Does There Need to be a Business Case for DEI?

It’s safe to say that organizational DEI is going through a rough moment right now.

From US Supreme Court rulings to harmful rhetoric gaining momentum, it often feels like the movement is regressing rather than making progress. And given the innate complexity of diversity, equity, and inclusion as a core concept, it can be tricky for organizations to keep fighting the good fight.

I have always advocated for DEI as a key business objective – it’s why SocialTalent’s content is framed through this perspective. But I came across a LinkedIn post from one of our platform author’s recently that made me stop and think about DEI’s place within a business’s framework.

Written by the always-insightful Aubrey Blanche-Sarellano , it read:?

“The business case for diversity is mostly bullshit, in case you’ve been touting it. The data to support it is extremely limited, and absolutely does not support the significant investments required to create and maintain an equitable company. You should do it anyway, because ethics. But stop pretending “I’ll do the right thing because it makes me richer” is a flex.”?

It made me wonder – is there only a tenuous business case for diversity, equity, and inclusion in organizations? Should ethics be the driving force behind its adoption?

I massively respect Aubrey; she’s hugely passionate about DEI and her work in this space, particularly around redesigning workplace systems and practices to ensure equity, is inspiring. So there has to be something in what she’s saying, right?

Business Case vs. Ethics

I think Aubrey’s point is valid and I would love it if the stalwart reason organizations got behind DEI was purely based on an ethical concern that it is indeed the right thing to do – because it absolutely is. But unfortunately, I don’t have enough faith that companies could ever fundamentally operate like this. It may be flawed, but business incentives tend to make anything more doable for organizations, and providing a solid one around DEI can only help the cause.

And perhaps Aubrey is right in saying that a lot of the data used in the business case for DEI is insufficient or there may be an element of causation and correlation involved. It’s hard to know for sure. But there is one pivotal area in this debate that I feel cuts through all the noise and proves that investing in DEI can indeed also support a business case…and that’s talent.

The Talent Argument

The Financial Times released an article recently that also dug into this topic around the challenges DEI is currently facing in the workplace. They too make the argument that talent, both attracting and retaining, is the primary business case for diversity, equity, and inclusion efforts.

It’s a simple incentive to latch on to that does have real-world implications for organizations.

Millennials and younger cohorts now make up about 60% of the workforce, and according to the article:

“These generations are far more diverse than any before them across a range of dimensions. So companies that want to be around for the next five-to-10 years will need to figure out how to attract and keep people from an increasingly diverse set of backgrounds.”

And with talent shortages only getting worse and DEI being a top priority for the fast incoming Gen-Z job seekers, I feel like this is the way to keep it firmly on the agenda if evidence on the purely financial side is being challenged.

For some companies this may not be an issue at all, and that’s great! Having DEI in the core of your values and allowing it to permeate and grow is an ideal which should absolutely be championed. But I would hate to sit back and hope that organizations do the right thing. If you’re struggling with keeping DEI front-and-center and need to create a strong business case, talent would be a no-brainer argument for me.

Reframing the Argument

It can be tough to talk in absolutes around a topic as big as DEI in the workplace – each letter of this acronym represents something critically important and requires different tactics and different approaches to ensure that companies strive for better.?

But I think when it comes to high-level organizational DEI you need to leverage what works first. Business cases are important, but perhaps they need reframing in order to be more effective. Doing the right thing just to say it can make you richer is an uncomfortable flex – but doing the right thing because it will enable you to hire and retain the best talent is a much more sound business case.

It can often feel like a head and heart discussion when it comes to DEI. Striving for diversity within your workforce, fostering a culture of inclusion, and ensuring equity at all levels SHOULD be the status-quo requirement. Wouldn’t it be amazing if this was a non-negotiable?! Yet bottom-lines and material gains are still a primary driving force and can’t be fully ignored in the DEI conversation, particularly in this moment of scrutiny.

DEI does have a business case, and its most significant one is around talent. Simply put, you will be at an enormous talent disadvantage if you don’t invest, understand, and drive DEI within your organization.

Where do you fall in this debate? Should organizational DEI ditch the business case in favor of ethics? How are you keeping this discussion on the table? Let me know in the comments!

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