Why Minnesota Businesses Must Embrace True Diversity to Thrive

What Companies Should Consider About Diversity

There’s a national debate raging over diversity in business right now. Regardless of your stance, it directly impacts Minnesota businesses and their employees.

Imagine stepping into a vibrant art gallery, expecting creativity and color, only to find every piece is a dull gray. This scenario mirrors the current landscape in federal workplaces where diversity, equity, and inclusion (DEI) programs are being rolled back under the new administration. Some businesses are following suit, raising critical questions about the future of diversity in the workplace.

The Risks of Rolling Back Diversity Initiatives

Major corporations like Bank of America, Walmart, and Meta have reversed their commitments to diverse recruiting and DEI programs. This shift poses a financial risk; 76% of Gen Z consumers, who wield a spending power of $450 billion, consider DEI crucial in their brand choices.

The Business Impact of Losing Diversity

Research shows that companies with diverse executive teams are 9% more likely to outperform their competitors, while the least diverse companies may underperform by up to 27%. Additionally, diverse teams are 87% better at making business decisions, indicating that diversity is not just a moral imperative but a business advantage.

Marketing Without Diversity: A Recipe for Failure

A lack of diverse perspectives in marketing can lead to tone-deaf campaigns. For example, Kendall Jenner's 2017 Pepsi ad and H&M's controversial campaign featuring a Black child illustrate the consequences of insufficient representation in creative processes.

Actionable Steps for Marketers

To ensure representation, marketers should:

• Conduct representation audits to assess diversity within teams.
• Implement bias training to improve decision-making.
• Use inclusive focus groups for testing campaign concepts.
• Set accountability metrics for tracking diversity goals.
• Hold internal listening sessions to amplify underrepresented voices.

This issue isn't new. The Lavender Scare of the 1950s and rampant tokenism in the 80s and 90s remind us of the importance of ongoing vigilance in promoting diversity. It’s time for Minnesota business leaders to commit to genuine representation and inclusivity in every aspect of their operations.

Lorenz Esguerra is CEO of Folklore, a digital experience agency in St. Louis Park.