Pledge to Add a Black Director to their Boards, ABC NEWS, Sept. 9, 2020, <span class=\"footnote_url_wrap\">https:\/\/abcnews.go.com\/Business\/dozen-companies-pledge-add-black-director-boards\/story?id=72900675<\/span> [<span class=\"footnote_url_wrap\">https:\/\/perma.cc\/2MBY-N8A9].<\/span><\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_3315_1('footnote_plugin_tooltip_3315_1_4');\"><a id=\"footnote_plugin_reference_3315_1_4\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>4<\/a><\/th> <td class=\"footnote_plugin_text\">See Alexander Osipovich, Nasdaq Board-Diversity Proposal Wins SEC Approval, WALL ST. J. (Aug. 6, 2021), <span class=\"footnote_url_wrap\">https:\/\/www.wsj.com\/articles\/nasdaqs-board-diversity-proposal-faces-sec-decision-11628242202<\/span> [<span class=\"footnote_url_wrap\">https:\/\/perma.cc\/B597-EYL6];<\/span> see also Nasdaq to Advance Diversity through New Proposed Listing Requirements, NASDAQ, Dec. 1, 2020, <span class=\"footnote_url_wrap\">https:\/\/www.nasdaq.com\/press-release\/nasdaq-to-advance-diversity-through-new-proposed-listing-requirements-2020-12-01<\/span> [<span class=\"footnote_url_wrap\">https:\/\/perma.cc\/YDT6-8VQ7]<\/span> (explaining the new listing requirements).<\/td><\/tr>\r\n\r\n<tr class=\"footnotes_plugin_reference_row\"> <th scope=\"row\" class=\"footnote_plugin_index_combi pointer\"  onclick=\"footnote_moveToAnchor_3315_1('footnote_plugin_tooltip_3315_1_5');\"><a id=\"footnote_plugin_reference_3315_1_5\" class=\"footnote_backlink\"><span class=\"footnote_index_arrow\">&#8593;<\/span>5<\/a><\/th> <td class=\"footnote_plugin_text\">See HEIDRICK &amp; STRUGGLES, BOARD MONITOR US 2020 5 (2020), <span class=\"footnote_url_wrap\">https:\/\/www.heidrick.com\/Knowledge-Center\/Publication\/Board_Monitor_US_2020<\/span> [<span class=\"footnote_url_wrap\">https:\/\/perma.cc\/HC9Y-QT2H]<\/span> [hereinafter Board Monitor 2020] (\u201cOf course, simply ensuring a board has an appropriate mix of perspectives is just the start.\u201d<\/td><\/tr>\r\n\r\n <\/tbody> <\/table> <\/div><\/div><script type=\"text\/javascript\"> function footnote_expand_reference_container_3315_1() { jQuery('#footnote_references_container_3315_1').show(); jQuery('#footnote_reference_container_collapse_button_3315_1').text('\u2212'); } function footnote_collapse_reference_container_3315_1() { jQuery('#footnote_references_container_3315_1').hide(); jQuery('#footnote_reference_container_collapse_button_3315_1').text('+'); } function footnote_expand_collapse_reference_container_3315_1() { if (jQuery('#footnote_references_container_3315_1').is(':hidden')) { footnote_expand_reference_container_3315_1(); 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