What Diversity, Equity and Inclusion mean for your business: essential steps for action

Diversity, Equity and Inclusion (DE&I) are no longer a ‘nice-to-have’ option, they are essential to all businesses. DE&I falls within the remit of social sustainability, which is defined as a company’s efforts to positively impact the people involved with or affected by its operations. By approaching sustainability in a holistic matter, prioritising people and planet alongside profit, businesses can spark innovation, strengthen their reporting, and unlock exciting new opportunities. In this blog, we’ll take a closer look at what diversity, equity and inclusion mean, plus what this might look like in your organisation.

Let’s break down DE&I into definitions. 

First, what is Diversity in business?

Diversity encompasses all the ways in which individuals differ. This includes characteristics such as race, gender, ethnicity, physical abilities, religion, sexual orientation, socioeconomic status, and more. Embracing diversity in business means recognising, respecting, and valuing these differences for the unique perspectives and talents they bring to an organisation.  

What is Equity and how does it compare to Equality?

Equity is often misunderstood as equality, but they are distinct concepts. Equity ensures that processes are impartial, fair, and aim to provide equal outcomes for everyone. Unlike equality, which gives the same resources to all individuals, equity considers varying needs and circumstances to level the playing field. The goal is to provide everyone with the support required to achieve similar outcomes.

Finally, what is Inclusion in business? 

Inclusion involves creating a culture and environment where individuals or groups feel welcomed, respected, and valued for being their authentic selves. It means fostering a sense of belonging where people feel comfortable sharing their culture, background, and identity, enabling them to contribute fully to the organisation. 

Why diversity, equity and inclusion are essential to your business diversity strategy 

Diversity, equity, and inclusion have moved from being optional initiatives to essential components of successful organisations. Research over the years has highlighted many ways in which expectations are rising for businesses to include DE&I in their initiatives, and the benefits reaped as a result. 

Here are some highlights: 

• Diverse leadership: Companies with diverse leadership teams are 70% more likely to capture new markets globally. 
• Job seekers’ priorities: About 70% of job seekers, particularly Gen Z and Millennials, consider diversity a critical factor when evaluating job offers. 
• Employee wellbeing: When employees feel valued, sick days decrease by almost 75%, and retention rates improve by 50%. 

These statistics highlight that DEI is not just a policy; it directly impacts employee experiences and influences their decision to remain with an organisation. 

Corporate DE&I Reporting: key frameworks to know about  

DE&I plays a significant role in reporting requirements for various sectors, such as healthcare, technology, consumer goods, and retail. Global frameworks are increasingly including DE&I into their reporting, such as: 

• United Nations Sustainable Development Goals (UN SDGs) 
• B Corp certifications 
• Global Reporting Initiative (GRI)

ISO social responsibility and measures like Ecovadis and Sedex also highlight the importance of equal opportunity, non-discrimination, and diversity metrics.  

Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) also include guidelines that prioritise equity for own workforces, affected communities, and end-users. 

How to embed DE&I in business goals and strategy 

The purpose of any DE&I initiative should extend beyond identifying challenges to integrating solutions into strategic goals and business models. Investors and stakeholders increasingly view DE&I as a fundamental business practice; therefore DE&I strengthens organisational resilience and creates long-term value. However, for smaller organisations or those in the early stages of their DE&I journey, it can be daunting to know where to begin. 

Key starting points include: 

1. Defining vision and objectives: Review your organisation’s purpose and broader business strategy, then identify how DE&I can be included. This ensures initiatives are relevant and impactful. 
2. Mapping current efforts: Assess existing workplace policies and initiatives related to both environmental and social sustainability. Identifying gaps allows organisations to build on what’s working and address area that need attention. 
3. Developing key focus areas: Establish DE&I pillars that are material to the organisation or sector, setting measurable key performance indicators (KPIs) to track progress. 
4. Accountability: Assign senior leadership accountability to drive DE&I efforts through championing values and initiatives. Effective DEI strategies engage all employees, ensuring policies are both inclusive and actionable. 
5. Feedback mechanisms: Regular pulse surveys and other feedback tools help organisations stay attuned to employee needs and measure the effectiveness of DE&I efforts. 

DE&I in business strategy: a summary 

DE&I initiatives should be prioritised as an essential element of business-as-usual. As well as being the right thing to do, businesses can unlock benefits to reporting, meet stakeholder expectations, access new markets and support hiring and retention initiatives. Whilst starting with DE&I action can seem daunting, taking a step-by-step approach breaks down elements into a clear pathway to begin.  

Looking to learn more? 

Our Managing Consultant of Social Sustainability, Vibhati Bhatia, hosted a webinar named ‘Beyond Compliance: Unlocking the Benefits of a Diverse Workforce’. Available on-demand, the sessions covers the importance of DE&I, challenges for organisations and solutions in greater detail. Watch below to get started!