Diversity has always existed since time immemorial. However, it was only in recent years, and particularly in the past year, that this topic has taken center stage in society and the corporate world.
Speaking about diversity is not just work; it’s a purpose. It’s the opportunity to act as an agent of change for the kind of society we want. My purpose is to contribute to building a better world for my daughter and future generations.
In my diversity talks, I introduce myself in a unique way: “Pleasure to meet you, I am diversity!” I explain this because, even though diversity has gained prominence now, I was born carrying diversity within me: I was born a woman and black. Over the years, I’ve acquired two more types of diversity. Today, at 47, I am also a mother of a 6-year-old child. These are facts that make me proud but are often seen as problems by most companies.
Talking about racism, even with the acceptance of diversity making the topic more approachable, still means breaking a taboo. For a long time, we didn’t discuss it. I grew up in the 1980s/90s in Rio Grande do Sul (a state where black people are a minority), and we simply didn’t talk about it. It was as if it were forbidden. We closed our eyes and pretended it didn’t exist. Those who faced a racist act (now called bullying) were the ones who felt ashamed. Neither racism nor racial insults were considered crimes.
As if racism being a taboo were not enough, I bring another taboo into my profession: economics and finance. Talking about money is one of the biggest taboos in Brazil.
When I combine these two topics – diversity and money – I often hear the following statement: “You’re an economist! You’re from the exact sciences… So why are you talking about diversity? What does diversity and inclusion have to do with economics and finance?”
I respond naturally: “It has everything to do with it!” And from there, I shed light on the understanding that economics is not an exact science but a social science applied, involving people.
Economics studies people’s behavior, seeking to assist in the efficient use and application of scarce resources among various alternatives. Therefore, economics is made by people and for people.
I then invite constructive reflection by considering the Brazilian reality: Brazil was colonized by Indigenous people, Portuguese, and black people. It is internationally recognized as the most racially mixed country in the world. Therefore, diversity has always existed. Do you agree?
So why, in recent years, has this topic gained prominence in the political and social landscape and, especially, in the corporate world?
It’s simple: economic interests.
I present five reasons that support my view:
1. Brazil has the largest black population outside of Africa. 56% of the Brazilian population identifies as black or mixed-race.
2. The annual spending of the black population injects nearly 2 trillion Brazilian Reais (R$1.9 trillion) into the economy, accounting for 40% of the country’s total consumption. This figure even surpasses the annual consumption of the upper class, which is 528.6 billion Reais.
3. In higher education, black and mixed-race individuals already represent 38.15%, marking a growth of over 400% between 2010 and 2019. Moreover, for the first time in history, black and mixed-race students make up the majority in public universities, at 50.3%.
4. The percentage of black professionals in managerial positions is 29.9%. At the director and C-level, the representation is still very low, at 4.7%. However, the trend is upward, given the evolution of affirmative actions and changing attitudes in the corporate world. It’s important to note that even before companies widely adopted affirmative action, black and mixed-race individuals already made up the majority of interns and apprentices. In 2020, this figure grew by 197% compared to the previous year.
5. Movements for representation, such as the Black Money Movement, are growing, proclaiming, “If it doesn’t represent me, I won’t consume it.” In a recent study by the Croma Group, data reveals that 68% of black people prefer to consume and endorse brands that value diversity and where they see themselves represented.
These data and facts reveal a shift from Say’s Law, which states that “supply creates its own demand,” because what’s happening is that demand is driving supply.
Consumers are now demanding not only good products or services but also social contributions from companies. To win over consumers, it’s not enough for a company to be the best in the world; it must also be the best for the world.
Companies are seeking the sustainability tripod, where generating economic value alone is insufficient. They must also create social value. Thus, to stay active and competitive in the market, it’s necessary to be economically viable, environmentally responsible, and socially inclusive.
McKinsey data already shows that companies with diverse teams have 35% higher profitability than others. The Harvard Business Review provides data on a 50% reduction in conflicts, 17% higher engagement, and 11 times more innovation in diverse teams compared to homogenous teams.
Moreover, not considering diversity, especially in terms of inclusion, involves many risks, ranging from brand reputation to threats to the business’s continuity. Therefore, it is essential to understand that “the skills that brought us here may not be enough to take us forward.”
You don’t need to be an economist or a strategy professional to understand the societal changes already affecting the corporate world, as the customer and employee profiles have changed.
In other words, companies that resist including diversity and inclusion in their strategic agendas run the risk of being rejected by society in the future.
UBUNTU – I am because we are!
[1] IBGE data, 2020.
Dirlene Silva is an economist and a multi-faceted professional: an entrepreneur, educator, consultant, mentor, speaker, columnist, advisor, and author. Her mission is to “Demystify economics and finance.” She is also a Diversity activist, actively working as a catalyst for positive change in the world.
Recognized as a LinkedIn Top Voice & Creator, she has been named one of the 50 most creative individuals in Brazil and is one of the 10 women who have revolutionized the field of finance. Dirlene is acknowledged as one of the top 20 most influential LinkedIn influencers and has been honored with the Business Woman Trophy at The NORNS Awards.