As the conversation around diversity, equity, and inclusion (DEI) faces challenges in certain regions, particularly in the United States, many Canadian organizations are continuing to prioritize this critical work. However, what is particularly fascinating about this momentum is that it’s not the large corporate players taking the lead, but not-for-profits. Despite having fewer financial resources, these organizations are doubling down on DEI efforts, while many deep-pocketed corporations are pulling back.
In the United States, DEI initiatives have been increasingly targeted. For instance, republican lawmakers in more than 30 states have introduced or passed over 100 bills to either restrict or regulate DEI work; as a result, American organizations have been more hesitant to audibly promote DEI (Forbes). Furthermore, former President (and now President Elect) Donald Trump’s call for the elimination of DEI programs in federal agencies and across public educational institutions had, at the time, reflected a broader political climate that made it more difficult for organizations in the country to maintain and promote their commitment to DEI.
However, despite being close neighbours, this shift has not been as prominent in Canada. From a legislative perspective, for example, the Canadian federal government’s plans to modernize the Employment Equity Act indicate ongoing efforts to improve DEI at a national level. This would include expanding the categories of employees for which federally regulated organizations must maintain statistics, demonstrating a commitment to evolving DEI practices in line with societal changes. Moreover, from an organizational perspective, as a consulting firm dedicated exclusively to delivering DEI services across a diverse range of clients and industries, we’ve never been busier.
Doing More with Less
What’s even more interesting is that the not-for-profit sector, which often has fewer financial resources than corporate giants, appears to be leading the charge. We’re seeing this more and more in our everyday work: a significant number of Canadian not-for-profits are implementing DEI initiatives. For instance, 80% of organizations surveyed by the Charity Insights Canada Project (CICP) reporting pursuing DEI initiatives (CICP’s 2023 Data Summit).
This begs the question: why are these smaller, resource-constrained organizations so committed to DEI when larger, wealthier companies are scaling back? Perhaps the answer comes down to organizational values. For not-for-profits, DEI isn’t just an item on a corporate checklist; it’s integral to their ability to serve diverse communities, to deliver on their social mission, and to create a stronger and healthier sector. These organizations understand that embracing DEI is critical, not only to their internal culture, but also to the individuals they represent and serve.
And while not-for-profits are leading the way, the rewards of this work are poised to follow. According to a 2023 report by McKinsey, there is a 39% increased likelihood of outperformance for those organizations in the top quartile of ethnic and gender representation versus the bottom quartile. We know that when organizations invest in inclusive workplaces, they create environments where employees can thrive, innovation can flourish, and belonging can take root, proving that the financial return on DEI isn’t just measured in dollars – it’s also reflected in employee engagement, retention, and the ability to attract top talent. Evidently, DEI is a long-term strategy that strengthens organizations from within.
For not-for-profits, DEI isn’t just an item on a corporate checklist; it’s integral to their ability to serve diverse communities, to deliver on their social mission, and to create a stronger and healthier sector.
Lessons from the Not-for-Profit Sector
For-profit corporations could learn a lot from this approach. DEI is often seen as mission-driven work, making it a natural priority for not-for-profits. Yet, we also know that DEI drives financial success, sparking innovation, engagement, and, ultimately, higher profits. As the economic, social, and political landscapes continue to evolve in Canada, not-for-profits are demonstrating that DEI isn’t just a moral imperative – it’s a strategic one. For-profit organizations can take note: a commitment to DEI can be a powerful, future-proof strategy that aligns purpose with profit.
Now is the moment to reflect: How is your organization embedding DEI into its core? If DEI is both a moral and strategic imperative, how will you leverage it as a catalyst for lasting impact?
Ready to drive DEI impact in your organization?
Canadian nonprofits are demonstrating that meaningful diversity, equity, and inclusion initiatives are achievable—and we’re here to support your journey. Whether you’re a nonprofit or a for-profit organization, we can help, with tailored DEI strategies to suit your unique needs.
Contact us today to learn more.