Opinion: Achieving real diversity, equity and social change means going beyond in-house initiatives

Corporate and university programs that support diversity, equity, and inclusion (DEI) in enterprises have increased significantly in recent years — and have also sparked controversy in some political circles. Businesses in many sectors are realizing the value of fostering diverse workplaces, from diversity training initiatives to the creation of specialized DEI departments. Even if these initiatives are praiseworthy, they are insufficient to solve larger social problems.

Companies in the top quartile of racial and ethnic diversity are 35% more likely to generate financial returns above the national industry medians, according to research from McKinsey & Company. In a similar vein, Deloitte research shows that inclusive teams score 80% better in team-based evaluations than their counterparts. These results strengthen the business case for diversity by proving that varied viewpoints and experiences promote innovation.

Nonetheless, the effectiveness of internal DEI initiatives is constrained if the broader community lacks a sincere respect for diversity. Institutionalized disparities continue in many spheres of society, such as criminal justice, health care and education. The U.S. Bureau of Labor Statistics, for instance, has data that show notable racial differences in employment and earnings, with Black and Hispanic workers routinely facing greater unemployment rates and lower median wages than Caucasian counterparts.

Achieving social justice is further complicated by the pervasiveness of bias in society norms and attitudes. A report released by the United Nations Development Programme (UNDP) claims that discrimination against women, minorities, LGBTQ+ people, and other marginalized groups is still widespread globally and undermines efforts to realize the 17 Sustainable Development Goals (SDGs) of the UN.

Beyond corporate activities, broader social transformation that fosters an appreciation for diversity, equity, and inclusion at all societal levels is necessary to effectively address these difficulties. To break down systemic barriers and promote an environment of equality and respect, governments, civil society organizations, educational institutions and individuals must work together.

The 17 SDGs of the United Nations offer a comprehensive framework for promoting social transformation. These goals include the eradication of poverty, gender equality, high-quality education and decreased inequality. Businesses can improve their own long-term sustainability, going well beyond traditional Corporate Social Responsibility (CSR). Companies can improve their competitiveness as well as contribute to greater societal improvement by coordinating their efforts with the SDGs.

To empower people from marginalized groups and promote economic inclusion and reduce inequality, firms can, for instance, sponsor education and skill development initiatives. Additionally, they can support laws that advance social justice and equal opportunity, such as those pertaining to fair hiring procedures, inexpensive health care, and criminal justice reform.

By forming alliances with outside groups, corporations can use their influence to promote beneficial change. Companies can better handle complex societal issues and increase their impact by involving stakeholders and enlisting collective action than they can by launching lone corporate efforts.