Boards and executives are living through a highly complex time: combining the delivery of sustainable results, responding to investors, preserving reputation and keeping teams engaged, all at the same time. In this context inclusive governance is a strategic response.
It represents a management model that integrates people, culture and sustainability at the heart of corporate decisions. It is the point where performance and human values meet.
But the question many leaders still have is: how can we implement governance in practice that combines inclusion with financial results for the business? Let's delve deeper below.
How to structure inclusive governance in practice
Change begins within the decision-making structure itself. Inclusive governance is made up of method, data and shared responsibility.
Three fundamental steps guide this journey:
> Diagnosing risks and responsibilities
Before taking action, we need to understand the starting point. Where are the risks social and cultural issues that impact the company's reputation? Which areas have the highest turnover? Are there inequalities in promotion or remuneration between social groups?
These questions help to map vulnerabilities and responsibilities within the business. Ideally councils and boards incorporate the DEI agenda to governance agendas on an ongoing basis.
Practical example: include in the meetings of people's committees and sustainability indicators such as business development related to promotions by generation and race, for example. This data makes culture a strategic issue.
> Translate inclusion targets into management metrics
The second step is to turn DEI and belonging targets into business indicators.
This means applying the same rigor used to measure financial results, in the sense of comparing, evolving and linking objectives to performance.
When the board monitors, for example, the impact of inclusion on employee retention and customer loyalty, the agenda is no longer just reputational, but also economic.
Practical example: link the increased retention of black talent, from different generations, with a reduction in turnover and recruitment costs. This is the kind of evidence that shows the ROI of culture of inclusion and has greater potential to convince budget decision-makers.
> Ensure transparency and integration between areas
Inclusive governance is, above all, integration. Finance, HR and those involved in sustainability need to talk to each other using the same management language.
When people's data is accessible and interpreted in real time, decisions become safer and more consistent with the company's values.
The challenge is to create monitoring routines, with quarterly reports that connect indicators from people to ESG and compliance targets.
Practical example: present at board meetings an engagement dashboard that links inclusion in teams with closing contracts and use this evidence to define planning, policies, goals and campaigns.
How data strengthens inclusive governance
Every strategic decision is based on data. Companies that measure representativeness, engagement and belonging, for example, have a competitive advantage because they can foresee risks and prove returns.
Along these lines, PlurieBR has developed the People indicators, a solution that allows you to visualize, in real time, the complete journey of employees, from admission to dismissal, with filters by social group, area and leadership.
With this tool, you can:
- identify where there are equity barriers and/or unbalanced promotions;
- connect DEI to engagement and performance;
- measure the financial impact of inclusion in maintaining and generating business and reputation.
This information gives councils and boards of directors the security they need to bringing sustainability closer to corporate governance.
Results that leadership can expect
Companies that structure their governance in an inclusive way can achieve concrete and measurable results, such as:
- improvement in ESG scores and reputation audits;
- greater leadership engagement, who come to see inclusion as part of the performance;
- more transparent and ethical decisions, strengthening market value and investor confidence.
We can therefore say that inclusive governance is the next stage of corporate maturity and it organizes inclusion policies.
Companies that consider people and culture as part of their governance reduce risks and build consistent competitive advantage.
And PlurieBR is on the side of organizations that want to follow this path based on data and evidence.
Find out how the People Indicators module can strengthen your company's governance. Talk to our expert team here.