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Details for HR to familiarise themselves with include the full spectrum of diversity dimensions that drive a more inclusive and equitable work environment, including aspects related to roles and positions within the workplace.
In May 2024, Malaysia's CEO Action Network (CAN) in Malaysia introduced the country's first holistic Diversity, Equity & Inclusion (DEI) Implementation Guide, a resource tailored for the Malaysian corporate landscape.
This guide aims to provide businesses with a comprehensive framework to integrate DEI principles effectively and authentically. "As a living document, the Guide acknowledges the evolving nature of DEI discourse and practices, committing to adapt and grow in tandem with emerging trends, insights, and regulatory landscapes. It encapsulates a forward-looking perspective, ensuring relevance and resilience in the face of DEI's dynamic progression", the Network stated.
Key components of the Guide include:
#1 Understanding DEI: The Guide begins by clarifying the concepts of diversity, equity, and inclusion, providing Malaysian corporates with a solid foundation to explore DEI's multifaceted nature. It emphasises the business case for DEI, demonstrating how inclusive practices can enhance performance, innovation, and market reach.
#2 DEI in the Malaysian context: By examining Malaysia's demographic makeup and cultural nuances, the Guide tailors DEI principles to address local realities that are both relevant and impactful.
#3 Stakeholder engagement: The Guide advocates a holistic approach, emphasising the significance of engaging a broad array of stakeholders — employees, customers, suppliers, partners, shareholders, and the community at large — fostering a culture of inclusion that transcends organisational boundaries.
#4 Implementation approach: Detailing a phased DEI maturity model, the guide provides actionable steps for organisations, ranging from foundational DEI awareness to advanced strategies and best practices, each supported by real-world case studies from Malaysian corporates.
"This guide is not just a resource but a call to action for Malaysian corporates to lead with conviction in DEI, recognising that while the guide is principally designed for them, its principles are universally applicable. We encourage a broad spectrum of organisations, including public institutions and NGOs, to engage with its contents", CAN said.
"Through collaborative effort and shared commitment, we can amplify DEI's impact, fostering an environment where diversity is celebrated, equity is advanced, and inclusion becomes the hallmark of societal progress, heralding a new era of corporate responsibility and community solidarity in Malaysia."
As further highlighted, having a practice of DEI in the workplace goes the distance where the bottom line is concerned — improving overall business performance, talent attraction and retention, and access to new markets.
For HR and employers to note, excerpts of the Guide are shared below:
The dimensions of DEI
Stated in the Guide, for many Malaysian corporations, DEI efforts often focus on gender diversity – especially at the Board level or overall workforce. While this is a good starting point, it's important to recognise that diversity encompasses far more.
To foster a truly inclusive and equitable work environment, businesses need to understand and embrace the full spectrum of diversity dimensions.
Three key areas these dimensions fall into
Internal dimensions of diversity refer to those characteristics that are generally inherent. They include aspects such as age, race, ethnicity, gender, and physical and mental abilities.
- Importance: Acknowledging internal dimensions is crucial as they often form the core of an individual's identity and significantly influence one’s life experiences and perspectives.
External dimensions encompass characteristics that are largely influenced by external factors and life experiences and may change throughout a lifetime. These
include citizenship, educational background, marital status, parental and caretaker status, socio-economic status, appearance, and work experience.
- Importance: External dimensions greatly shape an individual's worldview and lifestyle. Understanding these helps in appreciating the diverse life paths and choices of employees.
Organisational dimensions refer to the aspects related to one’s role and position within the workplace. These include job function, seniority, work location, union
affiliation, and management status.
- Importance: These dimensions influence how individuals interact within the organisational structure and culture, affecting their work experiences and opportunities.
Decoding key terms and misconceptions
All terms in the context of DEI.
Power dynamics: This refers to the ways in which power is distributed and exercised within a society or organisation, often shaping interactions and opportunities along the lines of race, gender, class, or other identity markers. These dynamics can influence who gets heard, who makes decisions, and who has access to resources.
Misconception: A prevalent misconception is that power dynamics are always explicit and easy to observe. In reality, power structures can be subtle and embedded within the norms and practices of organisations or societies, making them difficult to discern and address.
Example: A leader in an organisation may not recognise the significant influence of their position on employees, particularly those from underrepresented groups. If employees perceive that expressing their concerns or challenges could lead to negative repercussions or be dismissed, they may choose to remain silent.
Privilege: This refers to the unearned advantages or benefits granted to individuals based on certain aspects of their identity like race, gender, or socio-economic status, sometimes at the expense of others who do not have those same advantages.
Misconception: There's a misconception that privilege equates to a complete absence of life's difficulties. In reality, privilege is context-specific and situational; a person may have advantages in one area, such as socio-economic status, yet face challenges in another, like gender or race, illustrating that privilege in one domain does not preclude disadvantages in others.
Example: An academically accomplished minority individual might enjoy professional respect due to their educational background yet still encounter racial prejudices,
showcasing how privilege in education does not nullify racial discrimination experiences.
Unconscious bias: Unconscious biases are implicit attitudes or stereotypes that affect our understanding, actions, and decisions unconsciously, often contrary to our conscious intentions.
Misconception: It is often believed that unconscious bias is only harboured by overtly prejudiced individuals. However, these biases are a common human condition and can be present in anyone, regardless of their conscious commitment to equality.
Example: A hiring manager might inadvertently overlook a candidate with a physical disability, assuming they will require significant accommodations or will not fit into the team, despite the candidate's qualifications and ability to perform the job with or without reasonable accommodations. This bias may occur even if the manager believes they are assessing all candidates equally.
Psychological safety: This refers to an environment where individuals feel secure and confident to express their thoughts, ideas, and concerns without fear of punishment or humiliation. For marginalised groups, psychological safety is crucial for enabling full participation and engagement, ensuring that all voices are heard and valued equally.
More terms and misconceptions can be found on pages 10-14 of the Guide.
A multi-stakeholder approach
Recognising the influence a company's actions has on the diverse stakeholder groups, it is imperative they adopt a multi-stakeholder approach to DEI, the Guide highlighted.
Employees: DEI for employees is the most well-adopted. Yet, there exists a significant power imbalance between employees, particularly those from underrepresented or marginalised groups, and management. This imbalance can manifest in employees feeling unable to voice their opinions, concerns, and experiences related to DEI issues. Therefore, it's crucial for companies to address these power imbalances and create safe, supportive environments for all employees.
Example: To foster an inclusive environment, a Malaysian technology firm launched a mentorship programme aimed specifically at supporting employees from underrepresented groups. This programme facilitates their engagement with senior leaders, enabling a direct channel for expressing concerns, contributing ideas, and participating in DEI policy development, thus ensuring equitable advancement and representation within the company.
Customers: While customers have the collective power to influence market trends and brand reputation, individual customers might feel powerless against large corporations. By understanding and addressing the specific needs of underserved or disadvantaged groups, companies can innovate and broaden their customer base, effectively opening new market segments and reinforcing customer loyalty.
Example: Through universal design principles, a company can make its offerings accessible to all customers, including those with visual or hearing impairments. For instance, introducing software with voice recognition and screen readers to enhance usability for a broad audience.
Suppliers and partners: Companies should relinquish their dominant position and strive to establish fair and equitable terms of contracts with suppliers and partners. This ensures that suppliers, particularly smaller ones, are not exploited due to the significant power wielded by companies. Additionally, companies can leverage their influence to promote awareness and advocate for DEI principles, fostering positive changes throughout the supply chain.
Example: A multinational corporation in Malaysia could implement a policy that integrates DEI principles in supplier contracts and also incentivises suppliers to uphold DEI standards, using its purchasing power to promote diversity and inclusion among smaller, local businesses.
DEI in the Malaysian context
In Malaysia, the push towards DEI in corporate settings has mainly emphasised gender diversity, as highlighted by CAN. However, Bursa Malaysia has mandated the disclosure of Common Indicators which includes age and gender group diversity for board and employees. Companies are encouraged to also provide disclosure on employees’ ethnicity and disability.
On the wider front, Malaysia has also made a series of international commitments, including:
- Convention on the Elimination of All Forms of Discrimination against Women (CEDAW 1979, ratified by Malaysia in 1995): Focused on eliminating discrimination against women in all areas of life.
- Convention on the Rights of Persons with Disabilities (CRPD 2006, ratified by Malaysia in 2010): Dedicated to ensuring the full and equal participation of persons with disabilities in society.
- Malaysia's Engagement with the Sustainable Development Goals (SDGs): Reflects the nation's commitment to addressing global equality and equity issues, including specific alignment with SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities).
To that effect, companies in Corporate Malaysia are encouraged to tailor their DEI strategies to not only comply with national standards but also contribute to broader societal goals.
Further sharing on this segment of the Guide can be found on pages 17-25 of the Guide.
Implementation approach
Looking at implementing DEI practices in the workplace, the Guide suggest a phased approach — one that is aligned to the 'Five stages of DEI maturity' model, and takes a tiered approach.
The guide showcases full details on these tiers, as well as sample surveys that companies can use to assess their DEI approach — check these out on page 28 onwards.
ALSO READ: 6 ways Malaysia can enhance inclusivity and the work environment for women
Lead image & infographics: DEI Implementation Guide by CAN
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