Beyond the bottom line: employee engagement & corporate citizenship

As part of our series on corporate citizenship, Beyond the Bottom Line, we explore how businesses are increasingly embracing values that extend beyond profitability, focusing on inclusivity, well-being, and community impact. In this context, the importance of employee engagement has become a crucial factor in shaping the success of modern organizations. As technology continues to reshape the business landscape, inclusivity and corporate citizenship have emerged as essential pillars for creating environments where individuals, teams, and communities can thrive.

These values are no longer merely enhancements to corporate branding; they form the foundation of workplaces that foster innovation, resilience, and long-term success. By centering employee engagement and inclusivity, companies are not just preparing for the future—they’re building it.

The challenge of retrofitting inclusivity

For many organizations, especially those built on traditional capitalist structures, integrating inclusivity and well-being into their operations can feel like a cumbersome afterthought. According to a 2020 report by McKinsey & Company, companies in the top quartile for ethnic diversity in executive teams were 36% more likely to outperform on profitability compared to their peers, yet many businesses still struggle to meaningfully integrate diverse voices into their decision-making processes.

This challenge is compounded by the fact that legacy systems and structures often prioritize efficiency, productivity, and profit maximization—values that may not naturally align with inclusivity or employee well-being. The result is often a disjointed approach where attempts to retrofit inclusivity into established systems can feel like superficial fixes.

A Deloitte study found that 61% of employees feel burnt out on the job, citing a lack of inclusivity and engagement as one of the primary reasons. When inclusivity is viewed as an afterthought, it exhausts advocates and alienates underrepresented groups, making it difficult to foster genuine connections within the workplace.

Building inclusivity into the foundation

To address these challenges, forward-thinking organizations are recognizing the need to integrate inclusivity and employee well-being from the outset. Instead of retrofitting inclusivity into a structure that wasn’t designed for it, companies are reimagining their foundations to reflect these values. This shift can be seen in the increasing adoption of frameworks like DEI (Diversity, Equity, and Inclusion), which aim to ensure that all employees, regardless of background, are given a seat at the table. A report by Glassdoor found that 76% of job seekers and employees consider a diverse workforce to be an important factor when evaluating companies and job offers.

By embedding inclusivity into the DNA of an organization, businesses create environments that are diverse, supportive, and empowering for all employees. For example, Salesforce, a company renowned for its commitment to diversity, integrated equality as a core company value early on. They have since seen increases in employee satisfaction and retention, as well as significant gains in innovation.

The role of corporate culture in tech

In the tech industry, where rapid growth and scalability are paramount, maintaining an inclusive and engaged workforce is both a challenge and an opportunity. As tech companies scale, the pressures of growth, efficiency, and shareholder expectations can erode collaborative, inclusive work cultures. Yet, tech companies that have prioritized inclusivity from the beginning, such as Microsoft, have seen significant benefits. Under Satya Nadella's leadership, Microsoft adopted a growth mindset that emphasized empathy, collaboration, and diversity—values that have helped the company not only thrive financially but also innovate more effectively.

On the other hand, companies that fail to address inclusivity in their growth phases often see declines in employee morale and engagement. A Harvard Business Review study revealed that high-growth tech companies with low inclusion scores face a 5x higher rate of employee turnover compared to those with inclusive environments.

Inclusivity as a driver of innovation

A growing body of research underscores the direct link between inclusivity and innovation. According to Boston Consulting Group (BCG), companies with more diverse management teams have 19% higher revenues due to innovation. BCG’s study found that employees in inclusive environments are 1.7 times more likely to be innovation leaders in their field.

Diverse teams are able to approach problems from multiple perspectives, making them more adept at generating creative solutions. For instance, Intel has embraced this by making diversity and inclusion core tenets of its strategy, with initiatives designed to recruit and promote diverse talent. This has not only enhanced innovation but also improved the company’s overall financial performance, with Intel generating $7.8 billion in new revenue attributed directly to improvements in diversity.

Redefining corporate success

In the modern business world, success can no longer be defined solely by financial metrics. While profitability remains important, a growing number of companies are embracing broader measures of success that include employee well-being, environmental sustainability, and social responsibility. According to PwC, 65% of CEOs globally agree that the purpose of a company should go beyond profits to include creating value for all stakeholders, including employees, customers, and communities.

Inclusivity and well-being are seen as drivers of sustainable wealth creation, allowing companies to tap into previously untapped potential. By elevating diverse voices and fostering collaboration, organizations can unlock new avenues for growth. This approach also addresses some of the inefficiencies of the traditional capitalist model, which has historically prioritized short-term profits over long-term sustainability.

The future of employee engagement

Looking ahead, employee engagement will continue to play a critical role in the success of organizations. Companies that prioritize inclusivity, collaboration, and well-being are better positioned to attract top talent, foster innovation, and build resilient, high-performing teams. A 2023 study by Gallup found that companies with highly engaged workforces outperform their peers by 23% in profitability and experience 41% lower absenteeism rates.

In conclusion, as technology continues to transform industries, the importance of inclusivity and employee engagement cannot be overstated. Organizations that build these values into their foundations will not only thrive in a competitive marketplace but also create lasting legacies of positive impact on their employees and society as a whole. 

This article is also published on LinkedIn. illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.