How Diversity and Inclusion Make Our Cities Great

In this series, professionals predict the ideas and trends that will shape 2016. Read the posts here, then write your own (use #BigIdeas2016 in your piece).

As CEO, I spend a lot of time meeting with clients, employees and business leaders. I’m fortunate – my travels take me to some of the world’s greatest cities. This fall for example, I spent time in London, Los Angeles, San Francisco, New York and Montreal, and as always, I’m struck by how diverse they are, vibrant in their mix of people, culture and businesses. 

And when I come home, it’s to one of my favourite cities - Toronto, a city recognized around the world for its thriving social, cultural and economic composition.  Toronto’s commitment to diversity; race, ethnicity, gender, sexual orientation, physical ability, political and religious ideologies, is its hallmark, and arguably its greatest asset.

And so it wasn’t surprising to me when earlier this year, Toronto topped the Economist magazine’s global list of best cities, ranking number one according to “livability” factors, including culture, creativity and democracy.  Toronto remains one of the world’s most tolerant and multi-cultural places to live with a vitality that continues to attract visitors and would-be citizens from around the world.

Attracting new minds – particularly young talent, has become increasingly critical to greying, Western cities.  Over the next 20 years the global population of people over the age of 65 will almost double, posing a serious economic threat.  Without a younger cohort to replace them, a retiring population will create gaping holes in our workforce, a challenge that many agree can be addressed through smart policies that embrace diversity by welcoming new Canadians to our cities.

 One of the main catalysts creating diversity is immigration, a topic currently making headlines around the world.  And while the issue of security is certainly important, the conversation frequently veers negative; immigrants strain a city’s infrastructure, have trouble adjusting to new laws or cultural norms, are low-skilled or are likely to take more than they give financially.  In reality, immigrants and the diversity of thought and experience they bring, are what make our cities prosper.  

As we settle in to the knowledge century, it’s minds not muscle determining our economic fate. A recent study by McKinsey & Co. revealed that companies with racially and ethnically diverse employees are 35 percent more likely to financially outperform non-diverse companies.  And when it comes to innovation - immigrants are having a big impact, making up about 38 percent of Canada’s science, technology, engineering and math workforce.   Immigrants are also three times more likely than the general population to have a PhD.

Culturally, immigrants tend to be risk-takers. It turns out that leaving home in search of opportunity is similar to the trait that drives discovery and innovation.  Compared to the rest of the population, immigrants tend to be disproportionally entrepreneurial and have a long history of starting successful businesses, creating some of the world’s most iconic products and companies. Tesla’s Elon Musk, Google’s Sergey Brin and YouTube founder Steve Chen are a quick few.

Diversity is of course much broader than immigration and the benefits of diversity extend far beyond the economic.  Good leaders recognize that success depends on different backgrounds and points-of-view colliding creatively and intellectually. Great cities harness this energy, promoting an environment where race, ethnicity, sexual orientation, age and different ideologies intertwine to create environments that attract new citizens, ideas, culture and economic prosperity.   And while no single place is perfect, there’s an undeniable correlation between great cities and the diversity they cultivate and protect.