India: Yearly Rewind: Diversity, Equity And Inclusion (DEI)

India is presently the fifth-largest economy in the world and is predicted to become the third largest economy in 2027 (Financial Year 2028 for India). The growth of the Indian economy is attributable to various factors such as untapped markets, geopolitical situation and favorable policies and initiatives of the Indian Government. However, it is India's young and aspirational population, which makes 'human resources' an integral building block of India's economic growth. With the increasing importance of human resources, we see the emergence of new types of employment and the relationship between employers and employees (permanent and temporary). Another important aspect that fuels growth for businesses and the economy is 'sustainability'. In this section, we look at the intersection of sustainability and human resources through the lens of DEI - diversity, equity, and inclusion, and India's efforts towards promoting and achieving DEI goals and the impact of technology in achieving DEI. We have also covered some legal and practical issues faced by employees and employers while implementing DEI at their workplaces.

What is 'Sustainability'?

Sustainability reflects how an organization manages its environmental, social and governance (ESG) impact to create long-term value for its stakeholders, i.e., customers, investors, regulators, suppliers, etc. According to PWC's Global Investor Survey 2023, sustainability considerations in strategic decisionmaking and risk management by a company has emerged as an important investment decision-making factor. Investors are also keen to understand a company's sustainability plans vis-à-vis their business model, and the capital allocation to achieve these goals. Evidently, sustainability has transformed from a mere ESG compliance exercise to a strategic priority for businesses.

What does 'S' in ESG stand for?

The 'S' in ESG stands for 'social aspects', which includes how a company treats and manages social factors, i.e., people within and outside the organization. The fundamental social metrics include DEI, employee benefits, labour policies, etc.

Introduction to DEI

Simply put, DEI refers to the core value of an organization to include and fairly treat individuals from all walks of life, including people of different genders, races, ethnicities, religions, ages, physical abilities, and sexual orientations. Companies around the globe have been progressively implementing DEI strategies within their organization, pursuant to various factors such as: (a) global activism movements and campaigns for gender equality, racial justice, LGBTQIA+ rights; (b) stakeholder expectation; (c) investor focus on ESG metrics; (d) competitive advantage; etc. Data has shown a correlative relationship between business performance and diversity, which can be attributed to greater access to talent and increased employee engagement.

While the estimate for closing the global gender gap prior to the Covid-19 pandemic was 99.5 years, the World Economic Forum's Global Gender Gap report 2023 estimates it will take a whopping 131 years to achieve full gender parity at the current pace.¹ On the other hand, it is challenging to systematically estimate global gaps for LGBTQIA+ and disability inclusion with the limited data available.

What DEI looks like in India?

According to the World Economic Forum's Future of Jobs 2023 report, approximately 61% of the surveyed organizations in India expect the global trend of application of ESG standards to transform business and employment. Also, with respect to business practices, 28% organizations opted for more DEI programs and policies, and 24% organizations sided with offering more remote and hybrid work opportunities within countries.¹

According to EY's Humans at the Centre of Sustainability Transformation 2023 report, Business Responsibility and Sustainability Reporting (BRSR) in India by 1,040 listed companies evidence the strategic focus on DEI, robust training initiatives, and comprehensive employee support programs.² Yet, the data on gender diversity and inclusion of differently abled is grim.³ Women only constitute 23% of the permanent employees, with highest gender diversity in the IT and consumer services sectors at 34% each. India has been ranked 127th of 146 countries on the World Economic Forum's Global Gender Gap Index (WEF Index) in 2023⁴ . The WEF Index gives such a dismal ranking mainly due to the significant gap in economic participation and opportunity for women and decline in the share of women in senior positions and technical roles.

DEI efforts in India by Indian companies

Companies in India have been proactively implementing inclusive benefits for employees to attract and retain a diverse workforce. These benefits beyond the tried-and-traditional include pet adoption leave, menstrual leave, medical assistance directed towards mental health, fertility / adoption assistance, assistance in setting up remote offices, etc. Companies have started including programmes for their employees who require focused benefits. For instance, Accenture introduced medical benefits covering gender reassignment surgery for LGBTQIA+ employees and their partners; Procter & Gamble (P&G) introduced a programme for early preventive care and treatment for employees' children who have specific disabilities or special needs.⁵

Indian companies are also increasingly focussing on creating employment opportunities and actively promoting inclusivity for LGBTQIA+. With a focus on attracting and hiring more transgender individuals, companies are conducting targeted recruitment drives, implementing gender-neutral policies and providing gender-neutral facilities such as accessibility of washrooms to all employees regardless of their gender identity and ensuring non-disclosure of gender identity under application forms and other onboarding documents.⁶

Tata Steel launched its initiative aiming at transforming its workforce with 25% diverse employees by 2025, covering a wide variety of diversity dimensions including gender, LGBTQIA+, disability, caste, much before 2023. In 2022, Tata Steel launched LGBTQIA+ focused recruitment model called 'Queerious', and aimed to hire more through this model in the year 2023.⁷ Axis Bank has set a goal of having 30% women in its workforce by 2027.⁸ To further its DEI initiatives, the bank has put in place an inclusive hiring policy, imbibed inclusivity training in its induction programs, introduced policies and programmes to ensure gender inclusivity, as well as ensured accessibility for differently abled person in its infrastructure.⁹

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Footnotes

1. World Economic Forum, Future of Jobs 2023 (May 2023), access here

2. EY, Humans at the Centre of Sustainability Transformation (December 2023), access here

3. EY, Humans at the Centre of Sustainability Transformation (December 2023), access here

4. World Economic Forum, Global Gender Gap Report 2023 (June 2023), access here

5. Economic Times, India Inc Tailors Benefits to What Employees Want (26 February 2023), access here

6. Economic Times, India Inc is Opening Up to Trans Rights: One Hiring at a Time (09 April 2023), access here

7. Economic Times, India Inc is Opening Up to Trans Rights: One Hiring at a Time (09 April 2023), access here

8. Axis Bank, Annual Report for the year 2022-2023, access here

9. Axis Bank, Annual Report for the year 2022-2023, access here

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