What it means for US Multinationals to Work on Culture and Belonging in Global Markets

US multinationals have long been pioneers in driving DEI within the corporate worls. Their efforts have set the stage for conversations about equity in business and inspired companies worlwide to integrate DEI into their strategies.

However, as these companies expand into diverse global markets, one question arises: How can they align their global inclusoin efforts with local cultural contexts while preserving the best of their DEI leadership?

This article explores the opportunities and challenges for US multinationals as they adapt their culture and DEI strategies to the uniques realities operating across EMEA, APAC, LATAM and beyond.

1. Building on US Leadership in DEI

US companies have led the way in advancing equity, often prioritizing areas like racial diversity, gender parity, and LGBTQIA++ inclusion. Their frameworks have created significant progress in the US context, helping businesses become more representative and equitable.

But global markets bring new dimensions to the conversation. In regions like EMEA, ethnicity, language diversity and post-colonial dynamics often dominate discussions about equity. In APAC, caste systems, hierarchical traditions, and generational differences present unique inclusion challenges.

The Opportunitiy? Amplifying local voices!

Adapting DEI frameworks globally offers an opportunity for US companies to:

• Expand thei impact by addressing region-specific barriers;
• Deepen engagement with local teams through culturally relevant policies.

By empowering local leaders to influence strategies, companies can achieve a balance between consistent corporate values and authentic local relevance.

2. Localising Culture Without Losing Identity

Creating a unified corporate culture is a top priority for multinationals. But how can a company's culture resonate across regions with vastly different social norms? A 2022 study by PwC on Global Workfoce Hopes and Fears revealed:

• 70% of employees worldwide want a workplace culture that reflects their local values;
• 42% of employees in EMEA feel their corporate culture doesn't align with societal norms in their region.

Example - Google's regional adaptations: Google has demonstrated how US multinationals can localise their DEI efforts without compromising their global vision. In EMEA, they've prioritised multilingual representation and partnered with regional organizations like Afro-German networks to address inclusion gaps specific to Europe.

This approach highlights the power of listening to local voices and adapting policies accordingly.

3. How US DEI Developments could shape global strategies

The recent shifts in the US DEI landscape, inclusing the Supreme Court's ruling on affirmative action and increasing scrutiny of corporate DEI efforts, raise important question for US-based multinationals.

As these companies nagivate a more complex domestic environment, the potential ripple effects on their global strategies are significant. Employees worldwide are watching closely, and a perceived retreat from DEI in the US could undermine trust and engagement across regions.

The Global Opportunity is ALWAYS present. Here is how:

• Strengthen Local Adaptation: now more than ever, global companies must empower regional teams to lead DEI initiatives that reflect local priorities and challenges;
• Reaffirm Commitment: companies can use this moment to reaffirm their global vision, emphasizing that inclusion and belonging remain central to their mission, even in uncertain times;
• Innovate for Impact: to sustain credibility, organisations should highlight the measurable business value of DEI efforts, from boosting innovation to improving employee retention.

Ultimately, this is an opportunity for multinationals to showcase resilience and adaptability, proving that their commitment to diversity transcends borders and political climates.

4. Quantifiable impact of regional DEI

Customising DEI strategies to reflect local contexts isn't just about doing the right thing - it delivers measurable results.

Key findings:

• Diverse teams drive innovation: a 2021 study by McKinsey & Company found that companies in the top quartile for ethnic and cultural diversity in leadership were 36% more likely to outperform their peers in profitability;
• Local engagement improves retention: a Gallup study revealed that employees who feel culturally understood and included are 3.5 times more likely to stay with their employer

What's the cost of misalignment?

Misaligned inclusion efforts can result in reduced engagement, higher turnover, and reputational risks. The 2023 Edelman Trust Barometer found that:

• 64% of employees in EMEA trust companies more when they engage with DEI inculturally relevant ways;
• However, 41% of employees believe that some corporate efforts feel "performative".

This data underscores the importance of authentic engagement that resonates at the regional level.

5. The Path Forward

US multinationals are uniquely positioned to set the gold standard for global inclusion. By balancing global leadership with local adaptation, they can foster workplace cultures that are inclusive, impactful and innovated: no matter wher ein the world they operate.

To achieve this, companies must approach global DEI as a collaborative journey, not an export. When local voices shape global strategies, the result in a workplace culture that reflects the richness of humanity itself.

The question is no longer whether US multinationals can lead on DEI globally but how they can continue to innovate all while adapting their frameworks to new regions while staying true to their core values. This is not a challenge, but a profound opportunity.

So.. What's Next?

Let's open the dialogue here: how do you think global organisations can strice the right balance between global DEI prioritues and local realities?

Yaayachkom (thank you all) for reading,

Nardine