Companies are beginning to realise that they not only exist within a broader community, but that any sustainable organisation is a community.
Leading employers today understand the business case for diversity, which brings enhanced creativity, better utilisation of talent, improved productivity and increased market place standing. Organisations also recognise that costs associated with turnover and grievances can be reduced through inclusive policies and practices.
This awareness marks the third stage in the evolution of the corporate world’s understanding of diversity and inclusion. The first stage was compliance. In response to Equal Employment Opportunity and Anti-Discrimination legislation, many employers simply obeyed the law to minimise costs and threats. Second came competition. Organisations vied to enhance their reputation for diversity by being seen to do the ‘right thing’. Following the realisation that diversity brings shareholder returns, the business case has been the buzzword in management circles.
For successful businesses of the future, to see diversity through one or all of these lenses will not be enough. They will benefit from the lessons learnt in the previous three stages, but they will see beyond the old business case to the new diversity and inclusion paradigm, which is authentic cultural transformation. Increasingly, leaders are recognising that the defining benefit of diversity is the strength of relationships and the creation of a shared sense of purpose between employees, customers, shareholders, and the communities in which they operate.
Progression through these phases is seen in individual organisations, as well as in the corporate climate. The Diversity DNA Helix describes this evolution.
Customers, employees and shareholders increasingly expect organisations to work within a values system that reflects their own - to engage with and be accountable to the society in which they operate. An organisation that does not embrace diversity, that focuses on ‘them’, rather than ‘us’, is likely to be seen as a predator, not a collaborator. Authentic cultural transformation represents a move from opposition to affinity.
Companies are beginning to realise that they not only exist within a broader community, but that any sustainable organisation is a community. As the paradigm shifts from delivering to shareholders to delivering to stakeholders, organsations are forming genuine and mutually beneficial relationships with employees and communities. This authentically inclusive approach to valuing diversity will allow businesses to dramatically increase their sustainable competitive advantage. This is what will set apart leaders in diversity, and allow them to flourish in the future business environment.
Through their creative diversity initiatives organisations are demonstrating innovative ways in which inclusion can lead to success for all concerned.