It is easy to neglect D&I in favour of the multitude of other items jostling for attention at the top end of the board agenda. Increasingly urgent environmental concerns, supply chain challenges, a looming recession, and cyber risks will all be front of mind.

However, in the wake of the global pandemic and in a time being labelled as the “Great Resignation”, boards should also be asking themselves this key question: why would talented individuals want to work in our company, without a culture that fosters a climate of trust, integrity and inclusion?

It’s not easy

The reality is that D&I quite often tumbles down from the top of the to-do list and languishes closer to the middle or bottom. Competition for the top of the list is fierce. But why do boards allow this slump to happen when the business benefits of D&I and the positive impact on performance are so clear and well-articulated?

Context and situational circumstances often have a role to play here. But, at the risk of over-simplification, a key reason is often this: D&I requires genuine hard work and effort. It demands a high cognitive load and there is no ‘one size fits all’ short-term remedy. D&I requires leaders to lean into uncomfortable conversations and to confront the unknown.

When the board is seeking reassurance from the leadership team on how they are fostering an inclusive workplace, it should look for evidence of consistent role-modelling, accountability and responsibility, and an environment where people are able to use their voices, are actively heard and responded to.

All of this takes time, space and conscious effort. If the leadership team are finding inclusion easy, then arguably they are doing it wrong.

In the same way, nurturing a culture that is purpose-driven, values-led and embraces inclusion as a business force for good also demands a high level of attention and significant oversight from the board. It is clear that boards need to be alert and ready to undertake what it takes to make inclusion a reality from their position of governance and oversight.

The need for vigilance

Now is not the time to take your eye off the D&I ball. Yes, the board agenda is full and there are competing demands from all quarters. But this cannot be an excuse to dilute the criticality of D&I and relegate it to the lower ranks. The need for vigilance is more acute than ever.

Inappropriate behaviours and workplace misconduct will happen unless there is active, rather than passive, inclusion at all levels of the business, starting from the top down. Active inclusion means consistently stepping in and challenging language and behaviours that are not in line with company values, creating a psychologically safe space for people to use their voice, and holding others visibly to account when required.

All of this, alongside a clear set of well-defined and strategically aligned policies and procedures, is what it takes to shape a culture where difference is recognised and celebrated, and where the value and net worth of every single person means something.

All too often, good intentions on D&I end on a passive note rather than an active one. This passiveness can manifest itself in an appearance of listening, but not actually hearing what is being shared. It can be seen in the expectation that others will fit in and conform to the behavioural norms, rather than a curiosity about whether those behavioural norms are aligned to the company values.

Words alone will not create a workplace built on trust, respect and dignity. Only by reinforcing words with aligned and consistent behaviours can you start to mitigate the risk of creating a ‘say-do’ gap, and instead create an opportunity for a high performing, inclusive business environment.

The risk and opportunity of D&I – call to action

The impact of relegating D&I is widespread, and repercussions will reverberate across all parts of the business. Culture-related matters of misconduct and behaviour can lead to a lack of innovation and creativity, challenges with talent attraction and retention, and low levels of employee well-being – not to mention regulatory fines, reputational damage and potential enforcement action.

The opportunity to unlock D&I as a business force for good is absolutely there, if prioritised as a strategic business imperative. That doesn’t necessarily mean introducing yet more rules or policies into the workplace, especially when many organisations are already leading with a set of ethical values, desired behaviours and a corporate purpose. Use these as your North Star to navigate business conduct.

Elevate inclusion to be a must-have key performance indicator of your business. Centre your purpose as the corporate moral compass that directs the board to secure a place for D&I right at the top of your post-holiday to-do list.

It will be worth it.

Tracey Groves is a partner at StoneTurn, a global advisory firm on regulatory, risk and compliance issues.