Piers Linney - Diversity Is Good For Business
Diversity Is Good For Business
If you’re in business; I presume your aim is to create a sustainable and competitive advantage. I assume you wish to grow your bottom-line and do so in a socially responsible way, especially given that your stakeholders expect it. Which is why I believe ensuring your organisation has embraced diversity, in all its forms, is a strategy for success! A recent report by management consulting firm McKinsey found that the relationship between diversity at senior management level and financial outperformance has strengthened over time. The research also found that the gap between those companies with diversity and inclusion programmes and those that have yet to act was widening.
As I write this, it has been 100 days since George Floyd needlessly lost his life while being taken into police custody. You may believe the effects of that appalling event, and the following protests in both the US and UK have no bearing in your place of work or on your business. If so, I'd suggest you think again. The reality is our society will remain unfair until its diversity is proportionately represented. Yes, Britain is one of the most tolerant countries in the world, but recent events have shown us we still have a long way to go.
The Black Lives Matter movement has brought the issue of diversity and inclusion into sharp focus. Not only for businesses and organisations but the customers and patrons they serve. The BLM movement has forced us to open our eyes and confront age-old stereotypes that are by now so familiar they often go unnoticed. It is not just a national awakening the BLM movement has seen global brands examine and attempt to rectify their outdated and offensive tropes and practices. I, for one, will certainly not miss Uncle Ben's logo and its Old South plantation nostalgia.
Throughout the pandemic and amid the racial unrest, I've given several virtual talks for well-known brands and answered questions for their hundreds of employees. While in their ranks, I noted many boards of directors looking troubled. It was dawning on them and their stakeholders that not enacting the carefully crafted texts of their mission statements and annual reports would no longer fly in a society that expects that much more of them.
Despite the recent and what I consider nationalistic push-back around the world, globalisation is inevitable. It is already and will continue to shape our lives and economies long-term. High street shops that once relied on footfall can now list inventory on platforms with a global audience. For this reason alone, it is critical you understand your demographic wherever they're located and whatever their background. In a landscape where trends turn on a tweet, a culturally diverse supply chain is the only way to gain access to relevant experience and insight. Not to mention, the UK's skill shortage. Exactly how does restricting your access to the already shallow talent pool with arbitrary filters and bias help your business in any way?
Business is a force for good on a scale that the public and third sectors can't compete with. If you want to encourage inclusive access to opportunity, increase social mobility and create a fairer society, then you and your business should embrace diversity in all its glorious forms. Simply put, making decisions based on gender, race, sexuality, age, religion, disability, or socio-economic background destroys relative value.
Despite its benefits, change can be difficult. To bring about societal shifts, we must confront the bias of which to some degree we're all guilty. Businesses and business owners must consider how they can contribute to the creation of a level playing field. Decisions should be made on ability and hard work instead of privilege. If diversity is good for business, then what are you waiting for?
Piers
