5 minute read 19 Feb 2021
Overhead view of people walking on a colourful floor

How business can help create a more inclusive society

By Hywel Ball

EY UK Chair and UK&I Managing Partner, Ernst & Young LLP

UK Chair and UK&I Managing Partner. Leading our 17,000 people in the UK. FTSE 100 audit partner. Father of three and Welsh rugby fan.

5 minute read 19 Feb 2021

Business has a key role in building a more inclusive society, especially faced with rising pressure to address widening societal inequalities.

In brief:

  • Social inclusion is high on the agenda and the COVID-19 pandemic has shone a light on the existing disparities. 
  • The onus is on businesses to create environments where diverse talents can flourish. 
  • Diversity and inclusion is no longer an optional nice to have. Society, shareholders, government and business increasingly demand it. 

The pressure to address widening inequalities within society is rising. Not only from those who feel left behind, but on a government keen to build back fairer and on businesses facing increasing scrutiny from customers, employees and investors. The instincts of these stakeholders are right – business, as a major employer, investor and job creator, has a key role to play in all the big challenges we face, from racial and gender inequality to regional levelling-up and, of course, climate change.

The question for business is how to address these issues in a way that rebuilds trust in society and protects our planet, while at the same time delivering value to all our stakeholders, including investors. 

Or perhaps, as I believe, there is no dichotomy at all; addressing social inclusion can be a long-term driver of value as well as a moral and social imperative.

In our recent webinar The Leaders’ Perspective: What’s the role of business in achieving a truly inclusive society? I was joined by an esteemed panel drawn from government, business and not-for-profit organisations. The fact that we had over 2,500 attendees from 70 countries and across 20 sectors indicates that this subject is not only rising up the agenda – it is setting it.  

My first takeaway is that there has never been a greater opportunity to act, even though it was created by the most devastating of events - the COVID-19 pandemic.  

In relation to social inclusion, I believe the pandemic has brought two big shifts. Firstly, while it deepens existing inequalities – whether racial, income, regional or gender – it also shines a light on them. For example, we can see clearly how ethnic minorities are hit hardest and how home-schooling favours the already advantaged. Secondly, it focuses minds and turbo-charges collaboration, increasingly between business and government. Actions that historically would have taken years took just days and the public quickly saw what businesses ‘were for’, highlighting the value of purpose. We cannot waste this opportunity.

Making progress – where to begin?

Perhaps it’s best to talk from my own experience as UK Chair of EY. Our approach is to start with stakeholders’ needs but, of course, each business will weight these differently. At EY, we rely on the talent of our people, so diversity and inclusion is a key area of focus. 

We want to recruit the best, so we need to draw from the widest and deepest pool – that means having diversity and inclusion at the heart of our recruitment practices.

But recruitment alone is not enough – we need to create an environment which allows a voice for all and one in which diverse talents can flourish. That means changes in culture as well as workforce.  The business case is that there is little value in recruiting a diverse workforce if they cannot realise their potential. 

The benefits also flow to another critical stakeholder, our clients. In a rapidly changing world, where traditional approaches may no longer be enough, diversity of thought is crucial to clients’ success as well as ours. That’s not likely to happen if an organisation recruits the same, narrow type of employee. So, we get a better workforce that creates greater value, our clients get better results, and we fulfil our purpose of Building a Better Working World.

From initiatives to action

When the COVID-19 pandemic hit, some organisations hit the pause button on many initiatives as they struggled with more immediate priorities like cashflow. 

At EY, we honoured all our youth job commitments.  As a result over 1,000 graduates and apprentices joined us last year – 45% based outside London and 41% from ethnic minorities. Not just because it was the right thing to do for one of the hardest hit demographics, but because the impact of stepping back from a key element of our talent strategy might be felt for decades to come. 

Talking of numbers, when it comes to social inclusion, I’m a great believer in setting targets first and worrying about how you are going to meet them later – innovation and determination will find a way.  That’s why we were prepared to make our anti-racism commitments, including setting a target of 6% of our Partners to be Black by 2025. 

Looking ahead

For those who don’t see the carrot, let me introduce you to the stick. Failure to grasp the opportunity now means that the pressure will only mount. And that angry mob at the gate is now a pretty mixed bunch – from institutional investors to political activists, from shareholders to a younger generation with the power to make or break the future of your business. It’s less about whether you can afford to help make the world a better place, it’s more about if you can afford not to.

Summary

In a rapidly changing world, where traditional approaches may no longer be enough, diversity of thought is crucial to business success. In relation to social inclusion, the pandemic has brought about two big shifts. Failure to grasp the opportunity now means that the pressure will only mount. And that angry mob at the gate is now a pretty mixed bunch – from institutional investors to political activists, from shareholders to a younger generation with the power to make or break the future of your business. It’s less about whether you can afford to help make the world a better place, it’s more about if you can afford not to.

About this article

By Hywel Ball

EY UK Chair and UK&I Managing Partner, Ernst & Young LLP

UK Chair and UK&I Managing Partner. Leading our 17,000 people in the UK. FTSE 100 audit partner. Father of three and Welsh rugby fan.