Embedding Equality, Diversity and Inclusion

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Companies need to take steps to embed equality, diversity and inclusion (“EDI”) into their operations, decision making and organizational culture and make those values and norms part of the company’s DNA and the guiding principles for the company’s employment and other business relationships.  The first step should be implementing organizational structures and expectations of accountability that embedded EDI into operations such as forming a permanent EDI working group or team with relevant experience and expertise drawn from throughout the company (e.g., engineers, data scientists, researchers, designers etc.) to focus exclusively on advancing inclusion and rooting out bias in key activities such as product design, marketing and customer service.  The working should begin its work with an assessment of the company’s current diversity and inclusion policies and practices in order to get a better idea of where the company stands and which issues and problems should be prioritized for immediate action.  Additional steps should include development and implementation of an anti-discrimination policy that includes public affirmations of the company’s commitments and actions relating to diversity and inclusion and providing rigorous racial-equity training to help all employees understand the underlying causes of the problems, how racial discrimination occurs in the workplace and what steps must be taken to change values, norms and behaviors. 

The following is an excerpt from the chapter on Racial Equality and Non-Discrimination just released on the website of the Sustainable Entrepreneurship Project. 

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Companies need to take steps to embed equality, diversity and inclusion (“EDI”) into their operations, decision making and organizational culture and make those values and norms part of the company’s DNA and the guiding principles for the company’s employment and other business relationships.  Changing the organizational culture is a difficult and challenging process that requires patience and attention to all phases of a worker’s journey through the company and the company’s relationships with customers, suppliers and the members of the communities in which the company operates.  Some of the steps that need to be taken were suggested by guidance on developing a corporate non-discrimination and equality policy provided by the International Labour Organization[1]: 

• Make a strong commitment from the top by signaling that senior management assumes responsibility for equal employment issues and is committed to diversity, thus sending a strong message to other managers, supervisors and workers.
• Conduct an assessment to determine if discrimination is taking place within the organization.
• Set up an organizational policy establishing clear procedures on non-discrimination and equal opportunities; and communicate it both internally and externally.
• Provide training at all levels of the organization, in particular for those involved in recruitment and selection, as well as supervisors and managers, to help raise awareness and encourage people to take action against discrimination.
• Support ongoing sensitization campaigns to combat stereotypes.
• Set measurable goals and specific time frames to achieve objectives.
• Monitor and quantify progress to identify exactly what improvements have been made.
• Modify work organization and distribution of tasks as necessary to avoid negative effects on the treatment and advancement of particular groups of workers including measures to allow workers to balance work and family responsibilities.
• Ensure equal opportunity for skills development, including scheduling to allow maximum participation;
• Address complaints, handle appeals and provide recourse to employees in cases where discrimination is identified;
• Encourage efforts in the community to build a climate of equal access to opportunities (e.g. adult education programs and the support of health and childcare services).
• Set up bipartite bodies involving workers’ freely chosen representatives, to determine priority areas and strategies, to counter bias in the workplace and ensure that all workers are committed to the organizational goals regarding diversity and non-discrimination.

In its guidance to its members on demonstrating a commitment to diversity and inclusion the National Credit Union Associated recommended the following[2]:

• Organizational leaders including the board of directors, senior officials and personnel managing the daily operations (including supplier relationships) demonstrate their commitment to promoting diversity and inclusion in both employment and contracting and fostering an organizational culture that embraces diversity and inclusion.
• Fair inclusion of minorities, women, or other diverse individuals (e.g., disabled persons, veterans, millennials, older workers or lesbian/gay/bisexual/transgender individuals) in the workforce is promoted through proactive expansion of the applicant pool to include diverse candidates, creation of a culture that values the contribution of all employees and encouragement of a focus on these objectives when evaluating the performance of executives and managers.
• Supplier diversity policies and practices are developed and implemented to expand outreach for contracting opportunities to minority- and women-owned businesses, as well as businesses owned by members of other disadvantaged groups, and provide those businesses with opportunities to bid on certain contracts or procurement activities and otherwise inform them about how to do business with the organization.
• Transparency and communication of information relating to diversity and inclusion efforts (e.g., organizational commitments and plans and related metrics for measuring performance) is promoted through normal business methods including displaying information on websites, in any appropriate promotional materials and in annual reports to stakeholders.
• Adequate time and resources are allocated to ongoing monitoring and evaluation of performance under diversity policies and practices.

Iyer and Kirschenbaum noted that the EDI efforts of companies are often carried out separately from the business units that are primarily responsible for market expansion, the quality of customer service or human resources.  They encouraged companies to implement organizational structures and expectations of accountability that embedded EDI into operations such as forming a permanent EDI working group or team with relevant experience and expertise drawn from throughout the company (e.g., engineers, data scientists, researchers, designers etc.) to focus exclusively on advancing inclusion and rooting out bias in key activities such as product design, marketing and customer service.  Similarly, hourly employees, women and people of color need to be given a voice in the creation, implementation and assessment of all employment-related processes. The working group created to develop the company’s commitments to action regarding racial equality and justice should also be involved in organizational change initiatives.[3]

Ideas about the composition of the EDI working group and the manner in which it carries out its responsibilities can be gleaned from suggestions made by Lee on forming a staff-led taskforce, working or committee on EDI.[4]  The first suggestion related to the composition of the group and the need to ensure that it includes a diverse team of employees so that discussions and actions will take into account the wide range of viewpoints throughout the workplace.  Certainly passion for EDI is an important qualification for serving on the group and anyone who can bring that type of energy to the issues should be considered; however, an effort must be made to identify under-represented groups and not only bring them on to the team but also consider the reasons why employees might be reluctant to participate.  In addition to making sure that the composition of the group is racially and ethnically diverse, there should be representation from all levels in the organizational hierarchy and from each of the key business groups or departments.

Another suggestion from Lee was establishing clear goals, roles and relationships in order to define the group’s scope of work and how it operates internally and relates to leaders of the organization and others groups that have the authority to implement the actions recommended by the group.  In general, members of the working group will still be expected to work on their preexisting day-to-day responsibilities so they will have limited time to invest in the group’s activities.  As such, consensus should be reached on which EDI issues are most pressing for the company.  This process should begin with sharing of stories and experiences among the members of the group, but the group should also go outside its own boundaries to seek input from other employees.  Once the issues have been identified, the group needs to consider its internal and external capacities to do the work necessary to make an impact on each issue (e.g., are there members of the group with specific experience and skills that can be leveraged to develop effective solutions for an issue) and make decisions about which of the issues the group can have the most influence on. 

The working group also needs to establish boundaries as part of the process of identifying the issues that it will concentrate on and developing proposed solutions for those issues.  The working group will typically not have the authority or the control over specific resources to implement that solutions that it might recommend and there needs to be clarity on just what is expected from the working group and what actions will need to be taken by the leaders of the organization (e.g., directors and members of the executive team) and other departments or business units that are specifically responsible for the policies, processes and actions relating to a particular issue.  For example, it is likely that the working group will be grappling with issues relating to improving diversity in the company’s recruiting pipeline and the work on that issue needs to be coordinated with the human resources department, which needs to be supportive of the participation by the working group and willing to provide the working group with the data necessary for the group to understand the company’s current diversity profile.  Provision should also be made for the working group to receive technical assistance from other parts of the company to carry out its activities, such as assistance in creating and disseminating surveys to collect information and setting up meetings with employees outside of the group to hear their concerns and suggestions.

Lee’s suggestions were focused on what would initially be a largely volunteer effort organized and supported by the company that depended on employees willing to commit time to the working group in addition to what they might already be doing for the company.  In contrast, Iyer and Kirschenbaum called for companies to form a permanent full-time EDI working group or team, meaning that members would be pulled off of their previous assignments and be required and allowed to spend all of their time working on EDI issues with experienced colleagues from other parts of the company.[5]  The decision depends on a variety of factors, notably the size of the company and the ability of the company to reallocate resources to a full-time group.  It might be best to start with a voluntary group, properly staffed and operating with the explicit and public support of the company’s leaders, and then determine how best to integrate the EDI working group into the company’s permanent organizational structure.  While have a full-time team working on EDI issues is useful, care must be taken to ensure that the team continues to work well with the relevant departments and business units and that steps are taken to embed EDI directly into those groups.

Regardless of how the working group is constituted, one of the first things that it needs to do is conduct an assessment of the company’s current diversity and inclusion policies and practices in order to get a better idea of where the company stands and which issues and problems should be prioritized for immediate action.  There are a number of ways to organize the areas of inquiry for the assessment; however, the process should surely touch on commitment to EDI from organizational leadership, inclusivity in the workplace, diversity in the supply chain and transparency and communications (see box below for an example of a checklist for assessment of diversity and inclusion policies and practices).  The initial assessment is obviously very important and foundational to the company’s entire EDI initiative; however, assessments should not be “one off” activities and there must be an organizational commitment to continuous monitoring and assessment on a regular basis, no less frequently than annually.

A fundamental element of company’s efforts to embed EDI is an anti-discrimination policy that makes it clear that the company will have “zero tolerance” for racism and includes a commitment by the company to take swift action to discipline workers who engage in actions that discriminate against co-workers, customers and community members on the basis of race.  In addition to race, the policy should include all other classes recognized and protected by law and broader international human rights standards (i.e., color, religion, disability, national origin, genetic information, sex (including pregnancy), age, sexual orientation, gender (including gender identity and expression), marital status, protected veterans status and citizenship status).  The policy should also refer to the scope of employment-related actions and activities that are covered by the protections guaranteed in the policy, such as recruitment, hiring, compensation, promotions, transfers, discipline, demotions, terminations, layoffs, access to benefits and training and all other aspects of employment, as well as to selection of volunteers and vendors and provision of services.  In addition, the policy should include the company’s affirmation of its commitments to providing an inclusive and welcoming environment for all employees, customers, volunteers, subcontractors and vendors and the expectation that every employee will show respect for all of the company’s colleagues, customers, volunteers, subcontractors and vendors.  Special reference should be made to prohibitions on harassment that is based on any status protected by law or the company’s policies.  Anti-discrimination policies should provide employees and others with instructions on how to contact the company to make suggestions and report violations of the policy and should provide assurances to reporting persons that they will not be subject to retaliation.  The consequences of violating the policy, including disciplinary actions up to and including termination, should be also be explained.  

The development and publication of the anti-discrimination policy should also be used as an opportunity for the company to make a public affirmation of its commitments and actions relating to diversity and inclusion.  For example, the policy should include a commitment to creating an equitable workplace where diverse life experiences are respected and valued and an affirmation by the company that diversity and inclusion are paramount to its mission.  Companies may incorporate a list of the actions that have been taken to promote both diversity and inclusion, and ensure equal opportunities to all employees.  The list should obviously reflect the specific actions taken by the company, but might include, without limitation, the following:

• Modified company facilities for people with mobility challenges
• Guaranteed generous parental leave policy for new parents of adoptive and biological children
• All employees permitted to submit requests for additional days of leave due to religious holidays
• Compulsory sensitivity training for all senior employees and managers
• Attendance to any holiday events is voluntary and nondenominational
• On site/emergency childcare is available to those who need it
• Regular employee surveys gather consensus on attitudes around diversity/inclusion
• Formal leadership training to mitigate biases and increase cultural competency
• Informal discussion sessions and support groups to discuss bias and equity issues
• Collecting resources for educating employees about issues relating to racial equity and justice
• Flexible-work programs for individual mitigating cases including health problems, family and religious commitments
• Blind screening of résumés and diverse interview panels for job candidates
• Recruitment outreach initiatives for more diverse talent pools
• Gender-neutral restrooms and non-binary gender choices on surveys

Many of the actions will have their own policies and procedures which can be referenced in the anti-discrimination policy (e.g., leave policies, flexible work programs and training on bias and equity issues).  Consideration should also be given to including a specific commitment to racial equity and justice and embedding a racial equity and justice lens into the company’s leadership and staff structure, advocacy and community engagement activities and organizational policies and communications.

The policy should be specifically reviewed and approved by the board of directors and should be widely disseminated including in the company’s employee handbook and code of conduct.  In addition, the policy should be incorporated into job announcements, posted on the company’s website and included in all of the company’s career and diversity-related materials.  In order to emphasize the importance that the company places on preventing discrimination and harassment on the basis of race, each employee should be required to deliver a written acknowledgement that he or she has received, read and understood the policy and had an opportunity to ask questions and provides comments relating to the policy.  New employees should be required to do the same thing before their employment with the company begins and the acknowledgement should be delivered in person so that a representative of the company is able to directly ask the candidate if he or she understands the policy.  When presenting the policy to employees, the company needs to be prepared to explain how situations involving racism will be handled and encourage open communication regarding racial equity in the workplace.  Employees need to feel comfortable about reporting racism (including incidents that they see happening to someone else) and processes need to be implemented to facilitate anonymous reporting so that employees do not remain silent due to fear of retaliation.

Personnel policies relating to racial discrimination and harassment in the workplace are just the first step and their effectiveness will depend on the company’s commitment to providing rigorous racial-equity training to help all employees understand the underlying causes of the problems, how racial discrimination occurs in the workplace and what steps must be taken to change values, norms and behaviors.  Training must be required for and provided to everyone in the organization ranging from directors and members of the executive team to hourly workers.  In addition to specific racial equity training, companies should also examine all of their leadership, management and professional development training and activities and make appropriate modifications to ensure that they incorporate the overriding concepts of diversity and inclusion. 

Racial equity training involves tackling sensitive issues such as internalized racial stereotypes and “unconscious bias” that may affect decisions that are made within organizations and how people communicate with one another in the workplace.  Training sessions should be set up in ways that promote open and safe discussions about racism and research indicates that companies that are willing and able to facilitate dialogue have been able to build stronger bonds and greater understanding.   It should be expected that white people who are challenged on their race-related beliefs during the training sessions will act defensively, often expressing emotions such as fear, anger and guilt.  White employees may also have concerns about how proposed diversity and inclusivity actions might undermine their historical “white privilege” and the opportunities and access to resources they have been accustomed to.  Concerns from all sides need to be aired, but debating should be avoided, and all employees, regardless of race, need to clearly understand what is at stake and what their lives in the workplace will be like once changes have been implemented.  This is the point at which all employees need to be educated and reassured about the benefits to everyone in the company from setting aside inequitable practices.

Training should be accompanied and supported by internal research to identify the areas of possible bias that are specific to the company and using that information to develop potential solutions that can be incorporate into the training and related policies and procedures and metrics that can be tracked over time to assess whether the training has been effective.  When conducting the research, the company should search for implicit biases in hiring practices, performance evaluations, work assignment, promotions and compensation decisions.  Solutions might include revising job qualifications and descriptions, using software to screen applicants and/or removing names and names of schools from completed applications before reviewing and reconsidering the criteria used to evaluate job performance.  Training sessions should also include discussions around specific scenarios in which race might be an issue with the goal of reaching a consensus on objective criteria that can be used for making decisions rather than leaving outcomes to personal judgment that might be based on unconscious bias.

Racial equity training alone will not guarantee success, but it is an essential tool for establishing and continuing dialogue.  Certain elements of the training need to be mandatory in order to demonstrate that the company has taken steps to ensure that all employees are aware of their duties under the law and the company’s own internal policies and codes of conduct.  Participation in training may also be required by business partners who are concerned about averting reputational damage from being associated with companies that fail to promote a diverse and inclusive workplace free for racial discrimination.  According to guidance from the Society for Human Resource Management (“SHRM”), companies should offer additional training and opportunities for dialog beyond the mandatory sessions and not compel attendance since people who do not want to be there will often undermine the value of the meetings by acting hostile or reacting defensively.  Training sessions should be led by experienced facilitators and should begin with an explanation of the ground rules for discussions so that everyone feels comfortable sharing their experiences and opinions.  SHRM encouraged companies to make learning interactive and experiential, avoiding long lectures from someone in the front of the room at a podium, and to make sure that everyone walks out of the room with practical steps that can be immediately used to overcome unconscious biases.[6]

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[1] Questions and Answers on Business, Discrimination and Equality, International Labour Organization, https://www.ilo.org/empent/areas/business-helpdesk/faqs/WCMS_DOC_ENT_HLP_BDE_FAQ_EN/lang–en/index.htm#Q8

[2] National Credit Union Association Voluntary Credit Union Self-Assessment Checklist on Best Practices for Demonstrating a Commitment to Diversity & Inclusion, OMB No. 313340193 (Expired 3/31/2019).

[3] L. Iyer and J. Kirschenbaum, How Companies Can Advance Racial Equity and Create Business Growth (April 8, 2019), https://www.fsg.org/blog/how-companies-can-advance-racial-equity-and-create-business-growth

[4] Y. Lee, “Diversity, Equity and Inclusion in the Workplace | Tips for Starting a DEI Committee”, Idealist (July 18, 2019), https://www.idealist.org/en/careers/diversity-equity-inclusion-committee

[5] L. Iyer and J. Kirschenbaum, How Companies Can Advance Racial Equity and Create Business Growth (April 8, 2019), https://www.fsg.org/blog/how-companies-can-advance-racial-equity-and-create-business-growth

[6] A. Hirsch, “Taking Steps to Eliminate Racism in the Workplace”, Society for Human Resource Management (October 22, 2018), https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/global-and-cultural-effectiveness/pages/taking-steps-to-eliminate-racism-in-the-workplace.aspx