Now that economic inequality has moved to the forefront in the past year – President Obama calls it the "defining challenge of our time" – it’s time to start working on solutions to the long-standing problem. Enter Corporate Social Responsibility: The Next Generation.
In addition to the president, it helps that prominent people, events, and circumstances have converged on the inequality issue of late. First, there’s the pope with his emphasis on taking care of the poorest among us. Noting this recently was Chrystia Freeland, who wrote “Thanks to Pope Francis, Revolt Against the Global Super-Rich Is Underway” in The Huffington Post. In 2012, she authored Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else.
Consider, too, that America’s “War on Poverty” began 50 years ago this month. With this backdrop, Maria Shriver produced her latest Shriver Report, A Woman’s Nation Pushes Back from the Brink. The 400-plus-page report describes in detail how the cracked foundation for America’s 42 million women and their 28 million children is leading to abysmal consequences in their education, health, and productivity. It’s enough to rouse one into action, and Shriver’s team provides individuals 10 tips for pushing back. They include the following:
- Invest in yourself as a provider of your family and learn how to be “financially savvy.”
- Support businesses that create a more compassionate workplace for their employees.
- Be a “21st-century boss” by providing benefits and workplace supports for child care and elder care providers.
- Invest in women entrepreneurs.
- Vote.
On the other side of the divide, many in the super-wealthy class report feeling that they are being persecuted for their success, and have been making their case through various media outlets.
I posit that corporations and plutocrats instead use their outsized power and influence for the betterment of all of us. America’s businesses can commit to secure their companies’ futures and the future of the next generation by closing the gap between education and work. That means doing much more than endorsing and promoting educational standards, such as the Common Core. An excellent education is only half of the equation; opportunity is the essential other half.
Gerald Chertavian, a Wall Street veteran, understands this. He founded the Year Up program in 2000, which works to realize the vision of giving “every urban young adult … access to the education, experiences, and guidance required to realize his or her true potential.” Toward this vision, Year Up aims to close the “Opportunity Divide” by providing disadvantaged young adults, ages 18-24, with “job skills, stipends, internships, and college credits” through a one-year training program of “academic and professional rigor.” The Year Up’s website also acts as a portal for people to donate to this effort. Since its founding, Year Up reports that it has served more than 8,000 young adults.
According to a recent “60 Minutes” report, corporations including JP Morgan, American Express, and Facebook are taking in Year Up graduates, sometimes paying the program $23,000 per intern. JP Morgan CEO Jamie Dimon, for one, says the company has taken on 300 to work in its operations, retail, and technology divisions. In the broadcast, Dimon explains his motivation: “One of the biggest expenses for a company is hiring people, or particularly … hiring the wrong people. So if you end up with great, talented people who end up being permanent, full-time here, it pays off as an investment.”
Year Up is an admirable example of closing the gap. Yet more must be done in this economic climate as countless young people see their skills atrophying and their debt accumulating. Companies, too, have a vested interest in supporting and developing today’s young people, not only so they contribute to a company’s growth but so they and their families are able to comfortably afford the company's products and services over a lifetime. An added bonus: Youth see the positive effects of capitalism. Captains of industry can lead the way for the well-being of children, parents, grandparents, teachers, school leaders, and their corporations. Some ideas: Take the $1 trillion or so in companies’ coffers and invest the funds in America’s youth. Hire young and diverse talent. Mentor them. Groom them for higher positions in the company – rather than rendering them for the work of the moment. Partner more directly with high schools and colleges to gain a steady stream of talent. Meanwhile, the federal government can encourage such corporate responsibility to the next generation with tax incentives for hiring and training youth. And companies can do what the federal government has long done: Help graduates pay off their student loan debt if they commit to work, say, three to five years at a particular company.
These efforts would prove that corporate social responsibility isn’t just a feel-good PR phrase, but is a meaningful pursuit – putting Americans on track toward prosperous futures and boosting American businesses. This is a winning investment strategy for the benefit of all.
Also check out The Christian Science Monitor's piece, "Income inequality: Does wider gap between rich and poor threaten capitalism?"
The views expressed on this post are mine and do not necessarily reflect the views of NAIS.