In recent years, more and more organizations have added the word “equity” to describe fairness and equality in everything from representation to promotions to pay. Equity ensures everyone has access to the same opportunities.
While diversity is an outcome in terms of numbers of people from under-represented groups and inclusion often assesses how welcoming a culture can be, equity refers to the processes in place to ensure everyone has full opportunity.
This report explains the difference between equity and equality and offers corporate equity success stories.
Words matter. The introduction more than a decade ago of “inclusion” to “diversity” in corporate titles and programming meant everyone, including white men, were part of the solution and corporate cultures were seen as critical to D&I success.
In recent years, more and more organizations have added the word “equity” to describe fairness and equality in everything from representation to promotions to pay. Equity ensures everyone has access to the same opportunities.
While diversity is an outcome in terms of numbers of people from under-represented groups and inclusion often assesses how welcoming a culture can be, equity refers to the processes in place to ensure everyone has full opportunity.
You may have heard the analogy “Diversity is being INVITED TO the dance, inclusion is being ASKED to dance and equity is allowing EVERYONE TO choose the music.
Here’s a definition of all three from the Ford Foundation:
Diversity is the representation of all our varied identities and differences (race, ethnicity, gender, disability, sexual orientation, gender identity, national origin, tribe, caste, socioeconomic status, thinking and communication styles, etc.), collectively and as individuals. We seek to proactively engage, understand, and draw on a variety of perspectives. We believe that the solution to the problems we hope to address through our grant making can be found by affirming our similarities, as well as by finding value in our differences.
Equity seeks to ensure fair treatment, equality of opportunity, and fairness in access to information and resources for all. We believe this is only possible in an environment built on respect and dignity.
Inclusion builds a culture of belonging by actively inviting the contribution and participation of all people. We believe every person’s voice adds value, and we strive to create balance in the face of power differences. We believe that no one person can or should be called upon to represent an entire community.
An important distinction is between equity and equality. A common misconception is that equity and equality mean the same thing and that they can be used interchangeably. Equality is about sameness, focusing on making sure everyone gets the same thing. Equity is about fairness, ensuring each person receives what they need.
Organizations that focus on equity have made explicit commitments to focus on the systemic inequities within their processes and systems such as pay, promotion, career advancement, and opportunities.
Organizations have imbedded equity into their mission but have addressed it through specific and targeted strategies that align to their business objectives. Most typically, we see gender equity, pay equity, and racial equity.
The tech company has achieved gender pay equity in every country globally in which it operates, which means that after an audit, it’s found that women and men are paid equally for similar work. In the US, Apple also has achieved pay equity for employees of color compared with white employees. The company is committed to a best practice of an annual audit to examine gender and, in the US, racial/ethnic disparities in pay and adjusts if any inequities are found. To also ensure pay equity, Apple is following a global best practice of not asking job candidates for salary histories (which perpetuates existing inequities). In 2019, the company received a top ranking for pay equity from Arjuna Capital’s Gender Pay Scorecard in the technology industry.
In order to create equity in hiring and promotions for LGBTQ employees at its own company and at corporations worldwide, the entertainment company in 2015 launched its Equality Institute in the US and took it globally in 2017. Disney partnered with organizations such as the non-profit Out & Equal Workplace Advocates and for-profits,such as the hospitality/food-services company Sodexo, to hold events at its resorts for hundreds of corporate representatives.
