Diversity Deep Dive

According to the Harvard Business Review, when companies focus on inclusion & belonging it leads to a 75% reduction in sick days, 50% decrease in turnover risk, and 56% increase in performance in the workplace. Over the years, many companies have made bold statements on diversity, equity and inclusion but have fallen short on actions. In June of 2017, 150 CEOs from distinguished companies across all industries joined forces and formed the CEO Action for Diversity & Inclusion by pledging to support and advance efforts to build more inclusive and respectful workplaces for all.

According to a Washington Post article, at the start of the COVID-19 pandemic, jobs for diversity, equity and inclusion professionals plummeted by an estimated 60% in the US. As companies were bracing for an economic downturn, it was common to make tough decisions on what roles were critical vs. non-critical. However, no one could have imagined the shift in corporate views on the importance of diversity, equity, inclusion and belonging until the summer of 2020 when social justice protests and global outcries due to the death of George Floyd. It sparked serious conversations on racial inequities in the workplace and society as a whole. Many companies made bold statements to support social justice but have fallen short of actionable plans.

According to the National Foster Parent Association, Charles Loring Brace started the foster care movement due to the large number of immigrant children and orphans sleeping on the streets of New York City in 1857. Over the years, it has transformed from a ministry outreach to a government led social support system. Today, approximately 400,000 children are in foster care in the United States. More than 50% of children in the system are from diverse and underserved communities. Each year more than 200,000 children age out of foster care due to turning 18, 21 or finishing high school, depending on the state. Without family support or a plan, many fall victim to poor outcomes including getting trapped in human trafficking. Foster care may be where one starts in life but it does not define a person’s destiny or their journey to greatness!

Earlier this year the World Economic Forum released the 2020 Global Gender Gap Report in which it highlighted that it will be close to 100 years before we see gender parity. A more sobering realization is that due to COVID-19, and the reimagined workplace where work and home responsibilities have intersected, many women are scaling back their careers. In a recent Department of Labor report on unemployment, women have left the workforce at four times the rate of men. Women are often the caregivers, and COVID forces schools to close and distant learning, women are juggling in a pressure cooker to the breaking point multiple priorities at home and at work.

A recent survey conducted by Catalyst, reveal that 48% of working parents believe that they will need to reduce their hours or move to part-time work in the coming months due to the impact of COVID-19. Furthermore, the study highlights that nearly 33% are fearful that they will lose their employment in the next six months. Undoubtedly, COVID-19, is having a catastrophic impact on working families. This global pandemic has exacerbated the struggle of working parents’ ability to successfully integrate work and home life priorities. From the loss of adequate childcare, elder care or after school programs, many working parents are being forced to scale back on their career trajectory and focus on their home responsibilities. For single parents without a sufficient support system, COVID-19 has led to an increase in mental health stress and burnout.

According to a recent study by the Bob Woodruff Foundation, there are roughly 18 million Veterans in the U.S. Many of them work in industries hit hard by COVID-19. Rising unemployment and uncertainty fuels the crisis further. As a result, some Veterans and their families do not have sufficient savings to cover their day to day expenses for more than one or two months. Furthermore, a Pew Research Study on unemployment indicates that there are more people impacted by unemployment due to COVID-19 than at the peak of the Great Depression. Particularly we see women hit the hardest with up to 14% unemployment. Active military spouse unemployment has been as much as 25% this year. As military spouses were being largely underemployed pre-COVID-19, the pandemic has an insurmountable impact on their economic and mental health. It is critical, as we weather the current pandemic, to continue pushing for veteran and military spouse employment.

According to Johns Hopkins University, as of July 23, 2020 more than 15 million people have been infected with COVID-19 worldwide. In the U.S more than 3.9 million people have been diagnosed and more than 141,000 deaths have been reported. This global pandemic has forever impacted our lives and businesses. The unique challenges spurred by COVID-19 has caused many companies to pivot to a reimagined workplace as well as seek innovative solutions to meet the changing consumer demands. However, many certified diverse businesses have long faced systemic barriers to economic inclusion and wealth generation prior to COVID-19. Now more than ever, we need corporations to focus on strengthening and diversifying their supply chain for a sustained economic recovery. It starts with supporting certified small and diverse businesses.

Women-owned businesses are one of the most significant drivers of innovation and job growth in both developed and emerging markets. WEConnect International strongly believes that this is the time to rebuild global business for good by ensuring everyone has an equal opportunity to contribute to and benefit from the recovery. We know that companies and governments proactively investing in supplier diversity and inclusion will reap major dividends as we seek to recover from the global pandemic and systemic inequality. The reality is that today women only account for about 1 percent of the global spend on products and services by corporations and governments. In addition, women-owned small and medium enterprises (SMEs) in emerging markets still face a US$1.5 trillion annual credit gap that needs to be closed. However, they are often untapped resources for inclusive growth, which is particularly true for women of color. WEConnect International recognizes that engaging women as business owners from the beginning to the end of global value chains is critical now more than ever and the payback is worth trillions of dollars. As businesses work to recover from the COVID-19 crisis and learn from the mass protests for justice and equality, know that WEConnect International will continue to help lead the effort to rebuild the global economy for good. When women gain access to finance and their sales increase, they invest in the health, welfare and education not only of their households but also in their communities, yielding measurable prosperity for all. This is not only the right thing to do morally but good for corporate bottom lines and government policy. If all entrepreneurs had equal opportunities, including access to markets, global GDP could rise by as much as 6 percent, boosting the global economy by US$5 trillion.

According to the Centers for Disease Control and Prevention (CDC), more than 1 million people in the U.S. have been infected by COVID-19 as of April 30, 2020. This global pandemic has swept across communities leaving devastation and heartbreak behind. It has highlighted a longstanding problem of healthcare disparities plaguing poor and underserved communities which are most often populated by a large number of minorities. A more sobering realization is that the hospitalization and death rates which are disproportionately impacting African- American and Hispanics. In a recent Washington Post analysis, which compiled data from nine jurisdictions reporting infection and death rates by race, African Americans died at almost six times the rate of Caucasians.

According to the World Health Organization, as of April 2020, the novel coronavirus has infected more than two million people in 213 countries. Worldwide there have been reports of anti-Asian discrimination. According to the Asian Pacific Policy & Planning Council, the United States has seen a 17% increase in discriminatory behavior since the onset of the global pandemic. The behavior ranged from harassment, childhood bullying, being barred from establishments, to verbal and physical attacks. At the cornerstone of diversity and inclusion are respect, civility, compassion, understanding, and empathy toward all humanity. Diversity defines how we describe our unique characteristics and differences. Inclusion is how well we are embraced and welcomed. Belonging transcends both diversity and inclusion; it is a sense of being able to unmask and be who we truly are in the workplace and all spaces we occupy without labels, stereotypes, fear, or feeling uncomfortable.