January 14th 2024.
Goldman Sachs, a major financial institution, has announced that its 2018 "Launch with GS" diversity program will be coming to an end. This initiative was created with the promise of investing $1 billion into companies that are owned, led, or founded by women and people of color. According to Fortune, this goal has been achieved, and the program will now be concluded.
The Launch with GS program was initially introduced in a blog post by Stephanie Cohen, who was the chief strategy officer at the time. She stated that the main objective of this program was to generate strong investment returns. This was supported by research that showed companies with at least one diverse board member tend to outperform those without any diversity on their boards.
Although the Launch with GS program is coming to an end, Goldman Sachs remains committed to promoting diversity within the company. Some staff members who worked on this initiative have been reassigned to other projects, while others, like Regina Green, have announced their plans to leave the company. Green, who was named the head of Launch with GS in 2021, expressed her pride in the work that has been done so far and her excitement for her future endeavors.
Green also mentioned her desire to continue supporting and investing in emerging managers who are working towards innovative solutions for society's most challenging problems. Goldman Sachs is not abandoning its efforts towards diversity and inclusion, as evidenced by their ongoing work on the One Million Black Women initiative. This 10-year commitment, made in 2021, aims to provide $10 million in investment capital and $100 million in aid to address the inequalities faced by Black women.
Asahi Pompey, Goldman Sachs' Global Head of Corporate Engagement and Foundation President, explained that the company has integrated the sourcing and ecosystem of the Launch with GS program into their existing asset and wealth management business. This means that their investors are continuously seeking out diverse companies to invest in, as these companies have been proven to outperform others. Pompey emphasized that their focus is now on the $8 billion that they have yet to invest through the One Million Black Women program.
Goldman Sachs' focus on diversity and inclusion goes against the current trend of pushback against such initiatives in the business world, fueled by the recent Supreme Court decision to end affirmative action. This decision was based on the 14th Amendment's equal protection clause. Additionally, it has become increasingly challenging for women and people of color, specifically founders and emerging managers, to raise funds in recent years. Between 2021 and 2022, fundraising by managers decreased by 35%, and this trend continued in 2023. This has resulted in emerging managers receiving less than $20 billion in committed funds for the first time since 2016.
In conclusion, Goldman Sachs' Launch with GS program has come to an end, but their commitment to promoting diversity and inclusion remains strong. They are continuing their efforts through the One Million Black Women initiative and are determined to invest in diverse companies that have proven to be successful. Despite the challenges and pushback faced, they are focused on making a positive impact on society and supporting underrepresented groups in the financial world.
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