McKinsey Quarterly 2023 Number 1

Re:think

Fresh takes on big issues

Shifting to a new mindset for equitable business outcomes by Tiffany Burns

“ Over the past couple of years, we’ve seen a heightened interest in supporting Black consumers and businesses— a direct result of the Black Lives Matter movement and protests after the murder of George Floyd. We’ve done a lot of research during this time to understand whether this support is helping and what drives continued equity gaps for Black consumers and Black founders. We’ve found that the support is not working as well as it should, and inequities persist. From difficulties getting to a store to a lack of product availability to dealing with salespeople without relevant expertise or training, Black consumers feel a deep dissatisfaction. Black founders are frustrated too. Forty-five percent of American consumers think retailers should support Black-owned brands, vendors, and suppliers—but I’ve talked to more than 50 Black founders, and each one of them says every part of the founder experience is arduous. These founders have passion, vision, and excitement but face disproportionate obstacles to raising capital, testing products, and getting on shelves simply because they are Black. In 2022, why should it feel so impossible? Often companies have a social-justice lens: they want to support Black enterprise efforts because it’s the right thing to do. So they donate funds or launch programs. These are both important actions, but to get things right and have an impact, companies that really want to make a sustainable difference in supporting and creating equity may need to change mindsets.

Companies that really want to make a sustainable difference when they think about equity may need to change mindsets.

Tiffany Burns is the managing partner of McKinsey’s Atlanta office.

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