Chief Executive Officers (CEOs) today are navigating an era of significant anxiety, facing pressure from various stakeholders to implement meaningful and sustainable diversity, equity, and inclusion (DEI) initiatives. Despite the strong business case for DEI, many companies have faltered by failing to integrate DEI into their core value creation processes, executing inauthentic programs, and neglecting DEI metrics.
Initially, many companies embarked on their DEI journeys in response to civil unrest and a demand for change. However, the lack of strategic integration meant these efforts often fell short. Effective DEI initiatives can lead to enhanced innovation, better decision-making, and improved business resilience. For companies to truly benefit from DEI, it must be a prioritized, intentional, and measured effort across all organizational levels.
CEOs can take several steps to demonstrate DEI as a strategic priority. Forming a diverse DEI committee to guide strategy and track progress, setting clear representation goals integrated into hiring and promotion practices, fostering open dialogue about pay equity, upholding strict policies against harassment and discrimination, and incorporating DEI metrics into performance reviews are all critical actions. These measures can help embed DEI into the organizational culture and ensure lasting impact.
CEOs committed to fostering diverse, inclusive, and equitable workplaces face significant challenges but also have the potential to lead their companies toward sustainable growth and resilience.
Wherever you are in your DEI journey, whether at the very beginning or further along, EDGE Empower® helps accelerate your progress, and through EDGE Certification® visibly prove it – applying the same discipline and rigour that you would to other business-critical missions.
We’re here to support you on this important journey
The United States is experiencing a significant culture war, characterized by deep ideological divisions over various social, political, and cultural issues. Central to this conflict is the topic of diversity, equity, and inclusion (DEI), which has become a flashpoint, especially in the business world. The term “woke” symbolizes the cultural divide, and supporting DEI initiatives has become crucial for business leaders.
Aniela Unguresan, an economist and company leader, emphasizes the importance of DEI from both analytical and empathetic perspectives. She highlights that the benefits of DEI, such as boosting innovation, retaining talent, and improving the bottom line, are well-documented. However, resistance to DEI persists due to fear of change, lack of understanding, bias, fear of losing power, and lack of measurable impact.
To overcome DEI opposition, organizations should stick to objective facts, promote education and awareness, encourage open communication, and establish clear metrics and accountability. By addressing misconceptions and demonstrating the positive outcomes of DEI, businesses can create a more inclusive and equitable environment.
Despite the challenges posed by the culture war, business leaders have the opportunity to drive positive change. Millennials and Generation Z, who make up a significant portion of the workforce, strongly support DEI initiatives, making it imperative for leaders to embrace and lead these changes.
Wherever you are in your DEI journey, whether at the very beginning or further along, EDGE Empower® helps accelerate your progress, and through EDGE Certification® visibly prove it – applying the same discipline and rigour that you would to other business-critical missions.
We’re here to support you on this important journey.
In a rapidly evolving global society, diversity, equity, and inclusion (DEI) have become critical values shaping modern businesses. The European Union (EU) has positioned DEI as a pillar for social and economic progress through targeted regulations such as the Equality and Diversity Law and the Corporate Sustainability Reporting Directive. These laws aim to address historical inequalities and promote transparency in social performance.
For foreign businesses operating in Europe, adapting to these changes involves a comprehensive approach. Organizations must view DEI investments as long-term assets, align their organizational values with EU directives, and empower employees through education and engagement. This holistic approach ensures that DEI initiatives become an integral part of the corporate culture, fostering resilience and adaptability in a diverse global market.
Wherever you are in your DEI journey, whether at the very beginning or further along, EDGE Empower® helps accelerate your progress, and through EDGE Certification® visibly prove it – applying the same discipline and rigour that you would to other business-critical missions.
We’re here to support you on this important journey.
Stuart Maxwell has been a champion of Diversity, Equity and Inclusion (DE&I) from the outset, and a supporter of EDGE Certification® as an effective instrument to drive progress in this area.
Embedding DE&I in a company’s culture, performance management, leadership development and recruitment strategies, he says, can be a game changer: “It’s one of the big lessons I’ve learned over the years and would advocate for anyone embarking on a DE&I journey,” he explains. “If DE&I is kept separate from everything else, then no matter how loud the voice, you are not going to reach everybody you need to reach.”
Stuart believes in DE&I for the simple reason that “it is absolutely the right thing to do.” It is useful, however, that the desire ‘to do the right thing’ is also supported by hard evidence that it improves business performance: “It’s a clear differentiator for a business seeking to attract, engage and retain talent,” Stuart continues.
Matching DE&I expectations with reality
“Gen Y and Gen Z employees will often have multiple offers of jobs on the table and will decide which company to join based on what you are saying around sustainability and DE&I. And when they join a business, then the culture they experience once they’ve walked through the front door must match what they saw when looking through the shop window.”
A report published in 2023 by the management consultancy McKinsey & Company showed that the top quartile companies in terms of DE&I performance had a 39% greater likelihood of financial outperformance compared to their bottom-quartile peers: “It is quantifiable that companies with more diverse leadership teams are more successful,” Stuart says, “and they are also more innovative.
“Diverse companies are able to access the full talent pool, and that is increasingly important in a world where the market for talent is extremely competitive. It’s also important to run regular employee engagement surveys,” he continues.
“We knew that we were heading in the right direction when in an all-company engagement survey with an 80% response rate, 90% of employees responded that DE&I was having a positive impact on their employee experience. Reaching all employees is a key goal for DE&I practitioners.”
DE&I, Stuart says, is also becoming increasingly important to other stakeholders: “It’s a big issue now for Boards and investors, with much greater focus on representation and questions around how businesses are advancing their DE&I agenda.”
Validating progress with an independent benchmark
To validate progress in your DE&I journey, Stuart stresses the importance of an independent benchmark: “You shouldn’t be interested in paying to collect a little badge to put on your website,” he smiles. “You want to be able to benchmark yourselves against your peers with real, meaningful insight and an action plan for the future. That’s why I have always been an advocate of EDGE Certification®. EDGE sets the bar high and gives you clear feedback on what you will need to do to become best in class.”
Being part of the EDGE Certification® process supports organizations seeking to be included and improve their score ratings such as DJSI and Equileap. In both examples, EDGE Certification® contributes meaningfully to an organization’s overall score. As Diana van Maasdijk, Equileap’s co-founder says: ‘EDGE Certification® is a rigorous, independent assessment and a universally accepted methodology’.
But again, being included in such respected Indices is not the end of the journey: “It doesn’t mean you’re there but it’s nice recognition and it’s valued by your employees, the Board and your investors,” he adds.
Stuart is alive to the fact that DE&I is being politicized in some quarters, causing some organizations to reconsider their priorities. He advises that firms should continue their journeys as it is even more important in such environments that all employees feel that they are supported in bringing their whole selves to work. It can also be a clear differentiator in the talent market. Again, he stresses that senior buy-in is essential: “The CEO sets the expectation, and the executives line up behind it,” he adds.
Understanding the real meaning of diversity
Stuart believes that breaking down internal barriers is a big step and removing invisible structures and mindsets that can get in the way of progress. It leads to the acceleration of female talent, not just through external recruitment, but also by promoting from within: “Of course, there are some people in an organization who will always say there is a glass ceiling, but I’d like to think that even where there are some ceilings left, you can make some fairly big cracks in them,” he jokes.
So what advice would Stuart give to his peers currently grappling with the DE&I conundrum? “As I mentioned earlier, don’t keep it as a separate initiative, it has to be part of your culture and lead your core behaviours, embedded in everything you do.”
He also says to trust the data: “Some of what you will do will be spreadsheet-based, and you need to analyze the data that is presented to you.
“If you have set an aspirational target for your organization to achieve gender parity in your senior leadership that doesn’t mean that every single business unit or division has to reach a gender-balanced representation. Some may be higher and some lower, and it has to be achieved in a way that is sustainable for your organization. You also need to explore what those roles are, and not just a Head of HR or General Counsel. It’s important to target P&L roles, for example, as a better benchmark for achieving ‘true’ diversity.
“The point is, understand your numbers and the story behind those numbers. A 30% representation in one part of the business or in certain roles could be better than 40% in another.”
Stuart also warns about ‘fixing’ quotas simply through recruitment, a point he touched upon earlier: “Insisting on a diverse candidate slate for new jobs is great, but who are you promoting and who are you retaining? That should be an important area of focus. Everyone who comes into your business wants to be judged on their skills and contribution and feel that their contribution is recognized. They also want to come to work and express their true selves. If they can do that, then business success follows.”
Listening is also important: “You do need to keep listening and communicating if something isn’t landing,” he continues. “Sometimes what you say may not be resonating with a particular audience, and so you need to challenge why that might be and make a judgement call.”
Stuart believes that people can nearly always do more than you think they can, and more than they think they can themselves. Part of his job has always been about getting the best out of everyone; it’s a personal mission: “I try and help pull away the barriers, break the ceilings, and instil confidence in people such that they can fulfil their full potential. It’s that mindset that permeates all of my decisions.
“Walk the talk, because if you’re advocating what people should be doing but not doing it yourself, then it invalidates the advice and guidance you are giving. You might be the best HR professional in the world, but if you’re not an inclusive leader yourself, you won’t achieve what you want to achieve. Look in the mirror.
“If you’ve got great people doing great things, you’ll be a successful company.”
We’re here to support you on this important journey of addressing gender inequality in the workplace
During the pandemic, there was a noticeable shift in attitudes towards Diversity, Equity and Inclusion (DE&I) linked to an organization’s commitment.
It was an unprecedented moment where you could sense that all the most important stakeholder groups – including existing and potential employees, customers, business partners and investors – were demanding that their organization, regardless of size or location, show commitment to the values of DE&I.
While it is true, as I have written previously, that DE&I is in danger of becoming irreversibly politicized, and that recent political conversations relating to the topic have undoubtedly had a negative impact, today I am sensing that the tide is once again shifting in our favour.
Organizations and their stakeholders are becoming more enthusiastic about demonstrating their commitment to the values and benefits that DE&I deliver. They want to see organizations who they work for, or are invested in, visibly, credibly and genuinely embrace an equitable and inclusive workplace.
This is especially true of ‘new’ talent; Gen Zs are looking for ‘tangible proofs’ of commitment, action and results and need to be assured that their potential employer is an employer where their talent will be allowed to flourish, and their contribution and skills appreciated.
In the news recently was a report from the European Union’s securities watchdog (the ESMA) that mandated that a fund that has any environmental, social or governance (ESG) related words in its name must have at least 80% of assets that meet ESG objectives in accordance with the binding elements of its stated investment strategy.
“The objective of the guidelines is to ensure that investors are protected against unsubstantiated or exaggerated sustainability claims in fund names, and to provide asset managers with clear and measurable criteria to assess their ability to use ESG or sustainability-related terms in fund names,” ESMA said in a statement.
In simple terms, it is a protection against greenwashing, and for both investors and market regulators, ESG remains an important focus. DE&I is of course an important component of the ‘S’ within ESG. Now there is a movement where, because of the increasing interest of all the stakeholders, there is an increasing need to go from self-reporting towards ‘limited assurance’ or even ‘independently verified’ claims on where a company stands on DE&I.
I think that now, more than any other time since the pandemic, is the moment for companies to restate why they are committed, what they are doing to honour their commitment, and how they can prove that their commitment is being translated into actions that are making a meaningful difference.
This return to a DE&I mindset is being driven by the younger generation, by market regulators and by sustainability minded investors. In looking for commitment, they are also looking for organizations whose claims can be substantiated, which is where certain voluntary market-based instruments – such as EDGE Certification® – can give visible proof of credible progress. They are also the instruments that prove to be the most effective at the intersection between business and society because they bring objective measurements and standards and independent verification in areas that are not traditionally seen as very ‘special’.
My mentor and colleague Simona Scarpaleggia, CEO of Ikea Switzerland from 2010 until 2019 and independent Board Member of a number of leading publicly listed companies, sums up the current trend succinctly: ‘to demonstrate commitment you have to mean it, you have to do it, you have to measure it and then you have to talk about it!’
With the business case for DE&I long-since proven, organizations needed to provide tangible, visible proofs that they not only believe in DE&I, but that they were making progress in closing the equity gap.
We’re here to support you on this important journey
In previous years, commitment was all that was required for an organization to be considered a leader in diversity, equity and inclusion (DEI). It was seen almost as an act of courage. This then shifted to measuring ‘effort’, and specifically what actions an organization was taking to drive change. Now, the focus is firmly where it should be: on impact.
These transitions from commitment to action to impact are the stages each organization must go through in measuring its DEI maturity. It doesn’t matter where you start. What matters is that you make a start in the first place and keep up the rhythm of transformation.
“There’s movement, and times have changed. Women are speaking out more, men are supporting us more than ever, and I think that’s all going to lead to positive changes. Freedom and progress can go away immediately. You always have to know it’s in a tenuous position and keep moving forward. We need every generation to be activists, and nowadays everyone’s an influencer so you never know where the inspiration is going to come from. And if progress slows down again, well that will be another challenge we have to overcome.” – Billie Jean King, EDGE Certification® ambassador
A DEI maturity model is a barometer for organizations, a framework that measures an organization’s progress in achieving equity. This could be focused on a binary view of gender or on intersectional equity, which also considers race/ethnicity, gender identity, working with a disability, LGBTQ+, nationality, and age.
When organizations make a conscious decision to progress their DEI maturity, some will naturally be further along their journey than others. This will be due to external factors such as industry, geography, public policies and regulations, DEI reporting requirements, and local culture.
For example, an organization operating in a country where gender pay gap reporting is mandated will be able to assemble an action plan on pay equity sooner than an organization collecting this data from scratch. For this reason, there may be nuances for global organizations – different offices and divisions may be at different stages of their DEI journey depending on where they operate.
Though starting points vary, every organization must pass through the same three stages to achieve DEI maturity: demonstrating commitment, showcasing progress, and celebrating success.
1. Demonstrating commitment
Every organization’s DEI journey should start with laying out the purpose of that journey: why is it important? What does this mean to the organization? It also starts with buy-in at the highest level. Senior leadership must be committed to the journey before it even begins.
The next step is to get the lay of the land. It is important to have an accurate view of where the journey is truly starting from, because all the progress will be measured against this baseline.
What data does the organization already have available? What data isn’t available but can easily be collected? If there is data that cannot be collected, you can always start with an anonymized employee survey: how do employees across the diversity spectrum identify themselves and what are their experiences in the workplace? Where do the opinions of different groups align and where they diverge?
At this stage, it is useful to assess whether your organization has any DEI policies or practices already in place around DEI and whether you have made any public DEI statement on the topic, for example by signing the Women’s Empowerment Principles. Also, are you ranked as part of any ESG (Environmental, Social, and Governance) benchmarking indices such as Equileap?
Lastly, commitment must come with transparency and accountability. Independent, third-party DEI certification will keep the organization honest and ensure the journey toward DEI maturity is rigorously measured. This will also allow the organization to communicate their progress and impact clearly and confidently – both internally and externally.
2. Showcasing progress
With a commitment firmly in place, organizations should now be taking action – working to improve DEI and demonstrating the first signs of positive impact.
To showcase visibly and credibly your DEI progress, internally and externally, a baseline must already be in place. Without third-party validation at the start of your DEI maturity journey, you cannot effectively measure how far you have progressed. However, with it in place you can move to this next stage of maturity by auditing the impact of your actions against this baseline.
3. Celebrating success
Commitment has been made; progress has been showcased. The third stage of DEI maturity happens when your organization can demonstrate success – when you have delivered on your action plan and made a significant and positive impact on your organization.
To achieve DEI maturity, you must be able to demonstrate impact with both qualitative and quantitative indicators. Without this, you cannot credibly celebrate your success. It’s not enough to tell your employee, investors, board members, customers, etc. that you have achieved workplace diversity, equity, and inclusion. Evidence is everything: you must be able to prove your success.
For this reason, independent, third-party validation is crucial. You deserve to celebrate how far your organization has come.
A word of caution: DEI maturity can, once achieved, also be lost if the positive results and impact are not sustainable over time. To maintain this level of maturity, your organization must be committed to maintaining the success they have achieved through continual measurement and analysis.
“I think we all have an obligation to continue to keep moving the needle forward, always.” – Billie Jean King, EDGE Certification® ambassador
Start your DEI maturity journey
EDGE Empower® is a comprehensive, software-based DEI solution that will guide you through your journey and support you to become eligible for EDGE Certification® at the EDGE Assess, EDGE Move or EDGE Lead, with or without EDGEplus.
