Can organizational cultures be better than the societal cultures in which they operate?

In a recent webinar about retaining a diverse workforce during times of disruption, London Business School professor Herminia Ibarra summarized with five prongs of action. The last one was “Stay Mindful of Inclusion” and listed these points:

Openness -- it’s safe to express thoughts, ideas, and concerns

Equality -- a perception of an equal chance for all to succeed

Belonging -- a positive connection to each other and the organization

It occurred to me that corporations who have tried to create these inclusive environments have sought to be better than many of the societies in which they operate. #Blacklivesmatter and the unrest that continues night after night are waking us up to the reality that in the USA in 2020, millions of people do not feel safe, do not have an equal chance to live, let alone succeed, and do not have a full sense of belonging -- in and outside of the workplace. 

That leads us to the question:  Can organizational cultures be better than the societal cultures in which they operate? 

Or are organizations compelled to improve societal culture so that it can meet the standards they set for themselves? Corporate historian Nicolas Coupain points to a long history of this response. “Since the early 19th Century,” he explains, “there have been business leaders who sought to change society as a whole, while running profitable businesses. There are periods in which this approach has been more significant, depending on the state of society.” To him, we are now in one of those periods.

In response to #blacklivesmatter,  we’ve seen company after company commit to going beyond their traditional scope of influence on racism, taking a stand not just on the part of the world they control, but on the world they hope to influence through their power and resources. To not only work on the culture inside their walls, but to be agents of change on the deep-seated culture “outside” their walls. Why the quotation marks? Because maybe there is no inside and outside. Employees are filling up leaders’ inboxes with demands for action, and those leaders may be developing a much more profound understanding that workers are the same person whether they have badged into a workplace or not; they do not leave their hearts -- their ambitions and passions as well as  their fears and pain -- at the workplace door. We are perhaps developing a greater understanding that when it comes to inclusion, including racial inclusion, our corporate cultures exist within the societal cultures in which they operate. 

Experience shows us that no one -- not corporations, not institutes of higher education, not municipalities -- can meet well-intentioned goals for diversity without first having an inclusive culture. There’s a growing recognition  that when it comes to D&I, the “I” has to come first.  If you do not have an inclusive culture that is safe, values the potential of every human being equally, and has a sense of deep-seated togetherness, your diversity efforts are likely to fail, no matter your scale. 

The question therefore is how to create or maintain such an inclusive culture, inside or outside your organization. As Melanie Richards, Deputy Chair KPMG said as a panelist in the same LBS Webinar, it is clear that "there is no corporate magic wand to solve this." Yet recent corporate statements, with their bold tone and commitments, gave her hope: "a statement signals intent -- an intent to which you can be held accountable for action." 

In both their intent and their action plans, I find these statements promising. Many are addressing issues at the heart of inclusive culture and indicating they are ready for the work of culture change:

• We hear the voice of employees asking their companies to step up -- and their company leaders listening and responding.

• We see leaders making a personal commitment -- not from a position of knowing, but from positions of unknowing, curiosity, and empathy. 

• We see companies not only basing their statements on their purpose and values -- but also using them as a way to dialogue and learn, not tell and impose. 

• We see a recognition of the full constellation of stakeholders -- and often meaningful commitments to each one.

• We read words that don’t seek to soften deep-seated barriers to inclusion: racism, bigotry, and discrimination. These are indications that they acknowledge what really needs to change.

• We see companies taking a stand -- and putting their money where their mouth is through donations. 

Are we on the cusp of profound change, finally ready for the tough part of inclusion on a societal level? In firmly stepping outside of its walls and committing to actions for societal culture change, Corporate America has raised expectations. We as leaders will be held accountable, not just for what happens in our companies and for our employees, but also for doing our critical part to promote a safe, equal and welcoming society. 

Note:  Early drafts of this blog included links to lots of company posts & statements. There are so many good examples that it was impossible to choose between them, and so many hyperlinks made for very confusing reading. I invite readers to add links to examples in the comments -- let’s build the collection together.

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Katherine Armstrong connects culture, strategy and purpose to deliver meaningful transformation. She is available as an advisor, consultant and leadership coach through her company, Cusp.