Raleigh Chamber of Commerce confronts lack of business diversity

Hiring and supporting a diverse workforce is not only the moral thing to do, it makes economic sense, community leaders said Tuesday,

Businesses committed to diversity tend to be more successful, said Danya Perry, director of diversity, equity and inclusivity for the Greater Raleigh Chamber of Commerce.

An often-cited McKinsey report found that for every 10 percent increase in racial and ethnic diversity on the senior-executive team, earnings rise nearly 1 percent. That report, based on 366 public companies in different industries worldwide, also found that diverse companies are 35 percent more likely to have financial returns above their national industry medians.

But businesses with diverse owners haven’t always found themselves represented by organizations like the chamber, Perry said.

That’s part of the reason why the chamber, with support from the city of Raleigh, Wake County and the business community, has launched the Triangle Diversity, Equity and Inclusivity (DEI) Alliance.

This new partnership, unveiled Tuesday, will recruit employees from traditionally underrepresented groups, provide best practices to companies interested in hiring more diverse workers and provide more support for businesses with diverse owners. The chamber will offer events, workshops and programs for people across those groups.

There were nearly 25,000 businesses listed in the Raleigh-Cary Metropolitan Statical Area, which includes all of Wake County and some of Johnston and Franklin counties, in 2016. Of those, 3,786 were “minority-owned” businesses and roughly 5,000 were women-owned businesses.

“We need to implement effective practices, celebrate success stories and be comfortable with being uncomfortable,” said Raleigh Mayor Pro Tem Corey Branch. “This is where the magic of change occurs.”

One of those initiatives include the chamber’s pathway program that offers a free chamber membership, intensive coaching and support to underrepresented small business owners.

“We understand, historically, folks of color, folks who were under represented did not see themselves at the chamber,” Perry said. “So we are changing that. ... Hopefully, at the end of this, we will have given them more tools and more access to help grow their business.”

Perry stressed that while most think of diversity in terms of race or gender, it includes the LGBTQ community, veterans and those with disabilities, among others. If a business or group wants to commit to diversity in the workforce it has to make it part of its DNA.

“This is not going to be an add-on,” he said. “This is not going to be a subsequent program.”

Me’chelle McKenney, CEO of Third Degree Solutions, said diverse business owners should consider connecting with the chamber because of the resources it offers.

She works to prepare college students for the business world. Diverse students already “self-eliminate” themselves from certain job postings or businesses, she said.

“You can’t grow if you are in the same circle,” she said.

Businesses owners, employees or community members can go to www.triangledeialliance.org for more information and updates about program events.

This story was originally published March 26, 2019 at 6:38 PM with the headline "Raleigh Chamber of Commerce confronts lack of business diversity."