If you know me, you know how I feel about placing DEI in the organization’s Human Resources function. It is short-sighted and limits the impact of diversity, equity, and inclusion in all aspects of the business – from employees to customers to the community. Over the last two years, many organizations have noticed those limitations. They have placed the DEI function in one of two other places – Corporate Social Responsibility (CSR) or Environmental Societal and Governance (ESG). But are these functions also limiting, and what does it mean for DEI sustainability?
What is CSR?
According to the United Nations Industrial Development Organization, Corporate Social Responsibility is
a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders.
This expands the scope of the impact DEI can make. Still, it is seemingly outside the organization and does little to change internal policies and hiderances to equity.
So what is ESG?
Investopedia states –
Environmental, social, and governance (ESG) investing refers to a set of standards for a company’s behavior used by socially conscious investors to screen potential investments.
Environmental criteria consider how a company safeguards the environment, including corporate policies addressing climate change, for example. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
This makes a bit more sense to me. However, how does this work with Human Resources if ESG manages employee relationships? Does it have oversight over HR? And if it is a set of standards, how equitable are they?
In this week’s episode of DEI After 5, I sit down with Kim “Kimfer” Flanery-Rye, MBA, to discuss the intersection of DEI, Corporate Social Responsibility (#csr), and Environmental Societal and Governance (#esg). We also touch on the recent trend of reducing or eliminating DEI in light of the pending recession.
Listen to this episode on your chosen podcast platform, or click here to listen now.
Looking for support for your organization’s efforts? Schedule your consultation with The Equity Equation today – https://theequityequationllc.com/dei-consultation/
Support this podcast: https://anchor.fm/deiafter5/support
This episode is sponsored by
· Anchor: The easiest way to make a podcast. https://anchor.fm/app