Reasons Diversity & Inclusion Are Important For Business

Elevating Purpose

  • Tamara Olori
  • 13 April 2023
  • 3 Min Read

In recent years, diversity and inclusion have become increasingly important in the business world. Companies that prioritise diversity and inclusion have been shown to outperform their competitors in various ways, but are you considering DE&I within your business strategy? Here are just five reasons why diversity and inclusion are crucial for businesses…

Diversity drives innovation

When you have a diverse group of people working together, you get a broader range of perspectives and ideas. This can lead to more creative and innovative solutions. Research has shown that diverse teams are more likely to come up with breakthrough ideas and produce better results, 

Inclusion boosts employee engagement and productivity

When employees feel included and valued, they are more engaged and productive. This translates into better performance and higher job satisfaction. Companies that prioritize inclusion have higher employee retention rates and are better equipped to attract top talent.

Airbnb has implemented a variety of inclusion initiatives, including unconscious bias training, diversity and inclusion committees, and an employee resource group for women. These efforts have resulted in increased employee engagement and a more diverse workforce, with women comprising 50% of their employees and people of colour representing 45%.

Diversity and inclusion improve customer relationships

Businesses that prioritize diversity and inclusion are better equipped to serve a diverse customer base. They are more attuned to the needs of different groups and can tailor their products and services accordingly. This leads to better customer relationships and increased customer loyalty.

Inclusion fosters a positive company culture

Inclusive companies foster a positive and supportive company culture. Employees feel more connected to their colleagues and are more likely to collaborate and share ideas. This leads to a more cohesive and productive work environment.

Salesforce has implemented a range of inclusion initiatives, including unconscious bias training and employee resource groups for underrepresented groups. This has resulted in a more inclusive workplace culture, with 80% of employees reporting that they feel their unique contributions are valued.

Diversity and inclusion are good for the bottom line

Ultimately, companies that prioritize diversity and inclusion perform better financially. They are better equipped to adapt to changing market conditions and are more resilient in the face of challenges. Research has shown that companies with diverse leadership teams and workforces outperform their peers in terms of profitability and revenue growth.

A study by McKinsey & Company found that companies with more diverse teams tend to perform better financially. Companies in the top quartile for gender diversity on their executive teams were 25% more likely to have above-average profitability than companies in the bottom quartile. Similarly, companies in the top quartile for ethnic and cultural diversity on their executive teams were 36% more likely to have above-average profitability.

Diversity and inclusion are essential for businesses to thrive in today’s competitive marketplace. By fostering a more inclusive workplace culture, companies can drive innovation, boost employee engagement and productivity, improve customer relationships, and ultimately improve their bottom line.