24.02.23 Today’s Insights from McKinsey: What is Diversity, Equity and Inclusion?
Dear Students,
DEI (Diversity, Equity and Inclusion) is a term (and phrase) that you likely have been hearing about more frequently in 2023. But what does it really mean? And what implications does it have for companies and for those of you launching a global career?
At a very basic level, DEI is about seeking to provide the same level of opportunity to marginalized populations (in a wide range of categories, mentioned below) as to those who do not fall into such groups. Progressive companies are striving to foster workplaces with “psychological safety,” meaning that individuals can “show up” however they are and feel comfortable doing so.
It’s important to note that there are varying descriptions of DEI, often among distinct underrepresented and/or disenfranchised populations themselves, which makes understanding and addressing issues of inequity particularly complex. Another challenge among these groups is intersectionality, an example of which might mean being born in a poor country, being visibly disabled and being a woman, all at once.
While there are numerous reasons that Western companies fortunately are putting increasing thought, human and financial resources into this issue, the two most fundamental are a) it’s the right thing to do (a moral/ethical argument) and b) companies with greater diversity actually perform better financially. For example, as McKinsey shares in the article below, “There are clear correlations between diversity and business performance. Analysis of 2019 data shows that companies in the top quartile for gender diversity within executive teams were 25 percent more likely than companies in the fourth quartile to have above-average profitability (up from 21 percent in 2017 and 15 percent in 2014).”
As you launch your career, you will need to be increasingly aware of, and sensitive to, such issues, particularly as you assume leadership roles. Aspiring professionals like you must be proactive and responsive, open-minded and agile in working with a range of increasingly-diverse colleagues, addressing nuanced issues and adjusting norms as workplaces evolve.
[As an aside, if any of you would like to gain a deeper understanding of these complex issues, I’d highly recommend the free online monthly Community Calls and Advocacy in Action events led by my colleague Jennifer Brown, a pioneer and thought-leader in this field. For more insight, here’s the link to her site:
https://jenniferbrownconsulting.com/]
https://jenniferbrownconsulting.com/]