Executive summary

The report takes on the concept of corporate diversity and highlights equity and inclusion as key elements in maximising the benefits of a diverse workforce. It discusses the need to move beyond diversity and shift focus towards equity and inclusion to achieve optimal organisational performance.

Reframing the business case: From diversity to equity and inclusion

The report argues that while there is limited evidence linking diversity to business performance, organisational conditions, such as equity and inclusion, have a strong and positive correlation with both diversity and performance. The report outlines the impact organisational conditions have on diversity and performance, and how stronger results are achieved by organisations that are more equitable and inclusive.

Our model for effective Diversity, Equity and Inclusion (DEI)

The report identifies opportunities for companies to enable diverse talent to flourish, setting out three main features of equity and inclusion promoting workplaces. These include – equitable employment practices, supportive cultures, and inclusive leadership.

Review of the evidence

The report examines academic and industry literature that indicates stronger business benefits from diversity when certain conditions are in place. While a broad range of conditions support general people-related performance gains, the report highlights those connected to diversity, including equitable employment practices, supportive cultures, and inclusive leadership. Prerequisites for successful DEI implementation are also discussed.

Testing our model for effective DEI: Reviewing inclusive leadership

The report applies our model for effective DEI to reviewing inclusive leadership, identifying leadership characteristics that promote equity and inclusion. The report concludes that inclusive leadership creates a diverse talent pool, drives higher engagement and enhances creativity resulting in better business outcomes.

From theory to implementation

Key observations that can be made on how to implement DEI practices includes prioritising most important gaps, focusing on equitable employment practices and inclusive decision-making, comparing and analysing employee data, and gathering and monitoring data on DEI metrics.

A blueprint for good practice

The report establishes a blueprint for good practice that defines the core principles for organisations seeking to foster a successful and equitable environment. Features of this blueprint include the provision of fair, transparent, and non-discriminatory employment practices, evaluation of job evaluations, provision of equal opportunities for all employees, developing an inclusive work culture, and performance reviews.

Measurement that matters

The report acknowledges the importance of metrics in understanding an organisation’s DEI context, monitoring progress, and guiding interventions but cautions the use of quantitative metrics. Qualitative and subjective indicators provide richer insights into DEI practices and employee perspectives so analysis should take this into account.