Are We Still Using the Business Case Argument for Diversity & Inclusion?
The for-profit paradigm is sticky.
Why do consultancies and scholars still lead with the business case when it comes to promoting ‘doing good’ in business? If we continue to use the bottom line as the main argument for doing the right thing, we are not fundamentally shifting the paradigm away from ‘profit is all that matters.’
In this recent McKinsey & Company report, they demonstrate that the business case for diversity, equity, and inclusion (DEI) is “stronger than ever,” talking mainly about gender diversity and ethnic diversity representation. Besides these numbers still being depressingly low, can we not move on from that narrative?
Can’t we promote doing good, just cause it’s the right thing to do? And remind business of the incredibly power they have to create change for good?
The danger of leading with the business case argument.
Fifteen years ago we saw a similar push for Corporate Social Responsibility (CSR). Initially, the purpose of CSR was to encourage business to fundamentally re-evaluate their role in society and take on social and environmental responsibilities. At that time, however, both consultancies and scholars tried to convince businesses of the importance of CSR by employing a similar rhetoric we see now with DEI and backing it up with endless reports:
‘CSR will enhance your bottom line! There is a strong business case for CSR!’
It is good to remember that this rhetoric did not lead businesses to re-evaluate their role and responsibility towards people and the environment, as CSR had intended. Instead, it led to business-as-usual with add-ons like empty CSR strategies and greenwashing practices. Business consultancies and scholars (unintentionally?) encouraged businesses to do it for the money rather than for the cause itself.
And that is exactly what businesses did; they did it for the money. And CSR became the fad we now know it to be.
Consultancies and business scholars as agents of change.
Consultancies and scholars can be great agents of change by leading with a different narrative. By showing that the most compelling case for business to engage in DEI is the incredible positive impact they are able have.
And the 2023 McKinsey report did find that more diversity on boards and executive teams was correlated to higher social and environmental impact scores — so let’s lead with that! How business can be an incredible force for good in a world that needs all the help it can get.
