"Companies with a commitment toward economic and racial equity will find doing the right thing will also ultimately be good for business."
Being intentional about diverse hiring at all levels of the organization from entry level to the board room, is a critical first step in committing to diversity and inclusion in the workplace...
Retail industry insiders are looking to build more inclusive organizations and brands by enhancing enterprise-wide practices. D&I will undoubtedly play a major role in this transformation.
The deaths of George Floyd, Brianna Taylor, and Ahmaud Aubrey became a wake up call for many. Individuals and corporations were galvanized to look at privilege, racism, inequity and unconscious bias with a new lens. I know I have not been alone in having difficult conversations with my black friends and colleagues. At the same time, corporations have made statements of commitment to racial justice and economic equity and many of those same corporations have pledged millions of dollars to various social justice organizations.
Diversity & Inclusion (D&I) has been part of the corporate landscape for years. Initially, many of these initiatives were primarily focused on recruiting and hiring diverse talent. That is not surprising as it is shown to have a positive influence on retention and overall job satisfaction as noted in the work and research of global nonprofit, Catalyst.
However despite the obvious benefits, there are many frustrated D&I professionals. This is because many initiatives just scratch the surface and were not applied across the company in a broad and sweeping manner. Granted, there are some companies who have embraced and implemented the concept of D&I into their culture. But unfortunately, I think that might be the exception rather than the rule.
Now we find ourselves in a time and place where consumers are calling upon corporate America, including retailers, to do more to combat the social issues demanding attention and resolution. There is no question, we need more than “messaging” or pledges to move the needle toward real change. However, as corporations deal with a pandemic, economic challenges, social unrest and political turmoil, what are realistic expectations for change?
One possible solution is an investment in a comprehensive D&I strategy– one that is about more than general hiring practices, compliance and checking a box. One that is committed to real change and fully integrating D&I principals into every facet of the organization. It is not really a question of whether there is room for D&I in business strategy but that companies must make room. It is time to “walk the walk” and not just “talk the talk”.
Being intentional about diverse hiring at all levels of the organization from entry level to the board room, is a critical first step in committing to diversity and inclusion in the workplace. But having a diverse workforce is not enough. It is also crucial that all employees have an opportunity to contribute in a meaningful way toward the development of strategy, sourcing of brands and products, and site selection which will allow companies to gain a clearer understanding of today's diverse consumers and their wants and needs. Corporate leadership must also make a commitment to not only listen, but to also be willing to make decisions that may at first seem uncomfortable or outside the “normal course of business”.
“Companies that embrace diversity and inclusion in all aspects of their business statistically outperform their peers.” Josh Bersin, industry analyst and researcher
Two well known companies in the retail industry, Levi Strauss & Co and JLL were recently recognized by Forbes on its 2020 America’s Best Employers For Diversity List at #7 and #11 respectively. This past summer, Ralph Lauren Corporation announced the appointment of Darren Walker, President and Chief Executive Officer of the Ford Foundation, to its Board of Directors and just last week added Valerie Jarrett, Senior Distinguished Fellow at the University of Chicago Law School, to that number.
Momentum is building. Target Corporation, known among its peers as a ground breaking innovator, has established the Racial Equity Action and Change (REACH) committee a cross functional leadership team to drive inclusivity throughout the organization for both customer and employee populations. There are numerous companies we can look to for inspiration and benchmarking; these are just a few noteworthy examples. The reality being the retail and retail real estate industries can and should do more.
I also believe companies with a commitment toward economic and racial equity will find doing the right thing will also ultimately be good for business. This is confirmed by a 2018 McKinsey & Company report which says their “latest research reinforces the link between diversity and company financial performance—and suggests organizations can craft better inclusion strategies for a competitive edge.” For additional verification, just take a look at the growth trajectories for Wal-Mart, Target, Ulta Beauty and Levi Strauss & Co.
While messages of support and financial contributions to meaningful causes are important, it is imperative for retailers and others in the retail real estate industry to really listen to the voices of employees, customers, vendors/suppliers and communities - then commit to changes that will have a lasting positive effect on people and the communities where they do business. And, doing so may even be the catalyst for surviving and growing business during a pandemic. Retailers should commit more than words and dollars but also commit to moving their business strategies toward racial and economic equity.
What do you think, can Diversity & Inclusion initiatives be the vehicle for advancing racial and economic equity for retailers and the communities where they do business?
About the author: Co founder of the MAS Project, Cynthia Stewart has a passion for enhancing communities both large and small. A retail & travel maven, she has visited 47 states, 18 countries, and brings over 35 years of experience in retail real estate advocacy, and government relations. Oh, and she still has three more continents to explore.
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