DIVERSITY, EQUITY AND INCLUSION
5 CRITICAL FIRST STEPS TO LAUNCH YOUR DEI INITIATIVES REPRINTED WITH PERMISSION OF THE INDIANA CPA SOCIETY
W
hile many organizations have prioritized meaningful diversity, equity and inclusion (DEI) work, some still struggle to fully understand what it entails and the full significance of how important it is to business.
Leaders at smaller organizations especially might be more apt to avoid conversations around diversity or feel it’s an issue for larger firms and corporations. If this is you, you’re not alone! But this could be costing you more than you realize.
Effort is still needed to make sure your organization’s culture is inclusive, equitable, safe, attracts and retains talent, and creates opportunity for all. It’s also important for helping to break down greater systemic barriers and biases. Are you ready to take action? Here are five critical first steps to beginning your personal and organizational DEI work.
Why Diversity Matters It’s simple: diversity is good for people and business. A 2015 McKinsey study found that companies who ranked in the top 25% for racial diversity were more likely to have higher financial returns than the median for their industry, while those in the bottom 25% were more likely to fail at achieving above-average earnings. Overall, they report: “More diverse companies, we believe, are better able to win top talent and improve their customer orientation, employee satisfaction, and decision making, and all that leads to a virtuous cycle of increasing returns. This in turn suggests that other kinds of diversity—for example, in age, sexual orientation, and experience (such as a global mind-set and cultural fluency)—are also likely to bring some level of competitive advantage for companies that can attract and retain such diverse talent.” Diverse teams are also a reflection of a shifting culture and
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dynamic within the U.S., especially when it comes to racial and ethnic identity. But while an organization may have a diverse workplace, it doesn’t mean DEI work isn’t important.
Start With Why Why does your organization want to engage in a DEI initiative? If your first instinct is to answer “because I know we should,” it’s time to dig deeper. Yes, DEI work is critical and will likely directly impact the future of your organization. But “should” is never a good foundation on which to build an initiative. Forming a business case for diversity that defines your purpose for engaging in DEI efforts is one of the first steps you should complete as an organization. This involves aligning your overall business goals with your DEI goals, as well as identifying and engaging key stakeholders.
Build Your DEI Vocabulary There are countless terms to understand within your DEI work. The following terms are five of the most basic and important for building your foundation:
THE JOURNAL ENTRY |
SPRING 2022
