Illustration by Albert Rodriguez
There is an emerging but erroneous theory that diversity, equity, and inclusion (DEI) initiatives are at odds with the principle of meritocracy.
However, here in the Philippines, many companies are realizing the value of DEI as a core business strategy that drives innovation, talent retention, and overall competitiveness.
For these companies, DEI is vital, not adversarial, to achieving a truly meritocratic work environment. DEI initiatives represent an organization’s values and reflect its intention to recruit, hire and promote people based on their individual performance record, knowledge, skills and abilities. These values, principles and policies ensure that performance, rather than privilege, is the primary basis for getting ahead in the workplace.
We all have unconscious biases that cloud our professional judgment. These biases encompass a wide range of social, cognitive, and perceptual predispositions that affect how we perceive and interact with others.
Failure to acknowledge these biases leaves firms constrained to hiring and promotion practices that result in decisions that reinforce the characteristics, backgrounds, and experiences of their existing employee base, putting unlikely but equally talented candidates at a significant disadvantage.
This situation also causes employees who are different from the majority to play down their distinctiveness, resulting in the organization missing out on the positive impact of multiple and unique perspectives on problem-solving and overall performance.
DEI principles level the playing field by raising awareness of biases and allowing for a broader definition of talent and competency. For example, firms that cater to a broad spectrum of consumers have found that having an employee base that mirrors the diversity of their target markets results in products and service offerings that are more relevant and therefore attractive to their customer base.
Smarter teams
According to the NeuroLeadership Institute, “diverse teams tend to be smarter than homogeneous teams: They often think more logically, are more creative, and are more adept at identifying errors in thinking.”
Teams that enjoy multiplicity—a variety of perspectives stemming from differences in age, ethnicity, education, gender, socioeconomic profile, lived experiences, among others—encourage more reflection on individual reasoning and question conclusions more objectively.
“They share counterfactuals as they go; they don’t take things for granted, and there are minimal incidents of accepting things at face value. In short, diverse teams tend to come to better conclusions because those conclusions have been road-tested more thoroughly.”
Research published by the National Center for Biotechnology Information shows that a lack of representation undermines the generalizability of clinical research findings to the total population. Many groups underrepresented and excluded in clinical research can have distinct disease presentations or health circumstances that affect how they will respond to a drug or therapy.
Such a lack of representation in clinical trials costs hundreds of billions of dollars. Health disparities in diabetes would cost society more than $5 trillion through 2050, including mortality, morbidity, and loss of work. Heart disease would cost more than $6 trillion, and hypertension even more.
Lack of representation may also lead to a lack of access to effective medical interventions. Approval and indications for new therapeutics are often restricted to the demographics of the populations included in the clinical studies. Lack of representation may undermine trust. Studies of vaccine hesitancy for influenza vaccines in Black populations found that knowledge and trust in the process of vaccine development and testing were associated with a higher degree of vaccine uptake. Further, the lack of inclusion of pregnant people in the clinical trials of the SARS-CoV-2 vaccines led to a lack of clarity on the use of these vaccines in pregnant people and may have contributed to vaccine hesitancy, even as subsequent data emerged on the importance of preventing COVID-19 infection during pregnancy.
Performance driver
A related study conducted by the Boston Consulting Group also found that “nearly half the revenue of companies with more diverse leadership comes from products and services launched in the past three years… That kind of turbocharged innovation means that [diverse] companies are better able to quickly adapt to changes in customer demand.”
Creating an inclusive work environment where all employees are empowered to contribute and participate also drives performance as it enables people to discover the extent of their talents and capabilities. Deloitte’s research on inclusion reveals that when employees feel valued and included, their engagement levels increase by up to 30 percent.
High levels of employee engagement are closely linked with increased productivity, as employees who are empowered to fully participate in the workplace are more likely to put in the extra effort, show up to work, and be committed to their organization’s goals. Furthermore, inclusive workplaces see lower turnover rates, as employees are more likely to feel a sense of belonging, purpose, and satisfaction with their jobs.
Philippine data backs up these claims. An International Labor Organization enterprise survey examined whether gender diversity initiatives enhanced business outcomes, and over 84 percent of Filipino enterprises agreed this was the case.
Most Philippine companies in the survey recognized the benefits that diversity brings to their businesses: Over 73 percent reported increased profitability and productivity; 69 percent reported increased ability to attract and retain talent; 66 percent reported greater creativity, innovation, and openness; 61 percent said their company’s reputation had been enhanced; and more than half reported better ability to gauge consumer interest and demand.
Another study pointed out that having equal employment opportunity or diversity and inclusion policies, a gender balanced workforce, and a woman CEO are factors positively associated with achieving better business outcomes.
Filipino enterprises with such policies were 14 percent more likely to report that they had better business outcomes than those that did not have such policies.
Also, an analysis of six Southeast Asian countries by the IFC found that in companies with no women board members, the average return on assets (ROA) was 2.4 percent, compared with an average ROA of 3.8 percent in companies where women accounted for more than 30 percent of board membership, supporting the argument that companies with a higher proportion of women on their board are generally associated with better financial performance.
Supporting DEI
Creating equitable workplaces and societies is not just about fairness, it is also about unlocking the full potential of the world’s population to drive innovation, economic growth, and sustainable progress for all.
In this light, the Philippines Business Coalition for Women Empowerment has outlined ways we can support and accelerate action on women’s rights, equality, and empowerment together:
- Sustain the momentum by continuing to dismantle barriers and biases.
- Ensure fair hiring, promotions, and leadership opportunities through transparent and inclusive decision-making within our organizations.
- Close the wage gap by enforcing equal pay and salary transparency.
- Strengthen antidiscrimination and antiharassment policies in the workplace.
- Acknowledge and amplify what works. Highlight and replicate successful workplace gender-equality programs within our coalition.
- Use data-driven insights, research, and case studies to guide and measure the progress of workplace gender equity and inclusion programs.
- Foster women’s leadership through mentorship, sponsorship, and skills development programs.
- Partner with businesses, government agencies, and communities to champion gender equality.
- Encourage male allyship by empowering men to advocate for inclusive workplaces.
- Integrate gender equality into business strategies and workplace culture for lasting impact.
- Support legislation that supports women’s rights, workplace gender equality, and inclusion.
Change will only happen if we act together. Let’s continue to drive impact, challenge norms, and create a future where all people, regardless of background, thrive equally.
Julia Andrea R. Abad is the executive director of the Philippines Business Coalition for Gender Equality