Diversity and Inclusion: Equal rights in a world of differences

The fight for social rights has been made at different speeds around the world. However - with an increasingly strong globalization and information easily reaching everywhere - themes such as Diversity and Inclusion mark the global agendas and dictate a constant action of civil society, companies and governments, in all continents.

This urgency is clear in the UN Sustainable Development Goals (SDGs) for 2030, where ODS 5 is dedicated specifically to Gender Equality. Equal opportunities and rights for men and women, as well as Diversity and Inclusion, are still present in the SDGs 8 (Decent Work and Economic Growth) and 10 (Reduce Inequalities).

As a whole, the SDGs related to Diversity and Inclusion encompass 31 goals, covering issues as distinct - but all as important - as gender, age, minorities, disability, religions, sexual orientation or economic conditions. Goals that can be summarized in three basic objectives:

• Achieve gender equality and empower all women and girls;
• Promote inclusive and sustainable economic growth, full and productive employment, and decent work for all;
• Reduce inequalities within countries and between countries.

The Importance of Education
It is often said that “education begins at home,” and education is actually one of the main axis of action to strengthen Diversity and Inclusion in society. Whether through school or the promotion and encouragement of good practices in the community in general, preparing the new generations is always a guarantee of future success, of a more fair society and, of course, fights prejudice.

According to UNESCO, more than a billion people have difficulties resulting from mental, physical or sensory disabilities and there are still about 140 million children who do not go to school, most of whom are children with disabilities. In addition to the lack of access to education, it is often the education itself that is not adapted to the needs of inclusion. Also according to UNESCO, only 41 countries officially recognize sign language and, in about 23 European countries, school curriculum’s do not address issues of sexual orientation, identity or gender expression. It is urgent to resolve access to education, but also to ensure that it is an inclusive education that embraces and celebrates difference, and we shouldn’t forget that teaching is also done outside of schools.

It is therefore important that the media give more and more space to these issues, mainly by raising awareness and denouncing situations of racism, prejudice or gender discrimination, which end up having effect all over the world. Look at the case of protests in the United States related to racial crimes, which then encourage similar protests in other countries. Or the recent reports on abuse and sexual harassment by media figures, which motivated the emergence of other complaints. Besides the television or newspapers, the cinema and arts in general have also invested more in Diversity and inclusion. Both in the content of films, series and documentaries, and in their form. Examples of that are the rules recently laid down for the Oscars from 2024 onwards, which require quotas for racial, gender or sexual minorities. The tone of the debate goes up, but the fact that there is discussion is already a path to change, especially at a time when the economy and society are still discussing the shakeup of the Covid-19 pandemic.

According to the most recent UN updates to the SDGs, the pandemic has aggravated the delay already noted in the adoption of some measures, and in the general evolution of indicators related to Diversity and Inclusion, which makes it even more urgent to answer these problems. Economic and social resilience in the post-pandemic era depends heavily on continuing efforts in this direction.

Diversity and inclusion are guarantees of economic success
A 2020 study by McKinsey states that the effects of Covid-19 are “the greatest test of leadership” for entrepreneurs and executives, but it reminds that "Diversity and Inclusion are powerful drivers of corporate success. Companies whose leaders welcome different talents and include multiple perspectives can emerge from the strongest crisis."

The North American consultant has studied the importance of these topics in the business environment since 2014, and indicates that the potential for business growth is much higher in companies with a culture that addresses and promotes them. Not only in terms of recruitment, but also in the day-to-day relationships between employees. According to McKinsey, a company focused on gender equality in its management teams, in 2019, had 25% more chances of improving its financial results, and 36% if ethnic diversity was well represented.

From the analysis of the practices of the most distinguished companies in Diversity and Inclusion, McKinsey presents 5 tips that can make a difference, both in the workplace and in the business environment:

1. Ensure diversity in the various departments or levels of hierarchy, thinking beyond gender and ethnicity.
2. Directly involve managers or directors in the diversity and inclusion strategy, as a way to ensure better implementation of it.
3. Strengthen equal opportunities through true meritocracy and transparency, in order to demonstrate career development and promotions with clear criteria.
4. Fighting discrimination, bullying, harassment and “micro-aggressions” in general with zero tolerance and rapid action.
5. Ensure a sense of belonging and true dedication through a business culture that accepts and promotes all “identities,” so that everyone feels that they can truly be what they are at work, the same as they are on the street or at home.

Increase GDP with the strength of women
A study by PwC, released in March 2021, focuses specifically on gender equality and the need to balance, both the presence and wages of men and women, in the labour market. According to the consultant, Iceland, Sweden and New Zealand are the countries where the occupational and wage differences between men and women are most blurred, among the 33 OECD countries analyzed. Portugal was ranked 9th in 2019, having dropped to the 11th position, one year later.

PwC also estimates the impact that an inexistent gender pay gap can have on the GDP of the OECD⁠ - made up of 37 countries⁠ - and the results are surprising. According to the consultant, eliminating wage differences (by rising women’s incomes) could increase the OECD’s overall GDP by nearly €1.7 billion. And matching women’s wages in general to Sweden’s figures - seen as a reference in Europe - would make the region’s GDP rise by more than 5 billion euros.

The Women in Work study indicates that there is a wage gap between men and women in Europe of 15% on average at the moment. Having already been done in a pandemic environment, it recalls that "unemployment rose across the OECD in 2020, and women lost their jobs faster than men. Covid-19 also extends the unequal burden of domestic work and unpaid care by women."

EDP among the world leaders in diversity
In the connection between companies and the United Nations objectives, one of the most involved entities is the WBCSD (World Business Council for Sustainable Development), of which EDP is one of the 200 main members. The WBCSD - a network of which the BCSD Portugal is part of - was established in 1995 and operates as a platform composed of thousands of companies from various sectors, seeking to accelerate the sustainable transition, which also goes through Diversity and Inclusion. It represents 5.000 companies, 19 million workers and more than 7 billion euros in business turnover. They are united by the sustainable economic growth, but also by the social challenges imposed by the SDGs.

The private sector in general, very attentive to civil society, has been increasingly active in the direction of Diversity and Inclusion, sometimes even ahead of political regulation. Nowadays, large global companies, such as EDP, have already created rules and codes of ethics, and many present annual reports, specifically on the performance over these matters.

Fighting prejudice and discrimination, and betting on difference as a path to find new ways, points of view and ways of acting, brings clear benefits to society, with effects also on the economy. A world in which social and professional justice is guaranteed for all, is a more sustainable, more humanistic and more progress-oriented world in general.

Now or Never