Equity

Psychological safety is more than a buzzword. It’s the foundation of trust, innovation, and team performance. When employees feel safe to speak up—without fear of judgment or retaliation—organizations unlock ideas, reduce errors, and strengthen engagement.

Why It Matters

Research by Google’s Project Aristotle found that psychological safety was the #1 factor in high-performing teams. Yet many leaders struggle to move from talking about safety to creating it.

Embedding Psychological Safety Into Leadership

Here are three practices leaders can start using today:

1. Model Vulnerability

When leaders admit mistakes or ask for input, they show that it’s safe for others to do the same.

2. Normalize Curiosity

Replace blame with questions: “What can we learn?” instead of “Who is at fault?”

3. Create Structured Feedback Loops

Use surveys, listening sessions, and 1:1 check-ins to actively collect employee input—and act on it.

Where Dignii Comes In

At Dignii, we help leaders:

• Measure psychological safety across teams
  
• Deliver coaching to build inclusive leadership skills
  
• Facilitate safe spaces for honest conversation

The result? Teams that collaborate more effectively, innovate faster, and deliver better outcomes.

Call to Action:

Are you ready to create a culture where people feel safe to speak up and bring their best ideas forward?
Dignii partners with organizations to embed psychological safety into leadership practices through data-driven insight, workshops, and coaching.
Let’s talk about how we can help your leaders move from intention to action.
📧 info@dignii.com | www.dignii.com

In a rapidly changing global economy, companies face a choice: adapt to shifting social expectations or risk becoming obsolete. Social conservatism—defined here as the resistance to progressive cultural change, including opposition to diversity initiatives, LGBTQ+ inclusion, gender equity, and modern workplace norms—may appear to some as a way to protect traditional values. But from a business standpoint, it’s increasingly clear: social conservatism costs more in the long run.

Talent Drain: Losing the Next Generation of Workers

Gen Z and Millennials—who will make up 75% of the workforce by 2025—are not only more diverse, but they also expect their employers to reflect progressive values. According to a 2022 Deloitte Global Survey, 49% of Gen Z and 44% of Millennials have rejected job opportunities based on personal ethics and company values. A conservative stance on social issues can quickly become a talent repellent.

Moreover, LGBTQ+ inclusive policies are especially important to younger talent. A study by McKinsey found that LGBTQ+ employees in inclusive environments are 1.4 times more likely to be proud to work at their company and 1.5 times more likely to promote their company to others. Losing out on these workers doesn’t just hurt culture—it damages innovation and recruiting pipelines.

Brand Reputation: Values Now Drive Consumer Behavior

Today’s consumers are not just buying products; they’re buying values. A 2022 Edelman Trust Barometer report found that 58% of consumers buy or advocate for brands based on their beliefs. Companies seen as socially regressive or discriminatory face growing boycotts, negative press, and loss of brand equity.

Take the backlash faced by companies that opposed same-sex marriage or took anti-LGBTQ+ stances: several faced significant drops in stock value, customer boycotts, and talent walkouts. In contrast, brands that support inclusive causes—like Ben & Jerry’s, Patagonia, and Salesforce—have not only maintained loyal customer bases but have outperformed their peers in long-term brand trust and consumer advocacy .

Legal and Regulatory Risks in Canada

In Canada, the legal and financial risks of maintaining socially conservative workplace policies are becoming increasingly significant. Federal and provincial human rights codes require employers to provide equal treatment in employment without discrimination based on race, gender identity, sexual orientation, religion, disability, and other protected grounds. Companies that fail to meet these standards face not only legal consequences but also reputational damage.

For example, in British Columbia, the Human Rights Tribunal awarded $176,000 in damages in a 2021 case where an employee experienced discrimination and harassment based on gender identity and expression in the workplace [B.C. Human Rights Tribunal, Nelson v. Goodberry Restaurant Group Ltd., 2021 BCHRT 137]. That amount was one of the highest awards for injury to dignity in the Tribunal’s history, signaling a clear stance against socially regressive workplace environments.

Meanwhile, federally regulated employers must now comply with the Pay Equity Act and the Employment Equity Act, which require proactive equity measures, annual reporting, and employee consultation. Non-compliance can result in fines, audits, and public scrutiny from the Canadian Human Rights Commission (CHRC). As the CHRC noted in its 2022 Employment Equity Audit Report, organizations failing to meet equity requirements face growing risks not just from regulators, but also from the public and their own workforce.

Additionally, ESG-related regulations in Canada are evolving. The Canadian Securities Administrators (CSA) are increasingly pushing for disclosure of diversity metrics and workplace equity policies for publicly traded companies. Inaction or outdated stances on inclusion can negatively affect investor confidence and eligibility for ESG-focused capital.

The takeaway: socially conservative policies not only increase the risk of human rights complaints, but also put companies on the wrong side of evolving Canadian law and investment standards.

In the United States, social conservatism often results in the absence or reversal of inclusion policies, which can open the door to lawsuits, government fines, and compliance issues. Discrimination lawsuits cost U.S. businesses over $64 million in EEOC settlements alone in 2020. These costs don’t include legal fees, brand damage, or internal disruption.

As more jurisdictions pass regulations mandating equal opportunity, transparency, and diversity disclosures (such as the EU Corporate Sustainability Reporting Directive or California’s diversity mandates), socially conservative companies risk noncompliance, fines, and exclusion from ESG investment indices.

Lagging Innovation and Adaptability

Companies that resist social change often resist other forms of change, too. A study by Boston Consulting Group found that companies with above-average diversity on management teams had innovation revenue 19 percentage points higher than those with below-average diversity.

Socially conservative companies tend to create more homogenous leadership structures, which reduces the range of ideas and approaches considered in decision-making. This not only stifles innovation but also limits a company’s ability to pivot quickly in crisis—an essential trait in today’s volatile economy.

Investment Risks and ESG Ratings

Institutional investors are increasingly scrutinizing companies for Environmental, Social, and Governance (ESG) performance. Companies that lag on social metrics—especially diversity, equity, and inclusion—are less likely to be included in ESG portfolios, which now represent over $35 trillion in assets under management globally.

In a socially conservative environment, companies are less likely to meet these benchmarks, which limits access to capital, decreases share value, and exposes them to activist shareholder campaigns.

Social Conservatism Is a Business Liability

In today’s environment, neutrality is no longer an option—and regression is a risk. While some leaders may see social conservatism as a way to preserve stability or tradition, the evidence is overwhelming: the financial cost of resisting inclusion, diversity, and progressive workplace values far outweighs any perceived short-term gain.

Forward-thinking companies are recognizing that doing the right thing and doing the profitable thing can—and must—be the same. Social progress isn’t just good ethics; it’s smart economics.

When the economy wavers, companies often tighten their belts—cutting programs and reducing budgets. But one investment that continues to deliver strong returns, even in downturns, is Diversity, Equity, and Inclusion (DEI).
Here’s why DEI is not just good ethics—it’s good business, especially when times are tough:

Better Problem-Solving and Innovation

Teams that bring different backgrounds, identities, and experiences to the table are more likely to challenge assumptions and generate creative solutions. In unpredictable markets, this diversity of thought is a critical advantage. McKinsey research shows that companies with diverse executive teams are more likely to outperform their peers on profitability.

Higher Employee Engagement and Retention

Economic stress can wear on employees. Inclusive workplaces—where people feel respected and valued—tend to have stronger morale and loyalty. That translates into lower turnover and higher productivity, helping companies avoid the hidden costs of constant rehiring and retraining.

Reputation and Brand Loyalty

More than ever, consumers and investors want to support companies that reflect their values. Organizations that maintain their DEI commitments—even during economic downturns—strengthen trust with stakeholders and stand out as leaders, not followers.

Expanded Market Reach

Diverse teams better understand the needs of diverse customers. That insight opens doors to new markets and helps tailor products and services more effectively—something every company needs when growth slows.

Bottom Line:
In tough times, the instinct might be to retreat—but the smarter move is to invest in what works. DEI is a proven strategy that drives resilience, innovation, and long-term value. It’s not a luxury. It’s a leadership imperative.