All businesses should strive to achieve equality, diversity and inclusion in their workplace. In this article, we discuss the top three reasons why these values should be at the core of every company.
Better company reputation
Companies that are known for creating a workplace culture that values and fosters diversity and inclusion enjoy a better reputation. Leaders and managers understand that the way in which stakeholders across the board view their company matters, especially in an age of social media where the voice and opinions of the public have value. Consumers will want to associate their favourite brands with the principles they care for and will want to see corporations integrating these at the core of their business. In countries where diversity and inclusion are appreciated at a societal level, stakeholders will expect corporations to invest in these and companies who do so, will reap the benefits.
Attract top talent
A clear benefit of having a good brand reputation is attracting top talent, especially among millennials and Generation Z. A study by PwC found that 86% of female millennials said employer policy on diversity and workforce inclusion was important to them and 71% feel that while organisations talk about diversity, opportunities are not really equal for all. Generation Z, those born between 1995 and 2010 focus on the inclusion, in particular, and value the different perspectives a diverse group of people bring to a discussion, according to McKinsey & Co.
The link between a culture of diversity and inclusion and financial profitability is well-established, though culture dependant. HBR found that gender diversity leads to financial profitability in firms and industries only in the context of gender diversity already being the norm in a country’s society. In companies from the US and the UK, having gender diversity on their executive teams increased the likelihood of above-average profitability by 21%. For ethnic/cultural diversity, companies were 33% more likely to outperform on profitability, according to a 2018 McKinsey & Co report.