Where there’s a will, there’s a way: Closing the US multicultural wealth gap with purpose-driven organisations

Abstract

This multidisciplinary paper examines the economic impact of closing the US multicultural wealth gap and proposes a potential solution to solve this problem. It contends that the persistent wealth gap in the country is not only a burden on African American and Hispanic families, but on the US economy more widely. The paper starts by reporting the demographic changes of the last decade and consumer expenditures by ethnicity and race. It then outlines the multicultural wealth gap and calculates the economic impact of Hispanics and African Americans achieving parity on key financial measures. Specifically, the findings suggest that parity in wealth across ethnicity and race could grow the US economy by more than US$8tn. The paper goes on to offer a conceptual, prescriptive model to help reduce the multicultural wealth gap, and proposes that purpose-driven organisations that use ‘purpose’ not just as a starting point but as a raison d’être are better positioned to grow their business in an increasingly diverse society. The paper closes with a discussion of the implications for organisations seeking to balance purpose with performance in the 21st century.