McKellogg Poverty Q4

Published by Paola Avendano on

When the Business Roundtable announced in September 2019 a change in its Statement on the Purpose of a Corporation to include workers, suppliers, and communities in addition to shareholders, it was an acknowledgement that persistent income inequality and poverty will put pressure on the long-term prospects of the member companies. While more time is needed to evaluate whether these commitments result in higher wages and greater investment in employees, there could be significant positive spillover effects when large employers adopt good practices for front line workers that work for their companies directly, and that work for the companies in their supply chains, including higher wages and benefits, more predictable schedules, and access to training for higher paid jobs.

In Southern California, employers operating in a tight labor market need to avail themselves of a supply of trained and willing labor and be willing to invest in training that labor supply. Employment social enterprises can provide this labor force. These mission-driven, revenue-generating businesses provide paying transitional jobs and supportive services to help people stabilize their lives, develop a work history, and build skills and confidence to transition back into the competitive workforce. By investing in training for individuals facing high barriers to work, employers will have a larger pool of loyal, productive employees.