Multnomah County
The Business Case for Undoing Institutional Racism
September 18, 2010
Prepared by:
Ann Curry-Stevens & Michael Ware (consultants)
and
Steering Committee for Undoing Institutional Racism
Executive Summary - Business Case for Undoing Institutional Racism
Multnomah County, 2010
The following text identifies the ways in which this initiative will improve the County performance. Collectively, they provide us
with the motivation to undertake this work. It is hoped that these aspirations form the base for a renewed vision for racial
equity within Multnomah County. The futures of all our children depend on it.
The rationale for the details of the business case is to provide a basis for articulating the need for this initiative. The following
can be used as the "stock response" to queries as to why the UIR initiative is needed in Multnomah County:
Institutional racism harms all of us. From service users to community members to our own employees, institutional
racism gets in the way of us living our commitments to equity, justice and increasing opportunity for everyone who lives
in Multnomah County. While people of color and white people have different connections
to this issue, we all know that practices that judge people on the color of their skin harm our collective dignity and well
being. Such practices cost us all money, including costly results from high staff turnover. Furthermore, they rob us of our
creativity, productivity and wisdom. As a result, we remain thwarted in our efforts to eliminate harmful disparities and
inequality and fall short of being the County we aspire to be. Individual commitments are helpful, but it is time to
entrench reforms in improved policies, structures and systems of accountability. It is in our self-interest and our
compassionate concern for the well being of all to act now to undo institutional racism.
Key dimensions (summary format)
"It's the right thing to do" (the moral argument)
The era of judging people on the color of their skin must end, with assumptions (even unconscious) of the lesser
capacity of people of color being wrong along with the presumptions of whites as more competent similarly
erroneous. Practices that result in unequal outcomes for different groups of people must be ended.
Living the Values of Multnomah County
Our ability to illustrate commitment to values of equity and fairness will bring the pride of positive achievement
through our ability to improve outcomes for all, particularly people of color. Improvements at the systemic level
will build our accountability for effective durable improvements to services.
Improve Client Services
The climate of racism and white privilege serves to alienate clients of color. By undoing racism, we will build more
responsive and equitable services.
Respond to Community Concerns
Community groups are actively pressing for attention to disparities and inequities. Proactive responses will
generate public support and increased solidarity in building a sense of common purpose and collaborative
responses. Making ourselves accountable for progress is essential for durable change.
Improve the Quality of the Workforce
Addressing the workplace environment will improve the desirability of Multnomah County as an equitable and
appreciative worksite. Such valuation of all workers will improve competition for talent, and subsequently the
creativity, innovation and problem-solving capacity of the County.
Cost Savings
A workplace environment that is hostile for employees of color is costly in terms of staff turnover,
absenteeism, ill health, legal costs, and reduced productivity. Improved community relations build
efficiencies in communication and engagement.
Broader Social Impacts
Institutional racism contributes to racial inequities. Reducing disparities expands employment options for people
of color (as quality jobs are more equitably distributed), and improves opportunities and outcomes of County
services for communities of color. Ripple effects will stretch to other institutions and systems.
The Business Case for Undoing Institutional Racism
What problems give rise to the Undoing Institutional Racism initiative? The following factors can be clearly traced to the
emergence of a cross-county initiative in undoing institutional racism.

Racial disparities are broad and deep for communities of color across all institutions and systems, many of which are
influenced by the practices of Multnomah County. For details:
o
o
o


Communities of Color in Multnomah County: An Unsettling Profile (www.coalitioncommunitiescolor.org)
State of Black Oregon (http://www.ulpdx.org/documents/Urbanleague-StateofBiackOregon.pdf)
Racial and Ethnic Health Disparities in Multnomah County 1990-2004
(http://www.co.multnomah.or.us/health/hra/reports/health disparities 2006.pdf)
o Report Card on Racial and Ethnic Health Disparities: March 2008
(http://www.mchealth.org/hra/reports/reportcard.pdf)
Disparate and inequitable outcomes and opportunities for staff of color in our organization
Many of our own advisors (Health Equity Initiative, Equity Council, former Chair, for example) have defined the need
to train our own leadership so as to build capacity in this area at the highest levels

External groups have documented problems and proposed solutions for advancing racial equity. Our top
leadership needs to understand the processes involved so they can collaborate effectively with community
groups

County Chair, Jeff Cogen, urges support for the initiative and has received endorsement from the County
Commissioners for this undertaking.
Introduction
To assist in your preparation for helping to catalyze and support reforms in our policies and practices, we have developed for
you a comprehensive list of "arguments" that illustrate why UIR is needed today in Multnomah County. In this list, we stretch
well beyond the moral arguments, focusing on the "business case" for this work. This business case provides a rationale that
shows all of us why we need to dedicate resources (financial and human) to this undertaking, even when we are in tight
financial times.
I.
"It's the right thing to do" {the moral argument)
1. Ending judgments based on skin color

Our values tell us not to tolerate injustice but to ensure that fair treatment, equity and dignity guide all our
practices.

Our spiritualities universally tell us that everyone is equal and we need to treat each other as we want to be
treated.
2.
Ending preferential treatment for Whites

See above... remember that there is a corollary between racism and white privilege... we need to unpack
both to advance racial equity and eliminate institutional racism.
II.
"living" the Values of Multnomah County
1. Commitments to inclusion, equity and quality services

Multnomah County has commitments to the values of inclusion, equity and quality services for the
community. Being able to better "live" our commitments will increase pride in our government (both for us
and for community members).
2.
Quality performance and fiscal accountability

Governments are accountable for not only their use of public funds, but also for being accountable for
effective outcomes. Being able to control the organization's outcomes requires that we identify
accountability structures that will assure us of advancing racial equity. Results that advance racial equity will
advance confidence and a positive reputation for setting goals and obtaining concrete results.
III.
Improve Client Services
1. Improve the relevance, inclusiveness, and dignity for service users of County services

In the private sector, when companies enhance their diversity, their financial situation improves. While the
parallel dimension is not obvious for the civil service, there are related dimensions (see the list under "cost
savings" and "responsiveness to community concerns").
o
2.
Average returns improve from 7.9% to 18.3% per annum when moving from the bottom of companies
(100 of them) in embracing diversity to the top 100 companies on diversity practices.1
Reduced racism in service delivery, outcomes and experiences for service users

As service providers, managers and evaluators "unlearn" racism and white privilege, and are supported in
understanding the institutional dimensions of racism, the quality of services will improve.

Service providers will ideally learn anti-racism practices for use with service users and community
members... and thus avoid the embedded racism that has been integral to much of human service
systems. This includes ending practices that blame those in need for their own distress.

Addressing inequities will lead to improved population health and reduce costs for health care and other
related long-term costs of distress.
3.
Expanded use of prevention services as people seek support earlier in the process

People of color often delay seeking services due to fearing the environment in which services are
available... they know their will experience exclusion, insensitivity and sometimes blame when they
come for services.
o
With a better service delivery climate, people of color will use services more preventatively, and rely
less on expensive crisis services.
o
IV.
Prevention of distress is much more cost efficient than full blown crisis (eg. Cost of $300 to address
asthma early than the cost of $3200 to recover from full blown attack)... many more such examples
exist in areas such as child care, drug treatment, crime prevention, and after school programs.
Responsiveness to Community Concerns
1. Redress wide array of racial disparities and institutional racism before we lose legitimacy with more than
X of County residents who are people of color

Disparities are well documented. Numbers will soon "force" us to tend to these issues (as young people of
color get older and become voters and activists will likely build protest-based movements)... getting on the
leading edge of racism is needed for social cohesion and collective well-being.
2.
Enhanced community responsiveness results in greater sense of common interests, and likely greater
support for increasing County revenues

Institutional racism costs money and reduces the legitimacy of the institution. Reversing these patterns will
build a shared vision across all communities and, likely, open a greater willingness to expand the tax base for
the County.
3.
Legacy development

This work offers County leadership an option to build and leave a legacy for tending to one of the most
pressing issues of our times.
4.
Improve public perception of County leaders

Undoing institutional racism illustrates bold leadership and wisdom which will be noticed and valued by
communities of color.

In the private market, people of color are more likely to spend their dollars in companies which reflect their
priorities and they are more likely to buy in stores with a diverse sales force.2 The civil service equivalent is
that profile and support for attending to such needs is likely to increase.
V.
Improving Quality Workforce
1. Winning the competition for talent

Workplaces with institutional racism are typically profiled as hostile, invalidating and insulting (broadly, as
opposed to specific Multnomah County data). This harms recruitment/hiring, retention and promotion,
serving to restrict choices in attracting and retaining talent.
o
Prejudice against people of color (including "micro-aggressions" in the workplace) is the most
important barrier to their movement into executive ranks.3 Biases, assumptions and stereotypes, with
the power to discriminate, narrow possibilities for people of color.

Better valuation of employees of color and ending institutional racism will expand options for employees of
color... thus increasing creativity, investments, drive and performance.

2.
Gain employee confidence for addressing non-discrimination and equal opportunity commitments.
Better understand the needs of service users and the community

Akin to understanding the marketplace, people of color are well situated to better link services and programs
to the needs of communities of color... in turn, this will narrow the possibilities of poorly designed and
executed initiatives and services. Innovation is maximized when more of our staff have lived experiences
similar to those of our service users.

3.
This will be most promising as we move people of color into higher levels of the organization.
Increasing creativity, innovation, problem-solving and leadership effectiveness

These attributes are linked to outcomes of diversity initiatives,4 and believed to be more significantly
expanded as undoing institutional racism is implemented.

When organizations are rooted in the sensibilities of people who live with racism and its impacts, better
solutions to institutional racism emerge. Diversifying our employee base at all levels of the organization will
introduce better information about the nature of the problem base and its solutions.5 1nvolving community
groups in such problem solving will expand our impacts.
VI.
Cost Savings
1. Lower staff turnover costs

Where studies have been conducted, there is an estimated turnover cost of 150% to 193% of the salary of
managers or professionals, and 75% of salary for lower level employees, when such people leave an
organization.

Major reasons for leaving are traditionally found to be lack of career opportunities or dissatisfaction
with rates of progress.
2.
Lower absenteeism rates
3.
Better staff health, serving to lessen pressure on health care premiums

Racism in the workplace affects mental and physical health 6 with an impact on:
o Biology- stress levels, heart rate, blood pressure... increasing risk levels for heart disease,
•
Impact of health and mental health impacts ability to come to work.

4.
diabetes, hypertension, allergies, and asthma... by reduced immune system efficiency.7
o Emotional health- self-esteem, sense of well being, psychological adjustment... and all are
linked to mental health, particularly depression. The impact on mental health begins at birth
and "assail a person's integrity, producing humiliation."
o Cognition- conflicting interpretations of events {stereotyping and racism, as opposed to
"innocent" incidents) serve to undermine confidence and increase self-deprecation. This can
cause isolation, mistrust and externalizing blame. 9
Hierarchical effects on quality of work life... those lower on the ladder have little control over working
conditions have higher blood pressure, heart rates and stress hormones. 10
Increased productivity

Impact of micro-aggressions, fear of unfair treatment, over-surveillance, anger, fatigue... all drain
psychological energy and detract from work performance capacity.11

5.
It takes time and energy to defend one's performance... while all fear making mistakes, workers of color
are more likely to suffer negative consequences of errors. This is one possible consequence of how
Multnomah County suffers universally from low completion rates for workers of color in surviving
probationary periods.
Reduce discrimination suits

Across the USA, the average jury award for discrimination suits in 1997 was $600,000 {equals $798,543
today).12 Although few cases reach the courts in Multnomah County, there are high costs in responding
to allegations.

There is risk in neglecting action on institutional racism. Workers of color can suggest that management
has either induced or tolerated a "poisoned" or "hostile" work environment. This holds potential to
harm labor relations with our unions.
6.
Increased efficiencies

A legacy of distrust exists in many relationships between communities of color and various departments
within Multnomah County. Community engagement, consultation and collaboration is much more costly
and ineffective when distrust characterizes these relationships. Reversing this pattern will result in
improved efficiencies and reduced costs.
VII.
Broader Social Impacts
1. Narrowing income and employment disparities

Civil service jobs are quality jobs... building access to them for people of color will lessen disparities due
to the size and importance of the civil service.

Changing patterns of employment in Multnomah County will have a positive ripple effect among other
employers, particularly as the County uses its influence to leverage changes with those it contracts/subcontracts with.
2.
Become a community leader in advancing racial equity

We are not alone in institutional racism... it exists wherever disparities exist, and we know disparities
exist widely across many institutions and systems
o

Institutional racism consists of those established laws, customs and practices
which systematically reflect and produce racial inequalities... whether or not
the individuals maintaining those practices have racist intentions 13
The ripple effects will be significant. We will catalyze movement in the County's cities and the Metro
region, and can provide impetus to other institutions as well
o
We cannot press others to do what we are not willing to do.
___________________________
1
Covenant, 1994, as cited in the US Glass Ceiling Commission (1995).
Robinson, G. & Dechant, K. (1997). Building a business case for diversity. Academy of Management Executive, 11(3), 21-31.
3
US Glass Ceiling Commission (1995). A solid investment: Making full use of the nation's human capital. Washington, DC:
Author.
4 Robinson, G. & Dechant, K. (1997). Building a business case for diversity. Academy of Management Executive, 11(3), 21-31.
5 Frankel, B. (2009). lessons learned from the Diversitylnc's top 50. Diversitylnc, Nov/Dec, 18-35.
6
Sue (2010) among others.
7 Center for Disease Control and Prevention, Social Determinants of Health Department.
8 Sue, D. (2010). Microaggressions in everyday life: Race, gender and sexual orientation. Hoboken, NJ: Wiley.
9
Sue, 2010. [p.99]
10 Marmot's work on Whitehall study in UK.
11
Sue, D. (2010). Microaggressions in everyday life: Race, gender and sexual orientation. Hoboken, NJ: Wiley.
12 Robinson, G. & Dechant, K. (1997). Building a business case for diversity. Academy of Management Executive, 11(3), 21-31.
13
Jones,J. (1972). Prejudice and Racism. Reading, MA: Addison Wesley Publishers. [p.131]
2