16. Racial Equity: An Issue of Risk Rather Than A Matter of Conscience with Tejal Patel

05/30/24 • 40 min

Advancing Racial Equity 4.0 with Dr Shereen Daniels

Tejal joined the SOC Investment Group in 2016 as Corporate Governance Director, where she focused on shareholder advocacy issues including the opioids crisis and racial equity audits.

In her current role, she has worked with investor coalitions to develop strategies for issuer engagements, shareholder proposals, director accountability, and asset manager outreach. She currently serves as a director and the Labor Constituency Co-Chair for the Council of Institutional Investors (CII) and previously served on the U.S. Asset Owners Advisory Council from 2019-2021. She holds a J.D. from the University of Connecticut School of Law and a MSc. from the London School of Economics.

In this week's episode, we explore the delicate balance between setting meaningful goals and the resistance encountered when calling for a deeper, more substantial commitment to racial equity and implementing preventative measures.

We also talk about:

Corporate accountability and what it looks like when you have an outsider influencing internal accountability and disclosures

Translating of social issues into business risk

The three types of resistance faced by financial institutions who are required to undergo a racial equity audit

Pitfalls of diversity and inclusion (in the way forced or advocated by the companies themselves)

The cost-benefit analysis of conducting racial equity audits versus facing fines for discriminatory practices. The numbers for the latter will astound you!

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Tejal joined the SOC Investment Group in 2016 as Corporate Governance Director, where she focused on shareholder advocacy issues including the opioids crisis and racial equity audits.

We also talk about:

Corporate accountability and what it looks like when you have an outsider influencing internal accountability and disclosures

Translating of social issues into business risk

The three types of resistance faced by financial institutions who are required to undergo a racial equity audit

Pitfalls of diversity and inclusion (in the way forced or advocated by the companies themselves)

The cost-benefit analysis of conducting racial equity audits versus facing fines for discriminatory practices. The numbers for the latter will astound you!

Previous Episode

15. Sustainability - from origins to opportunities

In 2023, Stuart co-authored ‘The Adventure of Sustainable Performance: Beyond ESG Compliance to Leadership in the New Era’, exploring the role of leaders in shaping a new era for business and in driving performance as the world transitions to a net zero future. Stuart has led Anthesis through two rounds of private equity ownership, the latest of which was with Carlyle and Tikehau in August 2023.

In this episode, Stuart and I delve into the evolving landscape of sustainability. We begin by tracing the origins of sustainability, rooted in environmentalism, and observe its evolution into a comprehensive framework that integrates social and governance considerations. Other discussion points include:

The pivotal role of regulations such as the Corporate Sustainability Reporting Directive in driving corporate accountability and promoting sustainable business practices.
How organisations are navigating the shifting paradigm of ESG being treated as a of a core value rather than mere a compliance requirement.
The significance of stakeholder engagement and transparent communication in fostering trust and credibility in sustainability efforts.
The concept of stakeholder capitalism and its implications for businesses worldwide.
The need for organisations to adopt a long-term perspective that prioritises environmental and social impact alongside financial returns.

Ultimately, we both advocate for organisations to integrate sustainability into their core business strategies as an opportunity to operate in fairer ways and build their 'resilience' muscles.

Next Episode

17. Reimagining the Role of Finance in the Fight for Racial Equity

Dr. Gillian Marcelle leads Resilience Capital Ventures LLC, (RCV), a boutique capital advisory practice specialising in blended finance. She has a proven track record in attracting investment and focuses on telecoms, fintech, renewable energy and regenerative agriculture. Dr Marcelle developed the Triple B Framework to improve flows and allocation of capital in its multiple forms; this provides a platform for engaging in the finance and investment world, where her contributions and perspectives on diversity, inclusion, accountability, and alignment with the SDGs are becoming influential.

Drawing from her background in economics and social justice, Dr Marcelle:

challenges the fundamental assumptions of capitalism, highlighting its role in perpetuating systemic racism and inequality. She advocates for a holistic approach to addressing these issues, emphasizing the importance of diverse alliances, activism, and narrative change.
discusses the need for a collective movement to dismantle entrenched power structures within the financial sector.
outlines why grassroots organising, community engagement, and education is vital for fostering inclusive economic growth.

Throughout the conversation, Dr. Marcelle also shares her experiences navigating the complexities of finance and investment, offering practical strategies for challenging ignorance, and unlocking capital for marginalised communities.

If you wish to engage with Dr Marcelle's work, do check out The Levers of Change (LOC) Project. It aims to address racial and economic inequality in America by undertaking fundamental analysis of root causes, providing strategic advice to stakeholders and pursuing direct action to change systems.

The Action Agenda arising from this research study includes:

Movement building

● Bring together multiple, diverse stakeholder groups including women, people of color, workers, and other marginalized groups to address the current epoch of multiple crises, to action restructuring the economy and advancing racial and economic equity.

Engagement

● Engage the business world based on original and challenging conceptual frameworks including the Curb-Cut Effect, the Triple B Framework, and Centering Blackness. Use these approaches to systems change and new world making, to advance the agenda of restructuring and transforming business and society.

Embodied justice praxis

● Involve white-bodied leaders in transformative embodied justice practices that expose and challenge “blindspots”, change norms, and establish values that lead to social justice and freedom for all. Until mental models, values, and understandings of business in relation to other parts of society are transformed, there will be little meaningful change.

● Value all stakeholders, not only shareholders; this is a necessary shift to bring about equitable societies in which all can flourish.