Although US businesses are making good progress in advancing diversity, equity, and inclusion (DE&I) within their organizations, a new report from Marsh and RIMS found that there are still “substantial shortcomings.”
The report, “Excellence in Risk Management Report,” found that 71% of organizations surveyed have increased their focus on DE&I over the past five years. However, it also revealed that only 54% consider the lack of a DE&I strategy a core business risk.
Marsh and RIMS indicated that, based on the findings, many companies do not fully comprehend the consequences of an inadequate DE&I strategy. These consequences include failure to attract and retain top talent, losing clients, reputational damage, and potential lawsuits. The report also identified areas that require more attention, such as training, mentorship, and sponsorship, noting that only 47% of respondents said their companies offered training to improve DE&I to all employees.
“As society continues to grapple with inequities highlighted by the ongoing COVID-19 pandemic and other recent events, creating a diverse, equitable, and inclusive corporate culture is critical,” said Marsh US and Canada division president Martin South. “Now, more than ever, effective risk management requires organizations to embrace diverse opinions. Advancing DE&I is not just the right thing to do – it’s imperative to businesses’ viability and growth.”
Other key takeaways of the report reveal that:
- 29% of respondents said that DE&I increased “significantly” in their workplace, while 42% said it increased “somewhat;” 23% said it stayed the same.
- 40% of females and 27% of males said they are members of their organization’s DE&I strategy development team.
- The three top benefits of DE&I, as identified by respondents (by gender), are:
- Developing best practices to eliminate bias in talent processes (70% of females answered this, and 51% of males)
- Building our leadership accountability metrics in DE&I (64% females, 43% males)
- Developing stronger education around DE&I (56% females, 42% males)
- While most organizations take DE&I into consideration when hiring new members (58%), only a portion of respondents considered DE&I in terms of promotion (38%), mentorship (35%), and investing resources in team diversity initiatives (35%). Also, only 20% of respondents said they keep DE&I in mind when selecting vendors and suppliers.
- Public companies have been observed to take more DE&I initiatives than private companies.
- 43% of respondents said that their CEO is the main driver of DE&I within their organization.