Inclusive Capitalism Fireside Chats: A Conversation With John Rogers and Blair Smith

Historical Context and Economic Decline in Chicago

• Chicago previously served as the national "mecca" for Black-owned businesses, featuring iconic entities such as Johnson Publishing (publishers of Ebony and Jet, with John Johnson becoming the first African American on the Forbes 400) and Johnson Products.
• These historical enterprises were large-scale operations employing over 500 people each and were among the first Black businesses listed on major stock exchanges.
• A significant decline has occurred over the last two decades, resulting in zero African American companies appearing on Crain's list of the top 150 privately held companies, down from more than three times that number 20 years ago.
• The iconic Johnson Publishing Building, once a symbol of entrepreneurial possibility, has been lost, symbolizing the erasure of this historic business ecosystem.

Drivers of Economic Disempowerment

• The decline is attributed to a loss of political empowerment and community leadership that previously enforced economic justice through boycotts and picketing against corporations refusing to engage with Black businesses.
• High-profile figures like Reverend Jesse Jackson and local leaders such as Maynard Jackson (Atlanta), Coleman Young (Detroit), and Marion Barry (D.C.) historically utilized significant leverage to force corporate engagement with minority communities.
• Chicago and other major cities experienced a generation without Black mayors, and subsequent leaders often lacked the specific energy or mandate to prioritize Black business growth and philanthropy.
• Rogers argues that without a strong economic base, communities cannot effectively address critical issues like education, healthcare, crime, or climate change, as these are directly tied to the lack of wealth and jobs.

Rogers' Motivations and Board Accountability

• Rogers' advocacy for economic justice is rooted in a multi-generational family legacy, including his great-grandfather J.B. Stratford (owner of Tulsa's largest Black hotel destroyed in the 1921 race riots), his mother Jewel Stratford (a University of Chicago Law School graduate and civil rights attorney), and his father (a Tuskegee Airman).
• Rogers has served on over 30 corporate boards for major institutions including Nike, McDonald's, and The New York Times, observing a disconnect between their stated commitments to diversity and their actual hiring, spending, and philanthropy practices.
• He challenges the "conscience" of current Black directors, noting that many are uncomfortable making waves or challenging the status quo to avoid being removed from boardrooms.
• To counter this, the Black Corporate Directors Conference, founded 20 years ago, has grown from 30 attendees to over 200 directors, featuring an annual "conscience of the conference" event to remind members of their moral responsibility to fight for fairness.
• Rogers' firm has successfully convinced more than 50 different institutions to appoint their first African American board member, ranging from Sotheby's to JLL.

Strategic Initiatives to Address the Wealth Gap

• Project Black: Ariel Investments launched a private equity fund led by co-CEO Melody Hobson and Chairman/CFO Les Broon to invest in Black businesses of scale, aiming to replicate the historic model of large, thriving Black enterprises.
• Ariel School: Established 25 years ago with former Secretary of Education Arne Duncan, this public school teaches stock market fundamentals and gives students real capital to invest in actual stocks to build financial literacy.
• University of Chicago Endowment Program: A program providing paid internships for minority students in the investment offices of major endowments, aiming to integrate them into the high-wealth ecosystem of asset management.
• Outcomes: Over 100 diverse students have participated in the endowment internship program, with the goal of fostering long-term careers in finance and wealth creation.

Career Advice for Aspiring Financial Professionals

• Rogers advises students from historically Black colleges (e.g., Howard, Spelman, North Carolina A&T) to secure summer internships specifically at endowment offices (e.g., Harvard, HBCU endowments) to gain comprehensive exposure to hedge funds, private equity, and venture capital.
• He emphasizes the importance of "being a teammate" and prioritizing the success of others, suggesting that this approach naturally leads to influence and opportunity in the industry.
• Rogers recommends that young professionals invest their own money directly in the market to demonstrate practical experience and capital market knowledge during the hiring process.
• He highlights the rapid growth of endowments at HBCUs following the George Floyd murder as a new source of wealth and opportunity for institutions and their stakeholders.

Future Outlook and Sustainability

• Following the George Floyd tragedy, Rogers observes a sustained window of opportunity rather than a temporary moment, citing increased engagement from major organizations like the Chicago Civic Committee to embrace "business diversity" beyond traditional supplier contracts.
• There is a noted shift away from limiting Black businesses to low-value sectors (catering, construction) toward inclusion in high-value wealth creation areas like financial services and technology.
• Ariel Investments reports a surge in demand to add their mutual funds to 401(k) plans and frequent inquiries regarding board diversity, indicating a structural cultural shift.
• Rogers remains optimistic that the momentum generated by this period of social reckoning is creating sustainable pathways for Black wealth creation and representation in the financial sector.