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Many experts say DEI must start with the CEO, says Carlos Ruiz, board chair at Seattle Credit Union.
“But who does the CEO report to?” he asks. “And how many boards are well-versed in DEI topics?”
Without a deep understanding of DEI’s role and purpose, credit unions risk falling for the lure of achieving a quick win by “checking the box” to show they have diverse board members.
Tonita Webb, executive vice president/chief operating officer at the $910 million asset credit union, says lasting change instead relies on a long-term plan to educate staff and remake the board.
Seattle Credit Union began conversations about DEI seven years ago, and launched its plan about five years ago. Webb says the former City Employees Credit Union gained a state community charter in 1998.
“But that didn’t bring any diversity, so we knew we needed to change that,” Webb says.
Today, the credit union uses an experience matrix to review all the elements that comprise a qualified board member, including diverse demographic characteristics. “It’s a robust matrix,” Ruiz says. “We look and see where we need more expertise, voices, and perspective on the board.”
The result is a slate of strong candidates with “lived experiences” that help them ask tough questions about products and services.
Becoming more diverse requires courage from executive staff and board members alike.
For example, the Seattle Credit Union board weathered criticism from members when it decided not to recommend board candidates for election at the 2018 annual meeting because the candidates didn’t match DEI goals.
“You have to go against the status quo, especially when you’re doing it when not everyone else is, and DEI is not the buzzword,” Webb says.
Ruiz adds credit unions must help board newcomers from diverse backgrounds fight the “imposter syndrome” that makes them feel unworthy of sharing their opinions.
Ruiz leads a consulting firm, Sidekick Consultants LLC, that provides strategic and operations consulting to nonprofit organizations.
“As board members, you have to push through the fears and say, ‘My voice is equal to everyone else’s voice,’ ” Ruiz says.
Board diversity has led Seattle Credit Union to introduce new products aimed at diverse member needs, including a bike loan, a renter’s loan, emergency microloans, and citizenship loans for up to $2,400. Loans designed for Muslim members charge only fees since their faith does not allow them to pay interest.
Webb says all credit union leaders—both employees and volunteers—likely benefited from some form of privilege. As a Black, heterosexual woman she faced professional challenges but says she had a relatively easy path to marriage and parenthood compared to people in the LGBTQ community.
“It’s important that all of us understand we have biases and we walk in privilege,” Webb says.
Recognizing that reality can help credit union boards and executives have meaningful conversations along their ongoing journey toward meeting member needs through greater DEI.
Ruiz hopes that in the years ahead, more credit unions will ask hard questions about why so few people of color are promoted to senior executive or CEO positions, or invited to join the board.
“If you’re not incorporating the board in these efforts, you’re going to have limited effects at best,” Ruiz says. “It’s where you’re truly creating opportunity within a diverse community.”
Fostering diversity, equity, and inclusion (DEI) isn’t simply the right thing to do, it’s good for business, says Samira Salem, CUNA’s vice president of diversity, equity, and inclusion. More than 60% of credit union membership growth has come from people of color, she says, citing CUNA Mutual Group research.
“Think of DEI as a three-legged stool that includes the values case, the business case, and the policy/regulatory case,” Salem says. “Credit unions have a values case for DEI anchored in our cooperative principles and values of people helping people and serving all communities. Plus, our structure ensures credit unions’ success depends on that of our members and communities.”
Salem offers two business impacts of DEI:
According to a study by Deloitte, 69% of executives rate DEI as an important issue and 78% of executives report it increases competitive advantage. At the same time, 85% of CEOs whose organizations have a diversity and
inclusion strategy say it has enhanced their organization’s performance.