Diversity, equality & inclusion

By championing diversity, equity and inclusion, businesses have  the power to become agents of positive change in an uncertain time, write John McNamara and Conor Hudson Threats to the Diversity, Equity and Inclusion (DEI) agenda are only growing stronger. It is important to understand the context, but more importantly to remind ourselves of the gaps DEI seeks to close and – as members – strive to engage and communicate on these issues more effectively. This year will be the biggest election year in history. More than 60 countries representing half the world’s population – four billion people – will go to the polls voting in presidential, government and local elections. This is also perhaps the biggest test yet for democracy as we continue to see certain extreme views previously confined to the fringes of society migrate to the mainstream. Most recently, this shift has included an anti-DEI movement that is now, perhaps unsurprisingly, featuring in the discourse surrounding the US presidential election due to take place later this year. At its core, anti-diversity activism views affirmative action as being racist and DEI initiatives and targets as being discriminatory. In the US, for example, there is currently a push from certain quarters to reduce funding for inclusion programmes in schools and universities. DEI resourcing levels are under scrutiny and there is also the ongoing weaponisation of transgender issues directly impacting the LGBTQ+ community. So how should we react to this assault, particularly given the likelihood that it will continue to grow and spread? Perhaps the answer lies in returning to the ‘first principles’ of the DEI business case whilst recognising the need to work harder communicating, explaining and persuading on the arguments that support DEI.  In particular, we need to ask ourselves: What role can we play as members in business and practice? Force for good Business can be a force for good and many business people are regarded with trust and respect. Businesses can therefore play a pivotal role in promoting DEI and serving as catalysts for wider societal change.  Embracing diversity within their workforce can foster innovation and creativity in companies, bringing together individuals with unique perspectives and experiences.  Inclusive hiring practices and equal opportunities not only give businesses access to a wider talent pool but also empower marginalised groups, helping to reduce social inequalities.  Moreover, businesses with inclusive policies tend to better understand and serve diverse consumer markets, increasing the likelihood of better financial performance.  Companies can enhance their reputation by prioritising DEI initiatives, creating a positive culture and potentially attracting top talent.  Doing so effectively is, however, about much more than simply adopting the signifiers of inclusivity (celebrating International Women’s Day or Pride, for example). It needs to be backed up by inclusive policies that are truly respected, accepted and enforced from the top down and right across the organisation. By championing DEI, businesses can become agents of positive change, influencing broader societal attitudes and norms. These businesses can, in turn, expect to benefit from an enhanced public image and perception of their brand, which can improve their reputation and lead to greater trust. So how can Chartered Accountants in leading business roles put us back on the right track? To navigate the path to DEI and move beyond the anti-DEI movement, members and business leaders must be aware that individuals in their organisations will be at different points in their personal journey. They should also consider the following steps when implementing their strategy: • Offering a safe space for those with diverse perspectives so that they can ask questions and their concerns can be understood and addressed with empathy. Don’t allow DEI to become a “Them” and “Us” scenario. • Communicate transparently about DEI initiatives, identifying the gaps in the organisation and how DEI policies can close them. Ensure that the initiatives have a strategy focusing on inclusion. Otherwise, they can be counterproductive. • Implement fair and objective metrics for evaluating progress in reaching DEI goals; this helps build credibility and legitimacy, but avoid these KPIs becoming a box-ticking exercise.  • Understand the experience of colleagues from diverse backgrounds in your organisation. Setting and reaching DEI goals related solely to the recruitment process cannot embed and maintain the culture needed to retain these new hires. • Collaborate with external experts or organisations in the DEI space who can provide the necessary insight, guidance and credibility to support a successful DEI journey.  Inclusion as a skill In the face of the anti-DEI movement, the skill of inclusion becomes a crucial asset. Treating inclusion as a skill involves actively fostering environments where diverse perspectives are not only welcomed but also valued.  This skill requires empathy, open-mindedness and effective communication to bridge divides and dispel misconceptions that fuel opposition to DEI efforts.  Organisations can help develop these skills through unconscious bias training, promoting employee resource groups (e.g. LGBTQ+) and actively seeking diverse perspectives in the decision making process. Inclusion as a skill empowers individuals to navigate conversations with those resistant to DEI, fostering understanding and promoting unity.  By emphasising the benefits of diversity and creating spaces where everyone feels heard and respected, individuals equipped with inclusion as a skill can play a pivotal role in countering anti-DEI sentiment. John McNamara is Chair of BALANCE,  the Institute’s LGBTQ+ allies network group and Executive Director and CFO at AIB life. Conor Hudson is a Finance Director and member of BALANCE.  

Female representations on Irish boards is up, but more progress is needed in the key decision-making roles of CFO, CEO and Chair, writes Meliosa O’Caoimh Female representation on the boards of Irish companies is improving, but progress is slower at the senior leadership level – particularly in key decision roles, such as Chief Financial Officer, Chief Executive and Chair.  This is according to the new annual report of the Balance for Better Business Review Group, which shows a 21 percent rise in female representation in ISEQ-listed companies over a five-year period. Now in its sixth year, the report also puts the current proportion of women on the boards of ISEQ 20 companies at 39 percent, exceeding the 33 percent target set for 2023.  The percentage of women on boards across other listed companies stands at 28 percent, also above the 25 percent target set for 2023. Private companies with Irish ownership have remained steady at 22 percent since 2021, up from 17 percent in 2019. Seeing a consistent year-on-year increase in gender balance on boards marks important progress, and the companies driving this change should be proud. Companies with more diverse boards are shown to outperform those with less diversity.  Progress at the senior executive level is also critical to both business success and safeguarding the board-level talent pipeline, however. Achieving gender balance in senior roles across all areas of decision-making is dependent on robust and business-led strategies, including succession planning, career pathways and the monitoring of progress through targets and data. Balance for Better Business is an independent business-led review group established by the Government. Its latest annual report included the results of research commissioned by the 30% Club with the support of the Department of Enterprise, Trade and Employment.  Two roundtable discussions on both the financial services sector and executive search were held as part of its research. The financial services roundtable brought together representatives from industry to focus on the challenge of achieving greater gender balance in roles with profit and loss or revenue-generating responsibilities.   Research in Ireland revealed that challenges emerge as early as a professional’s very first career choices and can have an impact across an organisation’s career processes and work design. Specific actions highlighted in this research include: extending graduate recruitment gender targets to include graduate first-role placements; mandated job rotation as part of early career development; and  replacing outdated stereotypical business development approaches with initiatives that are more appropriate to a modern workforce and gender-balanced customer base.   The research also highlighted the value of tracking targets and gender progress across each business area, rather than simply focusing on the company average, to demonstrate where action can be taken.  The executive search roundtable, hosted in partnership with Ibec, focused on the current processes for Chair and board appointments as well as C-suite appointments at the highest level.  Here, it was found that large private companies are more likely to have succession plans in place, while smaller organisations are less likely to benefit from existing succession plans.  Key recommended actions for boards and C-suites included:  adopting the 30% Club/Ibec Resourcing Code as the standard for nomination committees covering board and executive leader appointments;  advocating for succession planning in all roles across all boards; and  the adoption of ‘pathway to board’ type career resources.  Meliosa O’Caoimh is Chair of 30% Club Ireland

Gender allyship can help to support workplace equity, but only when it is genuine and meaningful. Andrea Dermody offers her advice on how to embed a culture of true support and allyship Harvard Business Review defines gender allyship as the purposeful collaboration of dominant group members (men) with women to actively promote gender equality and equity in their personal lives and the workplace through supportive and collaborative relationships, acts of sponsorship, and public advocacy to drive systemic change. While allyship can be a powerful tool for creating inclusive and equitable environments, however, there are instances in which it might not be as effective as intended. Research has suggested a stark perception gap between what men think they are doing to support women versus what they are actually doing.  The recent Allyship-In-Action study of more than 1,400 men and women found 78 percent of men said they had personally given a woman credit for her contributions and ideas in a meeting in the previous year. Just 49 percent of the women in the study reported witnessing such behaviour during that period. Despite good intentions, the effectiveness of men’s allyship efforts may be limited by several factors, including: Superficial engagement: Some allyship efforts may lack genuine commitment and understanding of the issues at hand.  Tokenism and performative actions: Both can create an illusion of support without leading to meaningful change. Lack of accountability and measurement: Allyship efforts can lack direction and fail to produce tangible outcomes without clear accountability and measurable goals. Resistance to change and inclusivity: Resistance from certain individuals or groups within the organisation can hinder effective allyship efforts.  In short, allyship is more than just ‘talking the talk’. It’s about fundamentally changing attitudes and behaviours. Simply calling yourself an ally to any person of an underrepresented group misses the point of allyship altogether.  Steps to successful allyship The secret to successful, long-lasting allyship lies in the combination of interpersonal action (developing awareness and motivation) and public action to create accountability and transparency. Here are five steps you can take to help allyship succeed in your organisation.  Educate yourself: Don’t ask people from marginalised backgrounds to take on the emotional, psychological and physical burden of educating you. Take responsibility for yourself. This list of resources from the University of Kent is a great place to start. Listen: Actively listen and amplify the voices of the communities for which you are trying to be an ally. Without listening, you have the danger of venturing into ‘saviour’ territory, where you assume you know more about what marginalised groups need than those in that group. Your actions become self-serving, and you benefit more than the groups you are trying to help.  Reflect on your privileges: The word “privilege” can be polarising, but it is essential to recognise the privileges you have to be an ally for others. Use your voice to make the voices of marginalised people heard. Use your privilege and influence to advocate for change and promote inclusivity. Stand up against discriminatory practices, biases and systemic injustices.  Mentor others: As an ally, showing your support through mentoring programmes is a great idea. By getting to know your mentee as an individual, you can learn about their experiences and perspectives. The more you know and understand, the better equipped you will be to help. See something, say something: Speak out in support of marginalised groups and actively challenge discriminatory behaviours and policies within your sphere of influence. If you see someone being discriminated against, support them at that moment, not later. Intervene even if the targeted individual or community is not present. By demonstrating that you don’t find it appropriate, you can help change the culture and create a more inclusive and equitable society.  Remember, though, that allyship is an ongoing journey that requires continuous self-reflection, learning and active engagement – it’s playing the long game for success. Andrea Dermody is a diversity and inclusion consultant, speaker and coach at Dermody