Ten Questions About Diversity, Equity and Inclusion (Part 1)

In today's rapidly evolving global landscape, public companies face an unprecedented challenge to meet their capital market commitments. At the heart of this challenge lies a powerful solution: Diversity, Equity, and Inclusion (DEI). When robustly implemented, DEI not only enriches corporate culture but also drives enhanced financial performance and stakeholder value. Embracing DEI holistically—differentiating and integrating its three distinct facets of Diversity, Equity, and Inclusion—can help businesses effectively navigate societal changes, enhance their global operations, and prepare for future demands. As more companies embark on the journey of incorporating DEI into their core strategies, it's evident that this commitment fosters resilience, spurs innovation, and ultimately, ensures a company's enduring success in fulfilling its capital market promise.

1.??How should a company plan to adapt its DEI (Diversity, Equity, and Inclusion) strategy in response to societal changes and demands?

In order to effectively adapt its DEI strategy in response to evolving societal changes and demands, a company must first wholeheartedly commit to the principles of each of the practices of building Diversity, striving for Equity, and fostering Inclusion. It is so important to delineate they are three different strategies. And not all companies take on all three, some do I&D, EID, or EDI, etc. These commitments should extend throughout the organization, encompassing all aspects of business practices, goals, and corporate culture. To ensure resilience in the face of societal developments and unforeseen challenges, the company must embrace adaptability and openness. It is crucial to foster alignment among its leaders, ensuring that, regardless of external changes and demands, they maintain a clear and steadfast definition of DEI that remains integrated into the overall corporate strategy. An additional consideration is if the company is truly global, the DEI strategy will have to be tailored to those societal norms and needs.?

2.??What long-term goals should be set for DEI, and how should they be monitored?

Setting long-term DEI goals should be a customized process, tailored to the specific needs and context of the company. These goals should be established following a thorough assessment of employee sentiments, data analysis, industry benchmarks, and trends. To prevent myopic approaches and keep pace with evolving expectations from both employees and industry, it's essential to align DEI goals with broader business objectives. For instance, if a company aims to increase sales by 50%, a DEI lens might involve targeted advertising to diverse communities and ensuring that language, imagery, and overall branding are inclusive and sensitive. Monitoring progress should involve collaboration between the DEI team and employee resource groups, as they serve as vital voices representing diverse communities within the organization.

3.?What new technologies or tools should a company adopt to enhance DEI initiatives?

Numerous innovative tools and platforms can bolster DEI initiatives. These include systems for managing Employee Resource Groups (ERGs), mentorship programs, e-learning platforms, micro-learnings, and project management software. Additionally, companies can access databases of resumes from underrepresented communities, such as: minority-owned businesses, women-owned enterprises, Veteran-owned companies, and disability-owned businesses. Leveraging technology and resources can significantly accelerate the impact, organization, and credibility of DEI efforts.

?

4.?How should global operations and supply chains be considered in DEI strategy?

Incorporating DEI into global operations and supply chains involves a two-fold approach. Firstly, global operations can tap into a diverse talent pool by actively recruiting individuals of varying backgrounds, ages, abilities, and neurodiversity. Secondly, supply chain management should prioritize supplier diversity by collaborating with businesses owned by underrepresented communities and small enterprises. By doing so, companies not only contribute to business growth within these communities but also uphold their commitment to DEI principles.?

5.???? How should a company think about DEI during mergers or acquisitions?

DEI considerations should permeate every stage of mergers and acquisitions (M&A) processes, from initial assessments, to discussions, to post-closure integration and beyond. When evaluating potential M&A targets, assess their leadership structure, Board composition, supplier relationships, and demographic data (promotion/attrition/retention figures). Apply an inclusive lens to these assessments. If the decision is to proceed with the M&A, detailed plans for cultural integration, communication strategies, and integration efforts must be developed and executed. Collaboration among leaders, HR teams, communication teams, employee relations, and DEI specialists is essential throughout this process.