How to gain shareholder support for investments in inclusivity

We recently received an insightful question from one of our LinkedIn connections. It was such a thought-provoking topic that we decided to explore it further in this blog post. Here’s the question in full:

Shareholders tend to believe that their next dividend payout is the number one priority. Even if they deny it, their behaviour tells the tale. Investing in infrastructure, training, and measures to increase inclusivity might have a short-term dent on that, although it is an issue that some of us believe should be high on the agenda. Obviously, raising the idea of investing in inclusion might result in some murmurings at the shareholders meeting. How should business address this?- (Thanks to Paul OrangeTree for the question).

It’s perfectly understandable—and quite common—for those controlling company finances to approach investments in inclusivity with caution. This hesitation often creates a classic "chicken and egg" scenario. Why? Many senior stakeholders are wary of investing in inclusivity because they lack a clear understanding of its benefits. Couple that with the recent backlash against DEI policies and their outright removal at places like Walmart, caution is understandable. However, part of building inclusive workplaces involves educating leadership to bridge this knowledge gap.

So, how do you persuade decision-makers to invest in something they don’t yet fully understand?

The best way to do this is to demonstrate the business case for inclusivity- a skill we at Bascule have honed over many years! The way to a shareholder’s heart is by showing potential ROI and tangible benefits and there are many ways you can do this. 

Firstly- there is an abundance of research to show the potential gains from developing inclusivity. Start by showing stakeholders evidence that the inclusive workforces can drive improved business outcomes.

Here are a handful of stats that will start to convince those on the fence, based on finance and company/employee performance. 

• Highly inclusive companies are more likely to hit their financial target goals by up to 120% (DriveResearch2023)
• Corporations identified as more diverse and inclusive are 35% more likely to outperform their competitors. (McKinsey)
• Diverse companies are 70% more likely to capture new markets. (HBR)
• Diverse teams are 87% better at making decisions. (People Management)
• Diverse management teams lead to 19% higher revenue. (BCG)

After that, you can present the wealth of information that demonstrates how inclusive workplaces attract and retain staff whilst also widening the net for talent - for example: 

• Around 63% of employees across all generations said they prioritize DEI programs when it comes to choosing which company to work for, while 73% of Gen Z and 68% of Millennial respondents said the same. (EY)
• 2 out of 3 job candidates seek companies that have diverse workforces. (Glassdoor)
• 74% of millennial employees believe their organization is more innovative when it has a culture of inclusion, and 47% actively look for diversity and inclusion when sizing up potential employers. (Deloitte)

In fact, there is enough research out there to present a pretty good case for inclusive and diverse workforces leading to- higher innovation, improved levels of creativity, better decision-making, employee retention, job satisfaction, enhanced productivity- and the list goes on. Spend a bit of time delving into the research and you’ll find that investing in inclusivity can, not only strengthen the company’s bottom line but also position it as a leader in the market.  Communicating these benefits can effectively align shareholder expectations with inclusivity goals.

Then, there’s risk management –(another topic that picks up the ears of the upper levels of the hierarchy). I’ve never been a fan of using the negative aspects of ignoring inclusion, but it’s worth throwing in that a failure to invest in this area could lead to lawsuits, talent loss, additional recruitment fees, not to mention reputational damage.

If you need more to convince the company brass, you could always survey your own staff internally and present their opinions. If you’ve already progressed with any form of EDI – show how it has improved engagement and morale, etc as a way of gleaning further investment and encouragement. 

Finally- use case studies of companies that are similar to yours in size and industry that are leading the way in inclusive practice, or household names that are openly discussing their commitments to disability inclusion and how it has benefitted them. The Valuable 500 is a good place to start and they have many case studies exemplifying the successful journeys of their member organisations. 

As the journey towards inclusion unfolds, be sure to engage those shareholders in the progression, invite them to networks and steering groups, report back to them with transparency about why inclusivity matters to the business. One of the best things you can do, is get a 3rd party to educate them through disability awareness training (from a user-led trainer). The more they learn, the more open minded and understanding of the benefits diversity and inclusion bring. 

They will be encouraged through engagement and education, and much less likely to resist change when they feel informed and included in the journey.

Chris Jay, Managing Director and Founder of Bascule Disability Training

IF YOU HAVE A QUESTION FOR CHRIS, BASED ON DISABILITY INCLUSION IN THE WORKPLACE, PLEASE FEEL FREE TO POST IT IN THE COMMENTS, OR EMAIL AT INFO@BASCULE.COM