Diversity. Equity. Inclusion. Seldom have three words been packed with so much potential, yet also mired in controversy. They can be bounced around like political footballs; serve as HR “to-do” boxes aimed at maintaining a status quo; or be harbingers of real change that accelerate the success of the people, companies and industries who understand that there’s a business case to be made for DEI and widen their strategic planning accordingly.

“Diversity is real. Diverse people do things differently. Diverse means we often live differently; have different priorities; eat differently; raise our kids differently; dress differently; wear our hair differently; we even worship differently,” John Fleming, a consistent advocate of the direct selling industry with a storied, decades-long career at Avon, who also helped build Direct Selling News (DSN) as its one-time Publisher and Editor-in-Chief, explained.

Fleming’s wide-angle perspective on DEI comes from decades spent in executive board rooms, where his thinking and performance track record supplied valuable input on strategic planning and problem-solving. But he’s well aware that undercurrents existed, as typically the only African-American in the room and a looming temptation for HR to check a few “diversity” boxes.

“I passed on many invitations to be part of committees and special task forces when I knew or surmised that the real objective was to try to check a few boxes without disturbing the status quo,” Fleming said.

So, Fleming comes at DEI with a uniquely informed perspective—one encompassing his life’s work within the direct selling industry, as well as one formulated in the potential and eager anticipation of its future.

It’s with the future in mind that DSN—supported by Fleming’s expertise—rethinks DEI and pushes its evolution from a one-dimensional HR-driven program to a multi-dimensional business growth strategy. This is the first in a series of articles we’ve entitled, The Business Case for Diversity, Equity and Inclusion.

Our hope is that readers use this as a primer to better understand DEI; sort out the state of DEI in their companies; and expand their thinking about its potential in helping them meet strategic goals.

Subsequent articles in this series will feature case studies of direct selling companies who have adopted DEI as a business growth strategy. We want to look in-depth at their decision making, action plans and results. If your company is actively participating in a multi-dimensional DEI business growth strategy and would like to share with our readers, please reach out to DSN Publisher, Patricia White.

The Multi-Dimensional Potential of DEI

Often, DEI falls under the auspices of HR. It is here where programs are established to foster a welcoming work environment for under-represented groups, while simultaneously protecting the company by eliminating bias and unfair discrimination in the workplace that could constitute a violation of law.

And while those efforts are vital to employee, cultural and corporate growth as well as maintaining proper legal standing, Fleming believes DEI holds even greater potential when considered as a multi-dimensional business strategy. The business case for DEI lives not in the one-dimensional HR world, but rather in the realm of market growth potential, strategic business acquisition, customer/representative targeting and results-oriented communication, all of which drive profitability.

Going Global or Staying Home

Going global has long been the steppingstone of choice by direct selling companies seeking to make leaps forward in market growth. And it’s no wonder looking at the World Bank’s 2022 Top 15 GDP list.

To make a successful run at any international market takes commitment to research and fostering in-depth understanding of economic and cultural landscapes very different than the United States.

“It has always been interesting for me to observe that when we decide to go global for strategic growth reasons, we are actually committing to DEI. Yet, we may not be as committed when we manage the same enterprise locally,” Fleming said.

Fleming’s point is that there is intrinsic value in companies parsing out and capitalizing on the strengths and potential we have here at home when it comes to DEI. No country outpaces the US in terms of GDP, standing at $20.89 trillion. And our segmented annual purchasing power of ethnic- and age-based groups mirrors the GDPs of entire countries.

“The United States is the most diverse marketplace in the world. However, many businesses go global to access talent pools, reach new markets and hopefully activate new growth opportunities,” Fleming said.

He believes there are cost-effective growth opportunities right here at home—driven by the same DEI principles now used by companies in international expansion—without the challenges faced when going global.

“Theoretically, a new company could build a successful enterprise targeting any one of the consumer segments. Some of the segments are as large as other countries, and they are all within the borders of the United States of America,” Fleming said.

Evolving Business Growth through DEI

How then might a company take effective steps toward a multi-dimensional DEI business growth strategy here at home? The first step in making a business case for DEI is knowledge.

Fleming vividly remembers a mandatory course called “Finance for Non-Finance Managers” during his years at Avon. “It helped to change my thinking from the more emotional, optimistic mindset to a more strategic mindset.”

Such a course teaches the essence of the business model and the reasons for its existence. It focuses on how the business grows and the importance of gaining market share in the marketplace. It also teaches people how to think strategically with clarity and purpose, no matter which department is leading a conversation.

The goal, Fleming said, is to develop a keen, company-wide understanding of the financial components necessary to grow a business. It is possible to cultivate a group dynamic and mindset that is mindful of growth, regardless of proximity to sales and marketing efforts.

Who Do You Invite to the Table?

In his experience, Fleming believes there to be three steadfast rules, if not universal laws, direct selling companies should follow when strategizing about new business acquisition.

1/ It is difficult to understand the motivations of women without including women in the conversation.

2/ It is difficult to understand the nuances of ethnic groups and their cultural differences if such representation isn’t included in the conversation.

3/ Pictures and data don’t tell the whole story. Relying on data alone often results in a lack of understanding about diverse groups of people and misunderstandings about DEI and its potential.

An estimated 80 percent of consumers are more likely to buy from brands that tailor experiences to customer preferences, and emotionally connected consumers are two times more valuable than highly satisfied ones.

In the past, direct selling as a channel of distribution, was highly dependent on the field of independent contractors to lead new business acquisition. Grassroots prospecting recruited customers and distributors/consultants primarily from existing field networks.

But today, companies have more options and greater control. They use marketplace research and data to strategize new business acquisition, and then provide intermediaries in the field with the right tools, at the right time and using the right messaging to reach target markets more effectively.

So, who sits around the conference table giving input during new business acquisition strategy sessions makes a big difference.

According to Innovation, Diversity and Market Growth, a white paper put forth by researchers from the Center for Talent Innovation, teams that have one or more members who represent the gender, ethnicity, culture, generational or sexual orientation of a target market are as much as 158 percent more likely to innovate effectively for that end user.

Granted, some geographies are less diverse than others, and therefore have less diverse hiring pools. And the industry has long favored sales and marketing candidates who possess experience related to direct selling. But Fleming posits, neither is an “acceptable rationale for not pursuing diverse talent that might serve to improve every facet of the business model, especially the sales and marketing effort.”

Colleges and universities are in the business of doing this. They recruit raw talent and potential, then proceed to develop those individuals over time. Perhaps the direct selling industry would be better served if it looked at leadership recruitment in the collegiate way—discover, mentor and develop.

“It appears logical that those who represent the various segments might bring new and relevant ideas to the conversations and decision making,” Fleming said.

But as Forbes reported, “Implicit biases are driving certain employees out of leadership positions and resulting in a less diverse workforce, impacting the bottom line.”

According to the American Psychological Association, “Individuals’ perceptions and behaviors can be influenced by the implicit biases they hold, even if they are unaware they hold such biases. Implicit bias is an aspect of implicit social cognition: the phenomenon that perceptions, attitudes and stereotypes can operate prior to conscious intention or endorsement.”

“Throughout the world, we have economies that are built, developed and managed by people who do not look or think exactly the way we do, nor speak our language. They not only survive; they also thrive and compete effectively,” Fleming explained.

Choosing Who and What is Most Important

It is certainly possible to live within and operate a business in the most diverse country in the world without appealing to broader, more diverse audiences. But doing so is not without risk.

Business models without a DEI focus may limit their effectiveness in attracting broader marketplace support that stakeholders and investors expect. They may also hinder the ability of their brand partners and affiliates to expand their independent businesses in a marketplace of opportunity that is now larger than a single individual’s identity—a marketplace that is increasingly built upon numerous authentic voices coming from diverse groups of people.

“We can choose what we do and how we do it more so than our counterparts in any other nation,” Fleming said. “Therefore, we can choose to determine what matters most.”

That applies to not only consumers whose loyalty direct selling companies covet, but also the contemporary decision makers who seek effective strategies to expand available market share segments.

Perhaps, it’s time to re-frame those conversations and ask a new question: What is our effective market share within the segments that are important to us?

“Once we clearly understand the business case for being diverse in the decision-making ranks of the company, the clearer we become about the value to be gained from thinking and planning that offers a diverse perspective. To think, plan and budget effectively, how we attract diverse segments requires representation that understands the targeted segments,” Fleming said.

It is precisely what direct selling companies do when opening international markets. “Why would we ever think that we can operate differently locally, if we are intent upon growing market share?” Fleming asked.

Share Your DEI Success Story

We’d love to hear how your company adopts a progressive, growth-oriented approach to DEI. Please contact our Publisher Patricia White at pwhite@directsellingnews.com. You could see your company’s story featured in a future article in DSN.

From the January/February 2024 issue of Direct Selling News magazine.

The post The Business Case for Diversity, Equity & Inclusion first appeared on Direct Selling News.