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Business Case for Diversity
Aggregate Business Case for Diversity
There is much research on diversity and inclusion. Perhaps, so much that the key facts do not stand out for busy executives. The reason for the quantity of research is that the predictions about shifts in demographics of the workforce have occurred. More significantly, the evidence proves that diversity and inclusion increase profitability in tangible measurable ways.
In this section, we highlight salient components of the Business Case for Diversity. Strategic Diversity Advisors is frequently engaged to develop a customized business case for diversity for individual companies to identify areas for focus, as well as, facilitate buy in at all levels.
The ability to hire, develop, promote and retain talented employees, at all levels, is key to the success of a company. In recent times, the demographic composition of the available labor pool has changed which significantly complicates these efforts.
The supply chain is the life-blood of a company. In recent times, there has been an explosion in the number of small suppliers. The days of pricing by economy of scale are past. Smaller suppliers are more likely, than not, to be women, minority or veteran owned. Not only are their prices often more competitive than those of their larger competitors, they are frequently more efficient and flexible, in response to requests for innovative practices.
Demographics of customers have changed as well. New, and different, customers follow unique purchasing patterns, are drawn to products and have alternative drivers for purchasing decisions than customers from just a decade ago. Business development mechanisms must be updated to keep up with this societal change.
The research on this topic is abundant and from a wide variety of sources. More women on executive teams and boards of directors equates to better financial performance.
Failure to properly implement diversity programs will increase operational, reputational, legal and financial risk
Diversity and Inclusion is a business imperative for the following reasons.