Dive into the latest episode of Breaking it Down with Catalyst, a video YouTube series where Catalyst researchers and experts break down Catalyst gender equity; and diversity, equity and inclusion research.
Join host Rissa Pappas, Director, Production Editor and Catalyst experts, Emily Shaffer, Senior Director, Research and Sherazad Adib, Senior Director, Corporate Engagement as they dissect the age-old debate between the “business case” and the “fairness case” for diversity initiatives.
Emily explores the nuances of these two common rationales used by companies to justify their commitment to diversity, equity, and inclusion (DEI). From linking diversity to bottom-line results to championing diversity as a moral imperative, they break down the key components of each case.
Discover fascinating insights from Catalyst’s global research, “How to Talk About Diversity to Employees to Achieve Your Company’s Objectives,” including employee preferences for DEI messaging and the impact of each explanation on the employee experience.
Gain valuable perspectives from Sherazad who shares real-world examples of how organizations are navigating the delicate balance between the business case and the fairness case.
Wondering if companies should pivot to one messaging strategy over the other? Find out why it’s not necessarily an either/or decision and how organizations can strike the right balance to drive meaningful change.
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Transcript
00:00:08,958
Hello, I’m Rissa Pappas. I’m a Production Editor at Catalyst.
And I’m here with my fellow Catalystas, Emily and Sherazad.
Please tell us who you are and what you do at Catalyst.
00:00:20,041
Thanks, Rissa.
I’m Emily Shaffer. I’m a Senior Director in the Research and Development Department at Catalyst.
And I’m based out of Phoenix, Arizona.
00:00:26,958
Hi, my name is Sherazad Adib.
I’m a Senior Director at Catalyst, based in Montreal, Canada.
00:00:33,000
Thank you so much.
We’re here today to talk about the two common reasons companies give for supporting DEI initiatives internally and externally.
And they are known as the business case and the fairness case.
So, Emily, can you break those down for us?
00:00:49,333
Yeah, absolutely. We’re all probably familiar with the business case in some form.
It has to do with justifying your diversity efforts by linking diversity to an increase in your bottom line, which is probably what most of us think of, right, when we think of the business case.
But it’s not just that.
It also has to do with how it impacts, innovation perhaps, or your organization’s brand.
The fairness case, on the other hand, makes a case for investing in diversity because it’s simply the fair or the right thing to do.
So, it’s something that’s important to the organization and it’s consistent with their values.
00:01:23,833
Cool.
Thanks for explaining.
So, which of these explanations do employees tend to prefer?
00:01:29,541
Yeah, so it turns out that when we asked employees in 11 different countries around the globe whether they preferred their organization to use a business case or the fairness case when they’re talking about diversity, about half of respondents said that they really don’t have a preference for one or the other.
They wanted their organization to use the business case just as much as the fairness case.
But for the other half of folks who did show a preference, most of them said that they preferred the fairness case.
00:01:56,333
So, beyond employees’ personal preferences, does our research point to other benefits of one explanation over another?
00:02:03,750
Sherazad,can you speak to how you see this with Catalyst supporter companies?
00:02:08,375
Yeah, absolutely. I think one benefit that is really key here, is really important is the link between the fairness case and employee engagement and the intention to stay or even to choose the place that you want to work in.
And this is really a big trend that we’ve seen now for many years. And I think it’s going to be even more amplified with the arrival of the Gen Z in the work market.
00:02:38,541
Do either of these point to any negative consequences for the employee experience, Emily?
00:02:43,458
We actually did see that there can be some negative impacts of the business case.
So employees were more likely to say that they intend to leave their organization in the next year when their organization uses a business case for diversity.
And for members of marginalized groups, the use of the business case was associated with increased experiences of being on guard to detect bias in their workplace.
00:03:07,750
Sherazad, is that something that you’ve seen in your work with supporter organizations?
00:03:12,125
Yes, absolutely. I think that it’s sometimes the underlying message or the unintentional message behind the business case is that, you know, because you’re a woman or because you are
a person of color, you need to maybe outperform, and, you know, and you can’t possibly make mistakes.
And I myself, you know, have had this feeling of you know, not being allowed to make mistakes sometimes.
So, and we’ve seen that in the case of women CEOs, who were faced with more expectations sometimes.
So the fairness case sends, I feel, a much more inclusive message, and it’s all about valuing people.
00:04:03,958
So in the real world, which messaging are companies currently using?
00:04:09,416
We saw that over three-quarters of our respondents said that their organization uses both of these cases when they talk about their diversity efforts.
It’s far less likely that organizations are only using a business case or only using a fairness case.
So since we know that more employees seem to, of the ones who do have a preference one way or the other, that they do tend to prefer a fairness case or view it more positively.
00:04:34,333
Should we be telling companies that they should be pivoting to all fairness case all the time?
00:04:40,250
Yeah, it’s a great question. We show that when organizations emphasize the fairness case more than the business case in their DEI messaging, employees are more likely to experience inclusion,
say that their organization is fair and intend to stay with their organization.
To be clear, you know, the point of this research isn’t to vilify the business case.
The reality of the situation is that it doesn’t necessarily have to be an “either/or” decision for organizations.
It can be a “both/and”.
And it’s really possible to find the right balance here. So, I think that it’s really important, at a time when the business case needs to be made, to ensure that DEI programs continue,
that organizations can work to find that balance.
00:05:24,875
Now, from what I’ve seen in our supporter communities, that the business case can be more successful when there’s, it’s linked to, let’s say, or new services for the customer base,
for instance, so, to fit the needs of all customers.
When you try to connect DEI with your core business or your organization’s mission and DNA, I feel like it could be really successful.
You know, supplier diversity could be another example of, I think, how you can, you know, connect DEI to the business case.
00:06:09,875
Thank you for sharing your insights with me today, both of you.
You can learn more and read our report at catalyst.org.