Experts Highlight Benefits of Diversity in Businesses

Diversity in business is hampered by a data gap, according to a new research from Brunel University.

The research was sponsored by the Association of Chartered Certified Accountants (ACCA) and the Economic and Social Research Council (ESRC).

In addition, the research revealed that organisations globally often lack basic information about diversity in the workforce or their marketplace.

The paper also urged companies to involve the finance function to identify data gaps and then measure, analyse and interpret the data.

Head of Policy and Campaigns at ACCA, Claudia Chapman said the expertise of the finance team could help demonstrate the linkages between good diversity management and business performance.

Chapman added: “The finance function could help diversity managers overcome some of the hurdles to success such as the pressure for short-term business results and lack of support within the business.”

Furthermore, the paper recommended that an effective business case for diversity should not just focus on the bottom line, but also account for shareholder value, stakeholder value, regulatory context as well as the global value chain of the company’s operations.

Brunel’s academic experts offered four recommendations for businesses regardless of the sector in which they work. This include to customise the business case taking into account a wide range of stakeholders and the environment; to make data central to design; give the finance function a central role in the design of a business case; and prepare the business to focus on medium-term and long-term gains to see the greatest benefit.

Nikki Walker, of the Diversity and Inclusion (D&I) Consultancy said: “Business people focus on what they think will bring business value. Unless you can demonstrate to senior business leaders and to managers that there is value in them doing something different, why would they do it?”

Chapman pointed out that there is clear value in the finance function and accounting teams being included in demonstrating how business impact of workforce diversity could be measured.

Chapman pointed out that finance can strengthen diversity business case, enable accountability and governance.

Culled from: http://www.thisdaylive.com