Library Home: Diversity, Ethics, & Inclusion Education: NEW TOIPIC! Business Case For Diversity Education

Economic Case for Inclusion

Maximizing Impact: The Return on Investing in Workplace Disability Inclusion (crw.org)
Press Release: The Economic Case for Inclusion November 27, 2024 (/ccrw.org)
Higher Revenues: Businesses leading in disability inclusion have reported 1.6 times more revenue and 2.6 times more net income compared to their peers.
Creating diverse teams can also broaden a company’s market reach by improving its adaptability to market changes such as shifts in consumer preferences, making them more competitive.

How Diversity is Advantageous to Businesses

THE BUSINESS CASE FOR DIVERSITY AND INCLUSION IN THE WORKPLACE (.linkedin.com/pulse/)
"The business case for diversity and inclusion in the workplace is clear. It not only contributes to a more equitable society but also boosts company performance across various metrics, including financial returns, innovation, talent attraction, and decision-making capabilities."
Disability as a Source of Competitive Advantage (hbr.org/)
having employees with disabilities in its workforce can build a firm’s competitive advantage in four ways:
(1) Disabilities often confer unique talents that make people better at particular jobs;
(2) the presence of employees with disabilities elevates the culture of the entire organization, making it more collaborative and boosting productivity;
(3) a reputation for inclusiveness enhances a firm’s value proposition with customers, who become more willing to build long-term relationships with the company;
(4) being recognized as socially responsible gives a firm an edge in the competition for capital and talent.
A recent Handshake Network Trends report (joinhandshake.com/)
found that more than half of respondents would not apply to a job or internship where there exists a lack of gender diversity among the workforce.
What is the Business Case for Diversity? (hr.university)
"Forbes research conveys that decisions made and executed by diverse teams delivered 60% better results, and an inclusive environment makes better business decisions 87% of the time."

Summary of Business Case for Diversity in the Workplace

Attracting & Keeping More Customers

Cultural competence enables companies to tailor marketing campaigns to resonate with diverse customer segments.
Understanding and catering to a diverse customer base is crucial for finding new markets and for market penetration

Attracting & Keeping Top Talent

A strong DEI commitment can attract a wider range of high-quality candidates from diverse backgrounds, expanding the talent pool.
When employees feel valued and respected for their unique identities, they are more likely to be engaged, motivated, and productive.
Cost savings: Better retention means less money needed for recruitment.

Better Decision-Making & Innovation

Diverse teams consider different viewpoints, leading to more well-rounded and informed decisions.
Diverse teams bring a wider range of perspectives and experiences, leading to more creative problem-solving and innovative solutions which can give a company a competitive edge.

Building Brand Reputation

Demonstrating a commitment to DEI can enhance a company's image and reputation, attracting customers who value inclusive practices.
A diverse workforce can better understand and cater to the needs of a diverse customer base, leading to improved customer satisfaction and loyalty.

Improved financial returns. (mckinsey.com/f)
A McKinsey & Company study showed the relationship between diversity on executive teams and the likelihood of financial outperformance has strengthened over time.
Improved team performance (peoplemanagement.co.uk)
Diverse teams outperform individuals about 87% of the time during business decision-making processes, according to one UK-based Cloverpop study that covered 600 business decisions made by 200 teams across a range of industries. In fact, diverse teams were also shown to make decisions faster than individuals. Gender-diverse teams are especially effective, outperforming individuals 73% of the time, compared to 58% for all-male teams.