In recent years, the Black Lives Matter (BLM) movement and other events, such as the death of George Floyd, have highlighted the numerous systemic barriers that people of color face. Many corporations and businesses have in turn pledged to do more to combat racial inequality and to address growing customer and employee demand for equity in their business models and organizational structures.
Research: Highlighting Minority-Owned Businesses Can Boost Sales
A team of academics studied what happened when Yelp and Wayfair labeled products made by Black- and Latinx-owned businesses.
August 13, 2024
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Summary.
In the last few years, large companies like Wayfair, Amazon, Yelp, DoorDash, and Instacart have launched initiatives to try to address racial inequality in their business models. In a new study, researchers examined some of these strategies, including Yelp and Wayfair’s labels which identify minority-owned businesses. The authors offer insight into how supporting companies owned by underrepresented groups can benefit sponsor businesses while promoting the growth of minority entrepreneurship.