The Brazilian labor market is another segment of society that reflects racial inequality. Unemployment is higher among blacks (16.3%) and brown people (15%) than among whites (10.8%), according to data for 2021 from IBGE’s Continuous National Household Sample Survey (Pnad). The informality rate is also higher for blacks (52.9% for brown people and 49.4% for blacks) than for whites (43.8%).

The index measures the proportion of informal jobs in relation to the total number of jobs. In income, the gap is clearer: the average income of a black worker was R$1,907 in 2021 – only 57% of that of a white worker (R$3,310).

For specialists, the differences reflect, besides situations of discrimination, a previous trajectory of unequal opportunities according to race and social origin, especially in education. It is in this context that they highlight the role of racial quotas for universities — whose law is 10 years old — as one of the instruments to try to mitigate the problem.

The percentage of black and brown students between the ages of 18 and 24 in public universities, which was 32% in 2001, rose to 40% in 2012 and then to 52% in 2021, according to an estimate by Luiz Augusto Campos, a professor at the State University of Rio de Janeiro (Uerj).

Education explains a good part of the income difference between whites and blacks in the labor market, says Ipea researcher Rafael Guerreiro Osório, although there are regional influences, by occupation and type of activity.

Boards of directors

In the early 2000s, Wellington Silva was in company boards and never met any other black executive. More than 20 years later, discussions about racial diversity in the business world have increased, driven mainly by the adoption of ESG (environmental, social and governance) metrics in investment analysis. In practice, however, the evolution is very small.

Currently, some boards include members like Denísio Liberato (Neoenergia), Rachel Maia (Vale, BB and CVC), Fausto Augusto de Souza (Copel) and W. Don Cornwell (Natura). These black people represent a tiny slice of the more than 3,500 seats in Brazilian public companies considering board members, chief executive officers and chief financial officers.

Carlos Portugal Gouvêa, a professor at the University of São Paulo (USP), decided to conduct an unprecedented survey to map this situation. The research indicated that the chance of a white person to occupy some of the best paid jobs in the country is 58 times greater than that of person of color.

The study, conducted between January and May 2021, investigated the racial profile of the top management of companies listed on B3, the Brazilian stock exchange, by analyzing photos published on the internet. In all, 442 companies and 3,561 positions were surveyed. In this first stage, seven potential black and 28 brown board members were identified. Among CFOs and CEOs, it was noted that one CFO could be considered black. Among brown officers, the survey identified three CEOs and one CFO.

Afterwards, the racial information was submitted to the companies themselves for validation, and 69 of them (15.61% of the total) answered back. This new set, which represented 727 positions, showed that 712 of them were occupied by white people, nine were yellow, and six were brown. No black person was identified in this second stage among all the positions.

“We need much higher percentages for the numbers to become representative,” said Mr. Gouvêa, who, in addition to teaching at USP’s Law School, is the founder of law firm PGLaw. If racial diversity remains low, there is a risk of “tokenism,” when symbolic inclusion occurs with the aim of making superficial concessions to minority groups.

There is a mismatch between those who have the decision-making power in companies and the rest of society, which can be dangerous for companies, the professor warned. “It is important not to turn the subject into a marketing event. The idea of the diverse board is to offer new perspectives on the functioning of the company itself and for its own business plan,” says Mr. Gouvêa.

There are still barriers and cultural biases for the ascension of women and black people in the executive career, an important step for those who wish to join a board of directors, said Cristina Pinho, a member of the board of Ocyan, a private company. The rise to a position like this also depends on interpersonal relationships. “The nomination of white women comes from white men, who predominate on the boards. Where are the black men? They are not on the boards. That gear feeds on itself.”

Specific programs for the inclusion of blacks in top management positions in companies are still rare, said Cássio Rufino, a partner at MZ Consult. He is the chief operating and investor relations officer at the company that offers market solutions in IR. “Finding a white man among ‘farialimers’ is much easier,” he compares, citing the executives who work on Avenida Faria Lima, the corporate address of several companies in São Paulo.

When he attends trade shows and meetings with investor relations professionals, Mr. Rufino sees himself, more often than not, as the only black person present. These events bring together many analysts, managers and executives, who may in the future become CFOs or CEOs.

Large companies have a responsibility to be influencers for small ones, said Rachel Maia, board member and founder of RM Consulting. “Companies are looking for referrals for greater plurality.”

“I couldn’t even imagine that I would be able to do a college degree in engineering. My intention was to finish the technical course and work in Curitiba,” said Fausto Augusto de Souza, employee representative on Copel’s board of directors. Elected in 2021, he was the only black person among the candidates. The executive, who lived in the interior of the state of Paraná, studied electrical engineering after joining the company and then took a master’s degree. Now Mr. Souza is looking to expand his specialization and become an independent board member in the future.

Source: Valor International

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