Cooperatives value the principle of participatory governance; their structure encourages the sharing of resources among members and a democratic management style. But are cooperatives doing enough to embrace equity, diversity, and inclusion (EDI) in their practices and policies? And why should they care about EDI in the first place?
Some may think pursuing EDI is just about optics or ticking off some labour law checklist. When in fact, it has a real, tangible impact on an organization's success. This isn't about being "politically correct" - it's about positioning cooperatives for long-term growth.
Study after study shows that diverse organizations perform better financially. A McKinsey report titled "Diversity Wins: How Inclusion Matters" found companies with more ethnic and cultural diversity had 36% higher profitability than their less diverse counterparts. Why such a stark difference? Diverse leadership enables better decision making, happier employees, stronger talent retention, and greater innovation.
On the talent management side, organizations lacking an inclusive environment struggle to attract and retain top talent. High turnover diminishes institutional knowledge and increases the time needed for recruitment and training.Therefore, it is the responsibility of the leaders to regularly review the cooperative policies and procedures to ensure they are inclusive and do not unintentionally disadvantage anyone. This can be a simple desk-based exercise but can have a significant impact on employees. When people feel psychologically safe to fully participate, organizations benefit from their collective talents and creativity.Creating inclusive environments allow employees to bring their authentic selves and enables true teamwork.
Diverse viewpoints also mitigate risks. Homogenous teams are more prone to blindspots, flawed strategies, and stale thinking. Diversity provides a mosaic of perspectives that spots pitfalls and sparks creativity. This agility is critical in navigating today's fast-changing business landscape.
In essence, EDI powers innovation, resilience, and growth. By reflecting the makeup of their communities, cooperatives tap into a wealth of insights to understand and serve diverse markets. A vibrant mix of voices and ideas can unlock creativity and help cooperatives stay relevant, resilient and poised for long-term success.
Cooperative leaders must then consistently communicate the urgency of EDI through setting clear EDI goals, creating a safe space for dialogue, and reviewing policies for biases. Leading by example and matching rhetoric with action conveys EDI as an unconditional priority, not just lofty aspirations
Given their foundational values of openness and member-driven control, cooperative leaders have a particular obligation to spearhead these equity initiatives. By embracing this responsibility, they can set a powerful example for the wider community and the cooperative sector at large. Thankfully, the first stride toward this objective doesn't require any financial investment: an authentic commitment from leadership to EDI. A good starting point could be the 50-30 Challenge set by the Canadian government, targeting 50% gender parity and 30% minority representation in leadership roles - a worthy goal for co-ops to adopt.
If you are a cooperative leader and seek to truly embed EDI into your organization, the Women's Economic Council free of cost 50-30 training this fall is for you. By participating, you can gain knowledge and strategies to drive measurable change in your co-op around representation, policies, and overall culture.
Pic : iStock.com | RapidEye
