Exploring the many other imperatives linked to a more inclusive workplace.
Quite often, leaders and advocates make the case for diversity by focusing on the business results. Companies with diverse teams outperform those who don’t, diverse teams produce more innovative results, and so on. The thought process behind this approach is simple – corporate leaders will only get behind an initiative if it positively impacts the bottom line. But this thinking is flawed for two major reasons.
First, by focusing on what companies can gain from diversity – instead of what diverse employees need to be successful – increased profits can actually hurt the very workers that DEI plans are meant to uplift[1]. And second, limiting a company’s scope to revenue and profits prevents leaders from understanding and honoring the many other imperatives that diversity demands.
If anything, earnings should be the least considered factor in sourcing, cultivating, and maintaining a workplace of inclusion and belonging.
Topping the list of reasons to diversify is the moral obligation. Committing to a DEI strategy and seeing it through means your company believes in fair treatment for all. A diverse company is one in which pay is equitable, resources are shared, and every employee is treated with dignity, regardless of their background, experience, or position[2]. Diversity ensures your company is a place where people want to work, and if they want to work for you, they’ll support the company’s mission and values without question.
There’s also an economic responsibility that goes far beyond what happens within an organization’s four walls. Diversity initiatives can help qualified workers break through previously closed doors and glass ceilings, improving their lives and providing new opportunities for their communities. In short, DEI can unlock economic prosperity for an entire class of employee[3], helping to close the ever-widening wealth gap. Sure, a more diverse team can juice the company’s returns, but it can also shift societal trends.
Furthermore, a true embrace of DEI moves companies past surface-level diversity (e.g., recruitment based on race or gender) to deep-level diversity (e.g., attitudes, values, and beliefs)[4]. There’s a duty to focus less on demographics and superficial statistics. Instead, leaders must understand the power of various perspectives within a single team and the many ways this acceptance can encourage employees to be their whole, authentic selves.
Attention must also be paid to ethics. By resisting diversity, not only are leaders positioning their businesses at an extreme disadvantage in the marketplace but they’re also violating ethical and compliance responsibilities that can’t be overlooked. This is why corporate compliance officers are increasingly stepping in to move the needle regarding racial equality[5]. They’re tying diversity and inclusion to governance, which can impact companies in a litany of ways if not appropriately maintained.
In thinking about diversity, equity, and inclusion, and all that’s required to make progress in challenged work environments, company leaders have a lot of work to do beyond public statements and press releases. True change has little to do with demographics and everything to do with the very foundation of the business. This is the time to reassess current processes, establish new best practices, and hold staff accountable for their behavior.
At this stage, the business case is no longer enough. Diverse employees are whole beings that need to be seen and addressed as such, and it’s critical that we view diversity the same way – as a complex dilemma with several moving parts, not a single issue.
[1] Kaplan, Sarah. (February 12, 2020). Why the ‘business case’ for diversity isn’t working. Retrieved from: https://www.fastcompany.com/90462867/why-the-business-case-for-diversity-isnt-working
[2] CIPD. (June 2018). Diversity And Inclusion At Work: Facing up to the business case. Retrieved from: https://www.cipd.co.uk/Images/diversity-and-inclusion-at-work_2018-summary_tcm18-44150.pdf
[3] Yong, Enn Lun. (October 16, 2019). Understanding cultural diversity and economic prosperity in Europe: a literature review and proposal of a culture – economy framework. Retrieved from: https://ajges.springeropen.com/articles/10.1186/s40856-019-0043-3
[4] University of Minnesota. (2021). Demographic Diversity. Retrieved from: https://open.lib.umn.edu/organizationalbehavior/chapter/2-2-demographic-diversity/
[5] Sun, Mengqi. (June 10, 2021). Compliance Officers Play Leading Role in Pursuing Diversity Goals. Retrieved from: https://www.wsj.com/articles/compliance-officers-play-leading-role-in-pursuing-diversity-goals-11623317402
