About BET Founder Robert Johnson Improving Black Expression in the Workforce

BET founder Robert Johnson told CNBC on Monday. He believes that if stock prices begin to be affected otherwise, companies will take the racial inequality of the workforce more seriously.

“Companies understand return on invested capital. They understand return on equity. They understand total return on equity,” Johnson said. “Closing Bell” “Connect all these factors to the achievement of employment opportunities for African Americans at all levels, and I think you’ll get results that companies understand. They’re on financial factors and market conditions. It corresponds. ”

Johnson’s comment continues New report release McKinsey & Company, a leading consulting firm, hires blacks in the US private sector. A McKinsey report found that there was a marked disparity in the representation of blacks in managerial positions, using data from 24 companies with a total of 3.7 million workers.

African Americans make up 12% of the total private sector workforce, while only 7% of manager-level employees at companies participating in the McKinsey Report. Black representatives drop from 4% to 5% at the senior management, vice president, and senior vice president levels. According to the report..

“On the current track, it will take about 95 years for black employees to reach talent equality (or 12 percent representative) at all levels in the private sector,” the report said.

Johnson said the only way companies can take employment inequality seriously is to be “accountable to companies that haven’t promised to end it,” especially for senior positions.

“I think there’s a way to do that,” said Johnson, who founded Black Entertainment Television in 1980. In 2001, more than 20 years later, he was in America First black millionaire BET holding company Viacom acquired..He is now Sitting on the board of Discovery He is the founder and chairman of RLJ Companies.

Johnson said one way to be accountable for reducing racial disparities in employment is to establish it as a goal. Corporate Charter..

Agency advisory firms such as Institutional Shareholder Services and Glass Lewis “can see the whole concept of” opposition “voting against uncommitted companies,” Johnson said. This kind of racial equality, or basically closing the employment gap. ”

Johnson said companies of all sizes should work on something similar to the NFL’s Rooney Rule. Expansion Last year to improve diversity within the coaching rank.

The team needs to be interviewed now At least two external minority candidates Head coach jobs have increased from at least one since they were first hired in 2003. In addition, the rules have been expanded to require teams to interview at least one external minority candidate for an open coordinator position. Previously, there was no obligation of diversity to cover these roles.

Johnson said the NFL franchise could be fined if it didn’t follow the Rooney Rule. “I don’t know if companies want to fine because it’s easy for businesses to pay fines,” he warned. “If you don’t do that, you’re chosen, your stock is reported to have failed it, and a moral equivalent that certain people who believe in this form of racial equality and racial equality rob them. I think there should be an investment elsewhere. ”

last year, Nasdaq Submitted a proposal to the Securities and Exchange Commission Focused on improving diversity between corporate directors.. Proposals from exchange operators require that the majority of companies have at least two diverse directors. One is a woman and the other is an LGBTQ or an underrated minority.

Under this proposal, if the board data is not disclosed, the company may eventually be delisted from the stock exchange. In December, when the proposal was published, more than 75% of the approximately 3,200 companies listed on Nasdaq did not meet the requirements. According to the New York Times..

Johnson previously provided suggestions on how to do it Dealing with the racial wealth gap in the United States so CNBC interview earlier this monthJohnson emphasized the need to foster black entrepreneurship in the United States through a capital allocation program.

“Black companies tend to hire blacks as a whole, so you’ll create more black companies and the bounce will go to more black jobs,” Johnson said. “More black jobs mean more blacks paying for their own homes, more blacks saving for retirement, more blacks investing. Ultimately, we fill the huge wealth gap. Take a big step towards that. “

Report from Citigroup Last year, racial inequality turned out to be costing the U.S. economy $ 16 trillion in the last 20 years..

About BET Founder Robert Johnson Improving Black Expression in the Workforce

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