The case for inclusive governance

Creating and sustaining an inclusive culture may be one of the most difficult challenges an organization can undertake.

A diversity initiative is more than a compensation review to evaluate pay equity. The ability to authentically engage diverse people and perspectives, and interact across cultures fosters inclusion and belonging, which are critical skills for our evolving world.

It’s increasingly important for the board to learn and practice inclusive behaviors. In doing so we see how making changes or developing new skills will make a difference to us, our colleagues, and the credit union. Those who strive to improve diversity and inclusion discuss and evaluate how these efforts affect not only their marketplace, but also their business strategy.

Creating an inclusive governance model is not one–size–fits–all. It requires adapting the approach to each organization’s unique characteristics. By advocating for and setting an example of inclusion at the board level, boards can move the organizational needle as it relates to diversity and inclusion.

Advocating for inclusion

Many employees see inclusion as a top factor in deciding where to work, and they want inclusion to be fundamental to their daily work experience. When boards think and act inclusively, it sends a clear message about what is important to the organization, according to the Deloitte Center for Board Effectiveness. 

Consider these five questions to start the conversation:

1. What is the credit union’s working definition of “inclusion,” and what is its vision for an inclusive culture? 
2. How do the credit union’s mission, vision, and values reflect inclusion?
3. What is the credit union doing to advance inclusion and where is it making progress? 
4. How can the board foster inclusion through its operating principles and behaviors? 
5. What tools and resources do you need to effectively and thoughtfully engage in discussions around diversity and inclusion? Does the board encourage curiosity and courageous conversations?

Cultivating inclusion

Building a culture of inclusion and belonging requires a shift from complacency to action.

Consider taking these steps to cultivate inclusive governance:

• Establish an organization-wide diversity and inclusion strategy and supporting practices.
• Form an inclusion-specific committee or designate an inclusion champion on the board as a starting point
• Review and/or update board composition, recruiting, and succession practices to include a focused effort to build a pipeline of diverse candidates. 
• Prioritize inclusion on the board agenda by regularly scheduling time during meetings to discuss and monitor diversity and inclusion goals and efforts, and measuring your progress. 

Why it matters

By fostering inclusion and building a diverse organization, we demonstrate our commitment to creating equity and fulfilling our mission of serving our members and communities in a strategic and sustainable way. The heart of diversity and inclusion is about shifting our behaviors and mindsets, and ensuring these efforts are at the center of decision-making.

It’s time for boards to recognize both their potential for influencing inclusion and their responsibility to do so, not only for the sake of employees but for their members and the communities they serve. 

ALISON CARR is the chief strategist and consultant with Your Credit Union Partner. Contact her at alison@yourcupartner.org.

This article initially appeared in Credit Union Directors Newsletter, which provides strategic insights for policymakers. Subscribe now to the print or PDF version.