Social Impact Leadership Coalition

Diversity & Inclusion: Business Case

The face of America is changing.  By mid-century, it is estimated that half of the US population will be African American, Hispanic, or Asian. GLBT, Muslims, atheists, the physically challenged and other groups with previously marginalized distinctions are now considered part of the mainstream.  In addition, we are now enjoying longer and healthier lives, creating a larger population of active seniors.  What does this mean for you and your organization?  Increasing diversity in our marketplace is driving the need for increased diverse and inclusive business strategies. 

Building equity in human capital begins with understanding and respecting the value of different backgrounds, experiences and perspectives.  A culture of respect and inclusion will attract and retain the best and the brightest for human resources, yield powerful community relationships and open the door to opportunities for innovative enterprise through partnerships. 

Study after study shows that, all things being equal, employees, customers, investors and suppliers are forming perceptions – and basing decisions – on a company’s ethical behavior and values. If you’re just doing eco, you’re not doing socially responsible business.  Today, a company’s diversity reputation is gaining greater importance. 

Diversity and inclusion includes policies, practices and programs integrated into business operations, supply chains and decision-making processes throughout the company and wherever the company does business.  A well-thought-out program begins internally, is tied to human resources, marketing, communications, finance and other departments, and extends externally to customers, communities and partners. 

“If diversity is a core value, then that’s going to inform your corporate citizenship program,” says Stephen Jordan, executive director of Business Civic Leadership Center, an affiliate of the U.S. Chamber of Commerce.

“You can’t hire young people without a diverse workforce.  They take it for granted,” according to Mal Warwick.

“The new generation of college graduate has a different mindset about the companies they want to work for, “ explains Carlos F. Orta, president and CEO of the Hispanic Association on Corporate Responsibility (HACR).  “They feel they can work anywhere, and they want to know where a company stands before they decide where they want to go.”

“Companies with a good record on diversity have a competitive advantage in employee recruitment and retention,” said SIF Managing Director Fran Teplitz.  “Moreover, U.S. consumers are becoming increasingly diverse.  A representative work force is more likely to anticipate and respond effectively to evolving consumer demand.”

A company that is socially responsible values the diverse communities in which it operates and recognizes the potential in those communities.  Just as a diverse workforce drives innovation and the bottom line, a diverse supplier base is an opportunity to connect with customers while providing equity for businesses owned by underrepresented groups. When you can provide economic growth and opportunity to minority- or women-owned businesses in a community where you do business, then you are truly applying resources and establishing credibility for the company’s commitment to social responsibility.

At no time more than now has there been a greater need for innovation in the US.  A new sustainable world of opportunity exists for innovative social business enterprise.  Social value has become the new triple bottom line benefit that will drive the new economy. Socially responsible businesses that are diverse and inclusive are perfectly poised to lead the progress of our global community.