Why is it still difficult to talk about diversity today?
- Francisco Schubert
- Nov 28, 2024
- 4 min read
Corporate life offers a wide range of opportunities for learning and reflecting on the dynamics of social relationships within organizations. Through my experience in discussions and in formulating strategic plans, I realize that the topic of diversity continues to be a critical point on the agendas of leaders and executives. In the meetings I attend, the difficulty in addressing diversity effectively becomes evident, leading me to reflect: Why is it still difficult to talk about diversity today?
Resistance to Diversity Is Counterproductive
Resistance to the topic of diversity is not restricted to leaders. It can be seen throughout the organization, even in the face of a progressive polarization of the subject. Resistance goes beyond the aspects of training or awareness-raising, but is a deeper challenge that affects senior management.
Leaders often approach diversity superficially, without committing to specific initiatives. A lack of willingness to discuss topics such as inclusivity, affirmative action, and gender and racial equity results in an approach that does not go deep enough.
In practice, implementing actions that promote diversity and inclusion requires courage and genuine commitment from everyone, but especially from senior management and leadership of organizations, who guide and serve as an example for other team members. The difficulty lies not only in the words, but in transforming these words into concrete actions.
According to McKinsey’s Diversity Wins Report, companies that integrate diversity into their practices not only perform better financially, but also demonstrate remarkable capacity for innovation. However, what is worrying is that many leaders have yet to recognize this connection.
Data on Diversity in Organizations Speaks for Itself
Studies conducted by major consulting firms have made it clear that: - Companies with gender diversity are 25% more likely to outperform. - Ethnic diversity increases the likelihood of financial success by 36%. - The positive evolution in diversity from 2014 to 2019 is undeniable, but there is still a long way to go.
These results show us that a systematic approach to inclusion and diversity is essential. Leadership commitment is crucial, as it is through leadership that an organizational culture focused on equity is created.
Leaders are expected to not only recognize the importance of diversity, but also to be proactive in implementing inclusive policies. Setting evidence-based goals and taking responsibility for advancing inclusion should be a priority for every leader. Companies that fail to adapt to this reality risk losing competitiveness and relevance in an increasingly critical and conscious market.
Diversity, in addition to being an ethical and social issue, guided by ESG principles, is a strategic imperative. Organizations that do not prioritize inclusion risk being left behind, while those that embrace the diverse game of labor relations begin to reap the rewards of an inclusive approach. It’s not just about doing what’s right; it’s about doing what’s smart for the business, too.
Representation and its Direct Impact on Results
A closer look reveals that female representation in leadership roles increased from 15% in 2014 to 20% in 2019, demonstrating progress. However, there are still substantial challenges, such as the finding that more than a third of companies do not have women in executive positions. Such stagnation is alarming when we reflect on the direct relationship between diversity and financial performance.
Superior Performance Indicators : - Companies with more than 30% female executives had significantly better financial performance.
Ethnicity - Increases in ethnic minority representation showed growth from 7% to 13% between 2014 and 2019, a step in the right direction but still far from ideal.
Polarization in Diversity : - The polarization between companies that adopt progressive practices and those that remain conservative in their approach to diversity is becoming increasingly evident, with a potential for increasing penalization for those that do not adapt.
Adopting a systematic approach to Diversity and Inclusion (D&I) is not only desirable, but essential. This should include:
1. The implementation of actions focused on inclusion.
2. The establishment of tangible and measurable goals.
3. The responsibility of leadership as a central pillar for the transformation of organizational culture.
Data from the McKinsey "Diversity Wins" Report (2019) confirms that diversity in executive teams is directly correlated with superior financial performance.
Final Insights on Diversity
1. Direct Correlation : There is an unequivocal connection between diversity and the financial performance of organizations.
2. Slow and Consistent Progress : While progress is slow, it is undeniably consistent, signaling that the path to diversity is a long-term investment.
3. Leading Companies : Organizations that lead in diversity tend to show significantly better results in their respective industries.
4. Urgency for Action : There is increasing market penalization of companies that fail to promote diversity.
Diversity FAQs
1. Why is it so difficult for leaders to talk about diversity?
The difficulty lies in a combination of psychological factors, resistance to change and lack of commitment. In addition, the complexity of the issues addressed in diversity can be intimidating for many leaders.
2. How does diversity impact financial performance?
Studies show that diversity translates into greater innovation and better problem-solving capabilities, resulting in superior financial performance.
3. What can leaders do to promote diversity?
Leaders must commit to concrete actions, set clear goals and integrate diversity into the organizational culture, as well as seek accountability at all levels.
4. What are the indicators of success in diversity?
Indicators include representation in leadership positions, financial performance and progress in implementing inclusive policies.
5. How does diversity influence innovation?
Diverse teams are more likely to generate new ideas and approaches, which translates into better innovation and adaptation to market changes.
The discussion about diversity among leaders is more than a topic to be discussed; it is a crucial issue for the competitive future of organizations. By embarking on this diversity journey, leaders are not only making an ethical choice, but a strategic choice that can be fundamental to business survival and growth.
## References - McKinsey & Company. (2019). Diversity Wins: How Inclusion Matters .
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