Survey finds few employers identify 'new business opportunities' as primary driver of DEI
The surge in Environmental, Social, and Governance reporting mandates has put more focus on corporate responsibility, bringing Diversity, Equity, and Inclusion (DEI) further into the spotlight.
However, Barbara Frencia, CEO of Business Assurance (BA) in DNV, has warned that misconceptions about DEI may be hindering businesses from reaping the full benefits of a diverse and inclusive workforce.
A recent DNV BA survey, carried out among more than 500 customers that represent various industries in Europe, Asia, North America, Central & South America, recently found that 79% of companies have incorporated D&I into their business strategy, but only 37% identified "new business opportunities" as a primary driver.
"Pressure from regulators or customers to implement DEI policies are certainly drivers, but the real value of cultivating a more diverse and inclusive workforce can be found in improving competitiveness, innovation, and business performance," Frencia said in a media release.
According to the CEO, only 29% of respondents believed that D&I policies would help increase their market share.
"That tells me that there is a fundamental misunderstanding about what D&I is and what it is not," she said.
DEI reaching a 'tipping point'
Despite this, Frencia believes that more organizations will soon work on having a diverse, equitable, and inclusive workforce once they recognise its positive impact on business performance.
"In my view, we are approaching a tipping point," she said. "Once managers see DEI not as a regulatory or compliance issue but as one that adds tangible value, the race will be on to see who gets there first. And a more diverse, equitable, and inclusive future is one we can all hope for."
Frencia noted that the release of ISO 30415 in 2021 has granted organizations access to resources on implementing DEI in the workplace.
"Using ISO 30415, which includes Key Performance Indicators to measure progress, companies have access to a structured approach to managing a complex process," she said.
The ISO 30415 is an international standard on diversity and inclusion published in 2021.
"It is a guideline, which helps to develop an inclusive workplace requiring an ongoing commitment to diversity and inclusion, addressing inequalities in organizational systems, policies, processes, and practices," DNV said on its website.
