Macy's Investing $5B for Social Responsibility, Increased Wages
Macy's announced Tuesday a $5 billion "transformation" commitment that includes raising the minimum wage to $15 an hour, diversifying its leadership, and using more sustainably-sourced raw materials and fibers. The spending, part of Macy's "Mission Every One" social justice platform, is broken down into three categories: people, communities and planet. Under the "people" pillar, Macy's said it planned to increase its investment in underrepresented designers, brands, partners, products and service providers.
The company said its team — director level and above — would be 30 percent more diverse by 2025, and that the increased minimum wage would go into effect May 1. Macy's is also offering to cover tuition for certain educational programs, courses and degrees.
Under the "communities" pillar, Macy's said it would donate more than $100 million in three years to nonprofit organizations "that support the emotional well-being and education of underrepresented youth, as well as environmental stewardship." Recipients include Girls Inc., The Trust for Public Land, APIA Scholars, and The Trevor Project. Another $2 million will go to support programs and scholarships for underrepresented youth in fashion, design and sustainability.
Under the "planet" pillar, Macy's plans to achieve 100 percent preferred materials in its private brands by 2030. It's also investing $500,000 by 2025 in nonprofits that support suppliers and their factories, and is earmarking some money on "sustainable innovations that help reduce, reuse and repurpose materials to eliminate waste."
Total Retail's Take: Macy's is making clear its commitment to social responsibility with its new "Mission Every One" platform. This plan covers a wide array of areas that retailers have been focusing on piecemeal, including sustainability, social justice, inclusivity, worker's rights, community and more. The retailer, like many others in in its industry as well as across other industries, is trying to bring social responsibility to the forefront, as consumers increasingly want to do business with brands and retailers that share common values.