Facebook Inc. (NASDAQ: FB) has pledged to raise the representation of minorities in leadership roles and will support minority-owned businesses to the extent of $200 million.
What Happened
In a Facebook post on Thursday, Sheryl Sandberg, COO of the company, explained how the killing of George Floyd and the resulting protests had brought into focus the need to support the black community.
Sandberg said Facebook will invest $1.1 billion overall in support of the African American and other minority suppliers in the United States by the end of 2021.
As a part of its broader initiative, Facebook is pledging $200 million for African American businesses, creators, and non-profits that serve the community.
Over the next five years, Facebook has pledged to raise the representation of people of color in leadership positions by 30%.
Why It Matters
According to Facebook’s 2019 diversity report, 3.8% of all employees were of African American ethnicity. In senior leadership, that number fell to 3.1%.
Sandberg revealed that Facebook is already committed to hiring 50% of its workforce from underrepresented communities by the end of 2023.
In addition, Facebook will award 100,000 scholarships to African American students earning skills certifications through the Facebook Blueprint program.
Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) is moving to make its leadership 30% more inclusive by 2025. The owner of Google also pledged $175 million in support of African American businesses.
Price Action
Facebook shares traded 0.24% higher at $236.50 in the after-hours session on Thursday. The shares had closed the regular session 0.17% higher at $235.94.
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