The Takeaway
The Morningstar Minority Empowerment Index selects U.S. stocks based on analysis from the NAACP's framework, which evaluates companies' commitment to diversity and inclusion through policies, programs and behavior.
The Morningstar Minority Empowerment Index's preference for high-quality companies supports the conclusion that diversity, equity and inclusion is not just a human rights issue but also a matter of good business practice.
Diversity, equity, and inclusion was already a focus for many businesses, but the 2020 police killing of George Floyd, the subsequent movement for racial justice, and the societal inequities laid bare by the coronavirus pandemic provided fresh impetus. Like so many long-running trends, corporate DEI initiatives have been accelerated.
With the insights of the NAACP, America's oldest civil rights organization, companies can be evaluated based on their commitment to diversity and inclusion through policies, programs and behavior. The Morningstar Minority Empowerment Index selects stocks based on the NAACP's analysis, providing an opportunity for DEI-focused investors to see their values represented in the market.
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