Question

Principles of diversity and inclusion are important to improve the effectiveness of a business, but these may be challenged by the need to remain efficient, profitable and sustainable. Discuss what role responsible, ethical management plays in this and whether it is important for the success of the business.

Answer 1

Q: Discuss what role responsible, ethical management plays in this and whether it is important for the success of the business.

A: The principles of diversity and inclusion should not be viewed or considered as running contrary to efficiency, profitability, and sustainability objectives or goals of an organization. On the contrary, it should be considered as an investment in people where diversity and inclusion build human capital and win trust and loyalty in the organization. Diversity means a large variety of people from different backgrounds such as ethinicity, gender, age, religion, etc., and inclusiveness means making people feel comfortable and create a sense of belongingness in an organization. A fine balance can be struck where diversity and inclusion can co-exist and don't need to be contradictory to each other. As for example, diversity implies getting a large variety of people on board and making them comfortable does not mean at the expense of hurting others sentiments or beliefs. Organizations can draw on diversity through on a vast variety of skills and talents and should be nurtured and preserved. This diversity will actually help grow an organization in the long run.

An environment of collaboration and cohabitation needs to be created and maintained in such organizations. Organizations need to implement laws of the land pertaining to equality and diversity in order to be compliant and be an Equal Employment Opportunity Employer (EEOE). To borrow from the famous quote of Ralph Waldo Emerson, “Every great institution is the lengthened shadow of a single man. His character determines the character of the organization”, the senior management team of the organization headed by the CEO should take the lead and nurture diversity and inclusiveness to set the pace in the organization and drive the change. There should be a clear human resource policy and a complaints handling procedure in place which should be transparent, and fair. Ethics plays a major role in driving and sustaining change. Ethical leadership and ethical intelligence in business are the key differentiating factors and the new management and leadership mantra. Thus, an ethical management plays a very important and responsible role in the success of the business by upholding an environment of diversity and inclusiveness.