Diversity: A Business Opportunity

RAPAPORT... Having a workforce that is more diverse not only makes goodbusiness sense, it makes good economic sense. Companies with a more inclusiveemployee base - i.e., a greater proportion of women and ethnically/culturallydiverse individuals - are more competitive in the global market, according toresearch by management consulting firm McKinsey & Company. More diversecompanies not only make more money, they're shown to attract top talent, bemore innovative, and retain more of their staff.After examining over 1,000 companies in a dozen countriesfor its January 2018 "Delivering Through Diversity" study, McKinsey found thatfirms in the top quarter for gender and ethnic diversity were respectively 21%and 33% more likely to see higher-than-average profits than those at thebottom. This was especially true on the management level: Diversity inexecutive teams had the biggest impact on financial performance. While awareness of the correlation between profits andinclusiveness is growing, McKinsey says progress is slow. Companies in allindustries, including diamonds and fine jewelry, are grappling with how toincrease representation of diverse talent, gain an understanding of wherediversity matters most in their businesses, and create an inclusiveorganizational culture to reap the benefits. Women in focus The diamond and jewelry industry has much work to do on thisfront. "Based on traditions, trust and handshakes, both the diamondand jewelry industries are sectors predominantly governed by mainly white men,and both were heavily saturated with family businesses," says Victoria McKay,founder and managing director of the UK-based Women's Jewellery Network (WJN)."It's unsurprising that the trade lags behind more forward-thinking sectors,such as fin-tech, that do not have this heritage of male-dominated power andprivilege." Most organizations, she continues, are focusing on gender asthe "easiest" mountain to climb with regard to inclusion. "The malerepresentation in directorate positions the world over remains significant, andeven where there are more women, there is a lack of intersectionality. It isalmost impossible to find representation of other protected characteristicssuch as race or disability." That said, she sees progress. Social media has a powerfulpart to play, she believes, as do the changing demographic and generationalshifts across the globe. Jewelry industry legal consultant Cecilia Gardner hasobserved a "heightened focus" on gender equality, promotion of diversity, andprotection of vulnerable groups when it comes to standard-setting. Gardner, whoworks with the Responsible Jewellery Council (RJC) in that field, also laudsthe attention the US State Department devoted to women's empowerment in themineral and jewelry supply chain at a recent conference Indeed, laws are becoming more forward-leaning, according toTiffany Stevens, CEO and president of the Jewelers Vigilance Committee (JVC).California and New York, where a lot of US jewelry business occurs, are leadingthe way with laws that include requiring greater female representation onpublic company boards, generous parental leave, sexual harassment training, andnon-discrimination against natural hair (which particularly affects blackemployees). She recommends that businesses consult with an employment attorneywho is well versed in the local laws. "Suss out one before there's a problem,"she advises. Gardner believes the greater focus on diversity instandard-setting will have a positive impact. In particular, she reports, the Women'sJewelry Association (WJA) is using the results of its recent Gender EqualityProject survey - which focused on gender factors in workplace practices - todevelop training and mentorship initiatives that address these issues. Pushing them out? McKay cautions against approaching diversity as abox-ticking exercise. "Companies may be actively trying to recruit more womento their senior team, but continue to use the same media. Their adverts maycontain the same unconscious bias, and their policies are inflexible andprohibit the selection of swathes of women who also have childcareresponsibilities to consider when seeking employment." And it's not just about numbers, she continues. "I've beenin many boardrooms across the diamond industry where not only have I been theonly woman, I have also been made to feel unwelcome, or that my views were notbeing taken seriously because of my gender." She acknowledges that it can be difficult to stay and fightthe good fight. Independent female entrepreneurship is on the rise, especiallywithin a younger demographic. On the one hand, she says, "this is brilliant,but if we're seeing women leave corporate to forge their own paths, that meansthere is an even shallower pool of female leaders to choose from." Many of the industry's women entrepreneurs, includinggoldsmiths and designers, are the thought leaders driving the responsiblesourcing movement, adds Gardner. People like designer Dana Bronfman, bloggerand Anza Gems president Monica Stephenson, and Anna Bario, owner of sustainablejewelry brand Bario Neal, "are pulling others along with them," she cheers. Conversely, the trade runs myriad risks if it does notimprove diversity, warns McKay, "from alienating women and deterring them fromcareers in jewelry, to limiting product sales through lack of insights inmarketing and promotion of goods. Women have a lot of value to add, and weremain the largest consumers of jewelry in every market you care to choose." 'I don't see color' Of course, representation in the business environment isabout more than just gender. Employee diversity encompasses race, ethnicity,religious beliefs, educational and socioeconomic background, sexualorientation, culture, and disabilities as well. "When you talk about inclusion, it can be a challengingsubject," says Nyasha Pitt, a London-based marketing and branding expert aswell as WJN's communications director. "People feel attacked. I often hear: 'Idon't see gender or color. I give the job to the best person.'" As a leading black woman in the diamond and jewelryindustry, she says the best person for the job is the one who brings thediversity the organization needs to be successful. Having a range ofperspectives, cultures and backgrounds is a key driver of innovation, shemaintains, and it helps create organizations that are effective and resilient. In her own experience, such diversity has been hard to find."I've often felt underrepresented; that goes for the boardroom all the waythrough to the way products are marketed," she relates. "Ironically, as Ientered the trade in a directorial role in a jewelry institution (theBirmingham Assay Office), I became a visible influencer and role model almostinstantly. So I often had black jewelers...approach me because they were sopleased to see someone like them.... They didn't feel intimidated, or thatthey'd be rejected or dismissed out of hand." The position she's in is a "very curious" one, she reflects."As an influencer, I appear in trade magazines often - either because I amcontributing or I've been photographed at industry events. Often I am the tokenblack person by default. I think more people should feel uncomfortable aboutthat fact." Culture- and religion-driven nuances can prove challengingas well in terms of shifting the diversity dial, says McKay. For instance, "asa woman working in the diamond industry, I came to learn that a Jewish man,dependent on his level of faith, may or may not shake my hand, or may or maynot close the door for a meeting. And I have learned to respect that this isn'tabout me being a woman - it's about his faith and beliefs. As a religiousperson, [just] his being there, in my presence, speaks volumes for hisconfidence in our business.... Therefore, in my mind, I must be the globalcitizen I believe myself to be, and respect his right of choice. I'd also pointout that I know the context runs the same man-to-woman as woman-to-man" - thatis, religious Jewish women often observe the same restrictions vis-? -vis men. "To create a level playing field for everyone, we need tofind balance," McKay stresses. "It's okay to see each other's differences. Whatisn't acceptable is to unfairly prejudice anyone based on their nuances." LGBTQ outreach Nearly two-thirds of millennials believe organizations aremore innovative when they have a culture of inclusion, according to the 2018Deloitte Millennial Survey. In fact, the 2016 edition of the study found thatnearly half looked for diversity when sizing up employers. Pitt adds that 40%of Gen Z-ers consider themselves global citizens, not part of a given race orplace. Millennials also have an evolved opinion on same-sexmarriage, which has largely been a lost opportunity for jewelers. There's beenlittle outreach since the 2015 passage of marriage equality in the US, sayMatthew Perosi and George Blair IV, founders of the Jewelers Equality Alliance."We've seen two same-sex couples featured in mainstreamjewelry ads: Tiffany in 2015 and Zales in 2016," says Perosi. "At thetime, it was hip to try and capture the early market. Both ads featured thin,white people, but bonus points for having their models in proximity to eachother, and touching." Since then, both the Diamond Producers Association (DPA) andDe Beers' Forevermark brand have run ads with LGBTQ relationships in them.However, Blair and Perosi point to flaws. In Forevermark's "I Take You, UntilForever" clip, "there is a scene with a lesbian couple where they are presentedas mothers instead of portrayed as tender couples, like everyone else in thatvideo," says Perosi, suggesting that this was "a safe way of presenting asame-sex relationship without it being obvious." And the DPA's "Real Is Rare"ad featuring a lesbian couple "wasn't particularly viral or promoted." In general, he and Blair have not seen much courtingfrom the trade. "When we launched the Jewelers Equality Alliance, wereceived pats on the back for being so forward," recalls Perosi. "But when weoffered training for proper pronoun usage and inclusiveness, we receivedpushback from many jewelers that felt they did not need training." They describe the general vibe as "If I ignore it, it'll goaway," or "It's not my problem," or worse yet, "If I advertise same-sexcouples, it will scare away my regular customers." They cite homophobia as oneof the challenges, adding that it tends to go hand-in-hand with misogyny,classism and racism. "The jewelry community is not intersectional," saysBlair. "It barely acknowledges that women buy their own items." Same-sex male couples typically prefer to buy their ringsonline, according to Perosi, "instead of dealing with the potential shame thatmight be cast upon them when they walk into a jewelry store that surrounds themwith large diamonds and semi-mount rings." It's an experience he and Blair canconfirm from their own relationships. "Jewelers tell us with regard to same-sex marriage that theynever turn away a customer looking to buy engagement or wedding rings. Yet theydon't comprehend that the appearance of their store portrays traditionalmarriage values and appeals to women while shunning men," Perosicomments. "Most jewelry stores have a paltry selection of men's jewelryand never advertise to male customers, yet expect men will walk into theirstore when they're ready to buy wedding rings." Plenty to improve The WJN's Pitt acknowledges that the world is changing:Marriage rates are down, relationship dynamics are shifting, and jewelry is notan imperative. When it comes to attracting and keeping customers, she says,communication is key. "We need to be willing to have uncomfortableconversations, to be forgiving, to recognize that none of us are perfect orhave all the answers." Practically speaking, she continues, businesses need torecognize "that having one senior person of color isn't enough. Implementingblind recruitment processes and looking at where jobs are advertised are somebasic steps which would open up senior appointments to a broader pool oftalent." In turn, a more diverse staff can provide fresh ideas thatcan help increase inclusion. "The very best person to advise on what it's liketo be a person of color is a person of color, so if you have access to thatinsight, use it," she urges. On the retail level, Perosi suggests that "ads for weddingjewelry should no longer include both bride and groom, [but] one or the otherso customers can see what they want to see. Additionally, ads should showbrides and grooms in more diverse wedding-day clothing." The important thing is to move forward. "This isn't aboutattacking the way it has always been done," says Pitt. "It's aboutunderstanding that this is how we need to do it now if we want to attract youngpeople of broad backgrounds to look at jewelry as viable." De Beers: Doing the workGlobal diamond producer De Beers has been giving diversity more than just lip service, according to thought leaders in the trade. Tiffany Stevens of the Jewelers Vigilance Committee (JVC) cites De Beers as a prime example of a company doing it right - one that's pursuing a comprehensive approach to inclusion and diversity, or "I&D," in its business model, from mining to retail. The company has seen progress since it formally launched its I&D strategy in 2017. Out of the 13 members of De Beers' executive committee, four (31%) are women and serve in key commercial and operational roles. Moreover, women accounted for nearly a quarter of senior leadership positions in 2018, up from 17% in 2016, according to a recent article in Mining Weekly."The aim of De Beers' strategy is to provide equality of access to opportunity and build an environment where people can come to work and achieve their full potential," Katie Fergusson, the company's social impact senior vice president, told the publication. While the plan was initially launched with a focus on gender, she said, it was difficult to do in isolation. So it was expanded to look at I&D in three main areas: leadership and culture, talent development, and working practices. At De Beers mines in South Africa, for instance, the company has introduced lactation rooms for breastfeeding mothers. This and other changes are being rolled out throughout the group, including efforts to equip more women with the skills to take on technical roles, and addressing inadequate facilities and limited personal protective equipment for women - impediments that impact their performance. De Beers also has a partnership with UN Women to improve the livelihoods of more than 1,200 female micro-entrepreneurs in South Africa, Botswana and Namibia, including a $3 million investment in programs to advance women and girls in these diamond-producing countries. In Canada, meanwhile, it's offering young women from indigenous communities scholarships in science, technology, engineering and mathematics (STEM).Stevens also notes De Beers' community-development efforts: its support of the local businesses and people surrounding its mines, and partnerships with the host governments to achieve these objectives. This article was first published in the October issue of Rapaport Magazine.Image: Matthew Perosi (left) and George Blair.