HOW THE SOCIAL SECTOR OPERATES TODAY The social sector is severely sub-optimized from an opportunity and impact perspective because we are not unlocking the full range of racially and ethnically diverse talent that exists in our country. As former President Obama said in his 2016 State of the Union, “we are stronger when we field a full team.”3 If we continue on our current path, we will see the same results – our society will fail to benefit from some of our nation’s most promising innovators who are proximate to the communities we seek to serve, and subsequently, miss out on opportunities to solve some of humanity’s most pressing problems, effectively compete in the global economy, and mend the fraying fabric in so many communities. The social sector – a complex system consisting of foundations, individual philanthropists, nonprofits, social enterprises, and policy and industry experts – largely operates in a way that concentrates power, agency, influence, and capital among existing leaders who are predominantly white. This dynamic has continued to limit the profound impact leaders of color have in social problem solving and society. Even while working deeply in diverse communities, many in the social sector struggle with discussing and navigating the issue of racial and ethnic diversity with respect to the sector itself. At best, some stakeholders across the sector have acknowledged the lack of diversity in leadership, but few have truly owned the problem and taken action. Despite a number of efforts by organizations and coalitions whose missions include increasing diversity, equity, and inclusion in the sector, negative DEI outcomes have persisted as a result of the tendency for those in positions of power in the sector to be least proximate to Black and Latino/a/x leaders and communities. Compounding the problem, the social sector lacks a built-in accountability mechanism, unlike the private sector. The private sector’s allocation of resources is based on accountability to the public will as expressed through consumer market, and therefore responds to pressure from within it. The behavior of consumers (or “end users”) drives shareholder value. As demographics change in the nation, businesses recognize the need to attract more diverse consumers, and therefore seek ways to understand and market to new communities, often through increasing talent diversity. If
3 The transcript of President Obama’s final State of the Union: What he said, and what it meant. The Washington Post, 2016.
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