Is it time to turn our D&I focus on our customers?
By Jo Faragher on 27 March 2023
It’s fair to say that 2020 was a wake-up call on diversity and inclusion for many companies. The twin challenges of the pandemic and the murder of George Floyd sparked discussions in thousands of organisations that they needed to move beyond making pledges and do something more concrete. Almost three years on, many employees feel more comfortable discussing issues such as race at work, and are open to the training and resources on offer. But in consumer-facing businesses, is this reflected in their outward campaigns? Alessandro Storer, head of inclusion and belonging at energy company OVO, thinks not. “We’ve become more accepting of the fact we must have uncomfortable conversations in the workplace, so why aren’t we doing this externally?” he asks.
Storer argues that there is more pressure than ever on companies to be authentic in the D&I space, and many have customer-facing campaigns that “broadcast” a message, or use advertising to tell consumers about their diversity credentials. “But this is one-directional,” he points out. “Could we have a more two-way conversation with customers about equity, respect and justice? As employees we expect to be involved, we work with employee networks, answer surveys – why do we not do this as consumers?” A very small example of businesses interacting with customers on inclusion is when supermarkets invite shoppers to vote for charities in store, but we could really amplify this discussion, Storer believes, admitting that OVO is at early stages on the journey with this.
Shereen Daniels, managing director of HR Rewired and an author of The Anti-Racist Organization, also finds this a bone of contention with brands. “There was a moment in time when banks and supermarkets could get away with this; we’d see them trying to get as much visible difference into their ad campaigns as if they were saying, ‘Look how much things are changing’. But fast forward to now and many consumers can see this is just window dressing,” she says. Internally these organisations may be increasing representation, she adds, but are not any better at answering questions on culture or what they did to improve diversity. “When candidates show up they have questions, but companies are still uncomfortable at naming what their issues are. And if you don’t name a problem, you can’t solve it,” Daniels argues.
Difficult conversations
One of the reasons these conversations don’t happen, Storer believes, is because companies are fearful of the negative feedback that could come out of asking customers difficult questions. “An obvious channel is social media, asking a question such as ‘do you think we are an inclusive brand?’ But they feel worried about opening up a dialogue,” he says. Opening up to consumers does not have to break the budget either, Storer explains, as it could be as simple as including some content about OVO’s work with schools on climate change with a customer’s bill, or adding some additional pop-ups to a banking app if customers want to know more. Without these interactions, customers don’t know about the good work that is happening inside the company, and brands are “missing a trick”, he adds. Addam Radha, senior consultant at Clear Assured, part of the Clear Company, believes businesses need to overcome that fear: “Transparency and honesty are vital so don’t be afraid to admit any shortcomings to your wider audience. Honestly helps set realistic expectations and promotes trustworthiness – after all, nobody is perfect. Increasing DEI is a cultural journey, and your statement will continue to evolve over time.,” he says.
Business and performance coach Dr Maurice Duffy says the consumer landscape is shifting when it comes to inclusion, and this is impacting purchasing decisions. “The most successful companies are reacting to this right now,” he says. These organisations are binning the traditional ways to attract and retain customers and designing compelling, personalised experiences – via advanced technologies – around products and services to better engage.” Often, he adds, consumers can receive an “emotional nudge” about a brand from how that brand’s employees perceive it. “The balance with good employee loyalty and consumer loyalty really does move the needle for companies that do it well,” he says. It’s also worth remembering that jobseekers and existing employees can also be consumers of your brand, adds Dr Duffy. “In my research with organisations across many thousands of employees, those who exit organisations often do so because of a lack of belonging, a lack of recognition and a lack of inclusiveness… what’s good for employees does, indeed, benefit a company’s bottom line,” he points out.
Ripple effect
Inclusion conversations and collaboration can also happen in the supply chain to positive effect. David Churchill, chief people officer at Endava, says that “an inclusive organisation that puts people at its heart often acts as a catalyst for their clients’ progress”. “This is because when a business prioritises building DEI into the foundation of their culture, they can then pass on learnings from initiatives, programmes and real-world experience to help other businesses enact change too,” he adds. “As well as the positive ripple effect of influencing others’ employee value propositions, inclusive organisations can better engage with clients and are more likely to build stronger relationships.” Where employees feel a strong sense of belonging and authenticity at work, he argues, they are more likely to build authentic connections with customers and other stakeholders.
Ultimately, businesses have come a long way with employees’ perceptions of D&I efforts in the past three years, but opening up that conversation with consumers could be the nudge for change organisations need.
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