Catalyst has a large collection of resources on building a strong business case for diversity, equity, and inclusion. For organizations starting a diversity initiative, the following entries in the Ask Catalyst Express series will be especially helpful.
Looking Toward the Goal: Inclusion
Although organizations must begin a diversity journey by understanding the current talent in their workforces—including breakdowns by gender, race, ethnicity, nationality, disability, sexual orientation and more—just having diversity isn’t enough. To reap the benefits from increased diversity, organizations need to work toward inclusion. The Society for Human Resource Management defines inclusion as, “the extent to which each person in an organization feels welcomed, respected, supported and valued as a team member.” Catalyst research shows that when people feel included, they are recognized for the distinct characteristics they bring to the team (uniqueness) and feel as though they are true insiders (belonging). Inclusion is a state in which everyone can be authentic, contribute fully and meaningfully, grow, develop, and thrive. As the Royal Bank of Canada put it, “In simple terms, diversity is the mix and inclusion is the mix working well together.” Increasing diversity is the first and critical step. But it’s inclusion that makes companies, cultures, and workforces strong.
Consider the Business Case
People looking to increase diversity at organizations are often asked to make the case for why it is necessary. Much research has been done to demonstrate that when done well, diversity, equity, and inclusion in the workplace can lead to increased revenue, reduced costs, greater innovation, and increased employee engagement, productivity, and commitment. Notably, for companies to serve the market effectively, their workforce needs to look and think like their customer base.
Catalyst Resources for Making the Case
Knowledge Burst
- Why DEI Matters Supporter Exclusive
Practices
- Unilever: Changing the Game, Unlocking the Future Supporter Exclusive
To achieve the ambitious goal of 50/50 gender balance, Unilever had to hold all leaders and business areas accountable. That’s why the initiative includes features such as the Gender Appointment Ratio (GAR) and gender-balanced slates to help managers meet their targets. Unilever’s Global Diversity Board monitors progress on an ongoing basis. - Sodexo—The Business Impact of Gender-Balanced Teams Supporter Exclusive
Sodexo found that gender-balanced teams—those with 40%–60% women in management—had higher KPI results than other teams. Specifically, these teams were more engaged (four point higher global engagement rate over non-balanced teams); had higher brand awareness (five points higher); had better client retention (12% increase); and had more positive profit and growth over three consecutive years.
Quick Take
Webinar
- The Business Case for Retaining Black Women Supporter Exclusive
Reports
- Aligning Actions to Values: The Catalyst CEO Champions For Change
- Getting Real About Inclusive Leadership
Getting Beyond the Business Case
Although Catalyst has produced research and tools about making the case, we encourage companies to get beyond the business case, which grew out of a need to explain the business benefits (especially financial benefits) of diversity to stakeholders. However, the connection between financial rewards and diversity is impossible to prove because research can only establish a correlation, not causation, between the two. Further, even though the business case for diversity has been documented for decades, it never seems to be enough, and can even drive underrepresented talent away from considering applying at companies that link the business case with their bottom line. Organizations that still ask for more proof that gender diversity is good for business never seem to ask for the business case demonstrating that the status quo or all-male leadership teams and boards are good for business. The constant demand for the business case combined with the recent increase in companies freezing or dissolving DEI programming or departments are stall tactics, indicating an organization’s unwillingness to change. The cost of doing so is high and can lead to poor retention and future talent overlooking a company as a good place to work entirely. Companies should focus on diversity as a talent issue, and recognize that to be an industry leader, it is critical to tap into the full talent pool, and put energy and resources toward recruiting and retaining diverse employees to create inclusive workplace cultures where everyone has an equal opportunity to contribute and succeed.
Catalyst Resources for Getting Beyond the Business Case
Reports
- Promises vs. Progress: 2 Keys to Keeping Employees Feeling Good and Staying Put
- Exposé of Women’s Workplace Experiences Challenges Antiracist Leaders to Step Up
- Words Aren’t Enough: The Risks of Performative Policies
Webinar
- First Steps—The Business Case for Diversity: Is This a Silver Bullet? Supporter Exclusive
Other Resources for Getting Beyond the Business Case
- Beyond the Business Case—Diversity in the Workplace Above the Law
- Moving Beyond the Business Case for Diversity Eos
- This Is the Real Cost of Cutting Diversity Programs Fast Company
- The Business Case for Diversity May Be Backfiring, A New Study Shows Forbes
- 5 Ways Resisters May Be Undermining Your DEI Program and What to Do About It Fortune
- Stop Making the Business Case for Diversity Harvard Business Review
- Beyond the Business Case for Diversity: What Leaders Must Do Knowledge at Wharton
- It’s (Past) Time to Get Strategic About DEI McKinsey & Company
Return to Ask Catalyst Express.