Talking Employment Law: Diversity, Equity & Inclusion - Code of Practice

In June this year, the British Standards Institute (BSI) released a new code of practice on Diversity, Equity, and Inclusion (DEI) in the workplace. The code offers employers helpful resources and practical advice to assist them in creating a work environment that supports, encourages, and promotes DEI. Please see the link here for a copy of the BIS code.

In this second podcast in the ‘Talking Employment Law’ series, Rebecca Dowle and Lucy Densham Brown, members of the employment team at Clarkslegal, summarise the key takeaways from the code of practice published by the BSI. This includes:

1. The five-step approach to understanding DEI
2. Business strategy for DEI
3. Policies, processes, and procedures
4. Impact of DEI on performance
5. Measuring progress and adapting strategy

If you have any questions about the code or how to achieve an effective DEI work environment, please contact our employment team who would be assist you.

Transcript

Intro:

RD:      Hello everyone and welcome to the latest in our new series of podcasts, where we will be discussing all things employment law. I am your host, Rebecca Dowle. I am a trainee solicitor in the Employment team. With me I have my co-host Lucy Densham Brown, a solicitor in our Employment team.

LB:     Hi everyone.

RD:     As it’s the festive season, today we are going to talk about Diversity, Equity and Inclusion also known as DEI. This season is all about coming together and being inclusive of each other’s traditions and cultures. And that, in a nut-shell, is what DEI is all about. 

Employers should not underestimate the importance of implementing policies and having good practices for DEI. Failure to do so could result in a competitive disadvantage when it comes to recruitment, as well as an increased risk of legal claims against the organisation.

LB:      That’s right Rebecca, it’s a really important issue for all employers, and because of that, in June this year, the British Standards Institute, or BSI, released a new code of practice on DEI in the workplace. 

The code provides practical guidance and workplace tools for employers to develop a framework for a culture that encourages, promotes and supports DEI in the workplace.

RD:     Yes and it appears to be really helpful for employers going forward.  Therefore, in this podcast today, Lucy and I will discuss the key takeaways from the standards, and offer some helpful tips for employers.  

Five Steps

LB:      The first key point we are going to discuss today is the simple five step approach. The Code recommends employers to follow this five-step approach when seeking to develop and implement a framework and culture that encourages, promotes  and supports DEI. The five steps are Equality, Equity, Diversity, Inclusion and Belonging. Rebecca please could you tell me a bit more about the first step?

1.    Equality 

RD:     Yes. The first step of the BSI’s Code is ‘Equality’. Essentially, equality is the state of being equal, especially in status, rights, or opportunities. It is the idea that each person should have the same opportunities and be treated equally, regardless of their personal or group needs. According to the BSI Code, employers should embrace this principle as a first step.

2.    Equity 

LB:      And that feeds nicely into the second step; ‘Equity’, which is the practice of giving everyone the same opportunities by acknowledging and making allowances for differences that would otherwise place them at a disadvantage compared to others.

RD:     Yes, and you can see how the first two steps could easily get confused. In summary, Equity demands fairness in every situation, and requires that individuals are provided with an equal opportunity to allow them to attain their maximum potential.

LB:      And in order for equity to be practised in the workplace, individuals must receive the specific resources necessary for them to have access to the same opportunities — not just what everyone else gets.

3.    Diversity

RD:     Thanks Lucy. So that makes a good transition into the third stage; “Diversity”. Diversity is described in the Code as a ‘fact’, a fact of working life. Essentially, diversity means a state which is not dominated by any one social or cultural group, but which also includes representatives from a number of different social and cultural groups. An organisation is deemed to be diverse when it includes factors which influence the identities and perspectives that people bring to their interactions at work.

LB:      That’s right, and the Code reflects on this point. The Code states that diversity is about acknowledging one another's differences and the reality that employees come from a variety of social and cultural backgrounds. 

RD:     Yes. And a diverse workforce facilitates learning from others who are not the same. For example, having a diverse workforce creates diversity of thought; individual members of a group think, act, and process information differently, therefore each individual can contribute a variety of viewpoints and ideas to a topic, discussion, or problem. This not only creates a competitive advantage for the organisation, but also promotes an inclusive and respectful working environment for its employees.

4.    Inclusion

LB:      Thanks for that Rebecca. So moving onto the fourth step in the Code; “Inclusion”. Inclusion is a positive action to accept each other’s differences. This requires employers to allow, or often invite, participation for all irrespective of differences. Inclusion goes beyond legal compliance, and requires a wider cultural change, a change in thinking and approach for all employees. 

RD:     Yes I agree. And inclusion is more than just including individuals from different groups; it is making each individual feel welcome and accepted as having worth and value in the organisation. 

LB:      Exactly. An inclusive culture enables individuals to feel valued, respected, and safe without the fear of being judged within the team or the wider organisation. This effectively gives people a sense of security and genuine confidence to take risks, be innovative, and bold in their ideas. Consequently, the organisation will have a happy work force with enhanced creativity in their ideas.

5.    Belonging 

RD:     Thank you Lucy. So that brings us neatly onto our fifth and final step; “Belonging” and I believe you touched on it slightly just now. The Code describes belonging as integration. It is the feeling, sense or knowledge of fitting in and being accepted unconditionally.

LB:      Yes that is right. Inclusion is the positive action and belonging is the feeling. Belonging gives the individual place and purpose, and allows them to particulate in the same way as others do without the conscious awareness of being different.  

RD:     And that’s really important, because this sense of belonging allows individuals to participate in the same way as others without any conscious awareness of being different. It should be the ultimate goal of an employer and a workplace, and will result in a cohesive and well-functioning team.

LB:      In summary then, organisations should take each of the five steps, namely, Equality, Equity, Diversity, Inclusion and Belonging, one at a time, and try to understand and translate each of these steps when seeking to implement DEI policies and practices. 

RD:     Thanks for that Lucy. So I guess the question that arises from this is, despite understanding each of the steps, how do businesses translate these into practice?

Strategy

LB:     Well that is what we come onto next. How does a business implement these five steps? The first thing to do is to develop a Strategy. A strategy that encompasses diversity, equality and inclusion. Businesses should think about how a DEI strategy is going to benefit them and what they hope to gain from implementing one. It’s important to have a goal in mind. And a lot of this will depend on the circumstances specific to the organisation. 

RD:    Okay. In terms of strategy, I saw that the Code recommends employers to think about a clear starting point or benchmark, and they can do this by considering the five questions such as:

1)   Where is the organisation today?

2)   Where does it want to be?

3)   What does it need to do to get to where it wants to be?

4)   What are the key challenges and how will it address them?

5)   How will it measure and track progress along the way?

LB:      That’s right Rebecca. So when coming up with a strategy, employers should be mindful of their workplace, including environmental and economic impacts. For example, does the company function across different countries, if so, business owners may need to consider local legal requirements. 

Policies, processes and procedures

RD:     Okay. So once employers have a strategy in place. The next thing to consider is a set of policies, practices and procedures to help promote DEI in the organisation.  Now, in the BIS Code, there is an effective table which breaks down the stages from implementation of policy, all the way to performance. Lucy, would you mind briefly describing those different stages for me?

LB:      Yes of course. So firstly, the organisation must determine a ‘Policy’ to define the organisations position. This is done by defining what the policy does, why the organisation is implementing it, and who it applies to.

Then the next stage is ‘Process’. In the process stage, the organisation must be clear on roles and responsibilities. It should determine who is going to be carrying out the policy and what exactly they are doing.

Then onto ‘Procedure’. Procedure includes setting out the actions and outcomes. The organisation should state when they are doing these actions and how are they going to achieve the outcomes?

Lastly, we come to ‘Performance’ – which defines and measures success. So how will the organisation check the policy is being adhered to and how will it check it is effective? 

It is important to use clear and simple language throughout. 

Impact of DEI on organisation performance

RD:     Thank you Lucy. Okay so let’s say, we understand the five simple steps for DEI, we have our strategy in place, and have incorporated and are enforcing these policies, practices and procedures to promote DEI. So what’s next? 

LB:      Next the company, or more so its internal or external stakeholders, will want to know the impact of DEI on the organisation’s performance. It’s important for the organisation to show that it is not just a façade of supporting DEI or else its credibility and reputation may suffer.

The organisation should conduct an impact assessment. Here it can be useful to go back and review the strategy; i.e. the aims and objectives that were stated at the beginning of the process. 

Measuring progress and adapting strategy

 RD:    Great. I also note that the Code emphasises the significance of measuring progress and adjusting the strategy for continuous DEI improvement. The Code goes into further detail about how to do this and it also has examples of self-assessment tools and employee questionnaires that the company could use to measure progress. 

LB:      That’s right, and if our listeners wish to review those resources, as well as the guidance document issued by the BIS, we have attached in the link to the podcast for reference. Also if you want any specific help with creating a tailored DEI policy, or a review of your existing one, our employment team would be happy to help.

RD:     Thanks Lucy. To wrap up then, the Code not only covers the principles, but more importantly it provides guidance, recommendations and a workplace toolkit that assists organisations in creating a framework for DEI that is tailored to their specific company needs. A helpful resource, that should definitely be utilised. 

LB:      Most definitely. And don’t forget, for those of you that have questions about the guidance, or employment law generally, please contact a member of the employment team.

RD:     Thank you for listening to Clarkslegal’s Employment Law series, please check back with us later for further employment updates, and from us all at Clarkslegal, we wish you a very merry Christmas.