Investing in Companies that Promote Diversity and Inclusion
Diversity, Equity, and Inclusion (DEI) have become increasingly important in today’s world, and businesses are starting to realize the importance of investing in companies that promote these values. In Kenya and Africa, businesses have a unique opportunity to promote DEI through their investments and operations, and this article will explore the importance of DEI in business and the ways in which companies can promote it.
Defining Diversity, Equity, and Inclusion
Diversity refers to the presence of differences among individuals, including differences in race, ethnicity, gender, age, sexual orientation, and more. Equity refers to fairness and justice, ensuring that everyone has access to the same opportunities, regardless of their background or identity. Inclusion refers to creating an environment where everyone feels valued, respected, and included, and where their unique perspectives and experiences are celebrated.
Why DEI is important in business
DEI is important in business for a number of reasons. Firstly, it promotes innovation and creativity by bringing together individuals with diverse backgrounds, experiences, and perspectives. This leads to new ideas and solutions that may not have been possible with a homogenous group. Secondly, it helps to attract and retain top talent, as employees are more likely to stay with a company that values and respects them. Thirdly, it enhances a company’s reputation and brand image, as customers and stakeholders are increasingly demanding that companies demonstrate a commitment to DEI.
Investing in companies that promote DEI
Investing in companies that promote DEI is not only a socially responsible decision but can also lead to financial benefits. A recent study by McKinsey & Company found that companies in the top quartile for gender and ethnic diversity were more likely to have financial returns above their national industry medians. This demonstrates that diversity and inclusion can be a competitive advantage for businesses.
In Kenya and Africa, there are a number of companies that are making strides in promoting DEI. One such company is Safaricom, Kenya’s leading telecommunications company. Safaricom has made a commitment to gender equality and is actively working to increase the number of women in leadership positions. In 2019, the company launched a Women in Leadership program, which aims to identify and nurture female talent within the company. As a result of these efforts, the percentage of women in leadership positions at Safaricom has increased from 21% in 2013 to 34% in 2021.
Another company making strides in DEI is the South African retail chain, Woolworths. The company has made a commitment to sourcing products from suppliers that demonstrate a commitment to social and environmental sustainability, including promoting DEI. Woolworths has also launched a number of initiatives to promote DEI within its own operations, including a Diversity and Inclusion Council and training programs for employees.
Statistics on DEI in Kenya and Africa
While there is progress being made in promoting DEI in Kenya and Africa, there is still much work to be done. According to a 2020 report by the United Nations Development Programme (UNDP), women in Africa are significantly underrepresented in leadership positions, with women holding only 25% of parliamentary seats and 29% of managerial positions. In Kenya, the situation is slightly better, with women holding 23% of parliamentary seats and 33% of senior management positions.
In terms of ethnic diversity, there are also disparities in representation. In South Africa, for example, white South Africans continue to dominate top executive positions, despite the fact that they make up only 8% of the population. The 2019 McKinsey & Company report also found that Black South Africans and women continue to be underrepresented in top management positions.
Promoting DEI in business operations
Investing in companies that promote DEI is important, but businesses can also promote DEI through their own operations. Here are some ways in which companies can promote DEI in their business operations:
Diverse hiring: Companies can promote DEI by ensuring that their hiring practices are diverse and inclusive. This means casting a wider net when recruiting and avoiding unconscious biases in the recruitment process. Companies can also establish mentorship programs and internships that target underrepresented groups to create opportunities for those who may not have had access to them in the past.
Inclusive workplace policies: Companies can create policies that promote inclusion and equity in the workplace. This can include flexible work arrangements, accommodations for employees with disabilities, and a zero-tolerance policy for discrimination and harassment.
Diversity and inclusion training: Companies can provide diversity and inclusion training to employees to increase awareness of unconscious bias and promote a more inclusive workplace culture. This can include training on topics such as cultural sensitivity, gender equity, and disability inclusion.
Employee resource groups: Employee resource groups (ERGs) can provide a platform for employees from underrepresented groups to connect, network, and share experiences. ERGs can also help to create a sense of community and provide opportunities for professional development.
Supplier diversity: Companies can promote DEI by working with suppliers that demonstrate a commitment to social and environmental sustainability, including promoting DEI. This can include sourcing products from women-owned businesses, minority-owned businesses, and businesses owned by people with disabilities.
There are a number of examples of companies in Kenya and Africa that are promoting DEI in their operations. One such company is Unilever, which has made a commitment to gender equity and has implemented a number of policies to promote this goal. For example, the company has established a flexible working policy that allows employees to work from home or adjust their working hours to accommodate their personal needs. Unilever has also implemented a maternity leave policy that allows new mothers up to six months of paid leave.
Another example is the Kenyan technology company, Cellulant, which has established a number of initiatives to promote DEI in its operations. The company has a policy of hiring employees from diverse backgrounds and has established an inclusive workplace culture that celebrates differences. Cellulant has also established a diversity and inclusion committee that is responsible for promoting DEI within the company.
In conclusion, DEI is not only the right thing to do but can also be a competitive advantage for businesses. By investing in companies that promote DEI and promoting DEI in their own operations, businesses can contribute to a more equitable and inclusive world. In Kenya and Africa, there is progress being made in promoting DEI, but there is still much work to be done. By committing to promoting DEI, businesses can help to create a more diverse, equitable, and inclusive society for all.