To remain competitive, American corporations must address the persistent inequities that people of color face in health, wealth, employment opportunities amid increasing diversity by advancing racial equity, which, in turn, can help create business value, a report from FSG, developed in partnership with PolicyLink, argues. Funded by the Ford and W.K. Kellogg foundations, the report, The Competitive Advantage of Racial Equity (32 pages, PDF), highlights case studies of how twelve companies — including Gap Inc., PayPal, and Cigna — are driving innovation and growth, first by better understanding the causes of racial inequities and then taking a fresh look at every aspect of their business to find opportunities for business innovation. According to the report, companies need to better serve existing markets or access new ones by developing innovative products and services that reduce inequities and meet the needs of people of color; redefine productivity in the value chain by reducing cost, increasing quality, and improving productivity through a company's operations by advancing racial equity; and nurture a reliable base of skilled human capital and external suppliers, increase consumer demand, and improve the regulatory framework by creating opportunities for communities of color. And finally, the CEO needs to champion racial equity — as a core business strategy — in order to inspire their staff and realize the vision for advancing racial equity.