Yelp Deposits $10M With Minority-Owned Financial Institutions

Yelp said Tuesday that it deposited $10 million of its cash reserves with minority-owned financial institutions that support Black and underserved communities. The business directory and crowdsourced review forum said those financial institutions included Broadway Federal Bank, Carver Federal Savings Bank and Citizens Savings Bank and Trust. Yelp cited a report by The Wall Street Journal, which found that there were 36 Black-owned banks in the U.S. 15 years ago, and the Federal Deposit Insurance Corp. pegs that number at just 20 currently. Each of the banks Yelp is working with is certified as a Community Development Financial Institution, meaning that it is a specialized organization that provide financial services in low-income communities and to people who lack access to financing. Yelp chief financial officer David Schwarzbach said in a statement, "We recognize that the distribution of financial capital is not equitable in the U.S., particularly in Black communities, and know we have a role to play to support a more equitable financial system. We're committed to making financial capital available to low- and moderate-income communities and to Black business owners who have been hit particularly hard by the pandemic. This is why we're depositing $10 million of Yelp’s cash reserves into these three Black-owned financial institutions to support home ownership and local businesses across the communities they serve." The company also released its diversity report for 2020 Tuesday. Women currently make up 43% of its total workforce and 46% of its leadership. By ethnicity, Yelp’s total workforce is 52% white, 16% Asian, 13% Latinx, 13% Black, 5% two or more races (not Hispanic or Latino) and 1% Native American. The company’s leadership is 64% white, 15% Asian, 8% Latinx, 6% Black, 6% two or more races (not Hispanic or Latino) and 1% Native American. Yelp said it attributed gains from last year to measures such as holding individual department heads accountable for growing the diversity of their organizations and its creation of a diversity task force that includes CEO Jeremy Stoppelman, chief operating officer Jed Nachman and Schwarzbach, adding that the task force, “builds on our existing strategies, including using data to challenge assumptions, operationalizing inclusion and leaning on senior leaders to remove roadblocks, as well as advocate for and sponsor individuals to help accelerate their careers.” The company also cited its adoption of a diverse slate approach to its interview process, meaning that underrepresented talent must be considered when interviewing for open positions, and the addition of USAA chief brand officer Tony Wells to its board of directors at the end of October. Yelp wrote, “We firmly believe all employees in our diverse workforce have the right to a safe and inclusive work environment, and we do not tolerate racism. We recognized the need to address offensive clients and prospective clients who use racially charged or other abusive language in their communications with our employees. We do not want their business, and we will not tolerate hate speech directed at our employees. We re-evaluated our diversity training program and concluded that there was more to do. We introduced mandatory, companywide training on systemic racism and institutional bias.”