Back to Square One?

Florencia Stanfield, Chief Diversity, Equity and Inclusion Officer at Vitesco Technologies

Florencia Stanfield, Chief Diversity, Equity and Inclusion Officer at Vitesco Technologies

There’s been much debate lately about the effectiveness of DEI initiatives. After George Floyd’s murder in 2020, corporate focus on DEI efforts reached a peak, with companies committing to multiple actions, especially around racial equity. However, the recent Supreme Court statement about colleges and universities not considering race as a specific basis for granting admission has shaken the DEI field up. Many organizations have decided to cut back on their DEI investments, and many CDOs – even some high-profile professionals in Fortune 500 companies, have decided to leave their roles.

But structural issues remain in every organization because imperfection is part of our human nature, and organizations are just a congregation of humans that work together towards a defined mission. If you think that DEI is only about minority representation, ERGs or unconscious bias training, then I would certainly dispute the added contribution of the discipline. But if you think DEI is deeply rooted in the culture your company wants to have, then the story changes. Because culture enables us to see and value some things but not others, it unconsciously defines what seems to be the ‘best way’ to be successful in your organization. By consciously shaping culture, rather than just allowing it to happen, you create an ecosystem that can be more agile and innovative and bring better business results. Having DEI structures can push organizations to be more people-centric– and achieve better outcomes. Technology (and ChatGPT) will continue to disrupt the way we work and may take over many tasks or even jobs, but it will never be able to feel. Managing emotions and relationships within the organization will still be the biggest challenge of people management moving into the XXII century.

As Albert Einstein once stated, “The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking”. And DEI helps in that mindset shift. If we move away, just a little, from the typical definition, we can see that the value of DEI comes from working on having leaders that are fair and see their people for whom they are, by sponsoring inclusion in all its forms, and by transforming processes and policies so that employee’s needs are met. Take care of your people, and they will take care of business. Simple.

"By consciously shaping culture, rather than just allowing it to happen, you create an ecosystem that can be more agile and innovative and bring better business results"

So…keeping your DEI initiatives in place or not… well, it’s about knowing what you want in the long run. If we think of DEI practices as enablers of a desired culture, we will see that it’s not a performative discipline. It brings about change and healthy practices. It makes leaders better leaders. It enables companies to attract better talent and people to find growth and development within their own organizations without the need to 'look around.’ And we know that the best talents are the first that decide to leave when things aren’t good. When predicting turnover, a toxic corporate culture is 10x more important than compensation. If you see the connection, you will also see that DEI has become an irrefutable force against attrition, or what we called the ‘great resignation’ back in 2021.

So, CEOs and executive teams – you need to decide the type of company you want to run – and the type of people that you want around to do it. It’s up to you to back up your chief diversity officers with resources and empowerment. They can be critical actors in your company’s long-term sustainability and success.

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