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Challenge of establishing a common vision for EDI in a tense climate – The Irish Times
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Challenge of establishing a common vision for EDI in a tense climate – The Irish Times

Although the concept of equity, diversity, and inclusion (EDI) is currently facing a backlash in the United States, with 11 states introducing laws that restrict EDI initiatives, U.S. foreign direct investment (FDI) firms ) have led the world in progressive EDI. policies over the past decade. Their influence is evident throughout Irish organizational policies today.

Although a June Washington Post/Ipsos poll found that 61 percent of Americans think it is “a good thing” for businesses to invest in EDI initiatives, there have been media reports that companies were reducing their EDI teams.

The main criticism of EDI is that, if used incorrectly, it can do more harm than good by highlighting differences and dividing people based on their identity, thereby creating conflict and undermining cohesion. A major challenge for EDI proponents today, in the United States in particular, is reaching a common definition of EDI and agreeing, in a politically charged context, what it should look like.

There is a strong body of research to support the proposition that more diverse and inclusive organizations are likely to outperform their less diverse peers. A series of reports from McKinsey began in 2015 and culminated in 2020 with a study of 15 countries and more than 1,000 large companies, which found that not only did the business case for EDI remain strong, “but also that the relationship between diversity within leadership teams and the probability of financial outperformance has strengthened over time.

According to the American Psychological Association, “extensive research by psychologists and other scientists demonstrates that organizational diversity improves well-being, collaboration, and problem solving.”

Andrew Campbell-Edie, Head of Communications at the Irish Center for Diversity
Andrew Campbell-Edie, Head of Communications at the Irish Center for Diversity

Andrew Campbell-Edie, head of communications at the Irish Center for Diversity, says the US “has been interested in EDI longer than Ireland and has a lot of experience that we can learn from.” .

Campbell-Edie also points out that “the Altrata Global Gender Diversity 2024 report shows that the percentage of women on the boards of directors of major publicly traded companies is only 34.7 in the United States. Ireland performs better with 37.1 percent.

Fania Stoney is a business development strategist at Great Place to Work, which runs a certification and awards program to recognize organizations that go the extra mile for their employees.

“In Great Place to Work, we had the opportunity to see how knowledge exchange between US and Irish organizations has been a catalyst for advancing EDI,” she says. “This exchange allowed organizations to co-create frameworks that embrace diverse identities and experiences.”

Fania Stoney of Great Places to Work sees EDI as “lived values ​​that guide daily operations and decision-making.” Photography: Conor McCabe
Fania Stoney of Great Places to Work sees EDI as “lived values ​​that guide daily operations and decision-making.” Photography: Conor McCabe

One of the most successful EDI initiatives that Campbell-Edie has seen imported by EDI companies is the adoption of employee resource groups (ERGs), which he describes as “valuable platforms for engaging colleagues in sharing ideas and experiences that lead to positive change.” in workplace culture.

It notes that successful GREs are a common feature among the 25 organizations that have achieved Investors in Diversity Gold accreditation – among them IDA Ireland, Sun Life, Fidelity Investments and Grant Thornton.

Stoney agrees that collective effort is at the heart of EDI success: “This collaborative learning process encourages organizations to not only adopt best practices, but also to innovate in an inclusive way, leading to a work 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 work cultures that benefit all and respect all differences are becoming the norm rather than the exception, with a variety of stakeholders, from potential employees to consumers and shareholders, leading calls for change.

“This phenomenon is highlighted by the ‘war for talent’ that arises from increased economic growth in an era of full employment,” he says. “We are seeing a cultural shift in society and the workplace, coming from the bottom up, as millennials and older generations – who now make up the largest workplace demographic – drive choices.

“Additionally, trickle-down effect and norm-setting make leadership team buy-in critical to advancing D&I (diversity and inclusion) in company culture. Senior leaders now consist largely of the tail end of baby boomers and Gen Xers whose attitudes were shaped by the liberals of the 1960s.”