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Fortune 500 companies are ramping up diversity, equity, and inclusion (DEI) in the workplace. As of January 2023, 10.6% of Fortune 500 CEOs are women, with Black, Hispanic, and Asian populations seeing a rise in employment rate, according to Builtin.

In the same report, over 40% of job seekers consider diversity and inclusion important when evaluating job offers. Interestingly, the usual 40% are considered "the best" in their fields.

As corporate giants aim for continuous growth and sustained profitability, investing in Diversity, Equity, and Inclusion (DEI) initiatives is the best solution.

What is DEI?

But what is DEI? Forbes defined it as a set of principles and practices aimed at creating a workplace environment where everyone, regardless of their race, ethnicity, gender, sexual orientation, disability, or other characteristics, feels valued, respected, and included.

Diversity refers to the variety of identities and perspectives present in a workplace. Equity focuses on ensuring fairness and impartiality in treating all individuals, particularly by identifying and addressing systemic barriers to opportunity and advancement. At the same time, inclusion involves fostering a sense of belonging and ensuring all employees have equal access to resources, opportunities, and support networks.

DEI initiatives strive to promote a culture of respect, acceptance, and appreciation for individual differences. Ultimately leading to more innovative, productive, and engaged workplaces.

Benefits of DEI

DEI initiatives not only allow companies to create environments where individuals from different backgrounds and experiences can collaborate, but they also lead to increased innovation and creativity. Forbes found that diverse teams are better equipped to solve complex problems and approach challenges from multiple perspectives, resulting in more effective problem-solving processes.

Take Apple, for example. The tech giant reported that in 2022, 35.3% of its global workforce identified as female, with 29.8% being Asian, 9.2% Black, and 14.9% Hispanic/Latinx. The company is also working to increase representation from underrepresented communities (URCs), with 50% of U.S. leadership roles filled by candidates from URCs in 2022.

44% of its global leadership roles are filled by women, and 55% of the US leadership roles are filled by candidates from URCs.

As of now, Apple enjoys a market cap of $2.37 trillion with $383.29 billion in revenues.

One of DEI's many benefits is employee engagement and retention. Employees who feel valued and included tend to be more productive and satisfied with their jobs. Consequently, companies experience reduced expenses associated with talent acquisition.

Beyond recruitment, investing in DEI improves a company's reputation and brand image, driving brand loyalty and attracting stakeholders who value diversity and social responsibility. Similar to how Microsoft became a standard for other companies to follow due to their D&I strategies-which led them to be an ethical corporation, resonating positively with customers, stakeholders, and the public at large.

How DEI Affects Business

How DEI affects business is seen financially and on brand. Companies with diverse leadership teams and inclusive cultures tend to outperform their peers, driving innovation, increasing market share, and achieving sustainable growth.

As mentioned earlier, Apple's commitment to diversity, equity, and inclusion has earned it recognition as one of the most innovative companies. Recently, VCPost reported that their integration of AI into Mac computers resulted in a massive $112 billion increase in stock value.

Microsoft, on the other hand, has been extending numerous partnerships globally, indicating that its brand image, rooted in diversity, equity, and inclusion, has rendered it accessible to investors and collaborators.

Fortune 500 companies have earned their place for various reasons, and DEI is one of the key factors. With its benefits and impacts on finances and brand reputation, it's an initiative that will likely become widespread among all companies soon.