Diversity and Inclusion in Business: How and Why?
Topics like diversity, inclusion, and gender equality have gained a lot of attention over the past 20 years. Even though everyone talks about these issues, many do not consider their dimensions and they often neglect the different points that define them. When we talk about diversity, we can refer to a set of individuals who might differ by their geographical origin, disability, age, sex, socio-cultural or religious origin, their level of education, or by their sexual orientation and by more dimensions.
We are seeing an increasing focus on or even questioning of the development model of the “standards” currently established in the recruitment world. This questioning leads to an increase in actions promoting diversity and inclusion within companies. Certainly some skeptics will ask, “but why such an awareness now? Is it justified?” In short, yes: many studies carried out over the last 15 years on the benefits of diversity and inclusion have shown that it is necessary and beneficial to look into the subject (cf. the article by Paul Gompers and Silpa Kovvali in Harvard Business Review, July-August 2018, The Other Diversity Dividend, and a report by Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu Dixon-Fyle for McKinsey & Company, January 18, 2018 — Delivering through diversity).
Diversity and inclusion are strengths. They bring together economic benefits.
So far so good, but what aspects of business do diversity and inclusion influence? Why should we care? First, by demonstrating a commitment to social responsibility, you will address the expectations of employees, expectations which are only increasing. By taking action, you will create a more positive image of your organization and this in turn will help to attract new talents and increase the retention rate, all the while raising awareness among your employees. Bringing this renewed focus on diversity and inclusion into a business will help optimize human resource management. This will result in improved motivation, involvement, and performance of employees. Of course, it is also worth mentioning that managing diversity and inclusion will reduce the legal risks associated with anti-discrimination legislation.
Another point concerning the value of diversifying a company and its culture is related to performance and economic power. Quite simply, a diversified organization will not only be more dynamic, but also better able to adapt to the challenges of globalization. The diverse organization will be in a position to harvest the fruits of innovation and have a better understanding of the topology of different markets.
Now, how do we make a difference? I will give you a concrete example. One of the points that comes up most often (numerous initiatives address this subject) is “action at the root.” How do we accomplish that? By changing the codes and representations, whether at the level of the Executive Committee until the N-1 (line manager or employee), in order to shine an intense light on our cognitive biases. Without this, the recruitment of talent from diverse backgrounds will fail (see CNBC article written by Pippa Stevens, June 11, 2020: Companies are making bold promises about greater diversity, but there’s a long way to go). The employees of a company must form a cohesive unit and work hand in hand and be committed to making the D&I policy a success. It is not just a question of hiring the best profiles from different backgrounds, but also of creating a nurturing and caring space, favorable to discussion and expression. At every step, we must be clear and consistent in our expectations and strongly condemn any act of incivility, discrimination or racism when they occur; otherwise, you will give the impression of endorsing such behavior.
In short, we must create a responsible and attractive corporate culture, while improving the quality of life at work.
It is of primary importance to note that diversity without inclusion is counterproductive and will likely end in failure. However, when a company is faced with such a failure, we can conclude that the change that was initiated, or the efforts put into practice have served no purpose. We might fear that this will lead to a decrease in commitment or to diminished morale and that all our efforts will end in oblivion; nevertheless, it needn’t end up that way. In order to increase the chances of success, one must realize that recruiting just one person or seeing two people of diverse backgrounds within the same group is not enough. For example, if there is only one person from a diverse background in an Executive Committee, this will not be productive because it will not build a real space for free expression. An organization, business, or an individual who thinks that one or two diverse hires solves the problem probably doesn’t understand what is really at stake. It would probably be more beneficial to increase awareness of what real diversity and inclusion entail and challenge what we think we know.
Diversity is both measurable and a state of mind.
Conducting a diversity and inclusion policy is a complex process and you should not hesitate to seek support. We have seen the emergence of scandals like that of Amazon which was singled out in 2018 because its management committee was mainly made up of white men (cf. Article by Kori Hale for Forbes dated May 16, 2018: Amazon Delivers a Turnaround in Board Diversity Approach) or Cisco Systems and other Silicon Valley giants in 2020 (cf. Article by Maeve Allsup for Bloomberg Law, Sept 23, 2020: Cisco Faces Suit Over Lack of Diversity in Leadership, on Board). These missteps could have been avoided.
Conversely, we can observe companies like Goldman Sachs who, on the contrary, have clearly taken a stand, posting it in the media (cf. article by Jeff Green for Bloomberg on January 24, 2020: Goldman to Refuse IPOs If All Directors Are White, Straight Men)
To conclude, it is necessary to have conviction, desire, determination, action, perseverance, and support so that diversity, inclusion and even gender equality will have a real chance to take root and to endure, and therefore be able to unleash all their potential.
By Dolores Crazover, October 11th, 2020
