As the Trump administration continues to double down on stamping out initiatives around Diversity, Equity and Inclusion (DEI) across the U.S. government and businesses they work with, experts and business leaders this side of the border say, “not so fast.” Diversity is good for the bottom line and they have research to back it up, while others say what’s happening in the U.S. may not translate here for another reason.
“Our DEI policies are not based on quotas. They are based on the general principles that a society should treat all of its citizens fairly and equally—and not allow the systemic barriers that currently exist, whether they be based on race, gender or ethnic origin, etc., to continue to work against people,” Soma Ray-Ellis told Canadian Lawyer magazine in April. Ray-Ellis, who is a partner and chair of the employment and labour law group at Gardiner Roberts in Toronto, also said the ultimate goal for Canadian workplaces was to ensure they had the best people in their companies.
Here in Manitoba, some business leaders agree and say the reason they invest in diversity is because it means increased innovation and better profits.
“Companies with more gender-diverse teams see 25 per cent higher profitability. The reality is DEI should not be viewed as a cost-centre, but rather it’s an innovation driver. Diverse teams solve problems faster and outperform homogenous teams,” says Raj Patel, co-founder of Seva Capital Canada.
With more than 20 years’ experience in commercial corporate banking, Patel is referencing a 2020 McKinsey & Company report, which also found that ethnically-diverse companies also saw a 35 per cent increase in profitability over companies that were not as diverse. A follow up report by the company in 2023 saw those numbers increase to 39 per cent higher profitability for companies with gender and ethnically diverse teams.
Diversity is broad in its meaning. It goes beyond ethnicity, gender identification or religious backgrounds. Patel says it’s also about diversity of thought, socio-economic factors, abilities and life experiences.
“Ultimately, it helps an organization avoid groupthink. It fosters resilience. Diverse leadership is more adaptable and able to more quickly identify emerging risks or opportunities.”
Marty Maykut, president, Anvil Management with Price Industries, says overcoming bias can also lead to achieving a larger goal that could help society.
“I think as groups, we should all understand the biases we have. It could make us better. We need to shrink the income equality gap. We need to have working people better off. I think of everything we could do, if we can do that, it would be the biggest social change for positivity in Canada or elsewhere.”
For others, like Katie Hall-Hursh, vice-president of Megill-Stephenson, the pushback against DEI is mind boggling.
“I can’t reconcile how companies that are marketing to the masses are not emphasizing the importance of DEI because that’s what their customers are all representative of, those various groups. That’s no different in a number of our businesses that are consumer-facing. We need to be able to have our patrons, our customers, see themselves in the business they are buying from.”
Hall-Hursh points to the success subsidiary companies, True North and the Winnipeg Jets, have had by embedding DEI into their community outreach.
“You look at True North and the work being done to have a number of different communities represented on dedicated nights. It’s remarkable the reach the team and the club have had into our broader community. We’re tapping into those who previously didn’t feel welcome or see themselves in the space there and there is a concerted effort to try and open up the circle and include everybody,” says Hall-Hursh.
Michelle Cameron, the owner of Dream Catcher Promotions, says understanding barriers and bringing them down has been a recipe for success for her apparel company, the largest Indigenous-owned promotional operator in Canada.
“There are so many opportunities for Indigenous peoples. For me, every time we get a big contract, I look at it as an opportunity to grow the company and grow the workforce. Within our company…we spend our time investing in them and training them. A lot of Indigenous people coming from communities have a lot of barriers coming to the city and working, so we work with the people that we hire.”
Patel says it’s that kind of thinking that’s needed now more than ever.
“Canada has a great opportunity to unlock its potential by tapping into underutilized talent pools, whether it’s newcomers, women, Indigenous talent. There is a productivity gap that needs to be closed. We know the GDP per worker has stagnated here in Canada. The only way to unlock that is inclusive growth.”
In the end, he says embracing inclusivity will allow Manitoba and Canada to move past potentially tumultuous times that may be just ahead of us. Research also shows that when companies have a strong mission, led by values and DEI embedded into their overall strategy, they are better positioned to not only innovate, but adapt and grow.
This story was adapted from Episode 5 of the Manitoba Inc. Podcast. To listen to this episode in its entirety or any other episode, click here.
