Although the concept of equity, diversity and inclusion (EDI) is facing into a backlash in the United States at the moment, with 11 states introducing laws that restrict EDI initiatives, US foreign direct investment (FDI) companies have led the world in progressive EDI policies over the past decade. Their influence is manifest throughout organisational policies in Ireland today.
Although a Washington Post/Ipsos poll in June found that 61 per cent of Americans believe it is “a good thing” for companies to invest in EDI initiatives, there have been reports in the media of companies downsizing their EDI teams.
The main criticism of EDI is that, done badly, it has the potential to do more harm than good by highlighting differences and dividing people based on their identities, creating conflict and undermining cohesion. A key challenge for advocates of EDI now, in the US in particular, is to arrive at a shared definition of EDI and agree, in a politically charged context, what it should look like.
There is a solid body of research to back up the proposition that more diverse and inclusive organisations are likely to outperform their less diverse peers. A series of reports by McKinsey began in 2015 and culminated in 2020 with a study encompassing 15 countries and more than 1,000 large companies, which found that not only did the business case for EDI remain robust, “but also that the relationship between diversity on executive teams and the likelihood of financial outperformance has strengthened over time”.
‘A gas emergency would quickly turn into an electricity emergency. It is low-risk, but high-consequence’
The secret to cooking a delicious, fuss free Christmas turkey? You just need a little help
How LEO Digital for Business is helping to boost small business competitiveness
‘I have to believe that this situation is not forever’: stress mounts in homeless parents and children living in claustrophobic one-room accommodation
According to the American Psychological Association, there is “extensive research by psychologists and other scientists demonstrating that organisational diversity enhances wellbeing, collaboration and problem solving”.
Andrew Campbell-Edie, communications manager with the Irish Centre for Diversity, says the United States “has been addressing EDI longer than Ireland and has much experience that we can learn from”.
Campbell-Edie also points out that “the Altrata Global Gender Diversity 2024 report shows that the percentage of board members in top stock-listed companies that are female is only 34.7 in the USA. Ireland shows better performance with 37.1 per cent”.
Fania Stoney is a business development strategist at Great Place to Work, which runs a certification programme and awards to recognise organisations that go the extra mile for their employees.
“In Great Place to Work we have had the opportunity to see how the knowledge exchange between American and Irish organisations has been a catalyst for advancing EDI,” she says. “This exchange has enabled organisations to co-create frameworks that embrace diverse identities and experiences.”
One of the most successful EDI initiatives that Campbell-Edie has seen imported through FDI companies is the adoption of employee resource groups (ERGs), which he describes as “valuable platforms to engage colleagues in the sharing of insights and experience that lead to positive changes in workplace culture”.
He notes that successful ERGs are a common feature of the 25 organisations that have achieved the Investors in Diversity Gold Accreditation – IDA Ireland, Sun Life, Fidelity Investments and Grant Thornton among them.
Stoney agrees that collective endeavour is at the heart of EDI success: “This collaborative learning process encourages organisations to not only adopt best practices but to innovate inclusively, leading to a workplace culture where equity, diversity and inclusion are more than principles – they are lived values that guide daily operations and decision making.”
According to Campbell-Edie, inclusive workplace cultures that benefit everyone and respect all differences are gaining traction as the norm rather than the exception, with a variety of stakeholders, ranging from prospective employees to consumers and shareholders leading the calls for change.
“This is brought into sharp focus by the ‘war for talent’ that comes from further economic growth in a time of full employment,” he says. “We are seeing change in culture across society and the workplace, coming from the grassroots as the millennials and gen-zers – who now make up the largest workplace demographic – steer choices.
“Furthermore, the trickle-down effect and setting norms makes ‘buy-in’ from the leadership team vital to D&I [diversity and inclusion] progress in workplace culture. Senior leaders now largely consist of the tail end of baby boomers and generation-Xers whose attitudes were shaped by the liberal 60s.”