We are thrilled to announce the release of the first component of the Reparations, Accountability, and Responsibility Index (RARI) at the University of Michigan—a tool crafted to systematically assess and score corporations based on their performance and commitment related to racial justice. Our approach weaves a detailed narrative of corporate responsibility and transparency by examining and scoring companies on a range of key criteria consolidated into dedicated information bins.
Our first release focuses on the Financial Accountability Bin, evaluating companies in the 2020 Fortune 50 for their commitment to racial justice. The banking industry has shown immense potential in taking the lead towards enhanced financial accountability, with Citigroup and Bank of America notably scoring over 70%(index score). However, the overall performance of the Financial grouping fell short of the Consumer Goods group. This is mainly due to comparatively lower scores from insurance and loan providers within the same group, indicating the intricate dynamics between regulatory demands and transparency within different sectors.
Looking ahead, RARI is not simply a one-time assessment of corporations, but a tool designed for tracking long-term performance related to racial justice. We promise more comprehensive insights in 2024 when we release additional information bins focusing on Workplace Diversity and External Operations. These bins, along with the Financial Accountability Bin, will create robust composite scores for each corporation. These scores reflect a company's immediate position on racial justice, track progress, and exhibit commitment over time.
A cornerstone of our work revolves around advocating transparency among corporations, a trait we believe is fundamental to achieving an accountable and racially just business environment. We acknowledge that corporations exist within a complex social fabric, and thus it takes a conscious effort to be open about their operations. Recognizing this, we commend the companies that display such openness by being forthcoming about their strategies, policies, and actions. In our Reparations, Accountability, and Responsibility Index (RARI), we assign significance for this very principle—transparency. Whether it's in Financial Accountability, Workplace Diversity, or External Operations, we credit companies for simply providing clear insights into their operations. By doing so, we aim to foster a culture of transparency and, consequently, accountability that goes a long way in promoting racial justice at a corporate level.
We see an exciting road ahead paved with accountability and racial justice in corporate America. With RARI, we are moving closer to that reality, one step at a time. We cordially invite you to join us on this transformative journey.
