Commerce, Compliance and Compassion

Do you need a business case for diversity?

I stopped having arguments about this a long time ago. Because, the fact is, sadly, yes, you do need a business case for diversity.

My work has allowed me to understand that at the heart of many decisions made to improve diversity, equity and inclusion (DEI) are links to commerce or compliance - and very rarely compassion. If reliant solely on compassion, DEI would be ignored completely. This is especially true when leadership teams and workforces are largely homogenous, never having to worry about some of the conversations around diversity that happen on a global scale.

Examples of global companies that have been forced into a culture shift and adopting new ways of working are numerous. Whether because they have been called out for questionable business practices in the environment, their policies and practices around gender equality, or enquiries around how they approach race and ethnicity in their workplaces.

So when contracts are lost in large territories because tenders or suppliers question the makeup of their staff or governance, the scrambling around to ensure there is something in place is not about social good, but rather it is to protect the bottom line.

Conversely, there is also compliance — such as legislation around ESG (Environmental, Social, and Corporate Governance) in Europe. Organisations are now desperate to ensure that they have frameworks around ESG to meet legal requirements. As a result, the number of whitepapers and think papers on ESG compliance et al. continues to rise. Each offering organisations a checklist on how to stay on the right side of the law while increasing profitability. However, social impact (compassion) tends to be little more than a side note.

It is futile to engage in long term working partnerships with clients unless I build in awareness and consideration of the commercial and compliance reasons why companies should seek to pay more attention to being diverse and inclusive. After all, you catch more flies with honey, not vinegar.

For DEI initiatives to be effective long after corporations have moved on from the workshops and guest speakers, embedding systems and rituals that highlight the benefits of compassion and understanding are critical. And as uncomfortable as it makes people to have to tether compassion to a commercial lens, that is what leaders and managers are measured on first and foremost.

One thing I have learned about sales is that you have to understand your customer’s needs. You have to know what pain you are addressing or what gap you are bridging. So whilst I know that me approaching a company on how they can be more inclusive and equitable is driven by my values, it’s not about me.